Potentials of mobile banking on provision of financial services in rural areas: Experience from, Tanzania

This study examined the potentials of mobile banking in provision of financial services in rural areas of Tanzania. Specifically the study examining the types of financial services provided by mobile phone banking in rural areas, assessing the awareness of rural people on the use of mobile phone banking services and examining the challenges facing mobile phone banking in provision of financial services in rural areas. Both primary and secondary data were collected by using a stratified sampling method from a total of 92 respondents by using questionnaires and interview to obtain different opinions and reactions towards potentials of mobile banking on provision of financial services in rural areas of Tanzania. The findings show that financial services provided through mobile phone banking in rural areas are sending cash/money, cash withdrawal; buy credit/airtime, check account balance, and bills payment remain very low especially in rural areas. However villagers have little knowledge on how to use mobile banking. It is ttherefore recommended that mobile phone subscribers should extend education to rural areas on uses and significance of mobile banking services and network accessibility in rural areas should be improved