Evolution of the Microfinance Sector in Tanzania with FinTech

Financial technology is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance

The advent of smart analytics allows financial services companies to mine the wealth of consumer data to understand and service customers better. Technology has also helped organizations develop innovative financial services. The development of better payment systems is a key challenge for organizations.

Some of the most prominent applications of fintech are mobile payments, automated investment apps are online investment management services that employ mathematical algorithms to provide financial advice with minimal human intervention.), cryptocurrency, online lending.

Broadly, the term “financial technology” can apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping. Since the internet revolution and the mobile internet/smartphone revolution, however, financial technology has grown explosively, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.

Fintech now describes a variety of financial activities, such as money transfers, depositing a check with your smartphone, bypassing a bank branch to apply for credit, raising money for a business startup, or managing your investments, generally without the assistance of a person. 

Because of the diversity of offerings in fintech and the disparate industries it touches, it is difficult to formulate a single and comprehensive approach to these problems. For the most part, governments have used existing regulations and, in some cases, customized them to regulate fintech.

In Tanzania particularly FinTech is now playing a big role in transformation of financial activities. The government through its operating and regulatory authorities have put in place an initiative to make the financial service providers in Tanzania comply with the requirements among many FinTech. To operate their financial activities through modern digital technology and to begin with has out in place the Microdinance Act, 2018 together with the Microfinance Regulations to bind all financial service providers to new set rules that pulls the sector to operate digitally.

This is the reason Amala Core Banking system comes in place to tackle the problems of the MFI’s in Tanzania. This system avails to its user smart, quick, accurate, effevtive, reliable and affordable solutions. With Amala one will be able to manage loans, clients, shares, savings and multiple features that users will benefit from Amala Core Banking. This is the new era of promoting and adding value to the financial sector and operators in Tanzania.

Visit us now at https://amala.co.tz to automate you financial services today.

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