The global economy will likely contract by over 5 per cent in this year 2020 due to the impact of COVID-19, according to the recently released Global Economic Prospects. The deepest global recession in eight decades is sending hundreds of millions into poverty, and recovery appears to be far off. Still, the crisis has encouraged incentives for economic transformation and adoption of digital business models, including increased use of digital financial services (DFS).
Financial Inclusion is described as the method of offering banking and financial solutions and services to every individual in the society without any form of discrimination. It primarily aims to include everybody in the society by giving them basic financial services without looking at a person’s income or savings. Financial inclusion chiefly focuses on providing reliable financial solutions to the economically underprivileged sections of the society without having any unfair treatment. It intends to provide financial solutions without any signs of inequality. It is also committed to being transparent while offering financial assistance without any hidden transactions or costs.
Digital financial inclusion was a development priority before the COVID-19 outbreak, now it is indispensable for both short term relief and as a central element of broad-based, sustainable recovery efforts. There are challenges to accelerating digital finance, but also, increasingly, an understanding of how to overcome these obstacles and reduce risks.
However, the situation, especially for the African financial institution do not seem so affected but as the global crisis the impacts are yet expected to face the financial sector especially the Microfinance stakeholders of whom occupies a large number of people and half of Microfinance service providers are not digitalized.
In Tanzania particularly the financial service providers are required in accordance with the laws governing to comply with the Microfinance regulation by 1st November 2020.
One of the crucial requirement to comply with the law is by making sure that Microfinance Service Providers in their capacity has deployed a digital financial inclusion system to manage their operations.
Financial inclusion systems intend to help people secure financial services and products at economical prices such as deposits, fund transfer services, loans, insurance, payment services, etc. It aims to establish proper financial institutions to cater to the needs of poor people.
Amala Core Banking, is the FinTech Solution which intends into supporting the basic financial activities of financial service providers. Amala Core Banking avails to its user’s quality loan products, management features reliable for the Microfinance service provider of all scales, such as Loan Management, Client Management, Savings, and Share. Also with Amala Core Banking your microfinance business is guaranteed with 100 per cent of support for 24 hours 7 days, from the team of a dedicated people that works at the pleasure of serving you.
We value every task and issue reported by our clients and respond immediately to make sure that the operations of our clients run smoothly and hence they can realize the benefits from their investment.