The global financial institutions operations have changed lately to accommodate the best global economy, one that is more efficient and manages the risks that may tend to occur due to humanly errors. This is also affected by the invasion of technology and digitalizing monetary activities lately.
This situations bounds not only big financial institutions such as Banks but as well as Microfinance and Micro-credit institutions, ones that operate under the medium and lower scales of operations based on their capital and populations. However, the population facto tend to change and affect the microfinances and micro-credit institutions as well as SACCOS being the financial institutions that happen to accommodate the huge number of clients in the present days. This is because they provide loans at least affordable rates of interest compared to those of Banks, although not always true in practice. But also they lend small amount of money which happens to be the most required by their clients, in other word their terms of lending as less complex compared to those of the Banks.
Tanzania as well happens to be not on an island of her own, she shares the global economic challenges and changes as any other country. It is in light of this the government passed a bill hence put in place the Microfinance Act, 2018 with the great purpose of monitoring and regulating the performance and the operations of the financial institutions in Tanzania. To give the execution power in practice the law sets the Central Bank (Bank of Tanzania) become the central regulator of the microfinance sector. In accordance to the Microfinance Policy, 2017 there are many angles that in practice affected the entire sector and hence caused deterring for a couple of years.
One which happened to be a most vital and crucial setback was the applications and the usage of FinTech systems in operations of the financial institutions in Tanzania. According to researches made and practical studies in the operations of these microfinance service providers in Tanzania that led to the Microfinance policy, 2017; lot of errors happened to be those manly or human, caused by human.
Therefore, to avoid this the law requires the microfinance service providers to deploy the Fintech systems by the end of November 1st, 2020. This is to make sure the risk is managed but also above all ease the operations of the financial institutions and make them more productive as the result they increase in economy.
Tanzania happens to be a lucky country already by having a domestic Software solutions of a system which basically designed to suite the international standards. Our premium software Amala Core Banking, offers to financial institution a numerous features such as Loan Management, Savings Management, Share Management, Client management, SMS Notification Campaign, Loan Calculator and so many others. Amala Core Banking has a team of experts that work both onsite and remotely 24 hours every day to make sure that financial institutions reap the best of their investment in our system.
Visit us today to Add Value to you financial operations at; https://amala.co.tz or Dial to us: +255 76 652 1258