Displaying items by tag: Financial

Loan management software is a cloud based end to end lending application used to improve the quality, turnaround time and service for end-customers. It enables banks to improve the agility, transparency and efficiency of their lending solutions whereas, Loan management system means an innovative, turn-key, end-to-end securities-based lending platform that connects lenders seeking high-quality, collateralized loans with borrowers requiring convenient access to credit.

In December 2018, the parliament of the United Republic of Tanzania enacted a Microfinance Act which seeks to clarify the framework under which microfinance institutions are governed, regulated, and operate. The Act provides for licensing, regulation and supervision of a highly segmented microfinance sector in Tanzania Mainland and Zanzibar. It concretized a commitment made by the Ministry of Finance and Planning and the Bank of Tanzania (BoT) to transform the microfinance sector through better integration and regulation. This was to be realized through the National Microfinance Policy 2000 (NMP 2000), however the implementation of the policy was unsuccessful, leading to its revision in 2017. The 2018 Microfinance Act was enacted “in order to operationalize NMP 2017” whose main objective was to create an enabling environment for the microfinance sub sector to contribute to poverty reduction.

The SACCOS are important institutions for providing financial services to marginalized communities and must be harnessed to help alleviate poverty in Tanzania and Africa in general. There is a need to build the internal capacity to meet the challenges that constrains their development. Unfavorable government policies, weak governance and management systems must be addressed. They should cooperate with the government and other development partners for better policy and legislature environment. Furthermore, in order to succeed to succeed in the new era of globalization (liberalized), the Savings and Credit Co-operative Societies (SACCOS) in different communities need to be people centered, be owned and controlled by members, should have a good leadership and management accountable to its stakeholders, and should be sensitive and responsive to the needs of its stakeholders and to changes in its internal and external environment.