Africa-Press – Tanzania. THE Bank of Tanzania ( BoT) has launched two systems designed to improve financial services across the country and address the challenges faced by service users.
The systems are Financial Complaints Management System (known as ‘Sema na BoT’) and Bank of Tanzania Fintech Regulatory Sandbox.
During the launch of the systems in Dodoma on Thursday, Minister for Finance Dr Mwigulu Nchemba said that the systems will significantly contribute to the growth and effective management of the financial sector and enhance the quality and expansion of financial services.
He added that they will also facilitate timely access to more affordable services and increase the number of users of formal financial services.
The minister said that the BoT Fintech Regulatory Sandbox provides direct opportunity for fintech companies and financial service providers to test their innovative financial technologies under the supervision of the central bank, while benefiting from regulatory and procedural flexibility.
“The goal is to promote the development and implementation of modern financial service solutions while ensuring they meet standards for consumer protection and safety,” Dr Nchemba said.
He said the Financial Complaints Management System will provide special opportunity to address complaints related to the use of financial services effectively and transparently.
“I believe this system will provide solution to various complaints we have been receiving, including exploitative loans. It will help restore public confidence in using formal financial services and enhance accountability among financial service providers regulated by the Bank of Tanzania,” he said.
He added that many people face challenges in this area largely due to avoiding formal procedures.
“When you follow the proper formal process, it may come with certain conditions, but it also offers valuable opportunities. I urge all Tanzanians to embrace a culture of formalizing the activities they engage in,” he said.
He said that financial technology is a major catalyst for the growth of the financial sector, commending BoT for creating an environment that promote innovation in financial technology.
The minister further said that the number of Tanzanians using formal financial services has increased, reaching 76 per cent in 2023 from 57 per cent in 2013.
He said the current pace of Tanzanians using formal financial services is satisfactory and that by the year 2028, Tanzania will reach 85 per cent of users of inclusive financial services.
Dr Nchemba said the current pace of Tanzanians using formal financial services is satisfactory and he is confident that the country will attain its 85 per cent target of users of inclusive financial services by 2028.
For his part, BoT Governor Emmanuel Tutuba, said that despite good efforts to increase access to inclusive financial services in the country, there are still various challenges, including lack of friendly environment for the growth of technology and innovation in the delivery systems of formal financial services in the country.
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