Original research

BRIDGING THE FINANCIAL GAP: THE ROLE OF MOBILE MONEY LENDING IN ENHANCING FINANCIAL INCLUSION IN TANZANIA

Pages 169-178

10.61552/JIBI.2026.02.006

Julius Macha, Benjamin Nkanda

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Abstract: This study examines the influence of mobile money-based lending services on financial inclusion in Tanzania, with a specific focus on the supply-side perspective. In Tanzania, where a significant portion of the population remains unbanked or underbanked, mobile lending has emerged as a potential solution to bridge the financial access gap. A quantitative research design was employed, and data were collected through a structured questionnaire distributed via Google Forms to representatives from key financial institutions. Out of 384 questionnaires distributed, 302 were completed and valid for analysis, resulting in a response rate of 78.65%.
Descriptive statistics were used to summarize the institutional responses, while inferential analysis was conducted using SPSS. Multiple linear regression was applied to evaluate the impact of affordability, convenience, and accessibility on financial inclusion outcomes. The results showed that all three supply-side factors significantly and positively influence financial inclusion, with accessibility exerting the srongtest effect, followed by affordability and convenience.
These findings underscore the critical role of financial service providers in enhancing financial inclusion through strategic service design. To improve outcomes, providers should prioritize the development of user-centric digital lending platforms, implement transparent and affordable pricing models, and invest in infrastructure and outreach initiatives. Nonetheless, the study’s institutional focus and cross-sectional design limit its ability to capture end-user experiences or dynamic trends over time. Future research should integrate demand-side perspectives and adopt longitudinal approaches for a more holistic understanding of digital financial inclusion.

Keywords: Mobile money-based lending, Financial Inclusion, Accessibility, Convenience, Affordability.

Recieved: 12.07.2025. Revised: 21.08.2025. Accepted: 17.09.2025.