Mobile Money Transfer System and the Quality of Financial Services in SACCOs Perceptions of TANESCO SACCOs' Members and Staff

Abstract

Mobile Money Transfer (MMT) is the transferring of money from one person to another through the use of mobile phones. MMT was initiated in 2003 in Kenya but gained popularity around 2007 and spread to other East African countries including Tanzania, where it has been adopted by financial institutions and other service-oriented organisations. The main objective of this study was to assess the use of MMT by looking at how it affects the quality of financial services, especially by looking at four selected quality indicators which are accessibility, security, cost and timeliness. A survey design was used and data was collected using questionnaires and face to face interviews. A total of 93 members and 3 SACCOs' staff were interviewed to obtain the data. The data collected was analysed qualitatively using reflexive and interpretive techniques and quantitatively using SPSS. The findings indicate that in the opinion of members of TANESCO SACCOs, the use of MMT has greatly improved the quality of financial services by improving accessibility and security, and reducing costs and time to access financial services while bluring geographical barriers by making financial services available anywhere at any time. It is recommended that other financial institutions in Tanzania, especially those operating in rural areas should also consider adopting MMT as a medium of transferring money and encourage the members to use this system as it is cheaper, safer, less costly and quicker than other methods available today.