Abstract:
The aim of this study was to assess the penetration of FinTech on livelihood
outcomes of CRDB bank and UCB clients in Moshi Municipality. A cross-sectional
research design was used to collect data from 360 respondents. The questionnaire tool
and interview guide were employed to collect primary data which was analysed
through descriptive statistics and ordinal logistic regression data analysis techniques.
The study found that, the most commonly used FinTech was agency banking as a way
of and second most common was mobile banking while internet banking was the least
commonly used FinTech, but with at least half of respondents having been accessing
banks through this method. Moreover, the study found that time saving, transaction
costs, security, investment opportunities and reliability were statistically significant
influencing users’ livelihood outcomes since the p<0.05. Furthermore, the study
found that the clients in the study area generally hold positive attitudes toward using
FinTech. Nonetheless, the study revealed that low network coverage, power
breakdowns and insecurity of money were the major challenges facing FinTech. The
study concludes that use of FinTech is significant to improve users’ livelihood
outcomes in the study area. The study recommends more efforts to improve the
usefulness and trust by improving technology and infrastructures for internet banking.
The study suggests further study to be made to compare the effects of Fintech on
livelihood between commercial banks and community banks.
