Innovative financial technologies and livelihood outcomes

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.