Mobile Phone Banking and Poverty in Tanzania

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prepared by ; KULWA MANG''ANA
+255715900190
MOSHI UNIVERSITY COLLEGE
KILIMANJARO

TOPIC : MOBILE BANKING IN TANZANIA

TITLE : MOBILE BANKING AND INCOME POVERTY

BACKGROUND TO THE PROBLEM
The use of Mobile phone has spread in a very broad manner, becoming the first communications technology to have more users in developing countries like Tanzania. With mobile communications, mobile banking (M-Banking) has great potential for extending the provision of financial services to unbanked people through a technology that is both familiar and widespread. However, many of these mobile users live in informal and/or cash economies, without access to financial services that others take for granted. Indeed, across the developing world, there are probably more people with mobile handsets than with bank accounts (Porteous, 2006) Inability to access financial services prevents consumption smoothing and investments in health, education and income generating activities, thus limiting growth opportunities for the poor. So, providing access to financial services has significant potential to help lift the poor out of the cycle of poverty.

PROBLEM STATEMENT
In spite of the potential of mobile banking in extending the provision of financial services to unbanked people particularly the poor and low income households, this proposal quest on assessing its contribution towards reduction of income poverty

RESEARCH OBVECTIVES
GENERAL OBJECTIVE
* Assessing the contribution of mobile banking to reduction of income poverty

SPECIFIC OBJECTIVES
* Determining if poor people’s access to formal banking raise their income. * Examining the accessibility of financial services through mobile network (m-banking) by the poor. * Analyzing the impact of financial services through m-banking to low income households.

METHODOLOGY
Randomly surveying areas in Moshi Rural places like Uru, Machame and Rombo and having a sample of the population, Questionnaire will be...
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