State of Mobile Banking in Tanzania and Security Issues

Abstract

Mobile technology offers an unprecedented growth op portunity for banking industry in Tanzania. As the economy continues to prosper, increasingly affluent consumers and underbanked segments create demand for new financial products and services. Many consu mers in Tanzania have mobile phones, but not bank accounts. Therefore, the mobile channel presents an effective way to connect them to the national fina ncial grid. For the local banks, going mobile may increas e banks opportunities to unlock the inherent potent ial of underbanked segments. This paper addresses the c urrent state, future prospects, and security challe nges to the usage of mobile banking in Tanzania.