MOBILE PHONES FOR MOBILE BANKING: A WONDERFUL TECHNOLOGICAL INNOVATION IN TANZANIA

A study was designed to examine the innovativeness and potential benefit of using mobile phone on banking system. The study used quantitative statistics and data as well as qualitative data to gather information. The research was mainly desk-based where secondary and primary data were reviewed from various documents. Few interviews were conducted to the mobile money clients. The study reveals that, to date mobile money clients are able to bank without physical presence in financial or bank buildings. A distance is no longer a question to mobile money clients. Other potential benefits from the mobile banking include time serving, affordability and reliability of the services. The critical challenges include lack of education among the mobile phone users. It recommends: the financial institutions and mobile phones operators should collaborate in enhancing mobile banking services. It concludes that, mobile phones operators and financial institutions are making a wonderful technological innovation in banking systems.