Impact of Demand and Supply Sides Policy on Financial Inclusion in Iringa Hope Joint SACCOS in Southern Highland Zone of Tanzania

In economics and finance industry in particular, financial growth promotes allowing circumstances for evolution through supply-led or a demand-pull method. Through monetary enclosure it helps establishment of reasonable financial amenities, such as access to payments and remittance amenities, reserves, credits and insurance services by the official financial structure to the excluded. This study examines impacts of supply and demand sides policy on financial inclusion in Iringa Hope Joint SACCOS based in Southern Highland Zone of Tanzania majoring Iringa and Njombe Regions. The study used Probit Model and a Cross-Sectional Survey Design. The quantitative analysis was calculated using Statistical Package for Social Science (SPSS ver. 20, IBM, USA). The study findings revealed that, factors influencing supply and demand on financial inclusion are strongly significance since its P-value approaching to one (1). The study found out that, management, leadership and financial literacy, accountability, loans affordable costs, human and physical resources, quality of supportive staff, location of financial services, financial mobile, self-efficacy, easy loans processes, awareness on financial services and gender equality increase the access to financial services hence opens the possibility of many people being included in financial sector. These results also highlight that, as the demand of financial services increase leads to increase in supply of services and its products, thus increasing the possibility of financial inclusion. Therefore, the government and other stakeholders need legal and institutional transformations which will help meet the needs especially in the rural communities, to broaden the scope of financial services hence making them financially inclusive. Policymakers should focus on developing policies considering a sustainable banking services delivery model and need-based products for rural and urban consumers.