Assessing household confidence in saving with banks and MNO-led mobile money: evidence from the household survey in Tanzania

Even though the role of saving in building financial inclusion and people’s welfare in developing countries is widely acknowledged, limited attention has been given to understanding households' confidence in saving with formal institutions. This study addressed this gap by assessing household confidence in saving with banks and MNO-led mobile money (MNO-MM) services in Tanzania, focusing on understanding whether saving confidence in these options is influenced and differs by the level of education and location of households. Using Finscope survey data from 9,915, the Agresti-Caffo and Binomial test results showed that households are more confident in saving with banks than with MNOs. Additionally, the binary logistic regression results showed that their likelihood of expressing confidence in saving at both banks and MNOs was significantly affected by their level of education and location. By applying the social learning institutional theory and the technology adoption model, this study demonstrated how the financial institutional setup and technology-based platforms influenced confidence in saving. It recommends promoting institutions that encourage saving and facilitating the adoption of technology that enables the integration of banking and mobile money services.