Mobile Technology’s Role in Enhancing Financial Security and Inclusion:Evidence from M-KOBA in Tanzania

Community Microfinance Groups (CMGs) operate on community trust rather than digital transactions, leading to challenges such as mismanagement of funds and difficulties accessing financial services when members relocate. Mobile technology has recently garnered significant attention from scholars and financial sector stakeholders as a crucial tool for enhancing access to financial services and promoting financial inclusion. The study focused on examining the effects of M-KOBA on improving access to and security of financial services among CMG members. The study was conducted in Dodoma City and involved 218 respondents from 29 CMGs using M-KOBA to access financial services. The study applied Wilcoxon Signed-Rank Test, a non-parametric statistical test in data analysis. The results show that there was a statistically significant difference in convenience between the “before” and “after” in buying shares, motivation to buy shares, checking investment status, paying and using the community fund and accessing and paying loans before and after. Likewise, control of loan disbursement beyond the limit, real-time monitoring of transactions, security in transacting, financial management and transactions involving all leaders. The study concludes that M-KOBA has markedly enhanced access to and security of financial services among CMGs members, contributing to achieving Sustainable Development Goals and the Agenda 2063, which focus on economic growth, financial inclusion, and digital transformation. Therefore, the study recommends that governments and development practitioners promote M-KOBA to underserved areas to advance financial inclusion and encourage integration with Savings and Credit Cooperative Society (SACCOS) to improve member oversight and accountability.