Evaluation of individual level access to formal financial services: a case study of Morogoro region Tanzania
Loading...
Date
2007
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
This study was conducted to evaluate individual level access to formal financial
services in Tanzania. The study entailed surveys conducted in three districts of
Morogoro Region. Namely, Morogoro Municipality, Morogoro Rural and Kilosa.
Specifically the study had four objectives which were (a) to describe the general
issues as to why access to formal financial services is important to economic
development and social perspectives.(b) to
establish the proportion of adult
population which have access to various types of formal financial services, (c) to
identify socio economic factors that influence the access to formal financial services
in the research area(d) to suggest the possible interventions for improvement of
access to formal financial services. The study is based on 120 respondents.
Multistage random sampling was employed to select interviewees in the study area.
The data were coded and analyzed with the aid of Statistical Package for Social
Sciences (SPSS) computer software. Data analysis entailed a number of descriptive
statistics including frequencies, cross tabulations and Chi- square tests. A binary logit
regression model, which tested the effects or influence of socio economic factors on
access to formal financial services, was used. Results showed that socio economic
factors such as age, income, education, occupation and distance to formal financial
institutions affect the access and use of formal financial services (P< 0.05). The study
has also revealed that savings services are popular therefore used by the majority of
adult population, followed by transaction services, credit, then insurance services. In
addition, the study found that cost of services, ignorance, low income were among
the reasons mentioned by the respondents as hindering access to formal financial
services in the research area. Based on the study findings, the study recommendsiii
effective linkages between financial institutions in order to increase the proportion of
people with financial access, capacity building to financial institutions, improving
infrastructure, improving condition and quality of financial services and to offer
finance education to the people.
Description
Dissertation
Keywords
Financial services, Level access, Evaluation, Formal financial services