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Abstract

The overall objective of this study is to examine empirically the demand side determinants of financial inclusion in Tanzania. Using the Tanzania FinScope survey of 2017 that comprised of a sample of 9,459 adults (individuals of 16 years and above), the study employed a probit model to analyse the determinants of financial inclusion in Tanzania. The findings revealed that being a male, middle aged, living in the urban, being formally employed, having more income and more educated to a certain extent foster financial inclusion in Tanzania with a higher influence of formal employment, income and education. Moreover, descriptive analysis established lack of sufficient money and unawareness of the financial services were the most common barriers to financial inclusion in Tanzania. The findings of the study points to direction and factors for improving financial inclusion in Tanzania.

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