Abstract:
The study analyzes the role of commercial banks by using key strategies of investment advice, customer segmentation and product diversification to promote financial inclusion and deepen Tanzania's financial systems. Financial inclusion, a key ingredient for both economic development and elimination of poverty, faces particularly low penetration due to limited-service access, low financial literacy and a large unbanked segment especially in the rural and underserved urban space. Up to now, commercial banks have focused on wealthy city dwellers so must turn their attentions towards the rural poor with low-interest services and a dash of finance education for better financial decision-making. This research employs a constructivist approach, which is applied in six commercial banks of Dar es Salaam; data are collected through interviews, questionnaires and analysis of secondary data to understand ways through which these strategies enhance financial inclusion. The report provides key insights into the diverse and evolving role of banks; showcasing advancement in financial inclusion efforts and investment choices yet has gaps when it comes to delivering personalized recommendations or bringing unbanked populations into the banking fold as many of them relate to an inaccessible bank. The importance of financial literacy programs and customer centric approach have been reinforced by the study, recommending that banks should possibly collaborate with policymakers and NGOs to create a conducive regulatory environment, more product customization and expansion towards underserved residents. In the end, it calls for sustained efforts to enable every Tanzanian from all plane of life and remote areas to access basic financial services that would promote investment and raise living standards.
