DIGITAL FINANCIAL TECHNOLOGY AND PROVISION OF GOVERNMENT SERVICES IN TANZANIA

Abstract

The integration of digital financial technology in provision of government services in developing Countries including Tanzania encounters several barriers. Many African Countries are still in the initial stages in integrating digital technology into government services delivery, and as a result many issues concerning the subject remain unexplored. Following that, this study were carried out to assess digital financial technology (Fin Tech) in the provision of government services in Tanzania, with three major factors: The influence of infrastructure, management capacity, and user challenges. The study employed a cross sectional research design in which a sample of 80 employees in Tanga City Council were contacted through questionnaire and face to face interview. The data collected were descriptively analyzed as well as using correlation and multiple regression. On the other hand, content analysis were applied in analyzing the qualitative data collected through interview method. The findings of the study highlighted the significant contribution of infrastructure in supporting digital financial technology integration. While infrastructure challenges, such as inadequate internet connectivity and outdated technology, were noted, the results also revealed the critical importance of management capacity in ensuring the success of Fin Tech solutions. The study showed that strong leadership, strategic management practices, and technical expertise were essential for effective implementation. However, despite the promising leadership support, resource allocation for Fin Tech initiatives was inconsistent, and training programs were identified as a major gap, undermining the full potential of Fin Tech solutions. The challenges users faced in adopting and utilizing digital financial services were also explored. Limited digital literacy, poor internet access in rural areas, and a lack of adequate technical support were cited as barriers to the effective use of these technologies. Addressing these issues was crucial for improving the accessibility and inclusivity of digital financial services, which were essential for enhancing financial inclusion and transparency in public service delivery. The study recommended infrastructure improvements, comprehensive training programs, and enhancing management support to better utilize FinTech solutions in public service delivery.