Abstract:
The study sought to examine the Influence of Digital Financial Services in Enhancing Financial Inclusion in
Tanzania. The study adopted a descriptive research design. The descriptive design was embraced as it enables the
review of the relationship of the variables under study. This study used a sample size of 60 respondents who were
selected through simple random sampling from Heritage Microfinance Limited, Amani Microfinance Ltd, FINCA
Microfinance Ltd, and Bayport Financial Services. Data were collected by the use of questionnaires and the data
were analyzed with the aid of the Statistical Package of Social Scientists Program (SPSS). The study unveiled that
online account registration, internet banking, online loans processing, mobile banking, and agency banking are the
digital financial services offered by Microfinance Institutions in Arusha. In addition, study findings revealed that
digital financial services are positively enhanced financial inclusion in Tanzania. Moreover, the findings indicated
a positive and significant correlation between digital financial services and financial inclusion. The study
recommended that Microfinance Institutions in Tanzania should make use of popular social media platforms to
promote their services and also educate the customers about the uses of the products they offer. However, to gain
more understanding of this subject, a study may consider a bigger context in terms of scope and population,
however, it be done by using similar variables to examine if the results will be the same to different economies.
