Factors Influencing Adoption of Fintech among Savings and Credit Cooperative Societies (Saccos) in Dar Es Salaam, Tanzania

Abstract

The adoption of financial technology (Fintech) has grown globally due to the demand for easily accessible, reasonably priced, and convenient financial services, along with the rapid improvements in digital technology. Even though fintech adoption is rising globally, most African financial institutions, particularly in microfinance, have not adopted it. Therefore, this study examined the factors influencing the adoption of Fintech in Savings and Credit Cooperative Societies (SACCOs) in Dar es Salaam, Tanzania. The study employed a cross-sectional design, and the research approach was quantitative. The study employed primary data collected using structured questionnaires distributed to 138 SACCOs officials. The study had seven independent variables: knowledge, cost, accessibility, technology rating, staff readiness, and technology trust. On the other hand, the study had one dependent variable: fintech adoption. The model of analysis employed is multiple regression analysis. The findings revealed that knowledge, cost, accessibility, and technology ratings were positive and statistically significant (p<0.05) influencing fintech adoption. This study recommends that the Tanzania Cooperative Development Commission encourage SACCOs to use fintech more widely by addressing these factors, which would ultimately help Tanzania’s financial ecosystem become more technologically advanced and inclusive.