RUAHA CATHOLIC UNIVERSITY

The study investigates on the need of financial inclusion for socioeconomic transformation. Financial inclusion is the key factor for strong and sustained economic growth which in turn lead into structural economic change characterized by increasingly output, productivity, and individual income which help the households meet social services while on one hand the economy of the country being stabilized. Using cross sectional descriptive-survey research design; a target population being users of financial services and products, Banking and Non-Banking financial intermediaries as well as central bank; and a sample being derived from C.I = 95%, est= 7%, X/n-value= 50%; documentary review and structured phone interview being data collection methods in connection to nominal, ordinal and ratio levels of measurement employed. Ruaha Catholic University Faculty of Business, Economics and Management Sciences Ruaha Journal of Business, Economics and Management eISSN 2507-79945 Vol 2, Issue 1, 2019 Ruaha Journal of Business, economics and Management Sciences Vol. 2, Issue 1, 2019 51 Descriptive data analysis tools were used and the following facts were revealed: - credit losses and non-performing loans; ineffective regulation and enforcement of financial sector which has further lead into increasingly informal micro finances which lack oversight; financial services and products provision processes are not innovative and strategically not marketed such as use of retail, agency, mobile and ebanking e.g. use of e-registration if there could a single database system of identifying customers/applicants indeed to rural small scale farmers, processors. All issues highlighted above are the factors that count for financial exclusion though a paved way is there shown if those gaps are to be capitalized.

Financial inclusion, Socio-economic transformation