Banking as a Service (BaaS): The Future of Tanzania’s Financial Sector
The Tanzanian banking industry is at a turning point. With growing digital adoption, mobile money dominance, and the rise of fintechs, the traditional “bank-only” model is shifting towards Banking as a Service (BaaS).
2025-08-26 10:59:17 - ally ndimbo
What is BaaS?
Banking as a Service allows licensed banks to open up their infrastructure and services (like payments, accounts, lending, compliance, KYC) via APIs, enabling fintechs, telcos, and even non-financial businesses to integrate financial solutions directly into their platforms.
Why does it matter in Tanzania?
Mobile Money Synergy – With over 60% of adults relying on mobile money, BaaS creates opportunities for banks to collaborate instead of compete, offering seamless cross-services.
Financial Inclusion – BaaS can help banks extend services to the unbanked population by embedding banking in platforms people already use daily (e-commerce, agri-tech, ride-hailing).
Innovation & Agility – Fintechs can launch new products faster without bearing the heavy compliance and infrastructure costs—banks provide the rails, fintechs bring the creativity.
Revenue Diversification – For Tanzanian banks, BaaS is not just about survival, but about building new income streams through partnerships.
The Bigger Picture
Globally, BaaS is unlocking ecosystems where banking blends invisibly into daily life. For Tanzania, this means moving beyond brick-and-mortar and mobile wallets into a truly integrated financial landscape that can accelerate economic growth.
The Question Ahead
Will Tanzanian banks embrace BaaS as a strategic shift—or risk being left behind as fintechs redefine the customer relationship?