chanisms and drafts of merchant and agent agreements.
xv. Documented outsourcing arrangements.
xvi. Plans to participate in a domestic or foreign payment systems.
xvii. Measures for protecting electronic money holders’ funds.
xviii. Customer terms and conditions that include disclosure requirements, complaints, disclosure, and redress mechanisms.
xix. Process flow and system architecture.
xx. Pricing policies that include the variables used to arrive at a price and the nature of and number of charges or fees imposed to customers.
xxi. Any other information that the Bank may require.
The license cost is TZS two million (approx. USD 860), the fee for renewal of the said license is TZS two million as well, and the minimum capital is TZS 500 million (approx. USD 214,000).
Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area
In Tanzania, regulations restrict loan giving only to financial institutions, that is banks and micro credits. FinTechs, however, can issue loans if they have a micro credit license.
Economic conditions
Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area
N/A.
Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area
Since Tanzania is a developing country, SME is rapidly growing in the market. There is a strong demand for alternative financing solutions such as FinTech loans which can quickly solve their financial problems rather than bank loans.
Thus, it is wise for established banks and financial institutions to see FinTechs not only as competitors but also as essential partners to meet the increasing expectations of their customers and survive the competition.