FSDT adopts a market development approach toward addressing systemic constraints in the market and to contribute toward achieving pro-poor growth in the financial sector.
Among the constraints to achieving financial inclusion in Tanzania are gaps in the legal, policy and regulatory framework, information asymmetry between customers and Financial Service Providers (FSPs), low financial capability of customers and FSPs, lack of appropriate market infrastructure and unmet demand for financial services and relevant financial products.
FSDT uses a broad range of financial instruments – including loans, guarantees and grants to spur innovation among FSPs and the development of the financial ecosystem. Leveraging on its position as a thought leader in financial inclusion, FSDT pushes for facilitation in the market – achieved through a combination of convening, advocacy, and engagement support delivered to FSPs, industry associations, regulators, policymakers and donors operating in the market. And by sponsoring research and its dissemination in the market. Evidence generation is a cornerstone of the work of FSDT that allows us to diagnose the status of financial inclusion in the country as an input into the design of appropriate activities.