The research data pertains to various financial transactions and activities in Tanzania's financial sector, specifically related to cash deposits, cash withdrawals, and agent banking transactions:

Cash Deposits:

• In 2022, there were 75,238 cash deposit transactions.
• The total value of these cash deposits in Tanzanian Shillings (TZS) amounted to 81,007,984 billion TZS.
• This represented a significant growth of 53.8% compared to the previous year (2021).
• In 2021, there were 48,923 cash deposit transactions with a total value of 50,942,662 billion TZS.

Cash Withdrawals:

• In 2022, there were 81,007,984 billion TZS in cash withdrawals.
• The volume of cash withdrawals in 2022 was 81,007,984 transactions.
• This marked an impressive growth of 59% compared to 2021.
• In 2021, there were 50,942,662 billion TZS in cash withdrawals, with a transaction volume of 50,942,662.

Agent Banking Transactions:

• In 2022, there were 19,200.3 billion TZS worth of agent banking transactions.
• The volume of these transactions in 2022 was 46,935,798.
• This represented a remarkable growth of 71.1% compared to 2021.
• In 2021, agent banking transactions were valued at 10,779.6 billion TZS, with a transaction volume of 30,706,146.

Number of Agents:

• In 2022, the number of agents increased to 75,238.
• This marked a growth of 52.9% compared to the previous year.
• In 2021, there were 48,923 agents.

Volume and Value:

• The data shows both the volume (the number of transactions) and the value (the amount in TZS) of these financial activities for both years.
• The volume and value for cash deposits, cash withdrawals, and agent banking transactions all experienced substantial growth from 2021 to 2022, indicating increased usage and demand for these services.

The presence of large banks in these channels and the concentration of services in urban areas underscore the role of these channels in expanding financial inclusion and accessibility to a broader population.

The distribution channels for banking services in Tanzania and how these channels are contributing to financial inclusion:

Distribution Channels for Banking Services:

• Banking services in Tanzania are made accessible through various delivery channels.
• These channels include traditional bank branches, agent banking, and digital banking services.

Increase in Number and Usage of Channels:

• Over time, there has been a steady increase in both the number and usage of these banking channels.
• This growth is contributing to enhanced financial inclusion, making financial services more accessible to a broader population.

Branch Network Overview:

• Traditional bank branches are an essential part of the distribution network.
• Large banks play a significant role in the branch network, accounting for 55.2 percent of the total branches.
• The majority of these branches are concentrated in urban centers, making up 51.6 percent of all branches.
• This indicates that urban areas have a higher concentration of traditional bank branches.

Agent Banking Growth:

• Agent banking has experienced substantial growth in several aspects:
  • The number of agents has increased over time.
  • The number of transactions conducted through agent banking has also risen.
  • The value of deposit and withdrawal transactions has shown significant growth.
• This growth signifies the increasing popularity and acceptance of agent banking as a convenient and accessible way to conduct financial transactions.

Large Banks in Agent Banking:

• Large banks are dominant players in the agent banking business.
• They account for a substantial share of agent banking services, representing 59.7 percent of the total market.
• Large banks have a significant presence in the agent banking sector.

Urban Concentration in Agent Banking:

• Similar to traditional bank branches, there is a concentration of agent banking services in urban areas.
• Urban centers account for 56.5 percent of all operating bank agents.
• This concentration suggests that agent banking services are more prevalent and accessible in urban regions.

Agent banking is becoming an increasingly important component of the financial sector in Tanzania, and it is playing a significant role in enhancing financial inclusion by reaching underserved and remote areas. The active participation of large banks and the growth in transactions and agent numbers indicate a positive performance trend in the financial sector, especially in the realm of agent banking services. This expansion of agent banking is likely contributing to increased access to financial services and ultimately fostering economic growth and development in Tanzania.

Growth in Agent Banking:

The fact that agent banking business has been steadily growing in terms of the number of agents, transactions, and the value of deposit and withdrawal transactions is a positive sign. It shows that agent banking services are gaining popularity and acceptance among the population.

Dominance of Large Banks:

The data shows that large banks play a significant role in the agent banking sector, accounting for a substantial portion (59.7 percent) of the market. This indicates that established financial institutions are actively participating in expanding agent banking services, which can contribute to the sector's stability and growth.

Urban Concentration:

The concentration of agent banking services in urban centers (56.5 percent of total operating bank agents) implies that these services are more accessible and widely available in cities and towns. This urban concentration can be seen as a reflection of higher demand in these areas, potentially due to the convenience factor.