Tanzania's banking sector has undergone significant transformation over the last decade, driven by digital innovation, regulatory reforms, and growing financial inclusivity. As of 2024, the sector comprises 49 licensed banks managing TZS 43 trillion (USD 18 billion) in total assets, which account for approximately 20% of the country's GDP. Mobile banking has been a game-changer, with mobile money accounts soaring from 25.8 million in 2019 to 55.8 million in 2024—a remarkable 116.2% increase. Monthly transactions on mobile platforms now exceed 310.9 million, with an annual growth rate of 19%. This digital revolution has pushed financial inclusion to 70% of adults in 2024, compared to just 16% in 2009, marking substantial progress. However, rural access remains limited at 55%, compared to 85% in urban areas, indicating the need for targeted interventions in underserved regions.

Despite these achievements, challenges persist. High compliance costs, driven by stringent regulations such as anti-money laundering requirements, have increased operational expenses for banks by over 20%. Lending rates, averaging 16%, continue to constrain credit accessibility for small and medium enterprises (SMEs), which make up over 90% of businesses but only 16% have access to formal financing. The sector's future looks promising, with projections indicating that by 2030, mobile money accounts could reach 90 million, and financial inclusion could rise to 85-90%. Investment opportunities in digital banking, SME financing, and green financing are expected to grow at annual rates of 12%, 10%, and 15%, respectively, offering a pathway to further economic resilience and inclusivity​