Demographic Determinants for Owning Bank Accounts: A Case of Tanzania

Abstract

This study investigates the demographic determinants of owning bank accounts among Tanzanians. This study used cross-sectional secondary data from the Tanzania Mainland Household Budget Survey of 2017. Data analysis was performed by using a logistic  regression model because of having a binary dependent variable. The study reveals that age, marital status, education level, employment  status, and place of residence significantly affect ownership of bank accounts among Tanzanians. However, no evidence to  suggest gender influences ownership of bank accounts as both males and females have similar odds of owning bank accounts. The study  recommends banks promote the practice of saving money in banks for individuals not engaged in formal employment, such as the  self-employed, domestic workers, and casual labourers. In addition, banks and the government should participate in enhancing financial literacy education among Tanzanians, especially from lower levels of education. Moreover, the government should create conducive infrastructures in rural areas that will permit banks to provide banking services. This is important as the majority of Tanzania’s   population resides in rural areas.