Joseph Isangura
Tanzania’s Vice President, Dr. Philip Mpango, has urged the nation’s financial institutions to take bold steps toward embracing Artificial Intelligence (AI) and modern technologies, which he said would be essential for reducing operational costs, expanding financial inclusion, and improving customer experience.
Speaking in Arusha during the opening of a high-level shareholder seminar ahead of a prominent banking institution’s Annual General Meeting (AGM), Dr. Mpango said that technological innovation, particularly in the form of AI, can reshape how Tanzanian banks reach rural populations and previously underserved communities.
“We must begin seeing AI not just as a luxury or a tech buzzword but as a practical solution for growth and inclusion,” he stated, adding that the goal is to bridge the financial gap in underserved areas.
The Vice President highlighted that AI can increase efficiency in banking operations, streamline customer support, and even automate risk management tasks. These gains, he noted, could help banks cut costs and expand their reach to remote parts of the country where traditional banking infrastructure remains limited.
However, Dr. Mpango also raised concerns about the rising threat of cyberattacks, especially as financial services become increasingly digitized. He stressed the importance of enhancing cybersecurity to guard against data breaches, financial fraud, and system intrusions.
“Innovation must be backed by protection. As banks grow their digital services, they must invest just as seriously in cybersecurity. The future of banking depends on it,” he added.
To support his call for vigilance, Dr. Mpango cited a recent study by the OECD, published in February 2025, which projects that over $10 trillion will be spent globally to combat cybercrime over the next few years.
He also acknowledged the growing role of robotics and automation in global banking and insurance sectors, warning that Tanzanian institutions risk falling behind if they do not evolve with the times.
Beyond AI and cybersecurity, the Vice President encouraged local banks to explore emerging financial tools like blockchain technology and digital assets. He urged financial stakeholders to engage in discussions with the Bank of Tanzania (BoT) and the Tanzania Bankers Association (TBA) to develop a national legal and regulatory framework that supports digital finance while safeguarding consumers.
“Digital assets are already shaping global finance. Tanzania must act now by creating a safe and legal entry point into this growing space,” Dr. Mpango emphasized.
He also referred to global trends in central bank digital currencies (CBDCs) and called for local banks to stay informed through forums like the International Monetary Fund (IMF) and the World Bank to remain competitive in the evolving financial ecosystem.
The Vice President concluded by urging financial leaders to shift from being reactive to proactive, encouraging them to build resilient systems that are inclusive, smart, and secure.
“We can’t wait for tomorrow. The digital future of banking must begin today, and it must work for everyone,” he said.
