The Assessment of Customer Response on Electronic Banking Services in Tanzania.

Abstract

We have witnessedthe rapid growth of E-Banking Services worldwide and Tanzania has not been left behind. Most Banks in Tanzania have been marketing different innovations in banking products mostly in E-banking services to ensure the availability of Bank services 24/7 to their customers.The main purpose of the study was to assess customer response to E-Banking services in Tanzania. The study was conducted at the Bank of Africa Tanzania branch networks. The sample size of 66 respondents which included Bank customers, Head Retail Banking, Branch Managers, Customer Service Managers, Projects Managers, E-Banking Officers, E-banking Managers, IT Security, and Operations Managers were selected, and Questionnaires and interviews were used to collect data. Findings suggest that customers are aware of E-banking services offered by the Bank.The study found that the use of online banking systems such as ATMs, credit cards (electronic payment systems) was infrequent and majority preferred using bank teller services to withdraw and deposit cash. Also, the study shows that all business owners perceived cash as a safer and cheaper option for many transactions. Business owners reported as well that if customers demanded debit card, mobile, or online transactions in the future, they would invest in infrastructure supporting these services transactions. Finally, the study reveals that e-banking needs to increase the complexity/effectiveness of the processes and supporting technological infrastructure whilst ensuring significant controls are capable of minimizing risks associated with services. In conclusion, Education and marketing of E-banking products services should be encouraged in the bank to attract more customers and maximize utilization to have more cashless transactions in Tanzania.