Customers’ Perceptions And Practices On Usage Of E-Banking Transactions In Tanzania

ABSTRACT

This study was conducted with three objectives to accomplish, namely; to identify the perceptions of customers towards electronic banking, to understand the actual practices of customers on electronic banking transactions, and to examine challenges facing customers on the usage of electronic banking. The study was based on customers of only one case (Vodacom) and especially one e-banking system, M-Pesa. Data was collected mainly using a semi-structured questionnaire and was further analyzed using both qualitative and quantitative ways. The study found out that, customers are positive in most of the dimensions that make up the e-banking; their concern is only on the issue of security and reliability. It has also been found out that, actually, customers use electronic banking widely and most of them prefer to use mobile phones and ATMs in implementing e-banking as compared to using IC and PC. Furthermore, it has been observed that, despite of the wide spread of ebanking; it has mostly been applied for less than two years by the majority of customers and actually, people use e-business on daily basis with their frequent used service being topping up of air time. Finally, a host of challenges have been reported to impinge ebanking. These include but not limited to; poor coverage of the service, poor internet service and networking, customers’ ignorance towards technology, security of the customers’ information, limitation of the services to people with disabilities and customers’ illiteracy. The study recommends that, the government needs to use its agents to put in place the necessary infrastructure for e-banking to grow. It is also recommended that Vodacom vii and other companies which provide e-banking services come up with ways and means which will ensure the security of the information and assets of their customers.