Consumer Adoption Challenges on E-Banking in the Tanzanian Banking System: A Case of Selected Banks in Tabora Tanzania

Daniel, Herick A (2019) Consumer Adoption Challenges on E-Banking in the Tanzanian Banking System: A Case of Selected Banks in Tabora Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

Increasing adoption of e-banking for the Tanzania consumers is considered to have impact on development of banking industry in the country by helping to increase efficiency, reduce cost, reduce risks, increase customer coverage, speed and prompt services. This study investigates factors that slow down the move to full adoption of e-banking. Data were collected from sixty eight (68) bank customers in Tabora region through purposive sampling technique. The factors tested originated from two models; the Theory of Reasoned Action (TRA) and the Technology Acceptance Model (TAM) then followed up by comparing with the findings of different scholars who performed similar study. Descriptive analysis was applied basing on social psychology of a consumer of which its aim is to predict his or her attitude towards adoption of the e-banking technology, which in turn predicts its acceptance. The study employed case study design collecting data using structured questionnaire as data collection tool. Findings show that factors affecting e-banking adoption on the part of consumers are largely external, ranging from regulatory requirements, poor internet signals, retail cash business, requirements of hard copy receipts and corporate payments through cheques. In this light therefore, it is essential that banks, governments, internet providers and all other stakeholders play their roles in promoting adoption of e-banking. The study concludes that, there are challenges hindering consumers’ adoption of e-banking and that, vast amount of investment in education and infrastructure is needed for consumers to reap the benefits of this technology.

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