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International Journal Of Engineering, Business And Management(IJEBM)

Perceived benefits of E-Banking and its Relationship on Banking Performance in Tanzania

Steven Switbert , Dr. Asha Baleche

International Journal of Engineering, Business And Management(IJEBM), Vol-6,Issue-2, March - April 2022, Pages 40-55 , 10.22161/ijebm.6.2.4

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Article Info: Received: 11 Jan 2022; Received in revised form: 27 Feb 2022; Accepted: 20 Mar 2022; Available online: 29 Mar 2022


Not so long ago, numerous banks in Tanzania have commenced using of digital technologies to influence business transactions; however, there is little understanding on the perceived benefits of these products on the performance of the banks. The study scrutinized the perceived benefits from using E-Banking and its relationship on banking performance in Tanzania taking CRDB and NMB banks as the case study. The specific objectives of the research were three and they include;(i) look on benefits of internet banking and its effect on banking performance, (ii) to assess the perceived benefits of mobile banking and how it impacts the banking performance and (iii) to determine the perceived benefits of ATM services and how it impacts on banking performance. The study adopted a quantitative research design whereby a questionnaire was distributed to 352 banks customers in Mwanza region in an attempt to arrive to a larger sample of respondents. A simple random sampling technique was used in this study so as to allow an equal chance of participants to fill up in the questionnaire and to reduce the elements of bias. The regression results on the overall model showed that the model accounted for adjusted R2 value of 51.3% of the variance explained by the indicator; and the F-statistic of 124.391 which was significant as p = .000. With respect to individual variables, the results of the study brought out forward that the benefits of internet banking were positively related to banks performance although the effect was moderate. Similarly, ATM teller machines and mobile banking had positive and significant effects on the banking performance. In the end it was recommended for commercial banks to improve awareness to customers on some of the e-banking product like internet banking, in addition the commercial banks are supposed to maximize the number of e-banking product so as to minimize congestion on banking premises, and to place banking facilities to various locations to ease access by customers.

Banking, E-banking, Bank performance, Automated Teller Machine (ATM).

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