Abstract:
The study was on assessment of E-banking and its challenges in Tanzania, the case of Ilala National Microfinance Bank in Dar es Salaam Region. The study investigated the types of the services provided by e-banking in NMB, the customer’s perceptions in receiving the services from e-banking in NMB, the challenges facing customers in receiving services e-banking in NMB and investigates strategies to improve e-banking in NMB. The findings involved (43%) were Female and (57%) were Men. Data collection methods were questionnaires and interview questions.
Results revealed the type of the services provided by e-banking in National Microfinance Bank such as ATM services, SMS banking, Internet banking, home banking, internet banking payment card, an electronic wallet and a self-service zone. It was also revealed that (88%) were satisfied with e-banking system while (12%) were not. The study indicated that (90%) of respondents were very comfortable with the use of E-banking products and (10%) were not. It was noted that E-banking products saves a lot of time and convenient. It was also revealed that the network could easily break down resulting in incomplete transaction, limit on amount of cash withdrawn, wrong debits being made and increase in bank charges for the use of the E-banking products are among the challenges facing Customers on using e-banking. Customers proposed ways to address some of these challenges such as education and marketing of E-banking products, more ATM outlets, regular maintenance of ATM facilities, improve on network connections, reduce E-banking charges, increase security features on E-banking products and introduce prompt transaction data onto phones.
It was concluded that customers of Microfinance Bank patronize E-banking products such as ATM. They derive certain benefits from the use of these products predominantly time saving, easy access to cash and convenient in the use of the products. It was recommended that education and marketing of E-banking products should be encouraged in the bank to attract more customers.
