ASSESSING THE ADOPTION OF MOBILE BANKING SYSTEMS AMONG CUSTOMERS: A CASE OF TANZANIA FINANCIAL INSTITUTIONS.

Mobile Banking, Innovation, financial institutions and Customer Service

Abstract

Banks are seemed to be one of the business that are really interested in a system which provide a better service to its
customers effectively and efficiently. Mobile banking through an application is a recent technological innovation with
enormous potential to improve the banking experience of retail bank customers and to streamline the banks’ operations.
However, the successful implementation of mobile banking application (app) fundamentally depends on how much
customers are fully motivated to adopt it. In fact, mobile banking adoption is in development stage of its growth in
Tanzania. The study examines how user adoption of mobile banking services in financial institution through practices
and challenges. The study is descriptive in nature and the convenience sampling units were used. The total sample size
was 200 individuals including staff members of service providers and customers from commercial banks in Tanzania.
The findings indicate that transaction costs, online theft, stranded platforms, network bottleneck, user perception and
network providers’ security is not guaranteed. The findings contribute to the debate around technological innovation
and transforming the banking industry. Also, they have policy implications with regard to the user-need approach to
mobile banking services and network providers