THE CONTRIBUTION OF MOBILE BANKING SERVICES TO THE ECONOMIC GROWTH OF TANZANIA:

Abstract

This study sought to assess the contribution of mobile banking services to the economic growth of Tanzania, using National Microfinance Bank-Karatu as a case study. The specific objectives of the present study intended to examine the role of mobile banking in daily operations at NMB Karatu branch, to evaluate the effect of NMB mobile banking on the economic growth of Tanzania and to determine the challenges facing mobile banking services (it NMB Karatu branch. The study employed a quantitative approach in collecting authentic data. The target population was the employees of NMB Bank, Karatu branch. Simple random sampling was used in selecting respondents. Primary data were collected using structured questionnaires. Secondary data were obtained through documentary review from a variety of sources including newspapers, current reports, administrative files, press announcements, financial surveys, and online multimedia resources. The obtained data were quantitatively and qualitative analyzed. In analyzing quantitative data, descriptive and inferential statistics were used with the aid of Statistical Package for Social Sciences (SPSS) version 26. Qualitative data were analyzed through thematic method. The findings showed that the mobile banking has increased the circulation of money in the economy of the country, making possible for the government to collect proper and adequate statistics about economic growth and improve the way of doing business. The study also revealed that mobile banking services have led to the economic growth of Tanzania. The study unveiled that mobile banking services face numerous challenges which hinder economic growth of Tanzania. These challenges include structural problems, Internet and connectivity problems, security of financial transactions, authentication and expensive cost charges. Due to the constant evolvement of mobile phone technology, the study recommends the formulation of more accommodative policies to switch to branchless models of banking services. This is imperative because of the significance and positive interrelationship between mobile banking services and Tanzanian economic growth. Thus, further studies should pay more attention to the factors contributing to the improvement of mobile banking services and creation of positive customers' attitudes regarding the use of mobile banking services.