Contribution of Digital Banking in Achieving Customer Satisfaction in Tanzania

Abstract

This study aimed to assess the impact of digital banking on customer satisfaction in Tanzania, with a specific focus on NMB Bank in Morogoro Municipality. The objectives were to measure customer satisfaction levels with digital banking services, identify factors affecting satisfaction, and uncover customer challenges. Using a case study research design and a mixed research approach, the study involved 140 respondents, including 130 MSE customers and 10 NMB staff members. Data collection methods included questionnaires, interviews, and documentary reviews. Quantitative data were analysed using descriptive statistics, while qualitative data were subjected to content analysis. The findings indicated that the majority of respondents (68.5%) were satisfied with NMB Bank's digital banking services, with 20.7% expressing dissatisfaction. Key factors influencing satisfaction included user-friendliness, security, transaction speed, customer support, and the range of available features. Challenges included technical issues, digital literacy concerns, complex interfaces, and transaction fees. To enhance customer satisfaction and promote digital banking adoption, improvements in infrastructure, user education, interface simplicity, and transparent fee structures are recommended. NMB Bank can further enhance its digital banking services by focusing on dissatisfaction resolution, improving the user interface, prioritising security and data privacy, optimising transaction speed and reliability, enhancing customer support, diversifying features, addressing technical challenges, and maintaining transparent fee structures based on the study's conclusions.