Abstract:
This research casts a spotlight on the transformative effects of digital lending on revenue growth
in the banking sector with a special focus on the Stanbic Bank Arusha Branch. The study is
specifically tailored to assess the extent of digital lending adoption at the branch, examine its
impact on revenue growth and investigate the challenges associated with its implementation in
the banking sector. Rooted in the Digital Lending Theory, this study navigates the transformative
wave of technology in lending, offering a bridge over the informational asymmetries and
constraints innate in traditional credit systems. The study engages a mixed-methods approach,
weaving together quantitative and qualitative data, to give a rounded view of this contemporary
banking phenomenon. The total population that was taken into consideration is 137 which will
be narrowed down to a sample size of 102 obtained from Yamane’s formula. The study applied
stratified random sampling to gather well-rounded insights. Data collection was spearheaded
by questionnaires and interviews, a review of pertinent documents supplements this primary
data, offering a historical and contextual lens through which the evolution and impacts of digital
lending at the bank can be viewed. The findings of the study revealed that there is a significant
majority of customers are aware and actively using the bank's digital lending services , digital
lending significantly impacts revenue growth and highlights several implementation challenges
that include technological , regulatory and security concerns .The study was concluded
positively since there was a significant contribution to the bank's revenue growth indicating the
bank's successful integration of digital lending services that enhance customer accessibility and
convenience .Recommendations include enhancing customer support and education programs
; innovation and optimization of offerings, streamline processes, offering of competitive rates ;
investing in robust technological infrastructures and enhancing cybersecurity measures
