Assessing The Influence of Electronic Banking Services on Customer Satisfaction on Commercial Banks in Tanzania

Abstract

The purpose of this study was to assess the influence of electronic banking services on customer satisfaction at commercial banks in Tanzania. The data used was collected through closed-ended questionnaires as well as secondary data. The data was analysed using Stata version 15. The coefficients of the Ordinary Least Squares (OLS) regression model were generated. The analysis shows that mobile banking, measured through easy money withdrawal and easy balance inquiry, had a positive influence on customer satisfaction and was statistically significant at 1% and 10%, respectively. However, the transfer of money as a proxy for mobile banking had a negative influence on customer satisfaction and was statistically significant at the 10% level. The internet banking measured as a fast transaction process had a positive influence on customer satisfaction and was statistically significant at the 1% level; possible transaction errors had a negative influence on customer satisfaction and were statistically significant at the 1% level; and expensive internet banking had a negative but insignificant influence on customer satisfaction The study found that ATM services, including withdrawal fees, positively impact customer satisfaction. Factors such as easy withdrawal, fast transaction processes, low fees, and ATM location were found to be the most positive. However, transaction errors, out-of-cash machines, and expensive internet banking negatively affected satisfaction. The study recommends improving these factors and abolishing ATM withdrawal fees to boost bank profitability and government taxes.