Evaluating the influence of mobile and internet banking on customer satisfaction: Evidence from Absa Bank Tanzania

Abstract

This study examines the influence of mobile and internet banking on customer satisfaction in the Tanzanian banking sector, using evidence from ABSA Bank’s Ngorongoro Branch. Grounded in the Technology Acceptance Model (TAM), the study adopts a quantitative cross-sectional design and utilizes primary data collected from 127 digital banking users through structured questionnaires. The target population comprised 150 customers actively using mobile and/or internet banking platforms. Simple random sampling was employed to ensure representativeness, with respondents selected from a list of eligible digital banking users provided by the branch. Data were analyzed using descriptive statistics and Ordinary Least Squares (OLS) regression. The findings reveal that mobile banking significantly enhances customer satisfaction through ease of cash withdrawal and balance inquiry, while inefficiencies in money transfer services negatively affect satisfaction. Similarly, internet banking contributes positively to customer satisfaction through fast transaction processing, whereas transaction errors significantly reduce customer satisfaction. The cost of internet banking services was found to be statistically insignificant, suggesting that customers prioritize service efficiency and reliability over pricing considerations. Overall, digital banking variables explain 51.1% of the variation in customer satisfaction. The study concludes that convenience, efficiency, and system reliability are critical determinants of customer satisfaction in digital banking. It recommends that banks improve system stability, minimize transaction errors, enhance transaction speed, and invest in user-friendly digital platforms to strengthen customer experience and competitiveness. The study contributes to the literature by providing branch-level empirical evidence from an emerging economy and highlighting the differential effects of specific digital banking attributes on customer satisfaction.