Abstract: This paper presents results from a study which assessed the implications of electronic banking on customer retention and revenues of commercial banks in Tanzania. The study examined how electronic banking contributes towards customer enrollment and retention in Tanzania commercial banks, and how electronic banking translates itself into additional revenues for commercial banks. The study used qualitative methods and approaches. Data for the study were collected using three data collection approaches namely, interview, questionnaires, and focused group discussions. The study found that e-banking has a significant role on customer enrollment and retention for commercial banks. It was also found that charges and commissions’ charges on e-banking transactions have significantly increased revenues for commercial banks. The study further revealed that effectiveness of e-banking is sometimes impaired by network connectivity problems, and insufficient knowledge of customers on the language used in e-banking menu. The study recommendations e-banking awareness programs, commercial banks to be more innovative in designing more e-banking services to enable customers to enjoy more banking services.
Keywords: E-banking, Customer retention, Revenues, and Tanzania.
Title: IMPLICATIONS OF ELECTRONIC BANKING ON BANK REVENUES: EVIDENCES FROM TANZANIA
Author: DR. HARUNI MAPESA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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