Factors Influencing Customer Adoption of Mobile Banking Services in Tanzania

Abstract

The continuous expansion of technological innovations especially in the banking sector have stirred competition which has changed the way businesses operate resulting in the introduction of mobile banking in Tanzania. This study was conducted in order to analyze the factors that influence consumer adoption of mobile banking in Tanzania. A questionnaire was developed and then distributed to customers of major mobile banking service providers in Tanzania. Using primary data collection method, from the 150 questionnaires that were distributed 105 questionnaires was successfully returned but only 95 were useable for analysis yielding a 62.7% response rate. After gathering and entering the data in SPSS the results were analyzed using multiple regression analysis. Each variable was measured using 5-point Likert-scale. The results suggested that perceived risk, relative advantage and convenience are the determinant factors in influencing consumers’ adoption decisions. It’s been recommended that banks in Tanzania invest massively in mobile banking and other information technology innovations in order to further promote efficient service delivery and increase adoption of mobile banking services