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

Fredrick Baraka Mwangela

doi:10.51867/AQSSR.3.2.14

Authors

Fredrick B. Mwangela Institute of Accountancy Arusha (IAA), Tanzania Author https://orcid.org/0009-0008-5544-6356

DOI:

https://doi.org/10.51867/AQSSR.3.2.14

Keywords:

Customer Satisfaction, Digital Banking, Internet Banking, Mobile Banking, Technology Acceptance Model, 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.

Author Biography

Fredrick B. Mwangela, Institute of Accountancy Arusha (IAA), Tanzania

I am an Assistant Lecturer in the Faculty of Business Management at the Institute of Accountancy Arusha (IAA), Tanzania. Holding a master's degree in business-related studies, he has developed strong academic and professional competencies in both business management and marketing.

At IAA, I teach a range of courses across business management and marketing, where I am committed to fostering analytical thinking, practical skills, and academic excellence among students. My research interests include business management, marketing, and contemporary issues affecting organizational performance and competitiveness. I am actively engaged in developing a research profile through scholarly writing, academic discussions, and participation in institutional academic activities.

Before joining higher education, I served as a secondary school teacher, a role that strengthened my pedagogical skills, professional discipline, and passion for student development. This background continues to enhance my teaching approach at the tertiary level.

My aim is to contribute to academic knowledge, research innovation, and capacity building within the fields of business management and marketing. I am committed to advancing both my academic career and the quality of business education in Tanzania.

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