Effect of Digital Banking on Customers' Satisfaction: A Case of NMB in Mwanza City, Tanzania

Abstract

The purpose of this study was to assess the effects of digital banking on customer satisfaction.  Specific research objectives were: to determine the effect of ATMs on customer satisfaction; to examine the effect of internet banking on satisfaction; and, to identify the effect of mobile banking on satisfaction. Data were collected using a questionnaire from a sample of 180 respondents drawn from customers of the National Microfinance Bank (NMB) in Mwanza City. The collected data were analyzed using regression analysis after checking and confirming various assumptions of regression, which were linearity, normality, and the absence of outliers. Findings showed that ATM and mobile banking were significant determinants of customer satisfaction in the use of digital banking platforms. Internet banking, on the other hand, was not a significant factor. The study recommends that bankers and other financial institutions dealing with digital banking enhance security systems in internet banking and also educate their customers on the importance of using internet banking.