Examining Factors Influencing Customers Satisfaction with Mobile Financial Services in Tanzania

Abstract

The financial sector is important to any nation for its economic development. The mobile telecommunication technology in Tanzania for instance has changed the way people perform financial transactions. Customers perform financial transactions using their mobile phones at anytime and anywhere provided that the customer is registered and activated into using the Mobile financial service. However, there are still long queues at the banks for doing financial transactions that could be done using mobile financial service. In order to motivate people into using the MFS, it is then important to ensure to customers derive satisfaction from using the service as it is with the formal banking service or beyond. This study aims at examining the factors influencing the customer satisfaction with mobile financial services in Tanzania. To achieve these objectives the study uses mainly primary data from 105 respondents selected using both purposive and non-purposive sampling techniques. The study employs both descriptive analysis and regression analysis. Descriptive analysis shown that, Tigo pesa, M pesa and Airtel Money are the frequently used MFS with Tigo pesa being leading. Majority of customers are satisfied with MFS (70%), and Mobile Network Operators are concentrating on making sure customers are satisfied by educating them on how to use MFS, ensuring network is reliable, lowering transaction charges and improving customer care, among others. The logistic estimates indicate that, Age, Gender, Employment, Customer care, Network availability, Meet needs, and Education are significant factors that influence customer’s satisfaction with frequently used MFS in Tanzania. The probability of a customer to be satisfied with MFS is higher if MFS meet needs of a customer, the customer is employed, gets good customer care, male, and if the network is available. From these findings, it is advised that any strategy targeting to make customers more satisfied with MFS should consider Customer care, Network availability, and needs of the customers. Also policies and programs that enhance employment are vital in making majority of people secure jobs and finally satisfied with MFS.