Influence of Telephone Banking Technology on Quality of Bank Services in the Mwanza City, Tanzania

Abstract

Adoption and usage of ICT in banking services delivery aim to depopulate the conventional banking halls congestions. However, banking service users still populate the banking halls with long and endless queues. Currently, financial institutions in Tanzania have failed to utilize ICTs opportunities in delivering high-quality banking services. As a result, the study was conducted to assess the influence of telephone banking technology usage on the quality of banking services in Tanzania. Specifically, the study analyzed the simplicity of the technology to the users, if the technology is friendly to use, and the reliability and affordability of telephone banking technology to the users. The study was guided by Technology Acceptance Model Information System Success Model to elaborate on the basis for customers' usage of telephone banking technology in baking services delivery. Moreover, the financial inclusion theories, such as the dissatisfaction theory of financial inclusion and the system theory of financial inclusion, were used. The case study research strategy and quantitative research design were adopted. The data were collected from commercial banks located in Mwanza city, Tanzania. A non-probability sampling procedure was adopted, particularly convenience and purposive sampling. The total number of respondents was 277, of which 52 were bank officials, 215 were bank customers, and 10 were representatives from the Bank of Tanzania. The questionnaires were used for data collection. The data were descriptively and inferentially analyzed with the aid of the SPSS statistical package. According to the findings, there is a statistically significant influence of TP banking on service delivery. Moreover, the findings show that commercials use TP banking to provide information about banking services. As a result, the customers perceive TP banking technology as a technology of their choice, convenient, reliable, effortless, and easier to use and hence useful for the delivery of banking services. However, the limitation of withdrawal amount discourages users of the technologies when they need a large withdrawal amount. In short, TP banking influences banking service delivery in commercial banks by increasing geographical reach, enhancing performance and reducing transaction processing time. It is recommended that commercial banks should focus on the full utilization of opportunities that are provided by the use of telephone banking, such as the situation whereby the customers own the telephones for other uses. However, they can use telephone devices in banking.