A Dissertation Submitted in Partial Fulfilment of the Requirements for thAward of Degree of Master of Business Administration in Corporate
Management (MBA-CM) of Mzumbe University
The study about challenges facing mobile banking services in reaching customers in
Tanzania was conducted at NMB in coastal Region. The study aimed at examining
the knowledge of NMB customers on the services offered by mobile banking; finding
out challenges facing mobile banking services in extending their services to many
customers; determining whether NMB customers are extensively using mobile
banking; and identifying problems facing customers who live far from the nearest
branch. A sample size of 80 respondents comprising of customers and bank staff
were given questionnaires and interviewed accordingly. Secondary data were
collected using documentary sources such as articles and research reports from
distinguished academicians, media and internet. Analysed data were presented using
percentage in tables, charts and graphs.
The findings showed that majority of respondents knew few services offered by
NMB through mobile banking. The study revealed that few customers fear the use of
extension of mobile banking services offered by the bank through mobile banking.
They fear insecurity, high charges and unreliability of services. However, some
customers do not use the services due to little knowledge on the services offered
through mobile banking. The study further showed that distance from nearest branch
or ATM affected customers from using mobile banking effectively.
The study concludes that NMB should educate its customers about the variety of
services offered as well as the importance of using mobile banking in their daily
activities. Therefore the study recommends that, NMB bank should make sure that its
network is reliable and constant in offering services. The bank should ensure security,
reduce charges of using the services and increase the amount of money to be
transacted daily. The bank should invest on installation of many ATMs especially in
rural areas for the purpose of attracting many customers in using mobile banking
services.