A Thesis /Dissertation Submitted in Partial Fulfillment of the requirements
for the Degree of Master of Business Administration
(MBA-CM) of Mzumbe University
Electronic banking has grown considerably as a means of financial intermediation and
innovation. Commercial banks have moved from traditional paper and manual
operations to electronic operations. Despite the increasing importance of E-banking
services, its impact is not well documented and information on issues like the degree
to which E-banking has contributed in enhancing the operational performance of the
banks and the issues connected with its utilization is deficient. Therefore, this study
set to investigate the impact of electronic banking on the operational performance of
commercial banks in Dar- Es -Salaam region. A cross sectional study design was used
and involved a sample of 120 respondents consisting of employees and managers of
four commercial banks namely; National Microfinance Bank plc., CRDB Bank plc.,
NBC Bank Limited and Tanzania Postal Bank operating in Dar- Es -Salaam region.
Both purposive and random sampling was used in selecting the banks and respondents
respectively. The data collected was analyzed by using both qualitative and
quantitative method with the help of Statistical Package for Social Science Computer
Software (SPSS). Various aspects of bank operations were examined to ascertain the
linkage between those of E-banking and operations performance. Results show that
ATMs are the most commonly used e-banking service followed by mobile banking
and internet banking. The finding revealed that the main outcomes of e banking on
bank operations are profitability, operational efficiency and improved service
delivery. Security was found to be a major challenge affecting bank operations in
using of e-banking. The study therefore, recommended both the banks and financial
regulators to take constructive measures to ensure that there is enough security to
financial information and customers be reminded to always keep their passwords, PIN
numbers safely, and report any suspicious transactions immediately to their respective
banks.