A Dissertation Submitted in Partial Fulfillment of the Requirements for the Master degree of Business Administration (MBA) Corporate Management of Mzumbe University.This study examined the contribution of electronic banking towards the performance of commercial banks in Tanzania. The following were objectives: to determine the customers usage rate of Automatic Tellers machine (ATM) and its effects on the performance of Commercial Banks in Tanzania; to assess the extent to which customers use Mobile Banking and how it affects the performance of Commercial banks in Tanzania; to examine the customers usage rate of internet banking and its contribution towards the performance of commercial banks in Tanzania; and to identify the challenges associated with the use of electronic banking to Commercial Banks in Tanzania. The study adopted case study research design whereby CRDB Bank was used. The study involved a sample size of 100 respondents; data collection was done through the use of interviews, questionnaires and documentary review. Data analysis was done through the use of Microsoft Excel. The results of the study show that ATM helps to reduce operational costs and improves return on assets, it has made it easy for customer to conduct financial transaction remotely. ATM has led into increased profitability and bank performance. ATM machines has improved the returns on assets (ROA). The results show that Mobile phones/simbanking has increased customer access to banks services as most of customers manage financial transactions remotely without visiting the bank branch. Also customers enjoy many benefits such as convenience, time saving, cost effective, enhanced business efficiency, and elimination of cheque writing or signing as CRDB has integrated its system with M-Pesa, Airtel Money, TigoPesa and Halo Pesa. As for the usage and contribution of internet banking the findings revealed that this innovation has increased customer access to the banks services. The findings show that network difficulties during transactions are the main challenge facing users of electronic banking. The study recommends that CRDB Bank should increase education campaign and creating awareness concerning the benefits of electronic banking.