Dissertation (MSc Computer Science)The aim of the study was to investigate the challenges which face the adoption of Mobile Banking services (MBs) that cause customers of NMB Bank not interested to use this service as expected. The result of this study will assist NMB Bank in managing and improving the services which mobile banking provide and optimize the usage of service to customers and the society at large. The study identifies the factors which could lead to improve the usability of services to customers. Quantitative and qualitative data were collected through questionnaire, interview and observation to analyze different conditions that customers face during the use of MBs. The study findings showed a number of factors which contributed to the challenges that caused customers not to use MBs. These included security, the ways in which the Bank uses to advertise the service, cost of the service, and awareness of customers to use the service. Fluctuation of network availability on some areas of towns and villages of Pemba Island are not desirable; especially when a customer has to get access to the service. Also, missing of Bank’s branch in most Districts of Pemba made customers not to report the shortage in appropriate time. On the nature of any MBs usage, it was discovered that, about 79% of respondent customers of NMB Bank said it simplified their lives, saved time and cost, but 22% among those that were not using the MBs were planning to start using the service soon while 21% were not yet interested with the services. The study recommended that, in order to improve the use of MBs, NMB Bank should use ICT to increase security, advertise the service, solve network problem and make customers aware with new Bank’s services that are established.