Benefits and Challenges of Mobile Banking usage in National Microfinance Bank Dodoma, Tanzania
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College of Business Education (CBE)
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This study examined perceived benefits and challenges of Mobile Phone Banking usage in the National
Microfinance Bank (NMB) Dodoma, Tanzania. A cross-sectional design was used in which questionnaire was
administered to 85 MPB customers and management team. Purposive and convenience followed by systematic
sampling techniques were used to select respondents. NMB reports were reviewed in order to extract secondary
data. The findings reveal a significant difference (p < 0.01) in transaction costs between MPB and ATM/traditional
banking. Findings reveal that MPB has resulted into several perceived benefits to NMB customers including 24
hours availability, ease of use, high security, reduced queues, cheap, multiple services and transferability.
Accordingly, network failure, theft of fund transferred, delay of fund delivery and reconciliation are challenges
facing MPB usage. The study recommends to the NMB management that more promotional effort is required in
order to attract new customers who are not subscribed to MPB. Also, Tanzania Communications Regulatory
Authority (TCRA) needs to improve the stability of networks and enact laws against theft cases via MPB.
Keywords
Perceived Benefits, Challenges, Mobile Phone Banking, National Microfinance Bank, Tanzania.