A research report submitted to school of business in
Partial fulfilment of the award of master’s degree in
Business administration (corporate management) of
Mzumbe university
The modern banking industry is characterized by complex and compertitive environment
with unstable economic conditions. The widespread use of ICT helps to ease such
conditions and to fulfill customer expectations. E banking has revolutionized modern
banking practices with Banks able to offer more efficient services and lower cost and
greater reach. This study tries to explorer the impact of E banking on customer
retention with a case study on Exim Bank Tanzania LTD.
Exim bank Tanzania ltd was deliberately chosen as a case study due to its use of E
banking services. The study targeted the customers and staff members of Exim Bank
Morogoro branch using purposive and random sample of 95 respondents . The study
used qualitative data with structured questionares and interviews to obtain data. Stata 12
sofftware used for analysis. To measure the impact of customer retention the study
focused on transaction cost and quality of service variables.
The study discovered signifiacant influence of E banking on customer retention.
Customer retention can be significantly enhanced by electronic banking, Quality of
service and Transaction costs. The study has also revealed significant impact of e
banking on customer satisfaction at Exim Bank Morogoro Branch.
The study recommends that Banks should undertake to educate both customers and
employees on the use of E banking to ensure efficient application of the service and also
minimize security concerns such as fraud. Also its important that the bank invest in a
suitable network infransture to minimize network problems which can affect customers
while using e banking services
.