Dissertation Submitted in the Partial Fulfillment of the Requirement of for the
Award of the Degree of Masters in Business Administration-Corporate
Management (MBA-CM) of Mzumbe University
The research explored how e-banking contributes to banking overall performance in
Tanzania, by using CRDB bank Plc as a center of the study investigation. The
primary goal of the study was to look at the connection between the electronic bank
and overall banking performance. The research is mainly focusing on three channels
of e-banking; sim banking, internet banking, and smart card banking. The study
explored four hypotheses in its analysis of the relationship; transaction cost theory,
business enterprise theory, balanced scorecard, and agency theory. The theories
proposed explains the relationship which exists between simbanking, internet
banking, smart card banking and bank profitability.
The study utilized a case study research design and included secondary information
obtained from audited financial statements from CRDB Bank for five progressive
years from 2014 to 2018. Information obtained was analyzed by SPSS and
regression model. The research discovered that smart card banking, internet banking,
and bank profit are significantly positively related whereas sim banking is inversely
related to bank profit that means it is negatively related. The study concluded that ebanking highly influences banking performance since income realized from internet
banking and smart card banking directly affects banks’ profitability.
The paper suggests that banks ought to invest in emerging technologies, inventions,
and developing the capacity to enhance e-banking, sensitize and inform customers
on the accessibility, availability, utilization, and value of e-banking service, train
employees on the utilization of e-banking channels to acclimatize themselves with
the services and have options to effectively sell and assist customers. Banks are
likewise required to improve securities and controls to avoid frauds, invest in ICT to
improve e-banking services, and maintain service standards as per service level
agreement.