Abstract: Technology is transforming activities in all aspects in the banking industry. Banks are changing the way and mode of services delivery from traditional face to face administration to computer and electronic devices modes. There is an increasing use of ATMs, internet, and mobile phone (SIM) among banks customers. Customers are accessing bank services without even a need to visit the bank halls. However the prominent question is ‘does e-banking reduce or increase customer transaction costs?’ The implication of e-banking on customer satisfaction and transaction costs are still areas of research interest as businesses and households move into the very deep and extensiveness of e-banking era. This paper presents results of a study that was conducted in Morogoro municipality, Tanzania. The study intended to obtain views on cost implications of electronic banking on customers. The study was qualitative in nature, as it collected views and opinions from bank customers and bank officers. A total of 70 respondents were involved in the study. In-depth interviews allowed the study to establish how customers feel about the changes in transaction costs between e-banking and non-e-banking systems and services. Results showed that most of the banks customers who use of electronic banking acknowledge that banking transaction costs have declined with electronic banking. The reduced transaction costs with e-banking are embedded into banking services convenient, time saving, efficiency, and flexibility. However, e-banking convenience, efficiency and flexibility are associated with e-banking monetary charges.
Keywords: Electronic Banking, Benefits of Electronic Banking, Transaction costs, Mobile Phones, Internet Banking.
Title: IMPLICATIONS OF ELECTONIC BANKING ON TRANSACTION COSTS: EVIDENCES FROM TANZANIA
Author: Dr. Haruni Mapesa
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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