Influence of Alternative Banking Channels on Customers’ Satisfaction Among Tanzanian Commercial Banks
Keywords:
Banking Channels; Customer’s Satisfactions; TanzaniaAbstract
Tanzania’s banking system has seen substantial upheaval as a result of the introduction and growth of alternative banking channels such as Automated Teller Machines (ATMs), mobile banking, internet banking, and agency banking. This general objective of the study is to investigate the effect of alternative banking channels on customer satisfaction among Tanzanian commercial banks while specific objectives are to assess the effect of mobile banking, agent banking, online banking and tradition banking services on customer satisfaction among Tanzanian commercial banks. The study used a quantitative and qualitative research approach while descriptive research design employed to the study, primary and secondary data employed to the study. NMB Bank, CRDB Bank, and Tanzania Postal Bank served 304 clients in Singida Municipality used as sample size. Data were gathered through surveys and interviews and analysed using descriptive statistics while binary logistic regression model opted in data analysis. The study found that mobile banking and tradition banking services had negative statistically on customers’ satisfaction among Tanzanian commercial banks while ATMs, agent banking and online banking had a positive statistically significant influence on customer satisfaction in among Tanzanian commercial banks. The R demonstrated a strong positive association between mobile banking, agent banking, online banking and tradition banking services and customer satisfaction. This study adds to the body of knowledge on alternative banking channels and consumer satisfaction in Tanzania by presenting actual data from Singida Municipality. The study’s findings will help commercial bank management understand the impact of alternative banking channels in increasing customer satisfaction. Bank management may utilise the findings to enhance the quality, dependability, accessibility, and security of digital banking services. The study suggested that various banking stakeholders improve the technological infrastructure of their industries by focusing more on alternative banking channels services and products, as this will allow them to reach a larger number of customers while also providing flexibility, interactivity, and greater accessibility when compared to traditional banking. Commercial banks must spend extensively in technology since it will greatly increase the adoption of electronic banking technologies, which will have an impact on the customer satisfaction of banks. There is also a need for Tanzanian banks to expand education and awareness campaigns about alternative banking channels, as this improves their customer satisfaction.
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Copyright (c) 2026 James Daniel Chindengwike
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