Browsing by Author "Metili, Shadrack Lorivi"

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    Adoption of credit card technology Iin Tanzania from a user’s perspective: An assessment of user’s perceived creditworthiness
    (University of Dar es Salaam, 2010) Metili, Shadrack Lorivi
    Credit card technology has numerous advantages despite some concerns on credit fraud, confidentiality and cyber law. Two major advantages of this technology include cashes society and auditable transactions that prohibit underground economy. The former reduces and/ or completely eliminates robbery whereas the latter enormously improves government income. However, one reason that hinders the adoption of this technology in Tanzania is the existence of a deadlock between two stakeholders of this technology namely lenders and borrowers. Contrary to the potential users’ perception lenders consider them non creditworthy and hence shy away from adopting this technology. In trying to solve this misery this study asserts that borrower’s financial information on five factors namely new loan applications, presence of multiple with borrower’s perceived creditworthiness and can therefore be used to determine creditworthy and non creditworthy potential users of credit card. Chi-square test preformed on ordinal data collected from 74 borrowers selected randomly from 20 companies registered by BRELA confirmed this relationship. The results found 70% of borrowers are creditworthy however they appeared to have less experience in handling credit and have managed relatively lower credit amounts in the past. These findings should act as a caution to leaders after embarking on this type of technology in terms of frequent monitoring and extending appropriate credit limits to these potential users of credit card.