Determinants of customers’ adoption to Simbanking

The main goal of this study was to examine the influence of demographic factors on the adoption of Simbanking, with a focus on customers of the CRDB bank in Tanzania. It utilised the Rogers’ (1995) Diffusion of Innovation Theory to understand the importance of situational-based demographic factors. Questionnaire survey was conducted with 416 customers at the CRDB Bank Pic in purposefully selected Dar es Salaam Branches. Descriptive results revealed that the majority of respondents (close to 50 percent) used CRDB Simbanking service one to three times a week to conduct balance enquiries, download bank mini-statement, pay bills such as electricity, transfer funds from CRDB account to telecom networks, and buy airtime. Regression results show that there is a positive and significant relationship between level of income and education attainment on the one hand, and the adoption of Simbanking on the other. Sex and age variables also had positive relationships to the adoption of Simbanking, but were not significant. The study has shown the relevance of applying the situation-based theory to the adoption of new technologies from the point of view of the banking services in Tanzania. The study argues for the designation of promotional practices that address the demographic profiles of customers in order to encourage the adoption of Simbanking.