Performance of card -based payment systems on customer satisfaction in financial institutions in Tanzania: the case of CRDB bank Ltd.

The use of modern technology in the delivery of banking services is becoming increasingly prevalent as it is being employed to reduce costs and eliminate uncertainties. Main objective is to evaluate the performance of card-based payment systems on customer satisfaction in financial institutions in Tanzania. Three specifics objectives guided the study, namely, to identify problems that customers face by using card-based payment systems, to study how card-based payment system infrastructure (ATMs and POS) may affect the efficiency of services to customers and to identify services that customers wish to be improved by CRDB Bank on Tembo card payment system to minimize customer dissatisfaction. The research was conducted in Dar-es-Salaam region, where there is large number of customers of CRDB Bank; also there is large number of bank's branches (six branches e.g. Azikiwe, Holland, Tower, Lumumba, Vijana and Kijitonyama). The survey approach were used in this research, and one group of respondents were involved, namely customers of CRDB Bank. The sample of 60 electronic banking customers was estimated but only 50 customers managed to return back the questionnaires. Data collection was undertaken through questionnaires only. Data obtained were both qualitative and quantitative in nature. Data were analyzed both quantitatively and qualitatively. The main findings from the research revealed a number of problems were encountered by customers in relation to technology (that is machines sometimes are out of order), location of machines are not convenient for every customer, long queue, machines are empty of money during weekends, machines are not enough at each bank branch. The study concluded that customer satisfaction is increasingly being valued as a key variable in model of consumer behavior and takes a central position in marketing decision. Also, it usually occurs when the value and customer services provided through a retailing experience meet or exceed consumer expectations. It is important for banking industry to understand what customers need from their banking services and immediately give solutions to the problems. Failure to met customers' needs; lead customers may shift to other rivals. Therefore, all efforts should be made to achieve overall customer satisfaction in banking industry. In light of these findings, relevant suggestions, recommendations for immediate attention and further research were made. The suggestions include: to install new machines especially ATMs in different areas, to introduce cash deposit facility, services charge have to be reasonable, Tembo card has to be used by others banks' ATMs, to introduce visa application at ATMs and to introduce POS services in hospitals. It is recommended that further research should be carried out taking a larger sample of customers from different regions in Tanzania, which were not covered in the study. Also a similar study can be carried out, but using other models of customer satisfaction.