Internet banking: evaluation and factors influencing its adoption in developing countries: case study, Tanzania

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University of Dar es Salaam
Revolution and developments of Internet technology continue to transform the banking and financial industry. Distribution of banking services through the Internet is an important part of this transformation. The general objective of this study was to examine the role which Internet Banking can play as a new distribution channel of banking services for the benefit of both financial institutions and customers in developing countries. The study explored the growth in on-line banking services and the ways in which financial institutions in developing countries can take advantage of Internet technology to offer successful and cost-effective banking solutions. Moreover, this study addressed the key issues of concern to the banks regarding their strategic positioning, the products/services they offer or could offer on the Internet and the significant gap in existing knowledge about their presence in the Internet from their customers. The study found several factors as the reasons why banks’ customers in developing countries do not engage in using Internet Banking. Such factors are demographic characteristics, security and trust, quality of internet connection and cost of internet installation, cost of using Internet Banking and awareness of Internet and Internet banking. The study also found that the security of Internet Banking worries not only banks’ customer but also the bank owners. Lastly the secured two levels authentication Internet Banking system was developed and implemented. The design includes the feature for the customers to register themselves online and transfer money from one account to another.
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Internet banking, Electronic funds transfers, Developing countries, Tanzania
Patrick, C (2012) Internet banking: evaluation and factors influencing its adoption in developing countries: case study, Tanzania, Master dissertation, Universit of Dar es Salaam. (Available at