Application of computers in Financial Institutions in Tanzania: A case study of CRDB Bank Ltd

This study examined the application of computer technology in banking services with special reference to CRDB Bank Ltd. in Dar es Salaam Region. The bank offers the following services: International and local money transfer, credit provision, insurance services, deposit and withdrawing money etc. Five branches of CDRB Bank Ltd were studied. Primary and secondary sources of data were used. Questionnaire, observation and interview were used to collect primary date while secondary sources involved studying and reviewing existing documents and sources from the Internet. This study came up with the following results: First, some of the services such as deposit and withdrawing, money exchange, administration department, corporate department, investment, overdraft facilities and direct banking were computerized. The bank offers its services to public and private customers, individuals, foreign customers, clubs and associations, savings and credit societies and financial institutions. The following advantages in using CRDB Bank Ltd facilities were identified: expediting customers' services, proper record keeping, increased customers' confidence, reduced chances for making forgeries, increased staff morale and improved local and foreign transactions. The following problems were also pointed out by the clients and staff regarding computer technology: lack of skills to operate some computer programs, inadequate computer facilities, low budget for buying new computers and maintenance, power shortage, networking with CRDB Bank Ltd branches and lack of appropriate computer software. Lack of awareness of the decision makers, lack of funds and lack of competent staff to operate the computers were some of the reasons pointed out why other services were not computerized. The study also came up with suggestions on how to improve and increase the use and application of computers. The suggestions included: increasing computer training to the staff, introduction of Automatic Teller Machine (ATM), use of computer card for shopping purposes, providing computer linkage to all cooperate customers through Internet, employ skilled personnel and expanding the application of computer services in all sections. To increase efficiency and effectiveness of computer application at CRDB Bank Ltd, this study recommends the following: the bank should conduct proper computer training to its staff at all levels, secondly the bank should introduce new computer and computer applications in all its branches, thirdly, the bank should introduce computer awareness programs to its customers and finally the bank should form a task force on IT and IT policy.