The effect of electronic banking on risk management in banking in Tanzania: The case of CRDB Bank limited

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University of Dar es Salaam
The introduction of electronic banking (e-banking) has created many benefits in banking industry but at the same time, it has brought some risks. This research analyzes the effect of e-banking on risk management in banking in Tanzania. The case study method was used through sampling of respondents from CRDB Bank Head Office and its 9 branches in Dar es salaam region. The primary data was collected by using questionnaires which were administered through interview, while the secondary data was obtained from various CRDB Bank documents and its website. Data collected was validated through interview, documentation and observation. Analysis of data was done quantitatively and qualitatively. This study has established that the introduction of e-banking has increased the banking risk in Tanzania. However, banks profitability has been increasing due to fast and reliable services offered by e-banking which lead to lower reputation risk. The available control measures for e-banking are effective but not sufficient to manage continuing emerging risks. In order to manage the risks associated with e-banking activities, the banks should apply additional control measures which are recommended in this study. This study recommends the use of biometric control as an additional risk measures to authenticate users since it is more reliable. It also recommends the banks to use appropriate measures to preserve confidentiality of the key banking information. New area for further research are suggested
Available in print form, East Africana Collection, Dr.Wilbert Chagula Library, (THE EAF HG 1709F87)
Banks and banking, Bank management, Automation, Tanzania, CRDB Bank Ltd
Furahini, R (2006) The effect of electronic banking on risk management in banking in Tanzania: The case of CRDB Bank limited, Masters dissertation, University of Dar es Salaam, Dar es Salaam.