Factors hindering the adoption of internet banking services in Tanzania: case study of CRDB Bank PLC

In online banking face to face interaction between bank and customer is not seen. This creates a huge service gap for banks how to serve and maintain customer relations in online environment. Thus research is a study concerning the factors hindering the adoption of intrnet banking in Tanzania by focusing on CRDB Bank PLC as a case study. The sample of survey was customers and users of online banking system. The methodology used to conduct this study was exploratory and included the use of various a data collection tools such as; questionnaires, observation, interviews and documentation to meet the objectives of the research. The study used primary data collection methods such as; observation, interviews and questionnaires. The study also used secondary data collection methods such as documentation to collect data. Data analyses were done in accordance with the research questions and research model. The findings from respondent data show that they have greater level of worry regarding trust and they do not have confidence to make any big financial transactions over internet, and have no satisfaction from internet banking services. Thus lack of system security concerns as the prime reasons for slow adoption of Internet banking at CRDB Plc in Tanzania. From the findings of the study, it is concluded that banks need to promote internet banking by having an active make in the development of the internet infrastructure and offering more incentives to customers. They must also match the internet technology with customer value-perception-based strategies, benchmarking and adequate training of staff.