Customer Awareness and Perception of Usage of E-banking in Commercial Banks of Zanzibar, Tanzania

Abstract

The study focused on customer awareness and perception of the usage of e-banking in commercial banks in Zanzibar. The specific objectives were:
• To assess the level of customer's awareness of e-banking usage in Peoples Bank of Zanzibar,
• To analyze the customers' perception of e-banking usage in Peoples Bank of Zanzibar and
• To examine the challenges facing customer usage of e-banking in Peoples bank of Zanzibar
The study used a descriptive design that involved qualitative and quantitative approaches. A population of 104000 customers of PBZ was considered. Data were collected using interviews and questionnaires and were analysed using thematic analysis and mean and standard deviation. The study found that awareness of e-banking was low as statements: I have lots of information about e-banking transactions, e-banking is an easy service and saves time, e-Banking Transactions procedures are simple and straightforward were ranked moderate. E-banking service is less costly than conventional over-the-counter banking was ranked very low, and e-Banking is more effective than conventional over-the-counter was ranked low. The findings showed that the respondents had a perception that e-banking is not reliable, e-banking is insecure, use of the internet, and thought can make incorrect operations; all were ranked high as perceptions of using e-banking. E-banking is not responsive was ranked moderate as a perception of not using e-banking services. The study recommended that banks should increase awareness of e-banking services and offer civic education to discourage negative perceptions.