Impact of E-Banking on the Profitability of the Listed Commercial Banks in Tanzania
DOI:
https://doi.org/10.59645/abr.v18i1.752Keywords:
ATM, POS, Mobile banking and Profitability.Abstract
This study examines the impact of e-banking on the profitability of listed commercial banks in Tanzania. Its focus on the impact of three e-banking platforms, namely ATM, mobile banking and POS transactions on the profitability of listed commercial banks in Tanzania. The study employed a quantitative research approach to generate and analyse data spanning from 2014 to 2024 for the two largest listed commercial banks in Tanzanian, namely NMB and CRDB. The study used panel data regression models to estimate the impact of e-banking on the profitability of listed commercial banks in Tanzania. The analysis revealed that mobile banking transactions and POS transactions have a significant positive impact on the profitability of listed commercial banks in Tanzania. The results suggest that the growth of mobile banking and POS transactions enhances the profitability of listed commercial banks in Tanzania. Therefore, listed commercial banks managers and management are advised to develop strategies that will promote the usage of mobile banking and POS to enhance the profitability of listed commercial banks in Tanzania.
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