TITLE:
Effect of Electronic Banking Services on Customer Retention: Evidence from National Microfinance Bank, Moshi Municipality, Tanzania
AUTHORS:
Ester Shekifunta, Amembah Amos, Ladis Komba
KEYWORDS:
Mobile Marketing Communication, Instant Message Marketing Communication, Generation Z, Mobile Instant Messaging Applications, Consumer Attitude, Elaboration Likelihood
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.16 No.9,
September
28,
2026
ABSTRACT: Electronic banking services play a vital role in enhancing customer engagement, particularly in Tanzania’s competitive financial sector where digital transformation is reshaping banking experiences. This study aimed to examine the effect of electronic banking services on customer retention at NMB Bank PLC in Moshi Municipality, Tanzania. Grounded in the Technology Acceptance Model (TAM), the study employed a convergent research design under a mixed-methods approach, combining both quantitative and qualitative data to enable comprehensive analysis and triangulation of findings. The target population included 75,451 customers and 98 bank staff members. Using Yamane’s formula (1967), a sample of 398 customers and 98 staff members was selected through a combination of stratified random, purposive, convenience, and census sampling techniques. Data were collected using structured questionnaires and key informant interviews. Instrument reliability was ensured through Cronbach’s Alpha (α = .85), and validity was established through expert review and pilot testing. Quantitative data were analyzed using descriptive statistics via SPSS version 25, while qualitative data were subjected to contextual analysis. Ethical principles such as informed consent, confidentiality, and voluntary participation were strictly observed. Findings revealed that electronic banking services significantly affect customer retention (p = .000). Key factors enhancing retention included service convenience, 24/7 availability, personalized offers, and issue resolution speed, while service interruptions, poor communication, and security concerns negatively impacted loyalty. The study concludes that reliable, user-friendly, and secure digital platforms are central to customer retention. It recommends that NMB Bank and similar institutions strengthen their e-banking systems, improve platform stability, enhance personalization, and ensure timely customer support to foster long-term client loyalty.