Influence of Technology Adoption on Operational Performance of Medium Banks During Covid-19 Pandemic in Moshi Municipality, Tanzania
Haika Mosha1, Nyanjige M. Mayala2, Hezron Onyancha3
1Ms. Haika Mosha, Department of Economic and Business Studies (DEBS) Mwenge Catholic University, Moshi (Tanzania), East Africa.
2Dr. Nyanjige Mayala, Department of Economic and Business Studies (DEBS) Mwenge Catholic University, Moshi (Tanzania), East Africa.
3Dr. Hezron Onyancha, Catholic University, Moshi (Tanzania), East Africa.
Manuscript received on 09 September 2024 | First Revised Manuscript received on 01 October 2024 | Second Revised Manuscript received on 21 March 2025 | Manuscript Accepted on 15 May 2025 | Manuscript published on 30 May 2025 | PP: 9-17 | Volume-5 Issue-1, May 2025 | Retrieval Number: 100.1/ijef.B259704021124 | DOI: 10.54105/ijef.B2597.05010525
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Abstract: Information technology (IT) has transformed the banking industry, and the outbreak of COVID-19 accelerated the trend, making the issue of IT adoption more relevant than ever. This study examines the influence of technology adoption on the operational performance of medium commercial banks in Moshi Municipality in Tanzania, including Mkombozi Bank, Uchumi Commercial Bank, and Akiba Commercial Bank. A concurrent research design with a mixed methods approach was used where utilization of the qualitative and quantitative data was employed. The population of the study was 63 employees of the three banks, and the sample size was determined through the census technique as the population size was small. Primary data was collected from the respondents, while secondary data was collected from the 2019/20 to 2022/2023 annual report. Face-to-face and content validity were used for the instrument’s validity, while reliability was done through a test-retest process. As for data analysis, descriptive statistics, correlation, and regression analysis were done to test the influence of technology adoption during the COVID-19 pandemic on the operational efficiency of commercial banks in the study area. The study’s findings have shown that debit cards, credit cards, mobile banking, and Point of Sale (POS) positively influence the net profit margin at p-values lessthan 0.05. In contrast, credit and debit cards negatively influence the operational efficiency of the studied banks. The study concludes that debit cards, credit cards, internet banking, mobile banking, and POS positively impact the net profit margin. Similarly, debit cards and credit cards negatively influence the operating expenses ratio. It is recommended that banks take advantage of these technologies to expand their net profit margins while being careful with debit cards and credit cards regarding the operational efficiency of the banks.
Keywords: Net Profit Margin, Operating Expenses Ratio, Mobile Banking, Internet Banking, Point of Sale, Debit Cards.
Scope of the Article: Economics