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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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
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-sized commercial banks in Moshi Municipality, Tanzania, including Mkombozi Bank, Uchumi Commercial Bank, and Akiba Commercial Bank. A concurrent mixed-methods research design was employed, collecting both qualitative and quantitative data. The study population consisted of 63 employees from three banks, and the sample size was determined using 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 established through a test-retest process. For data analysis, descriptive statistics, correlation, and regression analysis were employed to examine the impact of technology adoption during the COVID-19 pandemic on the operational efficiency of commercial banks in the study area. The study’s findings indicate that debit cards, credit cards, mobile banking, and Point of Sale (POS) systems have a positive impact on the net profit margin, with p-values less than 0.05. In contrast, credit and debit cards hurt the operational efficiency of the studied banks. The study concludes that debit cards, credit cards, internet banking, mobile banking, and pointof-sale (POS) transactions have a positive impact on the net profit margin. Similarly, debit cards and credit cards negatively influence the operating expenses ratio. It is recommended that banks utilise these technologies to expand their net profit margins while being cautious with debit and credit cards, particularly in terms of operational efficiency.
Keywords: Net Profit Margin, Operating Expenses Ratio, Mobile Banking, Internet Banking, Point of Sale, Debit Cards.
Scope of the Article: Economics