The Impact of Customer Preferences on Digital Banking Services Offered by United Bank of Africa in Tanzania

Abstract: This study evaluates the impact of customer preferences on the adoption and usage of digital banking services at United Bank for Africa (UBA) Tanzania. Using a mixed-methods approach, the research focuses on key factors such as security, ease of use, and customer satisfaction, which influence digital banking adoption. A sample of 198 was selected by convenience and purposive sampling methods. Data were collected from respondents through surveys and interviews, achieving a 99% response rate. Descriptive and inferential statistics, including regression analysis, were used to assess how these preferences drive customer engagement with digital banking platforms. The results indicate that security is a top priority, with 65% of respondents ranking it as their primary concern, while 75% of respondents preferred mobile banking for its convenience. Ease of use and satisfaction with digital services were also significant drivers of adoption, highlighting that satisfied customers are more likely to continue using and recommend these services. The findings suggest that improving security features, enhancing accessibility, and providing customer education are key to expanding digital banking usage. UBA Tanzania is advised to focus on cybersecurity measures and user-friendly innovations to cater to evolving customer needs, ultimately contributing to improved financial performance. This study provides valuable insights for UBA Tanzania and the broader banking sector in developing digital strategies that align with customer expectations.

Keywords: Customer Preferences, Digital Banking Services and United Bank of Africa