Adoption of Cash Deposits through Automated Teller Machines (ATMs) by Banks in Tanzania: A Case of Selected Commercial Banks in Dar es Salaam

Abstract

Cash deposits through Automated Teller Machines (ATMs) enable customers to ensure that the money they earn is kept safe without encountering any inconveniences. They also enable banks to increase income that can be used to generate credits to customers and generate profits to banks. This study was set to assess factors hindering commercial banks to adopt automatic cash deposit service using ATMs. Using the Transactions Cost Theory (TCT) and Technological, Organizational and Environmental (TOE) framework, three constructs were extracted and hypothesized as predictors for adoption of ATMs cash deposits. A multiple regression analysis was conducted to data gathered from 105 respondents selected from seven commercial banks namely CRDB Bank, National Microfinance Bank (NMB), National Bank of Commerce (NBC), First National Bank (FNB), Exim Bank Tanzania (EBT), Akiba Commercial Bank (ACB) and Access Bank (T) Ltd. It was found that all hypothesized variables (perceived cyber security; perceived costs of operations; and, facilitating conditions) significantly influenced adoption of ATMs cash deposits. For ATMs cash deposit services to be up taken, diffuse and get trusted as a reliable banking service by commercial banks in Tanzania, the responsible entities must work hard to ensure that security systems are reliable. Facilitating conditions are required to improve enabling/supporting security system infrastructures. The commercial banks need to market the service in order to attract more customers’ cash deposits and cover the operating costs.