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Evaluating the impact of self-service cash deposit machines on the performance of commercial banks in Tanzania

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  • Ally Mohamed Ismail

    (College of Business Education)

  • Dickson Pastory

    (College of Business Education)

Abstract

This study aims to evaluate the impact of utilization of self-service cash deposit machines (SSCDMs) on the financial performance of Tanzanian commercial banks, focusing on key parameters like capital adequacy, asset quality, management quality, earning ability, and liquidity. The research, conducted over six years (2017–2022), utilizes a CAMEL analysis and combines secondary data review with primary data collected through interviews. Four commercial banks' audited financial statements serve as the primary data source. The findings indicate a mixed impact of SSCDM utilization on bank performance, with some banks experiencing positive effects on capital adequacy and liquidity ratios, while others show performance fluctuations. Overall, SSCDMs are found to enhance operational efficiency and convenience, attracting more customers and increasing deposit volumes. However, potential liquidity management challenges are noted. This study contributes valuable insights to the evolving Tanzanian banking sector, aiding policymakers and bank management in informed decision-making regarding self-service banking technologies. Graphical abstract

Suggested Citation

  • Ally Mohamed Ismail & Dickson Pastory, 2024. "Evaluating the impact of self-service cash deposit machines on the performance of commercial banks in Tanzania," Future Business Journal, Springer, vol. 10(1), pages 1-14, December.
    • Handle: RePEc:spr:futbus:v:10:y:2024:i:1:d:10.1186_s43093-023-00291-4
    DOI: 10.1186/s43093-023-00291-4
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    References listed on IDEAS

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    1. Chidera Christian Ugwuanyi & Joseph Ikechukwu Uduji & Chukwunonso Oraedu, 2021. "Customer experience with self-service technologies in the banking sector: evidence from Nigeria," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 15(4), pages 405-425.
    2. Alireza Pooya & Mehran Abed Khorasani & Simin Gholamian Ghouzhdi, 2020. "Investigating the effect of perceived quality of self-service banking on customer satisfaction," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 13(2), pages 263-280, January.
    3. Alireza Pooya & Mehran Abed Khorasani & Simin Gholamian Ghouzhdi, 2020. "Investigating the effect of perceived quality of self-service banking on customer satisfaction," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 13(2), pages 263-280, January.
    4. Maik Dehnert & Josephine Schumann, 2022. "Uncovering the digitalization impact on consumer decision-making for checking accounts in banking," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1503-1528, September.
    5. Demirgüç-Kunt, Asli & Huizinga, Harry, 2010. "Bank activity and funding strategies: The impact on risk and returns," Journal of Financial Economics, Elsevier, vol. 98(3), pages 626-650, December.
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