CONCEPT NOTE
MASTERS OF BUSINESS ADMINISTRATION IN CORPORATE
MANAGEMENT OF INSTITUTE OF ACCOUNTANCY ARUSHA
FRANK NATHANIEL KILANGA
Title: Evaluate the Effectiveness of Digital Transformation in Enhancing Customer Complaint
Handling process: A Case of commercial bank Ruvuma Region.
Background
Digital transformation has revolutionized the banking sector by improving customer complaint
handling through Artificial Intelligence (AI), Customer Relationship Management (CRM)
systems, and automated feedback tools (Bouwman et al., 2020). These innovations enhance
efficiency and customer satisfaction by reducing response time and minimizing human error
(Bughin et al., 2019). However, developing economies face challenges such as inadequate
infrastructure, system inefficiencies, and customer resistance (Rachinger et al., 2023).
In Africa, mobile banking solutions like Kenya’s M-Pesa have improved financial inclusion (Abor
et al., 2021), yet digital complaint resolution remains problematic due to unreliable internet, low
digital literacy, and weak regulatory frameworks (Kumar et al., 2020). Tanzanian banks utilize
digital platforms like Tigo Pesa and Airtel Money to enhance financial accessibility, but issues
such as delayed complaint resolution, poor system integration, and limited employee capacity
persist (Ngoma et al., 2022). Customer dissatisfaction with digital complaint mechanisms
highlights the need for an in-depth evaluation of digital transformation in Tanzanian banking
(Kimaro et al., 2023).
Problem Statement
Despite the promise of digital transformation, its impact on customer complaint handling remains
inconsistent. Customers still report unresolved complaints, slow responses, and impersonal
service, even with digital tools (Gandhi & Johnson, 2022). In Tanzania, banks face persistent
challenges, including delayed responses, mistrust in digital platforms, and inconsistent service
delivery (Kimaro et al., 2023). Limited research exists on the perspectives of banking personnel
regarding these challenges, creating a gap in understanding how digital transformation can be
optimized for effective complaint handling.
Research Objectives
This study evaluates the effectiveness of digital transformation in enhancing customer complaint
handling in Tanzanian banks. The specific objectives are to:
1. Assess the impact of digital technologies on complaint resolution efficiency.
2. Analyze how digital transformation influences customer satisfaction.
3. Identify challenges faced by bankers in utilizing digital tools.
4. Provide recommendations for optimizing digital complaint-handling systems.
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Research Questions
1. How do digital technologies impact customer complaint resolution efficiency?
2. What influence does digital transformation have on customer satisfaction?
3. What challenges do Tanzanian bankers face in using digital tools for complaint resolution?
4. What strategies can enhance digital complaint-handling effectiveness?
Significance of the Study
This study benefits multiple stakeholders. Policymakers can use the findings to improve digital
banking regulations and consumer protection laws. Banks can enhance their digital complaint
mechanisms, improving operational efficiency and customer satisfaction. Additionally, academics
and researchers can expand the literature on digital transformation in banking, offering
comparative insights at global, African, and Tanzanian levels.
Scope of the Study
The study focuses on commercial banks in Tanzania, specifically in the Ruvuma region. It
targets customer service, IT, and operations employees to gain insights into the effectiveness of
digital complaint resolution.
Methodology
A descriptive research design and a mixed-methods approach will be employed, integrating both
quantitative and qualitative data. Primary data will be collected through structured questionnaires
and semi-structured interviews with 50 banking personnel selected via purposive and stratified
sampling. Secondary data will be sourced from relevant literature and regulatory documents.
Quantitative data will be analyzed using statistical techniques, while qualitative data will undergo
thematic analysis to ensure triangulation, reliability, and validity.
Limitations of the Study
Potential limitations include restricted access to proprietary bank data, response bias due to
confidentiality policies, and variations in digital transformation adoption across banks, which may
impact comparability.
Conclusion
This study seeks to provide valuable insights into the effectiveness of digital transformation in
enhancing customer complaint handling in Tanzanian banks. Addressing existing gaps and
offering practical recommendations will contribute to improving digital banking efficiency and
customer satisfaction.
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References
Abor, J., Amidu, M., & Issahaku, H. (2021). Mobile banking and financial inclusion in Africa.
Journal of Financial Innovation, 8(2), 45-67.
Adeniran, A. O., & Olayiwola, S. (2023). Trust issues in digital banking: A study of consumer
perception in Africa. African Journal of Finance and Digital Economy, 10(1), 112-130.
Bouwman, H., Nikou, S., & de Reuver, M. (2020). Digitalization, business models, and value
creation: How AI and analytics transform banking. Journal of Business Research, 118, 107-120.
Bughin, J., Catlin, T., Hirt, M., & Willmott, P. (2019). Digital transformation: The strategic
imperative. McKinsey Quarterly, 2019(3), 1-12.
Gandhi, A., & Johnson, R. (2022). Customer complaint resolution in the digital era: Challenges
and opportunities. International Journal of Banking Studies, 15(4), 200-225.
Kimaro, T., Mushi, F., & Mwakalebela, M. (2023). Evaluating mobile banking effectiveness in
Tanzania: A case study of rural accessibility. Tanzanian Journal of Financial Studies, 9(1), 35-
50.
Kumar, R., Mensah, J. T., & Oppong, S. (2020). Challenges of digital banking adoption in
Africa: A regulatory perspective. African Journal of Banking and Finance, 7(3), 78-99.
Ngoma, C., Wambura, P., & Nkurunziza, J. (2022). Digital transformation in Tanzanian banking:
Assessing customer satisfaction and operational efficiency. East African Journal of Banking and
Innovation, 12(2), 67-85.
Rachinger, M., Rauter, R., Müller, C., & Zhang, Y. (2023). Digital transformation and banking
efficiency: A comparative study of developed and developing economies. Journal of Global
Financial Research, 17(3), 78-102.
