USABILITY OF MONEY TRANSFER INFORMATION SYSTEMS ...

Asian Journal of Computer Science And Information Technology 3 : 12(2013) 156 - 161.

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USABILITY OF MONEY TRANSFER INFORMATION SYSTEMS EXPLAINED BY ACCESSIBILITY AND AFFORDABILITY: THE CASE OF SWIFT AND TISS IN TANZANIA Maduhu Mshangi National examinations Council of Tanzania, P.o. Box 33342, Dar Es Salaam, Tanzenia ARTICLE INFO

ABSTRACT

Corresponding Author: Maduhu Mshangi, National examinations Council of Tanzania, Dar Es Salaam, Tanzenia

The main objective of this study was to explore the usability of money transfer information systems in Tanzania. The study specifically addressed: relationship between accessibility and usability; relationship between affordability and usability of money transfer information systems. Respondents were drawn from 36 financial institutions which are members of SWIFT and TISS in Tanzania; 34 members are in Dar es Salaam region, 1 in Zanzibar and 1 in Kilimanjaro region. Questionnaires were adopted as the main tool of collecting data, variables and hypotheses were identified and developed to obtain statistical relationships. The results reveal that there is strong positive relationship between accessibility and usability; and weak positive relationship between affordability and usability of money transfer information systems. This study conclude that in order to increase usability of money transfer particularly SWIFT and TISS, financial institutions need to improve accessibility and affordability of the money transfers information systems. 2013, AJCSIT, All Right Reserved.

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KeyWords: - usability, usability of information systems, accessibility, affordability, SWIFT, TISS, Money transfer information systems

INTRODUCTION

In Tanzania, commercial banks have been the main formal providers of money transfer information systems. There are various methods for doing money transfer in Tanzania; the researcher will concentrate on SWIFT (society for worldwide inter-bank financial telecommunications) and TISS (Tanzania Inter-bank Settlement System) money transfer information systems. TISS and SWIFT are the money transfer information systems used in Tanzania; and are interrelated. SWIFT is a platform to plug in other systems such as TISS. SWIFT is used for international money transfers (transactions between banks internationally), even though initially before TISS come in, it was used even for inter-bank transactions within Tanzania. SWIFT (Society for Worldwide Inter-Bank Financial Telecommunications) SWIFT's worldwide community includes banks, broker/dealers and investment managers, as well as their market infrastructures in payments, securities, treasury and trade (Akinboade, 2006; Healy, 2007). SWIFT ensure timely transfer of money from one bank to another electronically, without any delay and is a more secure system (SWIFT, 2007). TISS (Tanzania Inter-Bank Settlement System) TISS was implemented on 8th April, 2004; the main

function of TISS is to do inter-bank money transfer within Tanzania with an effect of real time gross settlement of transactions. TISS is a system that transfers funds between banks in Tanzania on gross in real time or deferred basis with finality and irrevocability of payments using settlement accounts of banks and financial institutions held in the Bank (BOT, 2007). PROBLEM STATEMENT Money transfer information systems have been facing many challenges. These challenges are poor accessibility and high cost of money transfer information systems: case of SWIFT and TISS in Tanzania. The introduction of SWIFT and TISS aimed at transferring money electronically without using paper means such as cheque and reducing the clearing days. But clearing days are high for upcountry cheque. People still using cheque to effect payment instead of using TISS and SWIFT. This show that, the usability of money transfer information system particularly SWIFT and TISS in Tanzania is questionable. Therefore, it appears to be appropriate to undertake research for usability of money transfer information systems :case of SWIFT and TISS in Tanzania. In the Tanzania context the key factors for enhancing usability of money transfer information are: accessibility and affordability.

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Maduhu Mshangi / Usability of Money Transfer Information Systems Explained by Accessibility and Affordability: The case of Swift and TISS in Tanzania

OBJECTIVE OF THE STUDY The general objective of this study was to explore the usability of money transfer information systems. The specific objectives of this study were examined, in order to answer the research questions. These specific objectives examined were: 1. To examine the relationship between accessibility and usability of money transfer information systems in Tanzania 2. To investigate the relationship between affordability and usability of money transfer information systems in Tanzania. LITERATURE REVIEW Theoretical Foundation for Usability of Money Transfer Information Systems Usability of money transfer information systems can be measured as the percentage of the target audience who use the system to carry out their job responsibilities. Other possible measures of usability of money transfer information systems (example the number of screens accessed, the amount of time users spend on the system) are difficult to compare, because of different in response times, screen layouts, and the number of applications available (Young & Watson, 1995). Theory of Reasoned Action (TRA) Fishbein and Ajzen (1975) stated that intentions lead to action. Behavioral intention has been shown to explain or predict an individual’s performing a conscious act, such as deciding to accept (or use) a technology. The investigative locus, then, is on identifying essential intention determinants that conceivably may include attitude, social influences, and other facilitating factors. The Theory of Reasoned Action (TRA) is further explained in terms of: Expectancy Value Models, Technology Acceptance Model (TAM), and Theory of Planned Behavior (TPB). Bajaj & Nidumolu (1998) pointed out that usability of money transfer information systems is explained by Expectancy Value Models. The Technical Acceptance Model (TAM) states that a behavioral intention to use the system is directly determined by the person's attitude toward using the system, and the person subjective probability that using the specific application will increase his or her job performance (perceived usefulness). The perceived easy use will in turn affect job satisfaction. Different researchers have tried to explain usability of money transfer information systems through Technology Acceptance Model (TAM). Bajaj & Nidumolu (1998) explained Technology Acceptance Model (TAM) is one of the models adopted specifically for modeling user acceptance of Information Systems (IS). It posits that two constructs, perceived usefulness (U) and perceived ease of use (EOU) mediate all the external variables likely to

influence an individual's decision to use an IS (i.e. the behavior). Perceived usefulness is defined as the person's subjective probability that using the money transfer information systems will be of benefit in an organizational context. The usability of money transfer information systems further explained by Theory of Planned Behavior (TPB). TPB states that a user intention to use technology is simultaneously determined by attitude, subjective norms, and perceived behavioral control as positive or negative evaluative affect about using the technology, perception of others opinions on whether or not to use technology, and perception of the availability of skills, resources and opportunities necessary for using it (Chau & Hu, 2002). Bajaj & Nidumolu (1998) pointed out that usability of money transfer information systems is explained by Theory of Planned Behavior (TPB). In TPB, behavior is again influenced solely by behavioral intention. Behavioral intention is influenced by attitude (A) towards usage, subjective norms, and by perceived behavioral control (PBC). Attitude mediates behavioral beliefs (a subjective probability that behavior will lead to a particular outcome) and outcome evaluations (the desirability of an outcome). Lewin Model of Change (Lewin, 1952), Lewin created a change model encompassing three stages unfreezing, moving and refreezing. The first stage creates the climate for change, moving entails analysis, design and installation while the last stage is institutionalizing changes. Several studies tested the planned change model (Lewin model). Results tend to show that the planned changes that attempted to follow the model have a higher chance of succeeding than those did not follow the model and the stage that determines successfulness of the implementation process is refreezing. Using this model leads to enhancing usability of money transfer information systems.

Cultural Models Culture is composed of shared values and beliefs of its members, and is manifested in ends sought by cultural members and the means used to achieve them (Hofstede, 1994). Robbins (2004) pointed out that one of the most widely referenced approaches for analyzing variations among cultures has been done by Geert Hofstede. He surveyed more than 116,000 IBM employees in 40 countries about their work-related values. He found that managers and employees vary on five value dimensions of national culture. By knowing the culture of the organization or/and of the national you will be in the position to predict the usability of money transfer information systems. Therefore the cultural models help in determining the

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usability of money transfer information. For example if you know that the culture of the organisation is to work collectively as a team, implementing system which will require everyone to perform the work individually, this will imply that the usability of the system will be questionable. The cultural models have direct link to the usability of money transfer information systems such as SWIFT and TISS in Tanzania. Empirical Studies Studies revealed that though there is a lot of literature on Information Communication, little has been done on the money transfer information systems in developing countries in general and Tanzania in particular. There is scant study which has been done on money transfer information systems: the case of SWIFT and TISS in Tanzania. Accessibility of Money Transfers Information Systems Emmanuel (2005) pointed out that accessibility of family planning services refers to the potential user’s ability to physically reach service providers. This can be measured directly, by distance or by travel time needed to reach the nearest facilities if one uses the most popular means of transportation available in the community. Technology usage enables easy access to vital information by customers concerning the product or service offered. When customers have vital information, they can use it to customize their services encounters. Electronic billboards can display information clearly in convenient locations where it is easy for customers to see when say waiting for service (Sulla, 2004). Emmanuel (2005) pointed out that information in itself is not enough to bring changes and for information to meet its objective of bringing about changes, it must be accessible to the users. In addition, it must not only be accessible but a conducive environment for its use should exist. Access to family planning information could assist low-income citizens (the rural people) to plan and space their pregnancies and to make informed choices, which could help in reducing unintended pregnancies and improve their living standards. Mbogoro (2005) found that ISPs’ technical failures, very much hinder respondents’ accessibility to internet services access. Therefore efforts need to be done by ISPs and all Internet based system stakeholders to improve them, for effectiveness of Internet based systems. Money transfer information systems particularly SWIFT and TISS are mainly found in the urban areas such as Dar es Salaam, Mwanza, and Moshi. The results from empirical study’s findings shown above have direct implication to the usability of money transfer information particularly SWIFT and TISS in Tanzania. Without accessibility of money transfer information systems such as SWIFT and TISS, its usability is debatable and questionable.

Affordability of Money Transfers Information Systems Sander, Mukwana & Millinga (2001) pointed out that, service fees vary between 35% and 40% of the transfer value, depending on the amount of money being sent and the service used. Generally, and not surprisingly, sending small amounts is relatively more expensive than sending larger amounts. For very small transfer values, the percentage cost can be much higher than 35% due to minimum fees; for large transfer values the cost can be lower, usually if a bank service is available. Respondents indicated that costs were acceptable and secondary to available, efficient, and effective services. At the same time, people refrain from using available services due to the cost. For instance, a Ugandan pilot experience with a money transfer product in a new market suggests that potential clients for the service decide against using it due to the cost, though the fee may not be higher than their overall cost and opportunity cost in not using the service. This suggests that lowering the costs for small transfers is one of the key challenges in making money transfer services more accessible, for instance to those who require 'low value - high frequency' transfers (Sander, Mukwana & Millinga, 2001). Piachaud (2002) pointed out that the pharmaceutical industry has historically conducted all, or much, of its R&D work in-house. With the advancement of science however, the industry has witnessed a broadening of the knowledge base and the emergence of a number of novel research techniques. The implications of this are that even the large pharmaceutical manufacturers can no longer afford to specialize in all therapeutic areas, most of which are associated with specialist expertise. The results from empirical study’s findings shown above have direct implication to the affordability in using money transfer information particularly SWIFT and TISS in Tanzania. RESEARCH METHODOLOGY Research Design and Data Sources This study has employed quantitative approach; this enabled the researcher to be confident about the findings. The researcher specifically employed questionnaires method for collecting data. The analysis of the data was performed using statistical methods. The Sampling Design and Procedures The sample size of this study was 36 financial institutions where respondents were selected from each financial institution; and in total 105 respondents. The total number of banks which are members of SWIFT and TISS is 36. The selected financial institutions in the sample were those which were members of SWIFT and TISS in Dar es Salaam region, Moshi and Zanzibar. In this study: SWIFT and TISS operators, SWIFT and TISS administrators from financial institutions were given

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questionnaires to express their views. In this study questionnaire included open and close –ended questions.

Table 2: SWIFT and TISS should be Available up to Rural Areas Frequency Percent

HYPOTHEIS AND EXPLANATIONS Hypothesis One: The Accessibility of Money Transfer Information Systems H1: The higher the accessibility of money transfer information systems the greater the usability of money transfer information systems. Hypothesis Two: Affordability of Money Transfer Information Systems H1: The higher the affordability of money transfer information systems the greater the usability money transfer information systems. FINDINGS AND INTERPRETATIONS The Accessibility of Money Transfer Information Systems Readily accessibility of SWIFT and TISS Table 1 reveals the views when respondents were asked whether money transfer information systems particularly SWIFT and TISS are accessible by people in the country. Majority of respondents indicated that SWIFT and TISS are not accessible by most people in Tanzania. Over three quarters (strongly disagree, disagree) of the respondents revealed that accessibility of SWIFT and TISS is a problem in Tanzania. To address this issue, respondents suggested that more efforts should be directed to introducing use of SWIFT and TISS at all levels including upcountry branches. Table 1: SWIFT and TISS is Readily Accessible by People Frequency Percent Valid strongly disagree 36

Cumulative Percent

34.3

Valid Percent 34.3

34.3

disagree

43

41.0

41.0

75.2

moderate

13

12.4

12.4

87.6

agree

8

7.6

7.6

95.2

strongly agree

5

4.8

4.8

100.0

Total

105

100.0

100.0

Source: field data, 2007 Availability of SWIFT and TISS in Rural Areas Table 2 represents the views when respondents were asked whether money transfers information systems particularly SWIFT and TISS should be installed up to rural areas (i.e. introduced to upcountry branches). Majority of respondents indicated that the solution is to introduce the services for money transfer through SWIFT and TISS to rural areas (i.e. to upcountry branches). Over nine tenth( strongly agree, agree ) of the respondents revealed that accessibility to SWIFT and TISS money transfers can be increased by bringing the services near to the customers and in turn its usability will be increased. As more people will have access to the systems for transferring money.

Valid strongly agree 50 Agree 49 Moderate 5 Disagree 1 Total 105

47.6 46.7 4.8 1.0 100.0

Valid Percent 47.6 46.7 4.8 1.0 100.0

Cumulative Percent 47.6 94.3 99.0 100.0

Source: field data, 2007 SWIFT and TISS Accessibility to Big Customers Table 3 represents the views when respondents were asked whether money transfers information systems particularly SWIFT and TISS should be installed up to big customers (such as TRA, ministries, etc). Majority of respondents indicated that the solution to enhance usability of money transfer information systems is to introduce the services to big customers. Over six seventh( strongly agree, agree ) of the respondents agreed that accessibility to SWIFT and TISS money transfers can be increased by installing access points/terminals to big customers and in turn enhancing its usability. This will enable big customers to initiate money transfer while in their respective offices. Table 3: SWIFT and TISS Access Points be installed to Big Customers Frequency Percent Valid strongly agree 60 Agree 32 Moderate 9 Disagree 3 strongly disagree 1 Total 105

57.1 30.5 8.6 2.9 1.0 100.0

Valid Percent 57.1 30.5 8.6 2.9 1.0 100.0

Cumulative Percent 57.1 87.6 96.2 99.0 100.0

Source: field data, 2007 The Affordability of Money Transfer Information Systems Cost Effectiveness of Money Transfer through SWIFT and TISS Table 4 reveals the views when respondents were asked whether the money transfer using SWIFT and TISS are cost effective. Majority of respondents indicated that using SWIFT and TISS for money transfers are not cost effective. Over three quarters (strongly disagree, disagree) of the respondents depicted that money transfers through SWIFT and TISS is not cost effective; and this issue must be addressed to enhance its usability. Table 4: SWIFT and TISS are Cost Effective for Money Transfer Frequency Percent Valid

strongly disagree 33 Disagree 45 Moderate 11 Agree 9 Strongly agree 6 Total 104 Missing System 1 Total 105

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31.4 42.9 10.5 8.6 5.7 99.0 1.0 100.0

Source: field data, 2007

Valid Percent 31.7 43.3 10.6 8.7 5.8 100.0



Effecting Payment through SWIFT and TISS Table 5 reveals the views when respondents were asked whether effecting payment through SWIFT and TISS is cheaper. Majority of respondents indicated that effecting payment through SWIFT and TISS is not cheaper. Over four fifth( strongly disagree, disagree) of the respondents revealed that effecting payment through SWIFT and TISS is not cost effective; this issue must be addressed so as to enhance usability of money transfer information systems. Table 5: Effecting Payment through SWIFT and TISS is Cheaper Frequency Percent Valid strongly disagree 42 Disagree 42 Moderate 7 Agree 11 strongly agree 3 Total 105

40.0 40.0 6.7 10.5 2.9 100.0

Valid Percent 40.0 40.0 6.7 10.5 2.9 100.0


Source: field data, 2007 Cost for Money Transfer through SWIFT and TISS Table 6 represents the views when respondents were asked whether many users can manage to pay the cost for money transfer through SWIFT and TIS. Majority of respondents indicated that many users for SWIFT and TISS cannot manage to pay the cost for money transfer. Nearly five sixth( strongly disagree, disagree) of the respondents revealed that effecting payment through SWIFT and TISS is not cost effective; this issue must be addressed so as to enhance usability of money transfer information systems.

Table 6: Many Users Manage to Pay Cost for Money Transfer: SWIFT and TISS Frequency Percent Valid strongly disagree 53 disagree 34 moderate 6 Agree 7 strongly agree 5 Total 105

50.5 32.4 5.7 6.7 4.8 100.0

Valid Percent 50.5 32.4 5.7 6.7 4.8 100.0


Source: field data, 2007 Minimum Charge for Money Transfer through SWIFT and TISS Table 7 represents the views when respondents were asked whether the minimum charge for money transfer through SWIFT and TISS is high; for those transferring small amount of money. Majority of respondents indicated that the minimum charge for money transfer through SWIFT and TISS is high; for transferring small amount of money. Over nine tenth (strongly agree, agree) of the respondents revealed that the minimum charge for money transfer through SWIFT and TISS is high; for transferring small amount of money. This issue must be addressed in order to enhance usability of money transfer information systems. Table 7: Minimum Charge for Money Transfer through SWIFT and TISS Frequency Percent Valid strongly agree 52 Agree 45 moderate 5 disagree 2 strongly disagree 1 Total 105

49.5 42.9 4.8 1.9 1.0 100.0

Valid Percent 49.5 42.9 4.8 1.9 1.0 100.0


Source: field data, 2007 TESING OF HYPOTHESIS In this study, the hypotheses were tested using 5% level of significance (95 % confidence interval), 95% confidence has been widely used in business and by majority of researchers; therefore making us in good position to compare the results to previous researches.

Table 9: Coefficients Unstandardized Coefficients B

Standardized Coefficients

t

Sig.

95% Confidence Interval for B

Beta

(Constant)

-.724

accessibility of money transfer IS affordability of money transfer IS

.548

.380

- .015 2.479 4.195 .000

.336

.268

2.750 .007

Pearson Correlations (Partial) Hypothesis

Hypothesis Supported

Lower Bound -1.303

Upper Bound -.144

.289

.807

.718

1

Yes

.094

.579

.464

2

Yes

.725

a. Dependent Variable: usability of money transfer IS (Source: field data, 2007) Hypothesis One: The Accessibility of Money Transfer Information Systems It was hypothesized that the higher the accessibility the

greater the usability of money transfer information systems. The results from Table 9, reveal that partial Pearson correlation =0.718; which implies that there is a strong positive relationships between accessibility and

160


usability of money transfer information systems. Since the significance level, p=0.000 which follow in rejection region; hence reject the null hypothesis at 5% level of significance level. Therefore, the test provides evidence to conclude that the higher the accessibility the greater the usability of money transfer information systems. Hypothesis Two: Affordability of Money Transfer Information Systems It was hypothesized that the higher the affordability of money transfer information systems the greater usability. The results from Table 9, reveals that partial Pearson correlation = 0.464 which implies that there is a weak positive relationships between affordability and usability of money transfer information systems. Since the significance level, p=0.007 which follow in rejection region; hence reject the null hypothesis at 5% level of significance level. Therefore, the test provides evidence to conclude that the higher the affordability the greater the usability of money transfer information systems. 1. CONCLUSION In this study, there were two hypotheses; hypothesis one focused on the accessibility of money transfer information systems, hypothesis two focused on affordability of money transfer information systems. 1.1. The results reveal that there is a strong positive relationship between accessibility and usability of money transfer information systems. The financial institutions should put more efforts on increasing access points for SWIFT and TISS, and reviewing the instructions and operations procedures governing money transfer information systems. 1.2. Findings reveal that transferring money through SWIFT and TISS is expensive especially when transferring small amount of money, as the case to most population of Tanzania. The results portray that there is a weak positive relationship between affordability and usability of money transfer information systems; this implies that reducing the transfer charge to affordable level increases its usability.

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