The impact of mobile banking on traditional banking trasactions in Zimbabwe: The case of ZB Bank

Abstract

This research focused on analyzing the impact of mobile banking on traditional banking transactions, which assisted in ascertaining whether mobile banking was still just a delivery channel for banking services or the way to do banking. This was achieved through an empirical analysis of the case of the ZB Bank`s mobile banking platform called e-Wallet. The motivation behind this study was the rapid changes that were happening in the mobile banking industry, but a gap remained in addressing the implications of this innovation on traditional banking transactions which this study sought to close whilst contributing to the existing literature on mobile banking. The research highlighted the trends in adoption and usage of e-Wallet and at the same time assisted in addressing some of the discrepancies that existed between the level of adoption and usage of e-Wallet. The researcher also indicated some of the challenges faced by e-Wallet and its users and recommended the policy changes needed to address these challenges. A case study approach was used as this allowed for an in-depth analysis of the issue. The ZB Bank staff and its customers formed the target population from which a sample of respondents was selected. Data was gathered through the use of questionnaires and structured interviews. The data was analyzed using qualitative and quantitative techniques with the help of the Statistical Package for Social Scientists (SPSS). The research findings showed that mobile banking had transformed the way banking was done. It had achieved this through the introduction of new products and services that brought convenience and saved costs for both the customer and the bank. Mobile banking still enjoyed high adoption and usage despite of the challenges it faced. The research also established that mobile banking was no longer just like other delivery channels for banking services but a way of doing banking business, thus the bank needed to strategize along the mobile banking innovation. The study advocated for a regulatory framework by the responsible authorities to properly govern the players in the industry. It also recommended that the bank should invest in risk and compliance functions to mitigate the risk of theft and fraud. This study was carried out in a liquidity constrained environment which could have affected some of the results therefore the researcher recommends that this study be repeated in a stable economic environment.