An analysis of factors resulting in low uptake of mobile banking as a banking delivery channel in Zimbabwe a case study of CBZ Bank (2009 - 2014)

Abstract

Financial liberalization, globalization, technological advancement and increased competition have brought about new ways of doing business in the banking sector the world over. Technological advancement has brought about new banking delivery channels hence one does not necessarily have to physically visit the banking hall to get service or endure standing in long queues just for balance inquiry. Stiff competition among banks and from mobile telecommunication companies has forced banks to introduce mobile banking in order to enhance their products, image, remain competitive, retain current customers, attract new customers and reduce their operating costs. The study used a structured questionnaire to collect data from 120 customers. Respondents included corporate clients, small and medium enterprise customers, individual bank customers and bank employees from different banks in Harare. A five point Likert scale was used to rank twenty dimensions from five attributes on customer perceptions on the uptake of mobile banking as a banking delivery channel. The response rate was 80 percent. The study results showed that knowledgeable staff, telecommunications networks informative adverts and customer perceptions have an impact on the uptake of mobile banking as a banking delivery channel. Other factors identified by the study that influence adoption and usage of mobile banking are interoperability, financial regulation, business models, agent proximity and ubiquity, education level, income, pricing alternative channels, specific market context products, security, trust, mobility, demographics, and operating environment of mobile banking systems. The study accepted the proposition that bank customers have a negative perception of mobile banking as a banking delivery channel. The study concluded that there is low adoption and use of mobile banking as a banking delivery channel in Zimbabwe. The study recommended that banks need to come together and either acquire a telecommunication company or set up a joint telecommunication network like Zimswitch to alleviate connection challenges as they are currently relying on third party networks from telecommunications companies who are now a source of stiff completion to their products and they may sabotage banks so that their products become superior to bank products. The study recommends banks to open up several agents in remote parts of the country and in areas where banks’ footprint is invisible rather than sticking to banking halls with fixed operating hours. Banks can also use advertising and road shows as a way to raise awareness, staff training to increase knowledge mobile banking usefulness and benefits as a way to motivate adoption and usage. Banks can set up E-learning platforms to intensify staff training as mobile banking usage is the future of banking.