Adoption of internet and mobile banking in the Zimbabwe commercial banking sector: The case of Standard Chartered Bank Zimbabwe

Abstract

This study is an investigation into the criticality of adopting internet and mobile banking by commercial banks in Zimbabwe. It looks at the benefits these two alternative delivery channels offer and the challenges associated with them. Electronic banking has taken a leading role in the global economy and Zimbabwe like most developing economies has been lagging behind. The research used a mixed approach. Questionnaires were sent to Standard Chartered Bank Zimbabwe (SCBZ) staff members. For selected critical staff members, clients and competing bank employees’ interviews were used to collect the data. The response rate was relatively high at 95%. The study findings pointed out that it is crucial for SCBZ to fully adopt internet and mobile banking for sustainability and profitability. In addition to significant cost reduction, alternative delivery channels expand outreach to areas in which the traditional bricks and mortar approach is unfeasible. There also increase product diversification by making savings and remittance products convenient, efficient and profitable. Huge financial investments to cater for capital and revenue expenditure and security concerns are also pertinent and these projects need to be properly managed. The major challenges are risk and network security, poor national infrastructure and poor customer uptake. As it adopts these two forms of banking SCBZ is recommended to leverage from experiences from local banks and use its global status to subvert potential pitfalls and associated risks. It is also recommended for all stakeholders, management and staff, customers, ICT industry and government through its various sections, to combine their efforts so that these two channels will be accessible to all for the benefit of the whole nation. The world has digitalised and no economy or company can survive without joining the electronic commerce bandwagon. Areas for future study are risk eradication and management in internet and mobile banking in developing countries and adoption of 100% internet banking institutions (virtual banks) in Zimbabwe.