A critical analysis into big data analytics as a weapon for competitive advantage for commercial banks in Zimbabwe.

Abstract

This research focused on the analysis of Big Data and its Analytics and competitive advantage in the commercial banking sector of Zimbabwe, particularly in Harare and was based on the following objectives: the relationship between Big Data Analytics and the competitive performance of commercial banks in Zimbabwe, how Big Data Analytics create value for commercial banks through competitive advantage, the challenges of big data analytics in the commercial banking industry of Zimbabwe, the current status of commercial banks in Zimbabwe in terms of a data analytic culture and the extent to which the commercial banking industry is embracing the concept of Big Data and Analytics. A descriptive study was used to collect data for this survey. The target population for this study consisted of commercial banks in Zimbabwe, particularly in Harare. According to the RBZ, the total number of commercial banks registered in Zimbabwe is thirteen. A sample of ten (10) commercial banks was taken due to limited time for data collection and analysis. The sample was selected based on an evaluation, taking into account big data analytics usage by the bank. This research used primary data collected through structured questionnaires. Respondents were from IT and Business Intelligence departments, those dealing with organisational strategies, IT and business intelligence. Data were analysed using frequencies, percentages, means and techniques of standard deviation and regression. The study found that commercial banks have invested in data storage facilities and advanced intelligent tools to analyse and anticipate customers’ behaviour. These tools enable firms to anticipate consumers' needs more effectively, as well as optimise their operations. Systems that incorporate big data analytics into daily business routines allows them to obtain higher levels of knowledge in the context of big data, enabling more effective decision-making. There are challenges in managing big data sets that, if addressed, can help organisations realise the full potential of big data tools and various analytics, especially in areas of competitive advantage. This study, through a complete review of its findings, concludes that the Big Data and its Analytics is driving competition at a tremendous rate. The banks are now discovering important data with great potential that they have had in their storage for decades.