An investigation into the impact of digital banking platforms on bank performance in the Zimbabwean banking industry

Abstract

The aim of this study was to investigate the impact of digital banking platforms; POS banking, mobile banking, internet banking and app banking, on bank performance in Zimbabwe. The study used a positivist paradigm, explanatory design, deductive approach and a survey strategy. Primary data which employed in answering the research questions were collected from a sample of 200 respondents drawn from four selected banks operating in Harare. The data were collected using a questionnaire survey and was analysed using AMOS. Findings showed that POS banking, mobile banking and app banking have positive and significant indirect (via service quality), direct and total impact on bank performance whilst internet banking has no impact on bank performance. Besides, the findings revealed that service quality does not moderate the impact of digital banking platforms on bank performance in Zimbabwe. The study contributed positively to the extant literature and the body of knowledge on the impact of digital banking platforms on bank performance from a Zimbabwean point of view. Nevertheless, the methodological limitation relating to the use of the quantitative cross-sectional data need to be addressed in future research through the use of a mixed method approach. The research contributed a conceptual framework for assessing the impact of digital banking platform on bank performance in which service quality was employed as an intervening variable. Besides, the study delivered a valid and reliable research instrument for exploring digital banking platforms and bank performance. The study recommended that policies should be made that result in the government offering loans to banks that seek to undertake digital technology innovations at a low cost to incentivise banks to borrow from the government and come up with new digital banking innovations. It was suggested that future study should explore the contribution of digital banking platforms being offered by banks on organisational performance in different sectors of the economy