Deposit-attracting strategies in the financial sector in a multi-currency setting: The case of commercial banks in Zimbabwe

Abstract

Banks in Zimbabwe are facing challenges in attracting deposits from customers due to several reasons. The banking sector has implemented a wide range of strategies in a bid to attract deposits. These strategies can be broadly classified as promotional, distribution and customer relationship management. The study used the whole population of banks in Zimbabwe. The study reveals that only a few of the strategies implemented seem to work while the rest are ineffective. The study concludes that banks are not exhaustively using distribution strategies and CRM strategies. The study recommends that banks should get into strategic-alliances with local or international partners and introduce information technology frameworks and processes in order to secure customer information and funds.