Impact of financial inclusion on bank performance in Zimbabwe. A case study of commercial banks in Zimbabwe. · Electronic Theses and Dissertations

Author

Kabvitira,Victoria

Title

Impact of financial inclusion on bank performance in Zimbabwe. A case study of commercial banks in Zimbabwe.

Abstract

The purpose of this research was to investigate the impact of financial inclusion on bank performance in Zimbabwe. The objectives of the study were to investigate the effects of financial inclusion on the performance of banks in Zimbabwe, to determine the effectiveness of financial inclusion strategies on the performance of banks, to identify the challenges associated with financial inclusion in banks and to make recommendations for strategies to improve financial inclusion in financial sector in Zimbabwe. The researcher adopted a descriptive research were both quantitative and qualitative data was used to gain in depth understanding of the aforementioned topic. The researcher used judgemental sampling and snowball sampling in this study. A sample of 80 respondents was drawn from four banks in Harare which includes ZB bank, CBZ bank, POSB and CABS. Questionnaires were used to collect primary data whilst journals, annual reports, internet and text books were used as a source to collect secondary data. The researcher presented data in the form of tables, charts and graphs using Microsoft Excel with the help of SPSS to show the level of correlation between financial inclusion and bank performance. The outcome of the findings revealed that there is a positive relationship between financial inclusion and bank performance. The analysis shows that financial inclusion has been effective in enhancing bank performance in Zimbabwe. However the study proved that financial inclusion financial inclusion has indeed contributed to improved bank performance as most respondents agreed to a greater extend the notions on the impact of financial inclusion in bank performance. Most respondent’s shows that financial inclusion has led to increase in profits, increase in portfolio deposits of banks, improved the capital adequacy and greater operating efficiency. The researcher also found out that the financial inclusion strategies have been effective in enhancing bank performance in Zimbabwe which was supported by a positive correlation. The study also found out that network problems, fraudulent activities and financial illiteracy are the main challenges that are associated with financial inclusion in banks. The researchers recommended that the financial sector to find a permanent solution to the system and network problem challenges so as to greatly improve financial inclusion.

Date

June 2022

Publisher

BUSE

Keywords

Financial inclusion

Bank performance

Supervisor

N/A