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Author
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Shyleen Mazodze
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Title
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Analyzing The Impact of Digital Banking on The Performance of Zimbabwean Banks. A Survey of Harare CBD
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Abstract
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The study sought to determine the impact of digital banking on the performance of Zimbabwean banks located in Harare. The study was guided by four specific objectives which were to establish the nature of digital banking, to determine the impact of digital banking on the performance of banks, to explore challenges associated with digital banking to the performance of banks and to recommend possible measures to curb the challenges posed by digital banking on the performance of banks in Harare. To achieve these objectives, the study adopted a pragmatism research philosophy and in line with this philosophy, the study also adopted a descriptive survey research design and a mixed methodology research approach in which both interviews and questionnaires were used for data collection from a target population of 52 respondents drawn from 13 commercial banks located in Harare. However, only 90.38% of the targeted population responded in time for data analysis. The study unveiled that the digital banking nature is diverse and includes mobile banking, internet banking, home banking, webpages, telephone banking, television banking and ATMs with the most common being mobile banking followed by internet banking, ATM and the least being home banking. In addition, the study also revealed that there is a positive and significant relationship between the extent of digital banking adoption and bank performance. According to the findings of the study, digital banking specifically enhances revenue generation, bank profitability, customer satisfaction, and customer retention and market share. It also improves efficiency, results in cost savings and creates cross-selling opportunities for commercial banks. Moreover, findings also revealed that banks face a lot of challenges relating to adoption and utilisation of digital banking and among these challenges were the lack of awareness of digital banking services, uncertainty about the benefits of digital banking, high set-up and development costs and legal, security and liability issues, poor and inadequate telecommunications infrastructure, limited knowledge of digital banking and internet, usage and availability, low credit card penetration, poor internet connectivity and lack of established telephone lines. The researcher therefore concluded that digital banking, in its diverse forms, plays a significant role in improving bank performance in various ways. However, there are challenges that banks face regarding its adoption and utilisation. The researcher therefore recommends banks to embrace more forms of digital banking and increase its penetration, develop user-friendly digital banking platforms and forge partnerships with telecommunications organisation to improve infrastructure and service delivery.
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Date
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December 2023
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Publisher
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BUSE
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Keywords
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Digital Banking
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Banks
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Supervisor
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N/A
SHYLEEN MAZODZE.pdf