The Impact of covid -19 on digital financial inclusion by commercial banks in Zimbabwe (2020-2022)

Author

Muadambo, Pritchard

Title

The Impact of covid -19 on digital financial inclusion by commercial banks in Zimbabwe (2020-2022)

Abstract

The essence of the study was focused on the impact of COVID-19 on digital financial inclusion in Zimbabwe. The three objectives which guided the study were intended to examine the benefits derived from the uptake and utilisation of digital financial inclusion services, identify the challenges and risks associated with the uptake and utilisation of digital financial inclusion services and find out strategies intended to enhance the uptake and utilisation of digital financial inclusion services in Zimbabwe.This study used a mixed-methods approach, and a descriptive survey was selected as the ideal research design. The population consists of 200 vulnerable people where a sample of 20 people was extracted from using a simple random sampling technique. The data was gathered through questionnaires and interviews. Quantitative data solicited as a result of questionnaires was presented in tabular, pie charts and bar graphs formats whereas qualitative data solicited from interviews of three respondents using a non-probabilistic sampling, namely purposive sampling. Qualitative data was recorded in textual form and coded into themes falling into the same categories.The findings from this study revealed that less manual documentation, advancement in digital infrastructure, increased uptake and usage of digital devices and services, increased revenue, improved profit margins, customer loyalty and retention were benefits accrued from the uptake and usage of digital financial inclusion services to the commercial banks in Zimbabwe in the COVID-19 pandemic era. However, on the demand side, the study established that performing transaction at the comfort of one’s home, opportunity for unbanked population to open new account, improved quality services, enhanced individual welfare and low transactional costs as benefits accrued from uptake and usage of digital financial inclusion to the vulnerable population during COVID-19 crisis. On the supply side, the study established that low recoveries, reduced cash flow, and increased credit risks, capital depletion as challenges and risks associated with the uptake and usage of digital financial inclusion services to the Commercial Banks in Zimbabwe. On the demand side, the study noted that low digital financial literacy, lack of accepted collaterals, lack of trust, poor infrastructural services, online misinformation, expensive financial products and services and stringent account requirements as challenges hampering the uptake and usage of digital financial inclusion services to the vulnerable population during COVID-19 crisis. The study suggested strategies such as promotion of low data costs and subsiding for ICT gadgets, overcoming digital divide, promotion of digital financial literacy, infrastructural development and enhancement of trust

Date

2022

Publisher

BUSE

Keywords

Commercial banks

Covid -19

Digital financial inclusion

Supervisor

Mr. Chitombo