The Impact of mobile banking on financial inclusion in Zimbabwe. A case of Zvimba Rural

Author

Magaramombe, Nyasha

Title

The Impact of mobile banking on financial inclusion in Zimbabwe. A case of Zvimba Rural

Abstract

This research was done to determine the impact of mobile banking on financial inclusion in rural arears of Zimbabwe. Zvimba Rural Area was taken as a case study. The major intentions were to examine how mobile banking affects financial inclusion, identify obstacles preventing utilization of banking facilities and determine whether mobile banking might eliminate such obstacles as a means of achieving the goal of financial inclusion, determine the benefits and drawbacks from adopting mobile financial services and recommend strategies which can be used to improve financial inclusion. The sample size was made up 44 respondents. A descriptive research was conducted where both quantitative and qualitative data were utilized in order to gain an in-depth of the research topic. In addition, primary and secondary sources of data were used in the research. Data was analysed using SPSS version 20. The researcher discovered that there is a strong positive relationship between mobile banking and financial inclusion and this was evidenced by R-value which was 0.973a and sig value which was 0.00. It was also concluded that the barriers to accessing financial services that most individuals face are bank costs, lack of trust in banks and distance. It was also concluded that mobile banking is beneficial to the unbanked segment because it provides round-the-clock availability and time savings because there is no need to visit a bank, and 24 hour access where transactions are completed. However, it was established that technological understanding is required in order to use mobile banking. The study concluded that consumer protection, micro financing small and medium enterprises, and infrastructure improvements enable effective financial inclusion. The government was recommended to improve telecommunications infrastructure in rural arears, banks were recommended to ensure transparency in order to boost confidence. Service providers were recommended to initiate financial literacy campaigns in rural areas.

Date

June 2023

Publisher

BUSE

Keywords

Impact

Mobile banking

Financial inclusion

Supervisor

Zvimba Rural