Impact of mobile banking on financial inclusion Zimbabwe: a case of Dema in Seke district

Author

Matema, Rukudzo

Title

Impact of mobile banking on financial inclusion Zimbabwe: a case of Dema in Seke district

Abstract

The purpose of the study was to investigate the impact of mobile banking on financial inclusion in Dema area in Seke District. The research objectives were to: determine the barriers to financial inclusion in Dema area of Seke District in Zimbabwe, examine the impact of mobile banking on financial inclusion in Dema area of Seke District in Zimbabwe, develop a suitable framework for financial inclusion through mobile banking in Dema area of Seke District in Zimbabwe. Towards the realisation of the research objectives both a descriptive and regression analysis was undertaken. Data was collected through the use of questionnaires that were distributed to a sample size of 45 residents and only 40 questionnaires. The findings were mobile products, agencies and services were strong predictors of financial inclusion in Seke rural area. The results of the findings were that costs of mobile banking is not significant barrier to financial inclusion. The results also find that costs per transaction are very low compared to bank charges and saves on time and transport money. This result was supported by Mtetwa (2014) who found out that cost per transaction is not significant barrier in using mobile banking. The study also find that mobile banking allows them to easily acquire foodstuffs and pay bills in the comfort of their homes positively. The findings were also supported by Mulili (2020) who found out that many respondents in Kenya find mobile banking convenient and easy to use. The three factors explained the increased impact of financial inclusion through mobile banking and from the results mobile banking agencies were strong predictors of financial inclusion followed by mobile banking services and finally mobile banking products. However the study found out that barriers to financial inclusion were in form of poor network coverage, lack of accessibility to credit facilities as well as lack of security against third parties. The Reserve Bank of Zimbabwe and mobile network providers was identified to have a role to play in facilitate equal distribution of mobile banking platforms, products as well as services so as to attain a positive aggregated national financial inclusion rather than focusing on urban areas mostly. More so strict assessment of National Financial Inclusion Strategy (NFIS) as it address challenges to financial inclusion at national level which helps in achieving the golden goal of financial inclusion. Statistical data from all mobile banking bodies should be gathered, analysed quarterly and corrective measures should be put in place.
Lastly a locational based study on urban areas of Zimbabwe should also be undertaken to triangulate the gap that is needed to be covered between rural and urban areas so that financial inclusion strategies will be smoothly implemented

Date

December 2024

Publisher

BUSE

Keywords

Network coverage,

Mobile Banking

Financial Inclusion

Supervisor

Dr. Maune,