The impact of digital banking on the financial performance of banking institutions in Zimbabwe(a case study of FBC Zimbabwe) · Electronic Theses and Dissertations

Author

Kashamba, Prisca

Title

The impact of digital banking on the financial performance of banking institutions in Zimbabwe(a case study of FBC Zimbabwe)

Abstract

Commercial banks play a leading role in the economic development of a country and this role of can be achieved only if the banks are stable. Digital banking technology has emerged as a way through which the commercial banks can be able to improve their financial performance by enhancing retail and corporate banking activities. From the inception of digital banking, banks have improved their networks in areas of deposits, withdrawals and other banking activities. However, despite the innovative ideas in digital banking, there still exists gaps as some banks still fail and face imminent collapse. The objective of this study was to establish how digital banking technology innovations affects the financial performance of commercial banks. The study took a descriptive survey design and was driven by three objectives namely; determining the effect of digital banking on profitability of financial institutions and the impact of digital banking on operational costs of banking institutions. This study was anchored on resource based view, financial intermediation theory, innovation diffusion theory, transaction cost theory and modern economics theory. A questionnaire was used to collect primary data over a target population of 40 employees of FBC. The study involved a collection of data through self-administered questionnaires targeting the finance and IT managers of the banks in their headquarters in Harare. The data collected was analysed using a descriptive method. The responses were tabulated, coded and processed by use of a computer statistical package for social scientists. The findings of the study were analysed and presented using statistical methods including pie charts and frequency tables. From the findings and summary, the study concluded that the ease of access to digital banking through digital-banking technology innovations had a positive influence on the financial performance of commercial banks in Zimbabwe.

Date

MAY, 2024

Publisher

BUSE

Keywords

Commercial banks, Digital banking, Financial performance

Supervisor

NIL