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Author
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Nleya, Kimberly N.
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Title
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The Impact of plastic money on the financial performance of Zimbabwean, commercial banks: a case study of CBZ limited Beitbridge
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Abstract
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This study investigates the impact of plastic money on the financial performance of CBZ Limited, focusing specifically on the Beitbridge branch in Zimbabwe. In the wake of Zimbabwe’s economic challenges, such as cash shortages, inflation, and rising demand for financial technology, plastic money has emerged as a critical alternative to traditional cash-based transactions. Grounded in the Technology Acceptance Model (TAM; Davis, 1989), Diffusion of Innovations Theory (Rogers, 2003), and Financial Intermediation Theory (Allen & Santomero, 2001), the research evaluates whether and how the use of plastic money including ATM cards, mobile banking, and point-of sale (POS) systems contributes to financial efficiency, customer satisfaction, and overall profitability. The study employed a case study design within a descriptive survey framework, combining both qualitative and quantitative approaches. A sample of CBZ clients and employees was selected using stratified and purposive sampling methods. Data were collected using structured questionnaires for customers and semi-structured interviews with staff. Quantitative data were analyzed using descriptive statistics, while qualitative data were subjected to thematic analysis. Findings revealed that plastic money significantly improved transaction efficiency and customer convenience at CBZ Beitbridge. Clients reported increased satisfaction due to reduced queuing times, 24/7 access to banking services, and improved security. From the bank’s perspective, plastic money usage was linked to higher transaction volumes and a broader customer base, positively influencing financial performance. However, challenges such as system downtimes, cyber-security threats, and inconsistent network infrastructure occasionally undermined service delivery. The study concludes that while plastic money offers multiple advantages, its full potential in enhancing financial performance is constrained by infrastructural and regulatory gaps. The research recommends that CBZ and other financial institutions invest in robust digital infrastructure, staff training, and enhanced security protocols to maximize the benefits of plastic money, while policymakers should craft supportive regulations to promote innovation and consumer protection. Suggestions for further study include longitudinal profitability analyses to capture delayed financial returns, demographic and regional comparative studies across the SADC region, and investigations into the relationship between technology reliability and financial performance. This study contributes to the growing body of literature on financial technology in developing economies and provides actionable insights for both practitioners and policymakers.
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Date
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June 2025
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Publisher
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BUSE
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Keywords
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Plastic Money
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Financial Performance
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Supervisor
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Nil
Nleya, Kimberly N..pdf