Mobile Banking and Commercial Bank Performance Nexus in Zimbabwe (2011-2021): Impact and Implications

Authors

  • Shepard Makurumidze Department of Finance and Accounting, University of Zimbabwe, MP 167, Zimbabwe
  • Dorcas Rwodzi Graduate Business School, Chinhoyi University of Technology, 7724, Zimbabwe

DOI:

https://doi.org/10.30564/jsbe.v6i1.19

Abstract

The study investigated mobile banking and commercial banks’ performance nexus in Zimbabwe for the period 2011-2021. The investigation employed a pragmatic approach and a descriptive design. Primary data as well as secondary data were used to achieve the study objectives. Questionnaires, interviews and documentary guides were used to collect primary and secondary data respectively. There were 108 questionnaires distributed to staff members and customers of 6 sampled commercial banks in Zimbabwe having mobile banking experience. The interview guide was administered to bank managers to get a deeper understanding of the topic under research and as a mitigation strategy for addressing the flaws of the questionnaires. Analysis of quantitative data utilised descriptive analysis tools, correlations analysis tools as well as regression analysis tools whereas theme analysis was used for qualitative data. SPSS version 26 was used for this purpose. The study implications established that mobile banking and commercial banks’ performance nexus in Zimbabwe was significant and also enhanced mobile banking security capabilities and strengthened commercial banks’ performance. The investigation concluded that mobile banking’s success in enhancing commercial banks’ performance hinged on its ability to allow the user to get easier, cheaper and timely access to services. However, the study results showed that the cost of mobile banking services, government policies and intense competition inhibited the uptake of banking services. Commercial banks are recommended to continue strengthening the security of mobile banking services and to boost their uptake by bank customers in Zimbabwe. 

Keywords:

Mobile banking, Commercial banks, Performance

References

[1] Tchouassi, G., 2012. Can mobile phones really work to extend banking services to the unbanked? Empirical lessons from selected Sub-Saharan Africa countries. International Journal of Development Societies. 1(2), 70-81.

[2] Olweny, T., Shipho, T.M., 2011. Effects of banking sectoral factors on the financial performance of commercial banks in Kenya. Economic and Finance Review. 1(5), 1-30.

[3] Kingoo, H., 2011. The relationship between electronic banking and financial performance of commercial banks in Kenya [Master’s thesis]. University of Nairobi: Kenya.

[4] Kigen, K.P., 2010. The impact of mobile banking on transaction costs of microfinance institutions [Master’s thesis]. University of Nairobi: Kenya.

[5] Gakure, R., Ngumi, P., 2013. Do bank innovations influence profitability of commercial banks in Kenya? Prime Journal of Social Science (PJSS). 2(3), 237-248.

[6] Flamini, V., McDonald, C., Schumacher, L., 2009. The determinants of commercial bank profitability in Sub-Saharan Africa. IMF Working Papers 09(15). DOI: https://doi.org/10.5089/9781451871623.001.

[7] Brownbridge, M., Harvey, C., 1998. Banking in Africa. The impact of financial sector reform since independence. Foundation Publishers: Kampala.

[8] Reserve Bank of Zimbabwe, 2016. Monetary Policy Statement: Harare.

[9] Mbiti, I., Weil, D., 2011. Mobile Banking: The Impact of M-Pesa in Kenya [Internet]. Available from: https://www.nber.org/papers/w17129.

[10] Burgessy, R.P., Wong, G., 2005. Banking the poor: Evidence from India. Journal of the European Economic Association. 3(1), 2-3.

[11] Ching, M.C., Chuan, A.T., Sim, J.J., et al., 2011. Factors affecting Malaysian mobile banking adoption: An empirical analysis. International Journal of Network and Mobile Technologies. 2(3).

[12] Chikoko, L., Mangwendeza, P., 2012. Financial inclusion by Zimbabwean commercial banks in a liquidity constrained environment. Journal of Economics and International Finance. 4(10), 252-259.

[13] Al-Jabir, I.M., 2012. Mobile banking adoption: Application of diffusion of innovation theory. Journal of Electronic Commerce Research. 13(4).

[14] Alsheikh, L., Bojei, J., 2014. Determinants affecting customer’s intention to adopt mobile banking in Saudi Arabia. International Arab Journal of e-Technology. 3(4), 210-219.

[15] Cruz, P., Neto, L.B.F., Munoz-Gallego, P., et al., 2010. Mobile banking rollout in emerging markets: Evidence from Brazil. International Journal of Bank Marketing. 28(5), 342-371.

[16] Puschel, J., Mazzon, J.A., 2010. Mobile banking: Proposition of an integrated adoption intention framework. International Journal of Bank Marketing. 28(5), 389-409.

[17] Wilson, A., Zeithmal, V.A., Bitmer, M.J., et al., 2012. Services Marketing—Integrating customer focus across the firm, Second European Edition. Mc Graw Hill Education: UK. pp. 49-108.

[18] Asongu, S.A., 2012. How has mobile banking stimulated financial development in Africa? MPRA Paper No. 38576. Germany: University Library of Munich.

[19] King, M., 2012. Is Mobile Banking Breaking the Tyranny of Distance to Bank Infrastructure? Evidence from Kenya [Internet]. Avaiable from: http://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp412.pdf.

[20] Kathuo, S.M., 2015. Effect of mobile banking on the financial performance of banking institutions in Kenya. Strategic Journal of Business & Change Management. 2(98), 1440-1457.

[21] Cudjoe, A.G., Anim, P.A., Nyanyofio, J., 2015. Determinants of mobile banking adoption in the Ghanaian banking industry: A case of access bank Ghana limited. Journal of Computer and Communications. 3, 1-19.

[22] Bonface, R.M., Ambrose, J., 2015. Mobile banking and financial performance of commercial banks in Kenya. International Journal of Finance and Current Business Studies. 4(12), 16-31.

[23] Diniz, E., Birochi, R., Pozzebon, M., 2012. Barriers and triggers to financial inclusion: The use of branchless, ICT-based banking in an Amazon county. Electronic Commerce Applications & Research. 11(5), 484-494.

[24] Bradley, L., Stewart, K., 2003. The diffusion of online banking. Journal of Marketing Management. 19(9-10), 1087-1109.

[25] Mutua R.W., 2013. Effects of mobile banking on the financial performance of commercial banks in Kenya [Master’s thesis]. Kenya: University of Nairobi.

[26] Munaye, H., 2009. The application of mobile banking as a strategic response by equity bank Kenya limited to the challenge in the external environment [Master’s thesis]. Kenya: University of Nairobi.

[27] Mouton, J., 2001. How to succeed in your master’s and doctoral studies: A south African guide and resource book. New Voices 7(2), 148-152.

[28] Reserve Bank of Zimbabwe, 2021. Monetary Policy Statement: Harare.

[29] Krejcie, R.V., Morgan, D.W., 1970. Determining sample sizes for research activities. Educational and Psychological Measurement. 30, 607-610.

[30] Saunders, M., Lewis, P., Thornhill, A., 2009. Research methods for business students, 3rd Edition. Pearson Education Ltd: London.

[31] Mugenda, M.O., Mugenda, A.G., 2003. Research methods: Qualitative and quantitative approaches. Nairobi, Kenya: African Centre of Technology Studies.

[32] Snijkers, G. (editor), 2008. Getting data for business statistics: A response rate model. European Conference on Quality in Official Statistics. 2008 Jul 9-11; Rome, Italy.

[33] Baruch, Y., 1999. Response rate in academic studies—A comparative analysis. Human Relations. 52(4), 421-438.

[34] Wang, Y.S., Lin, H.H., Luarn, P., 2006. Predicting consumer intention to use mobile service. Information Systems Journal. 16(2), 157-179.

[35] Norreklit, H., Mitchell, F., 2007. The balanced scorecard in issues in management accounting. Pearson Education Ltd: Essex England.

[36] Lin, H., 2011. An empirical investigation of mobile banking adoption: The effect of innovation attributes and knowledge-based trust. International Journal of Information Management. 31(3), 252-260.

[37] Porteous, D., 2006. The Enabling Environment for Mobile Banking in Africa [Internet]. Available from: https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-the-enabling-environment-for-mobile-banking-in-africa-may-2006_0.pdf.

[38] Anyasi, F.I., Otubu, P.A., 2009. Mobile phone technology in banking system: Its economic effect. Research Journal of Information Technology. 1(1), 1-5.

[39] Donner, J., Tellez, A.C., 2008. Mobile banking and economic development: Linking adoption, impact, and use. Asian Journal of Communication. 18(4), 318-322.

[40] Idowu, A.A., Ngumi, P., Muturi, W., 2016. Financial innovation adoption and turnaround time. Journal of Research in Economics and International Finance. 5(2), 014-028.

Downloads

How to Cite

Makurumidze, S., & Rwodzi, D. (2023). Mobile Banking and Commercial Bank Performance Nexus in Zimbabwe (2011-2021): Impact and Implications. Journal of Sustainable Business and Economics, 6(1), 1–14. https://doi.org/10.30564/jsbe.v6i1.19

Issue

Vol. 6 , Iss. 1 (January 2023)

Article Type

Article

License

Copyright © 2023 Shepard Makurumidze, Dorcas Rwodzi

Creative Commons License

This is an open access article under the Creative Commons Attribution 4.0 International License.