An investigation into the success of mobile banking in Zimbabwe: A case study of CBZ Bank Limited and Econet (2009-2013).

Abstract

Technology has enabled integration of markets across countries, shortening the distance between points of transaction and more importantly bring efficiency in the financial services sector, it has also facilitated the inter-linkages and inter-operability of previously unrelated economic segments. Such fusion is now occurring between the banking industry and the telecommunications industry creating a concept known as mobile banking which reduces transaction costs and increase financial inclusion to the previously unbanked people giving them access micro-financial services. The telecommunications industry has witnessed tremendous growth with all the mobile network operators now offering a cocktail of services including mobile money services, previously the preserve of traditional financial institutions. The combined subscriber base for the country’s three mobile network operator stood 13.52million as at 31 December 2013.This research report’s primary objective was to investigate the success of mobile-banking in the case of CBZ Bank Limited and Econet Wireless, two of the major players in the banking and telecommunications industries. The main benchmarks for success in this study were volumes of mobile banking transactions, customer satisfaction and acceptance, proportion of mobile banking users versus registered clients among other measurements. The case study approach was used in this as the researcher wanted to concentrate on the two leading players in their respective industries. The population for this research comprised bank officials and clients and mobile network officials. The researcher used quota sampling. Out of the bank clients’ strata a sample of 60 respondents (20 from each branch) was selected from the 3 CBZ bank branches in Bulawayo and a sample 3 bank officials (1 from each branch) was selected from the 3 CBZ branches. The convenience sampling technique was also used to select respondents considering the fact that the researcher had to find respondents he had easier access to. The researcher handed out questionnaires to sample objects at the bank premises targeting people entering the banking halls anticipating return of completed questionnaires on return of the respondent from the banking halls. Interviews were held to get professional views and comments on the subject matter and to compliment information gathered from questionnaires or give additional areas that might have to be included. These helped in opening hidden truths and other confidential yet important information that the interviewees might not have been able or willing to express on paper. The researcher interviewed officials at two CBZ branches (8th Ave and Belmont) in Bulawayo. The interview with the Econet official responsible for Ecocash was done over the phone. Data on mobile banking acceptance, utilisation, customer satisfaction, proportions of users of mobile banking users and volumes was analysed using SPSS version 16 to reach at the conclusions. After analysing the data the researcher concluded that mobile banking had been successful at the two institutions under study and that mobile banking technology has been accepted in Zimbabwe but its uptake at banks remains low. It was recommended that CBZ Bank improve on mobile banking security while Econet was advised to improve on its network connectivity.