Can competitiveness of banks be guaranteed through mobile banking in economic crisis business environment? A Zimbabwean case study
- February 8, 2021
- Posted by: RSIS Team
- Categories: Banking & Finance, IJRSI
International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue I, January 2021 | ISSN 2321–2705
Josphat Nyoni1, Jacklin Chaipa2, Martin Dandira3, Maxwell Chufama4, Elias S.Kandjinga5, Andrew Jeremiah6
1,2Women’s University in Africa, Harare, Zimbabwe
3,4,5,6Namibia University of Science and Technology
Abstract
The adoption of mobile banking by banks is intended to grant banks the ability to outperform its rivals and improve performance. However the effectiveness of mobile banking as a competitive strategy is depended upon the business environment in which banks operate. This is based on a number of factors that constrain the adoption and effectiveness of new technology in, line with the Innovation Diffusions Theory and the Financial Intermediation Theory theories. This study investigated the impact of mobile banking on the overall performance of a bank operating in an economic crisis business environment in Zimbabwe. The main objectives of the study was to examine if the adoption of mobile banking can still improve the performance of banks operating in an economic crisis business environment.
A total of 302 respondents were used in this study. The study used the pragmatism philosophy and explanatory research design the researchers. A response rate of 97% was obtained which ensured that the findings are a true representation of the sample. The research was mainly quantitative in nature although it was complemented by a qualitative approach in form of interviews. Survey and interviews were used as the data collection instruments while questionnaires and interview guide were used as data collection instruments. Probability sampling technique was used to develop the sample of the study. The findings of this study have shown a strong positive impact of mobile banking on profit margins and market share in economic crisis business environment. The study however showed that mobile banking may not improve the corporate image of banks operating in economic crisis business environment.
The study concludes that mobile banking platforms may be used to make banks competitive in economic crisis through its positive influence on profit margins and market share. However is it also concluded that mobile banking adoption by banks may not leads to enhanced corporate image. The study recommends that banks should continue to increase their investment in mobile banking technology even in crisis business environments in view of its positive influence on profit margins and market share. However other additional strategies may be required to improve corporate image to sustain the positive profit margins. This research evaluated the impact of mobile banking on the performance of one bank. It is recommended to extend the research to several banks operating in economic crisis business environments.
Key words: Mobile banking, performance of banks
1.0 Introduction
The use of mobile banking facilities by banks is one innovation that has responded to the aspect of globalization and development in the area of technology. Mobile banking has changed the way business is done in banks by bringing with it speed, efficiency and effectiveness which transmits into economic growth and development (Bold 2011, Cheah, Teo, Sim, Oon, & Tan 2011) Various initiatives use the mobile phone to provide financial services to those without access to traditional banks everywhere in the world. Mobile banking services give a high potential to expand financial services particularly payment services to the poor. The services also provide a cost effective and convenient way to access bank accounts.
According to Cheah (2011) and Francesca & Claeys (2010) mobile banking is a banking innovation that allows customers of a financial institution to conduct a number of financial
