Impact of Mobile Banking on Traditional Banking Practices in Zimbabwe

This paper discusses implications of mobile banking practices for traditional banking in Zimbabwe. It states that although customers have remained loyal, banks have not been able to grow their businesses due to the emergence of mobile banking. The paper finds that traditional banks, instead of collaborating with telecom operators, choose to be confrontational and lobby for legislation that regulates mobile operators. It also finds that most banks have introduced their own mobile banking products, but cater to their account holders only. Other key findings include:

• Banks are being limited in terms of the services that they could access from mobile services providers;
• Most customers currently use the enquiries, airtime top-up, send money, and bill payment products of the mobile banking platform;
• Banks are failing to grow their customer base and their businesses in general and are viewing the use of mobile banking as a potential growth route;
• Mobile banking has increased the number of transactions that are coming through on a daily basis;
• Challenges to mobile banking included mobile network failures, lack of a clear regulatory framework, and lack of trust.