A Study of the Effects of Mobile Banking Services on the Financial Performance of Zambian Commercial Banks - A Case Study of Atlas Mara
DOI:
https://doi.org/10.5281/zenodo.10795845Keywords:
financial performance, mobile banking access, mobile banking loans, mobile banking risksAbstract
This paper sought to determine the effects of Mobile Banking Services on the Financial Performance of Zambian Commercial Banks focusing on Atlas Mara as a case study. The study endeavoured to determine the impact of mobile banking access, mobile banking loans and mobile banking risks on commercial banks' financial performance. The study made use of descriptive research design. Atlas Mara Zambia's senior and middle management staff as well as supervisors made up the study's target population. A total of 287 bank employees were chosen as a sample using purposive and stratified random sampling. The Bank of Zambia, the Zambia Communications Authority, and the Atlas Mara Annual Reports provided secondary data, while structured questionnaires completed through Google online forms were used to collect primary data. Data analysis was carried out using descriptive and inferential statistics. Regression analysis and Pearson Correlations were used to analyse quantitative data. The study results show that, despite the fact that mobile banking accessibility and mobile banking loans have improved the financial performance of commercial banks, their success is still threatened by mobile banking risks related with the Internet and technological innovation. The study suggests that in order to improve the strength of the Internet and network coverage across the entire country, the banking industry should engage with telecommunication service providers. Commercial banks should look beyond improved accessibility and start assessing how well mobile banking's customer service functions. Commercial banks should spend money raising consumer awareness of new goods and services designed specifically for mobile banking. Commercial banks should allocate enough funds to research that could support the development of new products for use with current mobile banking platforms.
Downloads
References
Al-Jabri, I., & Sohail, M.S. (2012). Mobile banking adoption: Application of diffusion of innovation theory. Journal of Electronic Commerce Research, 13(4), 379-391.
Aziz, R.A., Badrawy, R.E., & Hussien, M.I. (2014). ATM, internet banking and mobile banking services in a digital environment: The Egyptian banking industry. International Journal of Computer Applications, 90, 45-52.
Bagudu, H.D., Mohd Khan, S.J., & Roslan, A.H., (2017). The effect of mobile banking on the performance of commercial banks in Nigeria. International Research Journal of Management, IT & Social Sciences, 4(2), 71-76.
De Vaus, D. (2016). Survey research. In: Tony Greenfield and Sue Greener (Ed.), Research methods for postgraduates: 3rd ed., pp. 202-213.
Gurley, J.G., & Shaw, E.S. (1960). Money in a theory of finance. Brookings.
Handema, M., & Haabazoka, L. (2020). The effect of capital structure management on commercial bank financial performance: A case of the Zambian banking sector. In: Scientific and Technical Revolution: Yesterday, Today and Tomorrow, pp. 1716-1736. Springer International Publishing.
Heinle, M. S., & Verrecchia, R. E. (2016). Bias and the commitment to disclosure. Management Science, 62(10), 2859-2870.
Kamande R.W; Kiragu D.N, & Musumba G. (2018). Internal controls, staff red flags and computerized financial frauds among commercial banks in Kenya. International Journal of Economics, Commerce and Management.VI(5), 95-111.
Katema, S., & Lungu, D. (2019). An investigation of factors influencing the adoption of mobile banking services among bank customers: A case of Kitwe district. The International Journal of Multi-Disciplinary Research.
Kathuo S., Rotich, G., & Anyango, W. (2015). Effect of mobile banking on the financial performance of banking institutions In Kenya. The Strategic Journal of Business and Change Management, 2(98), 1440-1457.
Kawimbe, S., Sishumba, J., Sikazwe, W., & Saidi, L., (2022). Assessing the impact of electronic banking on commercial banks profitability in Africa.
Khrawish, H. A., & Al-Sa’di, N. M. (2011). The impact of e-banking on bank profitability: Evidence from Jordan. Middle Eastern Finance and Economics, 13(1), 142-158.
Kithaka, E. (2014). The effect of mobile banking on the financial Performance of commercial banks in Kenya. Unpublished MBA Thesis, University of Nairobi.
Larina, L. B., Postnikova, D. D., Ageeva, O. A., & Haabazoka, L. (2021). The scientific and methodological approach to provision and evaluation of the digital economy’s global competitiveness. Popkova EG, Krivtsov A., Bogoviz AV The Institutional Foundations of the Digital Economy in the 21st Century. Berlin, Boston: De Gruyter, 173-182.
Leibenstein, H. (1994). Allocative efficiency vs. "X-Efficiency". American Economic Association, 392-415.
Lusaya, S., & Kalumba, B. (2018). The challenges of adopting the use of e-banking to the customers: The case of Kasama district banking customers. Scholar Journal of Applied Sciences and Research, 1(2), 26-31.
Mensi, S. (2010). Efficient structure versus market. International Journal of Economics and Finance, 2(4), 1-17.
Migdadi, Y.K.A.A. (2012). The order winners’ operations strategy of mobile phone service providers in developing economies: The case of Jordan. International Journal of Services and Operations Management, 13(3), 329-360.
Morgun, T. N., Ibraimova, S. M., Haabazoka, L., & Makhmudov, U. A. (2021). 21 The institutional model of well-balanced and sustainable digital economy. The Institutional Foundations of the Digital Economy in the 21st Century, 3, 193.
Muisyo, J. M., Alala, O., & Musiega, D. (2014). The effects of mobile money services on the performance of the banking institutions: A case of Kakamega town. Transactions, 354(16,700,000), 4-600.
Mungai, M. D. (2019). Mobile banking services & financial performance of tier one commercial banks in Kenya. International Academic Journal of Economics and Finance, 3(4), 5.
Mutua, R. W. (2013). Effects of mobile banking on the financial performance of commercial banks in Kenya. Doctoral Dissertation, University of Nairobi.
Mwamba, A.L. (2019). The right to work of migrants and the challenges of accessing the labour market in South Africa. Unpublished Dissertation – University of Pretoria.
Mwiya, B., Chikumbi, F., Shikaputo, C., Kabala, E., Kaulung'ombe, B., & Siachinji, B. (2017). Examining factors influencing e-banking adoption: evidence from bank customers in Zambia. Available at: SSRN 2987982.
Nzongang, T., & Atemnkeng, J. (2006). Market structure and profitability performance in the banking industry of CFA countries: The case of commercial banks in Cameroon.
Olongo, F. O. (2013). The effects of financial fraud and liquidity on financial performance of commercial banks in Kenya. Doctoral Dissertation, University of Nairobi.
Orr, G. (2003). Diffusion of innovations, by Everett Rogers (1995). Academia, 2, pp. 1-8.
Phiri, H. (2020). The effectiveness of e-banking services on bank customers at Investrust Bank Plc. Bachelors’ dissertation. St Eugene, DMI University.
Polit DF, Beck CT, & Hungler BP. (2006). Essentials of nursing research: Methods, appraisal, and utilization. 6. New York, NY: Lippincott.
Popkova, E. G., & Haabazoka, L. (2019). The cyber economy as an outcome of digital modernization based on the breakthrough technologies of industry 4.0. The Cyber Economy: Opportunities and Challenges for Artificial Intelligence in the Digital Workplace, 3-10.
Rodgers, E. M. (2003). Diffusion on innovations. (5th ed.). New York: Free Press.
Siedlecki, S. L. (2020). Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34(1), 8-12.
Standard Chartered Bank. (2022). Annual report. Available at: https://www.sc.com/en/investors/financial-results/annual-report-2022/.
Yankovskaya, V. V., Osavelyuk, E. A., Inozemtsev, M. I., & Haabazoka, L. (2021). The existing and perspective international institutions for supporting digital transformation of economy. In: EG Popkova, & A. Krivtsov (Eds.), The institutional foundation of the digital economy in the 21st century. De Gruyter.
Yousof, A.D. (2018). The effect of mobile banking on loans granted by commercial banks in Kenya. Journal of Finance and Economics, 16(52), 121-126.
Zulu, S. (2021). StanChart leads the way in digital transformation. Available at: https://www.techtrends.co.zm/stanchart-leads-the-way-in-digital-transformation/. [Accessed 23rd November 2021].
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Misozi Siasulingana, Dr. Lubinda Haabazoka
This work is licensed under a Creative Commons Attribution 4.0 International License.
