Adoption And Use of SMS/Mobile Banking Services in Zimbabwe: An Exploratory Study

The study sought to investigate the benefits of SMS banking and the challenges faced by banks with the view of adopting this technology as an alternative delivery channel. The exploratory research design was used for the study. A sample of fifteen commercial banks was chosen including those that offered the service and those that are yet to adopt SMS banking. The main respondents were banks’ marketing staff, electronic banking personnel who provided most of the information on the SMS banking services offered, level of adoption, volume of transactions and the security of the application. Data was gathered over a period of a month using a questionnaire as well as follow up interviews. Data was presented in the form of tables and graphs while descriptive statistics were computed and used in the interpretation of the findings. The findings showed that although SMS banking was first launched in 2004, the service was still in its infancy. Evidence showed that accessibility and affordability were the major drivers to the adoption of SMS banking. The research confirmed the assertion that the appeal is more about accessibility and affordability in developing countries. This has been exacerbated by the lack of regulation for electronic banking in Zimbabwe. The study recommended an increased awareness campaign by banks and development of policy and regulation for electronic banking in Zimbabwe.