IDEAS home Printed from https://ideas.repec.org/a/spt/apfiba/v7y2017i4f7_4_6.html
   My bibliography  Save this article

Micro-determinants of Customer Level Interoperability: A Feasibility Study between Traditional Banks and Mobile Network Operators in Zimbabwe

Author

Listed:
  • Eukeria Mashiri
  • Canicio Dzingirai
  • Lilian Nyamwanza

Abstract

MNOs have grabbed the unbanked market including the rural areas that traditional banks have failed to access, traditional banks have been experiencing a decrease in the level of activity, including liquidity shortages, low deposits and limited credit availability. The MNOs have lower charges for transacting, and offer more convenience and accessibility as opposed to traditional banks. Interoperability between traditional banks and MNOs has been riddled with challenges from the main stream banking sector. The paper seeks to find out if the traditional banking sector is indeed under threat from the use of the mobile money transfer system (MMTS) and if the two can harmonise their role in the market and operate together to the benefit of the Zimbabwean citizens. A quantitative study was adopted for the study with a view to gather information from mobile network operators. The population of agents for the three MNOs was 750, The 254 questionnaires were distributed to systematically-randomly selected clients from MNOs. Complementary data was collected from in-depth interviews from five randomly selected commercial bank managers and three MNOs managers to complement data collected from the questionnaires. A statistical analysis was also conducted to validate the results. Findings of this research indicate that in Zimbabwe males prefer mobile money transfer systems more than females, and the banking sector is dwindling because of the inability of traditional banks to adapt to the changes in the economy, technology and customer needs. It was also established that it is relatively easier and cheaper to open an account with MNOs in comparison to traditional banks hence higher numbers of clientele of MNOs. However traditional banks are more secure in transacting because of some of the locations of MNO agents are not secure and are risky to transact. Amalgamation between bank activities and MNOs activities are critical to serve satisfaction of customers.JEL classification numbers: G2Keywords: interoperability, mobile money transfers system (MMTS), Mobile network operators (MNO), logistic

Suggested Citation

  • Eukeria Mashiri & Canicio Dzingirai & Lilian Nyamwanza, 2017. "Micro-determinants of Customer Level Interoperability: A Feasibility Study between Traditional Banks and Mobile Network Operators in Zimbabwe," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(4), pages 1-6.
    • Handle: RePEc:spt:apfiba:v:7:y:2017:i:4:f:7_4_6
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/JAFB%2fVol%207_4_6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olga Morawczynski & Mark Pickens, 2009. "Poor People Using Mobile Financial Services : Observations on Customer Usage and Impact from M-PESA," World Bank Publications - Reports 9492, The World Bank Group.
    2. Klein, Michael & Mayer, Colin, 2011. "Mobile banking and financial inclusion: The regulatory lessons," Frankfurt School - Working Paper Series 166, Frankfurt School of Finance and Management.
    3. Jake Kendall & Bill Maurer & Phillip Machoka & Clara Veniard, 2011. "An Emerging Platform: From Money Transfer System to Mobile Money Ecosystem," Innovations: Technology, Governance, Globalization, MIT Press, vol. 6(4), pages 49-64, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bonnie Batsirai Mtengwa & Agripah Kandiero & Stanislas Bigirimana, 2021. "Drivers of Mobile Money Services Development in Zimbabwe: The Case of EcoCash," International Journal of E-Business Research (IJEBR), IGI Global, vol. 17(1), pages 1-23, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ky, Serge Stéphane & Rugemintwari, Clovis & Sauviat, Alain, 2021. "Friends or Foes? Mobile money interaction with formal and informal finance," Telecommunications Policy, Elsevier, vol. 45(1).
    2. Karthik Balasubramanian & David F. Drake, 2015. "Service Quality, Inventory and Competition: An Empirical Analysis of Mobile Money Agents in Africa," Harvard Business School Working Papers 15-059, Harvard Business School, revised Oct 2015.
    3. Peter TOBBIN, 2012. "The adoption of "Transformational Mobile Banking" by the Unbanked: An Exploratory Field Study," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 103-120, 2nd quart.
    4. Dietmar Harhoff & Elisabeth Mueller & John Van Reenen, 2014. "What are the Channels for Technology Sourcing? Panel Data Evidence from German Companies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(1), pages 204-224, March.
    5. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," MPRA Paper 91047, University Library of Munich, Germany.
    6. Fatema Tuj Johara, 2014. "Consumer's Pattern and Behavior toward the Usage of Mobile Banking," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 166-181, August.
    7. Suárez, Sandra L., 2016. "Poor people׳s money: The politics of mobile money in Mexico and Kenya," Telecommunications Policy, Elsevier, vol. 40(10), pages 945-955.
    8. Steve Motsi & Oluseye Samuel Ajuwon & Collins Ntim, 2018. "Bank Competition in Sub-Saharan African Countries: Has Anything Changed in the Light of 2007-2008 Global FinancialCrisis?," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(1), pages 59-83, January-M.
    9. Monica A. Altamirano & Cees P. van Beers, 2018. "Frugal Innovations in Technological and Institutional Infrastructure: Impact of Mobile Phone Technology on Productivity, Public Service Provision and Inclusiveness," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 84-107, January.
    10. Beck, T.H.L. & Pamuk, H. & Uras, R.B. & Ramrattan, R., 2015. "Mobile Money, Trade Credit and Economic Development : Theory and Evidence," Other publications TiSEM 3d35ab30-05ef-4a31-8710-f, Tilburg University, School of Economics and Management.
    11. Bill Maurer, 2011. "Mobile Money: Communication, Consumption and Change in the Payments Space," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 589-604, June.
    12. Ahmad Hassan Ahmad & Christopher Green & Fei Jiang, 2020. "Mobile Money, Financial Inclusion And Development: A Review With Reference To African Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 753-792, September.
    13. Asif Islam & Silvia Muzi & Jorge Luis Rodriguez Meza, 2018. "Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania," Small Business Economics, Springer, vol. 51(3), pages 687-708, October.
    14. Baptiste Venet, 2019. "Fintech and Financial Inclusion," Post-Print hal-02294648, HAL.
    15. Maurer, Bill, 2011. "Money nutters," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 12(3), pages 5-12.
    16. Gutierrez, Eva & Singh, Sandeep, 2013. "What regulatory frameworks are more conducive to mobile banking ? empirical evidence from findex data," Policy Research Working Paper Series 6652, The World Bank.
    17. Do Nam Hung & Jacquline Tham & S. M. Ferdous Azam & Abdol Ali Khatibi, 2020. "An Empirical Analysis of Perceived Transaction Convenience, Performance Expectancy, Effort Expectancy and Behavior Intention to Mobile Payment of Cambodian Users," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(4), pages 1-77, March.
    18. Jean-Philippe Berrou & François Combarnous & Thomas Eekhout, 2017. "Les TIC : une réponse au défi du développement des micro et petites entreprises informelles en Afrique sub-saharienne ?," Working Papers hal-02148324, HAL.
    19. Lepoutre, Jan & Oguntoye, Augustina, 2018. "The (non-)emergence of mobile money systems in Sub-Saharan Africa: A comparative multilevel perspective of Kenya and Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 262-275.
    20. Haseeb Ahmed & Benjamin W. Cowan, 2019. "Mobile Money and Healthcare Use: Evidence from East Africa," NBER Working Papers 25669, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spt:apfiba:v:7:y:2017:i:4:f:7_4_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.