A framework of financial technology (FINTECH) on the banking service: A

case study of the Zimbabwean Commercial Banks

A dissertation submitted

by
Oswald Bongani Dube

(R2210793)

In partial fulfilment of the requirements of the

Master of Commerce Degree

In the Department of Finance and Investments (MFI)

2024

Supervised by

Dr N Kaseke
 CHAPTER ONE:

INTRODUCTION

1.1. INTRODUCTION
In recent years, financial technology (FINTECH) has emerged as a powerful force, reshaping
banking models and practices worldwide. According to Noor, Wulandari and Afif (2023),
FINTECH refers to businesses that work in the financial industry by integrating cutting-edge
technology with banking services. The International Organization of Securities Commissions
(IOSCO) have provided a broad definition of the term FINTECH, which they describe as a
variety of innovative business models and emerging technologies that have the potential to
transform the financial services industry (IOSCO, 2024). Specifically, FINTECH was defined
by the Financial Stability Board (FSB) as technology-enabled innovation in financial services
that could result in new business models, applications, processes or products with an
associated material effect on the provision of financial services (FSB, 2017). The above
definitions show that there is no scholarly consensus of the definition and this is attributed to
the ever-changing technology used in the industry that keeps on evolving rapidly broadening
the applications to the financial services industry, hence the difficulty to define. As it is a new
field, an official agreement at the segments that shape the borders of this industry is not found
yet. In spite of the different trials to segment this industry, most of the studies focus on the
firms that depend highly on the technology-enabled innovation in financial services (Akma,
Romadhon, Rizki and Sari, 2023). Dorfleitner and Hornuf (2019) divided companies in the
FINTECH industry into four major segments in accordance with their distinctive business
models. By analogy with traditional value-adding areas of a universal bank, FINTECH can be
distinguished on the basis of their involvement in financing, asset management, and
payments, as well as other FINTECHs, a loose assortment of companies that perform other
functions. The study aims to analyse the framework of FINTECH on banking services within
the Zimbabwean financial sector.

The chapter outlines the background to the study, problem statement, aim, research
objectives, questions and hypothesis, significance of the study, delimitations, limitations,
definition of the main terms, chapter outline of the study and chapter conclusion. Each
section provides a comprehensive view of the research of FINTECH on banking services in
Zimbabwe.
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1.2. BACKGROUND TO THE STUDY
Historically, banks have operated based on classical banking theory, which emphasises
deposit-taking, lending, and financial intermediation however, the advent of FINTECH has
disrupted this traditional model (Nyagadza et al., 2022). This section aims to investigate the
past and current state of the banking sector of Zimbabwe to provide a foundation for the next
paragraph that exploits the FINTECH adoption in globally and in the country. The banking
sector in Zimbabwe has undergone significant transformations over the past three decades,
shaped by various economic, political, and regulatory factors. Historically, the sector has
been characterised by periods of instability, particularly during the hyperinflation era between
2007 and 2008, when the value of the Zimbabwean dollar plummeted, leading to a loss of
public confidence in the banking system (Makina, 2012). This period saw many banks
collapse, a severe cash crisis, and the eventual suspension of the Zimbabwean dollar, paving
the way for a multi-currency regime dominated by the US dollar (Gono, 2008; Gwanyanya et
al., 2018). In recent years, the banking sector in Zimbabwe has seen some stabilisation and
growth, although challenges remain. The introduction of the Real Time Gross Settlement
Systems (RTGS) dollar in 2019, later rebranded as the Zimbabwean dollar (ZWL), aimed to
restore a sovereign currency amidst a cash shortage (Ndlovu, 2020). However, inflationary
pressures returned, complicating efforts to stabilise the currency and impacting the banking
sector's ability to offer stable services (Zhou & Zvoushe, 2021). One of the pivotal recent
developments in Zimbabwe's banking sector is the increasing adoption of digital banking and
financial technologies. Driven by a need to circumvent cash shortages and enhance
transactional efficiency, banks in Zimbabwe have embraced mobile banking, internet
banking, and digital payment platforms (Mhlanga, 2020). The widespread use of mobile
money services, particularly through platforms like EcoCash, has revolutionized financial
transactions in the country, providing both opportunities and challenges in terms of regulation
and financial inclusion (Njini, 2019). Despite these advancements, the banking sector faces
several challenges. The macroeconomic environment remains volatile, with persistent
inflation, foreign currency shortages, and limited access to international credit lines
constraining the sector's growth and stability (Mpofu et al., 2022). Additionally, the
regulatory environment poses both opportunities and constraints. The Reserve Bank of
Zimbabwe (RBZ) has implemented various measures to stabilize the banking sector,
including stricter capital requirements and enhanced oversight of banking operations (RBZ,
2021). However, regulatory uncertainties, particularly concerning currency policies and
exchange controls, continue to pose challenges. The regulatory environment governing
2
financial technologies in Zimbabwe is evolving. The RBZ has expressed support for
FINTECH innovations, acknowledging their potential to enhance financial inclusion and
service delivery (RBZ, 2017). Regulatory frameworks such as the National Payment Systems
Act and the Banking Act provide the legal basis for the operation of digital payment systems
and other FINTECH services. Nonetheless, there is a need for more comprehensive and
adaptive regulations to address emerging risks and ensure consumer protection (Matsika et
al., 2021). As such, the banking sector in Zimbabwe is navigating a complex landscape
characterized by economic challenges and technological advancements. While significant
strides have been made in adopting digital financial services, the sector continues to grapple
with macroeconomic instability and regulatory challenges. Strengthening the regulatory
framework and fostering a stable economic environment remain critical for the sustained
growth and stability of Zimbabwe's banking sector.

Given the detail on the past and present situation of the Zimbabwean banking sector, this
section explores the factors and effects of the FINTECH adoption in various contexts. The
adoption of FINTECH has witnessed a substantial increase across the globe, transforming the
banking sector in both developed and developing countries, including Zimbabwe. At a global
level, FINTECH has become an integral part of the banking industry, driven by
advancements in technology and changing consumer preferences (Gomber et al., 2017). In
developed countries such as the United States and the United Kingdom, FINTECH adoption
is marked by sophisticated technologies like blockchain, artificial intelligence (AI), and robo-
advisors, which have significantly enhanced banking services (Philippon, 2016). For instance,
digital-only banks like Revolut and Monzo in the UK offer seamless, mobile-first banking
experiences that cater to tech-savvy customers, reducing the need for physical bank branches
(Skan et al., 2016). Regionally, in Africa, the adoption of fintech has been robust, albeit with
unique challenges and opportunities. Mobile money services have been a game-changer,
particularly in East Africa. Platforms like M-Pesa in Kenya have revolutionized financial
inclusion, allowing millions of previously unbanked individuals to access financial services
(Suri & Jack, 2016). In Zimbabwe, the adoption of FINTECH has primarily been driven by
mobile money services like EcoCash, which have become essential due to chronic cash
shortages and economic instability (Njini, 2019). These services have enabled millions of
Zimbabweans to perform transactions, pay bills, and save money through their mobile
phones, significantly impacting the banking sector. This shows that there are marked

3
differences in the nature of FINTECH adoption in developed and developing countries in
terms of technology, platforms and economic environments.

The impact of FINTECH on banking services has been multifaceted. in developed countries,
f FINTECH has enhanced efficiency and customer experience. ai-powered chatbots and robo-
advisors provide personalised financial advice and support, while blockchain technology
enhances the security and transparency of financial transactions (Dermine, 2017). In
developing countries, FINTECH has been pivotal in promoting financial inclusion and
reducing transaction costs. For example, in India, the Unified Payments Interface (UPI) has
simplified peer-to-peer and merchant payments, significantly reducing the reliance on cash
(Arner et al., 2020). In Zimbabwe, despite the benefits of mobile money services, the banking
sector faces issues such as interoperability challenges and regulatory concerns that need to be
addressed to maximize the potential of fintech (Makina, 2018). Nonetheless, the adoption of
FINTECH is not without challenges. In developed countries, the rapid pace of technological
advancement presents regulatory challenges, with regulators struggling to keep up with
innovations such as cryptocurrencies and decentralized finance (Philippon, 2016).
Additionally, concerns around data privacy and cybersecurity are significant barriers that
need to be managed to ensure consumer trust (Zhu & Zhou, 2021). In developing countries,
technological infrastructure remains a major barrier. Many regions lack the necessary
infrastructure to support advanced FINTECH services, posing a significant hurdle to
widespread adoption (Aker & Mbiti, 2010). Regulatory frameworks in these countries are
often underdeveloped, creating uncertainty and limiting the growth of FINTECH (Bazarbash
& Beaton, 2020). Financial literacy is another critical challenge, as a significant portion of
the population might be unfamiliar with digital financial services, hindering their adoption
(Klapper et al., 2019). In Zimbabwe, the adoption of FINTECH is challenged by several
factors. technological infrastructure is often inadequate, with limited internet penetration and
unreliable power supply constraining fintech services (Kwaning et al., 2020). Regulatory
hurdles, such as stringent policies and lack of clear guidelines for FINTECH operations,
create an uncertain environment for innovation (Matanda, 2017). Economic factors, including
hyperinflation and currency instability, further complicate the adoption and scalability of
FINTECH solutions (Mpofu et al., 2022). Additionally, social and cultural barriers, such as
resistance to change and lack of trust in digital financial services, impede the widespread
adoption of f FINTECH in Zimbabwe (Makina, 2019). From this section it is clear that the
impact, benefits and challenges that emanate from FINTECH adoption in the developed and

4
developing countries also vary markedly, thus studies on f FINTECH adoption needs to be
contextualised to a particular system as it shaped by unique factors endemic that particular
region.

Given the above finding that factors prompting the adoption of FINTECH and the impacts
thereof are specific to a particular region, in Zimbabwe the challenges are unique to the
country, and since FINTECH adoption in the country is in its formative years there is a
pressing need for a comprehensive framework that addresses the dynamics of FINTECH
adoption, particularly in the banking sector. The framework considers technological,
regulatory, economic, and socio-cultural factors to facilitate a supportive ecosystem for
FINTECH. This study aims to develop a robust FINTECH framework that can enhance
financial inclusion, improve service delivery, and promote sustainable economic growth in
Zimbabwe as addressing these dynamics is crucial to navigate the complexities of FINTECH
adoption and leverage its potential for the betterment of the banking sector and the broader
economy.

1.3. PROBLEM STATEMENT

Zimbabwe has been grappling with a series of political, economic, and social crises that have
had a profound impact on the country's overall economy and these challenges have created a
precarious macro-economic environment, weakened financial regulations, and disrupted the
operations of the banking system. Amidst a perennial cash crisis in Zimbabwe, there is an
increasing demand for banking services, yet the existing infrastructure is strained and often
inadequate to meet the needs of the population. Thus, the consequences of not addressing
these issues are severe as without intervention, Zimbabwe's banking system risks further
destabilization, leading to a collapse in public confidence and exacerbating the cash shortage.
This could result in higher levels of financial exclusion, increased reliance on informal
financial services, and a deepening of the economic crisis. In the long term, unresolved
financial instability could deter both local and foreign investment, stunting economic growth
and development. Thus, this study seeks to address these challenges by introducing a novel
framework that integrates fintech into the banking services of commercial banks in
Zimbabwe. The proposed framework aims to enhance the efficiency, accessibility, and
resilience of the banking system.

5
1.4. RESEARCH AIM, OBJECTIVES & QUESTIONS

The main goal of this study was to explore the framework of financial technology in the
banking service of Zimbabwean Commercial Banks

1.4.1. RESEARCH OBJECTIVES

The goals that this study aims to achieve at the end are:

1. To identify and classify the types of FINTECH used in Zimbabwean banking

services.
2. To evaluate the challenges that commercial banks in Zimbabwean Banks face in
integrating FINTECH into their existing operational frameworks and the strategies
employed to overcome these challenges.
3. To analyse the opportunities afforded to Zimbabwean commercial banks by
FINTECH for enhancing operational efficiency, customer satisfaction, and financial
inclusion.
4. To examine how FINTECH be effectively leveraged to enhance banking services,
expand access to financial products, and promote financial inclusion in Zimbabwe.
5. To construct a comprehensive framework for the integration of FINTECH within
banking services in Zimbabwe, with a specific focus on addressing the challenges
posed by economic volatility and regulatory dynamics.

1.4.2. RESEARCH QUESTIONS

The questions that this study asked to achieve the research objectives are:

1. What types of FINTECH are currently being utilised in the banking services of
Zimbabwe?
2. What are the major challenges faced by commercial banks in Zimbabwe in integrating
FINTECH into their operational frameworks, and what strategies have these banks
employed to mitigate these challenges?
3. How does the adoption of FINTECH provide opportunities for enhancing operational
efficiency, customer satisfaction, and financial inclusion for commercial banks in
Zimbabwe?

6
 4. In what ways can FINTECH be effectively leveraged by Zimbabwean banks to
enhance banking services, expand access to financial products, and promote financial
inclusion?
5. How can a comprehensive framework be developed to successfully integrate
FINTECH within banking services in Zimbabwe, while effectively addressing the
challenges presented by economic volatility and regulatory dynamics specific to the
country?

1.5. RESEARCH HYPOTHESIS

H1: Integrating FINTECH within banking services in Zimbabwe positively enhances

operational efficiency.

H2: Integrating FINTECH within banking services in Zimbabwe positively enhances

customer satisfaction.

H3: Integrating FINTECH within banking services in Zimbabwe positively enhances

financial inclusivity.

1.6. SIGNIFICANCE OF THE STUDY

The study provided valuable insights into the FINTECH in banking services in Zimbabwe,
which has the potential to guide future research and policy-making. This study’s main
contributions are:

Theoretical Framework and Contributions

This study significantly contributes to the theoretical framework by providing empirical

evidence on the impact of FINTECH in banking services in Zimbabwe by addressing gaps
related to emerging economies facing unique challenges and it enriches both FINTECH and
banking literature.

Practical Implications

For practitioners in the field, the study’s findings offer actionable strategies for effectively
integrating FINTECH solutions. These strategies enhance operational efficiency, improve
customer engagement, and promote inclusivity within the banking sector. Notably, the

7
strategic framework developed can be adapted to Zimbabwe’s dynamic market conditions
and other similar environments.

Stakeholders

Several key stakeholders stand to benefit from this research. Policymakers gain valuable
insights for creating regulatory frameworks that foster a conducive environment for
FINTECH adoption. Bankers and FINTECH developers can identify collaboration
opportunities and innovative approaches based

1.7. DELIMITATIONS OF THE STUDY

This section outlines the scope of the study with regards to the following:

Time Delimitation:

The study was constrained to data collected from the thirteen registered Zimbabwean
commercial banks as of March 2024. The study was carried out from March to July 2024.
The literature that was used for this study from 2018 to 2024 which is a period of significant
FINTECH experience and growth in Zimbabwe.

Geographical Delimitation

The research focused exclusively on Zimbabwe, offering depth within this specific context
but potentially limiting the direct applicability of findings to other countries or regions
without consideration of local variance.

Methodological Delimitation

Considering the emphasis on banking institutions, the study exclusively adopted quantitative
methods. This methodological approach allowed for a broader statistical generalization across
the entire financial sector, overcoming the limitations of qualitative methods such as
interviews and case studies, which may restrict the applicability of the findings.

Theoretical Delimitation

The study was framed within existing theories of FINTECH integration, banking innovation,
and financial inclusion, potentially limiting the exploration of unforeseen theoretical
perspectives that may emerge from the FINTECH-banking interaction in a unique economic
backdrop like Zimbabwe's.

8
1.8. LIMITATIONS OF THE STUDY
This study exploring the FINTECH in banking services, focusing on Zimbabwean
commercial banks, identified the following key limitations:

• There was limited availability of data from Zimbabwean Commercial Banks which posed a
challenge and the study addressed this by employing rigorous data collection methods and
utilizing secondary data sources where necessary.

• The rapidly evolving nature of financial technology made it difficult to capture its impact
accurately and the study mitigated this by focusing on key trends and developments in the
sector, providing a snapshot of the current state of affairs.

• Lastly, the generalisability of the findings was limited due to the specific focus on
Zimbabwean Commercial Banks and to overcome this, the study incorporated comparative
analysis with other regions to provide a broader perspective.

1.9. DEFINITION OF THE MAIN TERMS

Financial Technology (FINTECH)

In this study, the term financial technology, or FINTECH, referred to innovative digital
technologies and platforms that improve and automate the delivery and use of financial
services. It was also used to encompasses a broad range of products, services, and
applications that are disrupting banking and financial sectors, such as mobile payment
solutions, cryptocurrency, blockchain technology, and robo-advisors.

Banking Services

Banking services was used in this study to denote the conventional financial services offered
by banks and financial institutions before the advent of FINTECH and these services
encompasses checking and savings accounts, loans, mortgages, credit cards, and physical
branch services, focusing primarily on face-to-face and paper-based transactions.

Framework

In the context of this study, a framework refers to a structured approach designed to

systematically understand the impacts of financial technology on banking services and it
includes theories, concepts, and variables that outline the mechanisms through which
FINTECH influences the banking sector, serving as a guide for analysis, interpretation, and
application of the study's findings.

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1.10. CHAPTER CONCLUSION
This chapter presented the background of the study, identified the research problem, and
stated the goals and questions of the investigation. There was a significant focus on the
study's applicability to both theory and practice. In addition, this chapter presented a concise
summary of the study's extent, encompassing its main subject, duration, geographic limits,
and methods. The remaining portion of the study was divided into the following categories:
Chapter 2, known as the literature review, involves the analyses of previous studies related to
the topic. Chapter 3 focuses on the study technique. Chapter 4 presents and analyses the
findings and data. Lastly, Chapter 5 outlines the conclusions, applications of the study to the
local economy and suggestions.

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 CHAPTER 2: LITERATURE REVIEW
2.1. INTRODUCTION
The banking sector worldwide is undergoing a seismic shift due to the advent of FINTECH a
development that is reshaping not just how banks operate but also how they deliver value to
their customers. This chapter reviews the literature surrounding the adoption and integration
of FINTECH solutions within Zimbabwean commercial banks, focusing on its influence on
the industry’s landscape, regulatory dynamics, operational efficiency, customer satisfaction,
and financial inclusivity. It starts with a meticulous review of existing frameworks and
theories underpinning this study and then proceed to conceptualize the independent and
dependent variables of this study to give a comprehensive understanding of the FINTECH
phenomenon in the Zimbabwean context, pinpointing the scope of its transformative power
on banking paradigms. Then the chapter outlines the empirical literature review conducted
based on the research objectives of the study and then outlines the research gaps and
directions which was drawn from the section outlined above and culminates with a concise
chapter conclusion section.

2.2. THEORETICAL UNDERPINNING OF THIS STUDY

Theoretical foundations are crucial in determining the analytical extent and thoroughness of
any inquiry. As articulated by Varpio et al. (2020), the theoretical framework of a research
endeavor serves the dual purpose of offering a systematic perspective for examination and
situating the study within the wider scholarly conversation, so establishing a strong
foundation for the interpretation of phenomena. In the context of incorporating financial
technology into conventional banking systems, it is crucial to comprehend the intricate
dynamics between many factors and concepts that exert influence. This research was based
on a theoretical framework that combines the Technology Acceptance Model (TAM),
Innovation Diffusion Theory (IDT), and the Service Quality Theory (SQT) which provided a
comprehensive approach to assessing the influence of FINTECH on conventional banking
services in Zimbabwe.

2.2.1. TECHNOLOGY ACCEPTANCE MODEL (TAM)

The TAM, initially introduced by Davis (1989), provides a significant theoretical perspective
for analysing the perceptions and adoption of FINTECH interventions within conventional
banking systems by users, including both bank personnel and clients. According to Davis
(1989), the fundamental principles of the model revolve around the concepts of perceived

11
usefulness and ease of use. These principles provide a framework for examining the various
factors that either facilitate or impede the adoption of FINTECH solutions. Consequently,
these factors have a significant impact on important outcomes such as operational efficiency,
customer satisfaction, and financial inclusivity. The utilisation of the TAM in this research
enabled a comprehensive examination of the underlying motivations that influence user
adoption of FINTECH. This approach offers valuable insights into the strategic utilisation of
these innovations to improve banking services and achieve desired outcomes.

2.2.2. THE SERVICE QUALITY THEORY (SQT)

The SQT, which was formulated in 1988 by Parasuraman, Zeithaml, and Berry, examines the
intricate characteristics of service delivery. This study investigated the correlation between
the level of satisfaction that customers experience and the perceptions that service quality
conveys and this theory holds significant applicability in sectors where the delivery of
services is of the utmost importance, like the financial industry. This study employed the
principles of SQT to examine the potential impact of FINTECH adoption on customer
satisfaction metrics with the premise that customers' banking experiences could be enhanced
if FINTECH can improve service quality, such as by making services more accessible, user-
friendly, or expeditious. According to Parasuraman, Zeithaml, and Berry (1988), customer
satisfaction and loyalty are closely linked. When customers are satisfied with a service, they
are more likely to remain loyal to the provider. Therefore, by enhancing service quality
through FINTECH, banks can foster greater customer loyalty, which is beneficial for their
long-term success. Thus, this study explored the intersection of SQT, FINTECH, and
banking, shedding light on how technology enhances service quality and positively impact
customer satisfaction and loyalty.

2.2.3. INNOVATION DIFFUSION THEORY (IDT)

The Innovation Diffusion Theory (IDT), developed by Rogers in 1962, provides a
comprehensive framework for understanding how FINTECH innovations are adopted within
the banking sector. The theory explains how new ideas spread across communities and
organizations, which is crucial for examining the adoption of FINTECH solutions in banks
and the IDT outlines several stages an innovation goes through: knowledge, persuasion,
decision, implementation, and confirmation. Applying the IDT to the diffusion of FINTECH
is particularly relevant given the potential of these technologies to transform banking
operations and extend financial services to previously underserved populations. Therefore,
this study explores the various factors influencing the adoption of FINTECH solutions within
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a banking organization. One of the key insights from IDT is the attributes of the innovations
themselves, identified by Rogers as relative advantage, compatibility, complexity, trialability,
and observability. These attributes significantly affect the rate and extent of FINTECH
adoption across banking institutions. For example, the relative advantage of FINTECH
solutions, such as reducing transaction costs and enhancing service speed, naturally
encourages their adoption. However, perceived complexity can deter adoption, highlighting
the need for initiatives to demystify FINTECH applications for both bank employees and
customers. The IDT also emphasizes the role of change agents in facilitating the diffusion
process. In the banking sector, these individuals or entities advocate for the adoption of
FINTECH, helping overcome initial resistances and fostering a culture receptive to
innovation. Their efforts are vital in demonstrating the practical benefits of FINTECH
solutions, thereby accelerating their acceptance and integration into daily banking operations.
The theory also underscores the importance of social systems in the diffusion process. In the
context of banking, the social system includes regulatory bodies, financial institutions, and
customers (Weber & Feltmate, 2016). The dynamics within this system, including regulatory
policies, competitive pressures, and customer demands, create an environment that either
facilitates or obstructs FINTECH diffusion. For instance, a regulatory framework that
supports FINTECH innovations can significantly enhance their adoption by providing clear
guidelines and reducing uncertainties. This study of FINTECH diffusion within Zimbabwean
banks utilised the IDT framework to gain a comprehensive understanding of how these
innovations are incorporated into the financial system and it also identified the key
characteristics that attract banking institutions to FINTECH solutions and the obstacles that
need to be addressed for widespread adoption. This study acknowledges the significance of
change agents and the wider social system in order to provide specific methods that promote
a favorable environment for FINTECH solutions. These strategies aim to improve operational
efficiency and increase financial inclusion. This comprehensive analysis based on the IDT
framework not only deepens the understanding of FINTECH diffusion in banking but also
provides practical insights for banking professionals, policymakers, and FINTECH
developers aiming to maximize the potential of FINTECH for transformative economic
impact.

This study combines the knowledge gained from TAM, SQT, and IDT to create a strong
theoretical framework for analysing the various effects of FINTECH on the banking industry
in Zimbabwe. The integration of these theoretical frameworks provides the research with a

13
comprehensive analytical perspective, which is well-suited for exploring the complex
relationships between the adoption of FINTECH, improvement of service quality,
acceptability by users, and dissemination of innovation. An all-encompassing strategy is
crucial for developing evidence-based policies that aim to improve operational efficiencies,
enhance customer happiness, and promote financial inclusiveness in banking services in
Zimbabwe.

2.3. ADOPTION AND REGULATORY FRAMEWORKS OF FINTECH

The emergence of financial technology FINTECH in the dynamic realm of global finance
signifies a significant transformation, substantially reshaping the structure of conventional
banking systems. This section outlines study focuses on two primary factors that drive this
transformation which are the adoption of FINTECH solutions and the regulatory frameworks
that oversee these technologies and these factors are considered as the independent variables
in this research. It is vital to possess a comprehension of these independent variables in order
to assess their influence on the operational efficiency, client happiness, and financial
inclusivity of the banking industry as outlined in the section 2.2 above. This section explored
the implementation of FINTECH solutions and the regulatory environments, drawing on the
theoretical frameworks of technology acceptance and innovation diffusion theories which
underpinned this study and examines the implications of these implementations in global,
regional, and Zimbabwean banking contexts.

2.3.1. ADOPTION OF FINTECH BY BANKS

This section investigated the implementation of FINTECH by traditional banks with respect
to the technologies being adopted and the manner of adoption in consideration of the
mediating variables which are technological infrastructure, employee training and adoption,
and user experience design. FINTECHs, often known as innovative and disruptive financial
services provided by non-financial enterprises, have emerged as the primary catalyst for
change in the global financial system (Arnaut & Bećirović, 2023; Barroso & Laborda, 2022).
The abrupt shift in circumstances in the financial sector presents a challenge in examining the
emergence of novel business models and the introduction of fresh rivals and applications
inside the financial services sector (Arnaut & Bećirović, 2023). The aforementioned shift has
occurred within various sectors, including digital payments, insurance, and active wealth
management and this transformation may be attributed to several factors, including the swift
advancement of technology, macroeconomic fluctuations, alterations in the regulatory
landscape, and evolving customer demands (Barroso & Laborda, 2022). The COVID-19
14
pandemic was a catalyst for unprecedented changes across the global banking sector,
accelerating the adoption of FINTECH solutions as institutions grapple with the new normal
of remote operations and digital customer interactions (Ozili, 2020; Chhaidar et al., 2023).
Thus, this sudden pivot towards digital channels has spurred research into the types of
FINTECH solutions being implemented by banks in the post-COVID-19 era, highlighting a
varied landscape of innovation aimed at enhancing operational resilience, customer
satisfaction, and financial inclusivity.

Insights from recent studies indicates a prominent surge in the adoption of varied financial
technologies by traditional banks such as mobile and online banking solutions, with banks
rapidly deploying or scaling these technologies to accommodate the growing demand for
remote banking services (Alam et al., 2020; Capobianco, 2023). The deployment of mobile
applications has enabled customers to perform a wide array of transactions from the
convenience of their homes, thereby maintaining social distancing norms while ensuring
uninterrupted access to financial services (Mondal & Mitra, 2022). Another significant area
of FINTECH adoption post-COVID-19 is the integration of AI and ML within banking
operations (Mondal & Mitra, 2022). Banks are leveraging AI to enhance customer service
through chatbots and automated advisory services, improving response times and
personalizing customer interactions (Smith, 2021). AI and ML are also being applied in fraud
detection systems, credit risk assessment, and operational risk management, contributing to
more secure and efficient banking processes. Blockchain technology has also gained traction,
particularly in facilitating secure and transparent transactions. Its implementation in payment
processing and cross-border transactions reduces transaction times and costs, fostering
greater financial inclusivity (Lee & Shin, 2020). Moreover, the pandemic has underscored the
importance of financial management tools and apps, with banks introducing or partnering
with FINTECH companies to offer solutions that assist customers in budgeting, saving, and
investing, helping them navigate the economic uncertainties posed by COVID-19. Suri,
Chhibber and Bhat (2020) emphasised the depth of FINTECH incorporation, asserting that
the transformative potential of these technologies is contingent on their integration into core
banking operations and this integration is pivotal in redefining service delivery models,
thereby fostering operational agility and leveraging competitive advantage. As such, this
section highlighted those financial institutions have recently incorporated FINTECH
innovations into their services and products, despite the fact that the majority of the
underlying technology is not novel. However, the implementation of FINTECH solutions

15
within banking operations is a multifaceted construct, which needs to be investigated in terms
of the variety of applications and the profundity of technological integrations.

The adoption and implementation of FINTECH by conventional banks has garnered

academic attention in diverse geographical settings, encompassing Europe, Africa, and
notably Zimbabwe as outlined in the following sections. Chhaidar, Abdelhedi, and Abdelkafi
(2023) conducted a study within the European environment to investigate the dynamic
correlation between FINTECH investments and financial performance across 23 European
banks throughout the period spanning from 2010 to 2019. The study showed that investing in
the financial technology refers to the action of spending on costly new technologies in order
to implement new software and hardware being able to enhance the quality of banking
services and thus provoking a digital transformation of traditional activities (Chhaidar et al.,
2023). In addition, the study revealed a positive and statistically significant correlation
between FINTECH investments and bank profitability. This implies that as banks become
more engaged in digital activities which is represented by FINTECH adoption, their
profitability tends to increase. In terms of the IDT, the findings of this study demonstrate how
FINTECH adoption, a form of innovation, can enhance banking services and profitability.
The positive correlation between FINTECH investments and bank profitability signifies the
‘relative advantage’ of this innovation, a key attribute in IDT. As banks increasingly engage
in digital activities, they progress through the stages of IDT, from knowledge to
implementation, leading to increased profitability. In addition, the FINTECH industry in
various European countries has shown significant growth, as evidenced by a research study
published by McKinsey in 2023, notably, the United Kingdom and Sweden have emerged as
notable examples due to their exceptional FINTECH ecosystem performance. The
implementation of FINTECH by banks involves several aspects, including technological
infrastructure, employee training and adoption, and user experience design. In terms of
technological infrastructure, a study by Alshari and Lokhande (2023) investigated the impact
of various constraints, including technological, on the adoption of FINTECH in banks. They
found that technological constraints negatively affect banks’ adoption of digital FINTECH
techniques and this aligns with the TAM, which posits that perceived ease of use is a key
determinant of technology adoption. Regarding employee training and adoption, a study by
Dwivedi, Alabdooli and Dwivedi (2021) found that the adoption of FINTECH had a
significant influence on the competitiveness and performance of the banking industry in the
UAE. Another study by Bhutto, Jamal and Ullah (2023) revealed that human resource

16
competencies significantly impact FINTECH adoption in banks. These findings resonate with
the IDT, which suggests that the adoption process involves stages of knowledge acquisition
and decision-making. As for user experience design, a collection of case studies highlighted
how FINTECH view banking design as a methodology, demonstrating the importance of user
experience in the successful implementation of FINTECH. This aligns with the SQT, which
emphasises the role of service quality in shaping customer perceptions and satisfaction.
Therefore, the successful implementation of FINTECH by banks requires a robust
technological infrastructure, effective employee training and adoption strategies, and a focus
on user experience design. These elements interact in complex ways, as elucidated by
theories such as IDT, SQT, and TAM, underscoring the multifaceted nature of FINTECH
implementation in the banking sector.

FINTECHs are revolutionizing the banking sector in Africa as shown in countries like Kenya,
Namibia, and South Africa, where FINTECH adoption is rapidly increasing, with mobile
money, mobile banking, crowdfunding, and blockchain technology being the main types of
FINTECH (Ndung'u, 2022; Baporikar, 2023; Ndung'u & Oguso, 2023). For instance, in
Kenya, one of the countries with the highest levels of fintech penetration, about 71.3% of
transactions are made through digital payment platforms (Ndung'u & Oguso, 2023).
However, there is a disparity between Africa and Western and Eastern countries in terms of
FINTECH adoption and implementation in traditional banks. While FINTECH has led to a
surge in equity funding for banks in Africa, the adoption rate is still lower compared to
Western and Eastern countries and this can be attributed to various factors such as political
stability, control of corruption, and government effectiveness (Baporikar, 2023). Despite
these challenges, the future of FINTECH in Africa looks promising and with the right
incentives and support, the FINTECH industry in Africa could grow eight times its current
value by 2025 (Ndung'u & Oguso, 2023). This indicates that Africa is catching up with the
rest of the world in terms of FINTECH adoption, bridging the gap between the continent and
Western and Eastern countries.

The studies conducted by Mashamba and Gani (2023), Meyer and Okoli (2023), FSD Africa
(2020), and Chinoda (2024) provide valuable insights into the implementation of FINTECH
by banks in Sub-Saharan Africa and Zimbabwe, particularly in terms of technological
infrastructure, employee training and adoption, and user experience design. The emergence of
FINTECH disruptions, as noted by Mashamba and Gani (2023), has led to a rise in equity

17
funding for banks and this suggests that banks are investing in technological infrastructure to
support the integration of FINTECH solutions. The study by Meyer and Okoli (2023) further
underscores the importance of robust technological infrastructure in facilitating the expansion
of fFINTECH in banking institutions. As outlined by studies outlined above conducted in the
developed world, the successful implementation of FINTECH requires not only technological
readiness but also human readiness. Therefore, banks need to invest in training programs to
equip their employees with the necessary skills to navigate the digital transformation. The
study by Chinoda (2024) indicates that digital financial inclusion and bank stability, which
can be enhanced through employee training and adoption, have a substantial impact on
economic growth. The report by FSD Africa (2020) emphasizes the significant contribution
of FINTECH in fostering innovation within the financial industry. This includes the design of
user-friendly interfaces and seamless customer experiences, which are critical for the
successful adoption of FINTECH solutions. The user experience design, therefore, plays a
crucial role in influencing customer perceptions and satisfaction, aligning with the principles
of the SQT. These studies highlight the multifaceted nature of FINTECH implementation,
involving the interplay of technological infrastructure, employee training and adoption, and
user experience design. They underscore the transformative potential of FINTECH in
enhancing the operations of traditional banks, contributing to economic growth, and
promoting financial inclusion.

Nevertheless, it is imperative to emphasise the necessity for additional investigation in order

to comprehensively comprehend the ramifications of FINTECH implementation on diverse
facets of the banking sector, encompassing profitability, funding, stability, and consumer
happiness. However, the depth of implementation is still evolving, reflecting an intricate
dance between embracing innovation and navigating operational realities.

2.3.2. REGULATORY ENVIRONMENT FOR FINTECHS

The above Section 2.4.1 shows that issues relating to technological developments loom large
in academic research of the day and the current debate centre on the prospects and challenges
of the adoption of novel financial technologies in the international financial system. Another
prominent finding of the section 2.4.1 is that FINTECH promises to increase efficiency in
delivering financial services, widen their range, increase competition and promote financial
inclusion for traditional banks, however, there is also a serious need to guarantee public
safety by addressing a set of risks that could merit public intervention. As such, the

18
regulatory environment is a critical factor in the FINTECH revolution, acting as both a
facilitator and a potential obstacle to its unrestricted growth. As noted by Arner, Barberis, and
Buckley (2016), regulatory frameworks significantly influence the path of FINTECH
adoption, impacting everything from market entry to the innovation of products and services.
The intricacy and variability of these frameworks are particularly noticeable across different
global regions, each with its unique set of rules and regulations.

A regulatory framework is a set of rules and regulations that guide the operations of an
industry (Tapanainen, 2020). Since financial services are a highly sensitive industry in terms
of government regulation and consumer trust, it is critical for policymakers to understand
how to foster a healthy FINTECH marketplace for both service providers and clients. Thus,
for banks and financial institutions implementing FINTECH, a well-defined regulatory
framework ensures compliance, mitigates risks, and fosters trust and it provides clear
guidelines for FINTECH adoption, reducing uncertainties and promoting innovation (Frost,
2020). For clients, a robust regulatory framework ensures the safety and security of their
transactions, protects their rights, and enhances their confidence in using FINTECH services,
thus, it plays a crucial role in the successful integration of FINTECH into the banking sector
(Rupeika-Apoga, & Thalassinos, 2020). This shows that regulatory frameworks play a crucial
role in shaping the implementation of FINTECH innovations, ensuring that advancements in
financial technologies foster secure, efficient, and inclusive financial systems.

Developed countries recognising the transformative potential of FINTECH, have crafted

regulations that address various facets of FINTECH implementation, from technological
infrastructure and employee training to user experience design. This exploration focuses on
three developed countries: United States, United Kingdom, and Singapore, providing insight
into their regulatory approaches. The United States has approached FINTECH regulation
with a focus on encouraging innovation while ensuring consumer protection and the Office of
the Comptroller of the Currency (OCC) introduced the FINTECH charter, which allows
FINTECH companies to become special-purpose national banks (Allen, 2020; Clements,
2021). This regulatory framework encompasses rigorous measures for technological
infrastructure, necessitating robust cybersecurity measures and resilient IT systems (OCC,
2018). Regarding employee training and adoption, regulations under the Federal Financial
Institutions Examination Council (FFIEC) provide guidelines for technology-related training
for bank personnel, ensuring that staff can competently manage and leverage FINTECH
solutions (FFIEC, 2020). User experience design is addressed indirectly through consumer

19
protection laws like the Dodd-Frank Wall Street Reform and Consumer Protection Act,
emphasizing transparent and fair treatment of consumers (Dodd-Frank Act, 2010).

The UK's Financial Conduct Authority (FCA) has been at the forefront of FINTECH
regulation, establishing the world's first regulatory sandbox that allows FINTECH firms to
test innovations in a controlled environment (Fahy, 2022). A regulatory sandbox in the field
of finance refers to a structured framework established by a regulatory body in the financial
industry and this framework enables private enterprises to conduct small-scale, real-time
testing of innovative ideas within a regulated setting, overseen by the regulatory authority
(Fahy, 2022). This methodology enables the examination of innovative financial products,
technologies, and business models within a framework of regulations, oversight obligations,
and suitable protective measures and facilitates regulators in formulating their regulatory
approach towards innovations by utilising the outcomes of real-world experiments. This
enables them to expedite and enhance their decision-making process on the appropriate
regulation of emerging services and providers in the marketplace. This initiative mandates
that participating companies meet strict criteria for technological infrastructure, ensuring the
reliability and security of FINTECH applications (FCA, 2016). The sandbox framework
indirectly addresses employee training by allowing firms to refine their operational
competencies within a regulatory context since user experience design is an integral part of
the sandbox testing criteria, with a significant focus on consumer interface and protection
standards to enhance customer engagement and trust.

Singapore’s Monetary Authority of Singapore (MAS) has established comprehensive

guidelines for FINTECH, with a particular emphasis on technological infrastructure (Fang,
2023). The MAS Technology Risk Management guidelines outline rigorous standards for the
resilience and security of financial institutions' IT systems (MAS, 2013). In terms of
employee training, the MAS, through its Financial Sector Technology and Innovation (FSTI)
scheme, provides funding support for the development of skilled professionals adept in new
technologies and this initiative acknowledges the critical role of human capital in achieving
successful FINTECH adoption (Fang, 2023). Furthermore, the MAS Principles of Fairness
necessitate that FINTECH solutions are designed with user-centered principles, ensuring that
technology enhances the clarity, accessibility, and overall experience for financial services
consumers. Therefore, the regulatory frameworks developed in the United States, the United
Kingdom, and Singapore reflect a balanced approach towards fostering FINTECH innovation
and ensuring system integrity, consumer protection, and inclusive financial services. Through

20
these regulations, these countries not only guide the technological, human, and design aspects
of FINTECH implementation but also set benchmarks for other nations aiming to integrate
FINTECH solutions within their financial systems.

Developing countries have also been crafting regulatory frameworks to govern its
implementation, focusing on aspects such as technological infrastructure, employee training
and adoption, and user experience design. These measures are crucial in harnessing the
benefits of FINTECH while safeguarding against potential risks, including cybersecurity
threats and financial fraud. The regulatory landscapes in India, Kenya, and Brazil outlined in
this section, gives insights into how developing nations are navigating the FINTECH
revolution. India's approach to FINTECH regulation is comprehensive, with the Reserve
Bank of India (RBI) playing a pivotal role in establishing guidelines for technological
infrastructure and security. The RBI's issuance of the Master Direction on Digital Payment
Security Controls (Reserve Bank of India, 2021) delineates rigorous standards for digital
payment systems, emphasising the importance of robust technological frameworks and secure
transaction processes. Furthermore, the National Strategy for Financial Education (NSFE):
2020-2025 underscores the importance of financial literacy and employee training in
fostering an environment conducive to FINTECH adoption (Reserve Bank of India, 2020).
These guidelines not only prioritize technological robustness but also emphasize the need for
well-trained personnel to navigate the FINTECH ecosystem.

Kenya, renowned for its pioneering role in mobile money, has set forth regulations
emphasizing the importance of secure technological infrastructure and user-centered design
in FINTECH applications. The Central Bank of Kenya's Guidance Note on Cybersecurity
(Central Bank of Kenya, 2019) highlights the criticality of cybersecurity measures for
FINTECH companies, dictating standards for data protection and transaction security.
Additionally, the National Payments System Act (National Treasury & Planning, 2014)
provides a legal framework that encourages innovation while ensuring the security and
efficiency of electronic payment systems. Kenya's focus on cybersecurity and efficient user
experience design has been instrumental in the widespread adoption of mobile money
services, such as M-Pesa.

Brazil has been at the forefront of integrating FINTECH solutions within its financial
landscape, with regulatory bodies such as the Central Bank of Brazil and the National
Monetary Council issuing directives to foster a secure and innovative FINTECH

21
environment. The Resolution No. 4,658 (Central Bank of Brazil, 2018) outlines guidelines for
cybersecurity policies and the adoption of cloud computing technologies among financial
institutions, aiming to bolster the technological infrastructure supporting FINTECH
applications. Additionally, the Resolution No. 4,893 (Central Bank of Brazil, 2021)
introduces a regulatory sandbox environment, allowing FINTECH companies to test new
products and services under regulatory supervision, thereby facilitating user experience
innovation and employee training in a controlled setting.

The above analysis of the regulatory frameworks developed in India, Kenya, and Brazil
illustrate the diverse strategies employed by developing countries to govern FINTECH
implementation focusing on technological infrastructure, employee training and adoption,
and user experience design, these nations aim to create a FINTECH ecosystem that is secure,
efficient, and accessible to all segments of the population.

The journey towards FINTECH integration within the banking sector was in this section
navigated via the interplay between the implementation of technological solutions and the
regulatory frameworks that orchestrate their application. This exploration, rooted in the
theoretical bedrock of technology acceptance, service quality theory and innovation diffusion
theories, elucidates the multifaceted roles these variables play in reshaping banking
landscapes. The case study perspectives analysed in this section made it clear that while the
breadth and depth of FINTECH adoption herald new frontiers for banking operations, the
regulatory environment critically determines the pace and trajectory of this evolution.
Understanding these dynamics is vital for stakeholders aiming to harness FINTECH's
potential to revolutionize banking, ensuring that innovations not only foster operational
efficiencies and customer satisfaction but also advance financial inclusivity in an ever-
globalizing world.

2.4. ROLES OF FINTECH IN BANKS

In examining the influence of FINTECH on banking services, it is pivotal to conceptualize on
operational efficiency, customer satisfaction, and financial inclusivity which are key metrics
in assessing the impact of FINTECH on banking and are crucial in understanding the
transformative potential of FINTECH in banking. These outcomes are deeply intertwined
with the mediating variables of technological infrastructure, employee training and adoption,
and user experience design which not only play a critical role in the successful deployment of
FINTECH solutions but also significantly influence the extent to which these technologies

22
impact the banking sector. The following subsections outlines how each variable affects
FINTECH adoption by traditional banks as outlined in published studies:

2.4.1. OPERATIONAL EFFICIENCY

Operational efficiency in the banking sector refers to the ability of a bank to deliver services
at the lowest cost while maintaining high quality and reliability (Munusamy, Chelliah &
Mun, 2010). Scholtens and Wensveen (2003) expand upon this by highlighting operational
efficiency as a critical determinant in the competitive positioning of banks, emphasizing its
role in enhancing profitability through cost reduction, improved service speed, and accuracy.
This focus on operational efficiency is particularly relevant as traditional banks navigate
through the increasingly competitive landscape brought about by FINTECH innovations,
underscoring its importance in adopting and integrating new technologies to enhance banking
operations. This section investigates the impact of operational efficiency on the decision by
traditional banks to adopt FINTECH. Banu (2019) defines operational efficiency as the
optimal use of resources to yield the highest output and the study measures operational
efficiency in terms of liquidity, solvency, and profitability. Liquidity is assessed using cash-
deposit and credit-deposit ratios, solvency is measured using net interest margin and
investment-deposit ratios, and profitability is determined using return on assets, equity,
advances, and investments and the study emphasises that operational efficiency plays a
pivotal role in the productivity of the economy and the success of the banking sector. The
theoretical underpinnings of this study, incorporating the TAM and the IDT, provide a
structured framework for understanding operational efficiency's pivotal role in the adoption
of FINTECH by banks. TAM suggests that perceived ease of use and perceived usefulness
are fundamental drivers for the adoption of new technologies. In this context, operational
efficiency acts as a tangible manifestation of these perceptions, where the integration of
FINTECH solutions such as blockchain and AI-powered analytics directly contributes to
streamlined operations and cost savings, reinforcing their perceived usefulness. IDT further
complements this understanding by examining how the characteristics of FINTECH
innovations, including their relative advantage over existing processes, compatibility with
current banking operations, and the complexity of implementation, influence their diffusion
within the banking sector.

Studies in both developed and developing countries indicate that the relative advantage
offered by FINTECH solutions in terms of operational efficiency is a significant factor in
their rapid adoption. For instance, a study by Arner et al. (2015) in developed markets like
23
the US and the UK found that the pressure to enhance operational efficiency has driven banks
towards adopting FINTECH solutions, leading to notable improvements in transaction
processing times and cost efficiency. Conversely, in developing countries, where banking
infrastructure may be less advanced, the adoption of mobile banking and payment platforms
highlights FINTECH's role in overcoming traditional operational inefficiencies and extending
financial services to previously unreachable customer segments (Demirgüç-Kunt et al.,
2018). Operational efficiency, through the lens of FINTECH adoption, transcends mere cost
savings and process optimization and it fundamentally alters the customer experience, leading
to improved satisfaction through faster, more reliable services and contributes to financial
inclusivity by enabling banks to extend services to underserved populations efficiently. These
benefits are a direct reflection of the theoretical framework of this study, demonstrating how
FINTECH's integration into banking operations fosters an environment where operational
efficiency acts as a catalyst for broader organizational and social benefits, including enhanced
customer satisfaction and financial inclusivity. Therefore, the extensive exploration of
operational efficiency within the theoretical framework of this study underscores its
criticality in fostering the adoption and successful integration of FINTECH innovations by
banks. Thus, in enhancing operational processes, FINTECH not only drives efficiency gains
but also significantly impacts customer satisfaction and financial inclusivity, delineating a
comprehensive context in which the transformative potential of FINTECH solutions can be
fully realised in both developed and developing country contexts.

2.4.2. CUSTOMER SATISFACTION

Customer satisfaction plays a pivotal role in banking operations, representing the degree to
which customers' expectations are met or exceeded by the services provided. Nautwima and
Asa (2022) defines customer satisfaction in banking as a critical performance metric that
reflects the quality of services offered, influencing customer loyalty, retention, and advocacy.
Scholtens and Wensveen (2003) underscore the importance of customer satisfaction as a
driving force in maintaining a favorable competitive position in the banking sector,
emphasizing its impact on customer trust and long-term relationships. In traditional banks,
customer satisfaction acts as a key indicator of operational effectiveness, guiding the
adoption of innovations to enhance service quality and meet evolving customer demands
(Felix, 2017; Zouari & Abdelhedi, 2021).

In terms of the SQT, customer satisfaction reflects the quality of services provided by banks.
SQT posits that service quality is determined by the gap between customer expectations and
24
their perceptions of the actual service delivered. When banks meet or exceed these
expectations, customer satisfaction increases. This satisfaction, as Nautwima and Asa (2022)
and Scholtens and Wensveen (2003) note, influences customer loyalty, retention, and
advocacy, and helps maintain a competitive position in the banking sector. Furthermore, as
Felix (2017) and Zouari and Abdelhedi (2021) suggest, customer satisfaction guides the
adoption of innovations to enhance service quality, aligning with the continuous
improvement aspect of SQT. Thus, SQT provides a framework for understanding and
improving customer satisfaction in banking operations. According to TAM, the perceived
ease of use and usefulness of FINTECH solutions directly influence customer satisfaction,
underscoring the pivotal role of user experience in fostering positive attitudes towards
technological innovations. IDT complements this by exploring how customer satisfaction
drives the diffusion of FINTECH within banking institutions, emphasizing the need for banks
to align their offerings with customer preferences to enhance adoption rates.

Studies conducted in both developed and developing countries have highlighted the
significant impact of customer satisfaction on the adoption of FINTECH by banks. Research
by Gomber, Koch, and Siering (2017) has shown that a well-designed user interface and
robust technological infrastructure can lead to higher levels of customer satisfaction,
contributing to increased trust and engagement with FINTECH services. In developing
economies, the reliance on mobile banking platforms and digital payment solutions to
enhance accessibility has been instrumental in driving customer satisfaction levels, as
evidenced by the proliferation of services like M-Pesa in Kenya and G-Cash in the
Philippines. Customer satisfaction in banking not only enhances operational efficiency by
streamlining customer interactions and service delivery processes but also contributes to
financial inclusivity by catering to diverse customer needs and preferences. The alignment of
FINTECH solutions with customer satisfaction metrics ensures that innovations lead to
tangible improvements in service quality and overall customer experience. This symbiotic
relationship between customer satisfaction, operational efficiency, and financial inclusivity
forms a foundational pillar in driving the successful adoption and integration of FINTECH
within banking settings, reflecting the holistic impact of customer-centric strategies on
banking performance and innovation adoption. Therefore, the interlinkage between customer
satisfaction, operational efficiency, and financial inclusivity underscores the critical role of
customer-centric approaches in fostering successful FINTECH adoption by banks. By
prioritizing customer satisfaction and tailoring FINTECH solutions to meet evolving

25
customer expectations, traditional banks can leverage customer-centric strategies to drive
innovation, enhance service quality, and broaden financial access for diverse customer
segments.

2.4.3. FINANCIAL INCLUSIVITY

Financial inclusivity, a cornerstone of economic development, is significantly influenced by
the adoption of FINTECH solutions that transcend banking barriers and the transformative
role of FINTECH in promoting financial inclusivity is mediated through a combination of
technological infrastructure, employee training, and user experience design strategies, aimed
at reaching underserved and unbanked populations. A robust technological infrastructure is
essential for extending financial services to marginalized communities. The comprehensive
study by Demirgüç-Kunt et al. (2018) underlines the critical importance of technology in
widening access to financial services, especially in remote and low-income areas. As such,
the adoption of mobile banking and digital payment platforms requires an infrastructure that
ensures broad accessibility and reliability, laying the foundation for financial inclusivity
initiatives to thrive.

Ensuring comprehensive employee training is vital for successfully introducing FINTECH

services to underserved populations. Recognizing the unique needs and challenges of these
communities, appropriate training programs can empower bank staff to guide and educate
potential users on the benefits and practical usage of FINTECH platforms. This proactive
approach, highlighted by Tinarwo (2019), not only enhances user trust and confidence but
also paves the way for a smoother adoption of FINTECH services, contributing to increased
financial inclusivity.

User experience design stands as a linchpin in making fintech services accessible and
intuitive for individuals new to formal banking systems. Tinarwo (2019) underscores the
significance of designing user interfaces that cater to the capabilities and constraints of
diverse user populations. By creating user-centric platforms with simple navigation, clear
instructions, and localized language options, FINTECH services can bridge the gap between
financial institutions and underserved communities, ensuring that financial services are
readily available and easily navigable.

The cohesive integration of technological infrastructure, employee training, and user

experience design in FINTECH solutions not only facilitates the adoption of financial
services among underserved populations but also fosters a culture of financial inclusivity.

26
This holistic approach transcends banking norms, empowering marginalized communities to
access and utilize financial services effectively. From mobile banking in rural areas to digital
payment solutions for low-income individuals, FINTECH-driven financial inclusivity
initiatives have the potential to uplift communities, drive economic empowerment, and foster
a more inclusive financial landscape. Therefore, the symbiotic relationship between
technological infrastructure, employee training, user experience design, and financial
inclusivity sets the stage for a transformative shift in how financial services are accessed and
utilized by underserved populations. By leveraging FINTECH innovations with a customer-
centric lens, traditional banks and financial institutions can break down barriers to financial
inclusivity, creating a more equitable and accessible financial ecosystem for all.

2.5. EMPIRICAL LITERATURE REVIEW

An empirical literature review serves as a crucial tool to investigate existing research findings
and identify gaps in knowledge in a specific research area (Lim, Kumar and Ali, 2022). For
this study, the empirical literature review aims to provide insights into the current state of
FINTECH adoption in banking institutions in developing countries, focusing on the types of
FINTECH solutions implemented, challenges faced, opportunities presented, and potential
strategic frameworks for integration as outlined in the following sections:

2.5.1. CURRENT EXTENT AND TYPES OF FINTECH ADOPTION BY BANKS

In developed countries, the integration of FINTECH solutions in banking institutions has
witnessed significant traction, emphasising digital payment solutions, blockchain technology,
and AI-driven customer service enhancements and this was also unraveled in the section 2.5
above. Easier access to these services enables individuals to manage their finances, including
income, expenses, savings, and investments and greater access to financial services is
indicative of financial inclusion, which provides key indicators for enhancing societal
prosperity (Saputro & Lestari, 2019). Traditional financial services are often seen as costly
tools for improving financial inclusion, requiring substantial funds to provide services in a
region, however, FINTECH enables society to access financial services more easily and is
expected to be the most significant disruptor in the financial sector (Saputro & Lestari, 2019).
Research conducted by Jones et al. (2021) in the US and the UK underscores the prominence
of mobile banking apps, peer-to-peer payment platforms, and robo-advisors as primary
FINTECH solutions which have been adopted and implemented by traditional banks. In
addition, these countries have leveraged advanced technologies to streamline banking
operations and enhance customer experiences, propelling FINTECH adoption to new heights.
27
The worldwide banking industry is currently experiencing a possible disruption due to the
emergence of digital technology and the expansion of FINTECH in recent times (Wewege,
Lee & Thomsett, 2020). This transformation was propelled by a multitude of variables,
including as the globalisation of finance, advancements in technology, the necessity for
inventive business models, and the competition among service providers striving to meet the
increasing client demands as outlined in the section 2.5 above. This shows that the banking
sector is increasingly adopting operational innovation to acquire a competitive and
sustainable advantage due to the rapid growth of financial technology (Zhao, Tsai and Wang,
2019).

Fintech facilitates the transformation of banks' conventional brick-and-mortar business model

into technologically advanced alternatives (Chen, 2024). Contemporary banking operations
are being transformed by many technologies such as Big Data Analytics, AI, ML, Cloud
Computing, Blockchain, Fog Computing, Crowdfunding, and similar advancements. These,
technological and digital advancements have the potential to provide novel business
prospects by revolutionising the manner in which financial institutions generate revenue and
distribute their offerings and the anticipated impact of FINTECH advances in the banking
sector extends beyond the conventional perception of internet banking as a mere technology
advancement inside the banking industry.

The landscape of FINTECH adoption in developing countries like India, Kenya, and Brazil
presents a varied picture. Studies by Zaghlol et al. (2021) shed light on Malaysia's FINTECH
adoption trends, highlighting the nexus between FINTECH adoption and financial
development. In India, the surge in digital payment adoption, fuelled by platforms such as
Unified Payments Interface (UPI) and mobile wallets, has reshaped the financial landscape,
promoting financial inclusion and access. Kenya's success with mobile money services like
M-Pesa has revolutionized financial transactions, especially in rural and underserved areas,
contributing to enhanced financial inclusivity (Abdulhamid, 2020). Despite these strides,
there remains a gap in the research on the integration of advanced FINTECH solutions, such
as blockchain, in developing economies particularly Zimbabwe where there are high levels of
financial exclusion and the FINTECH solutions are prevalent in mobile money sector only.

Singh et al. (2020) investigated on the determinants influencing the adoption of FINTECH,
emphasising the significance of comprehending user acceptance and the perceived
advantages associated with FINTECH offerings. The contention posits that the acceptability

28
of users plays a pivotal role in determining the effective deployment of FINTECH solutions.
The adoption of technology is contingent upon various elements, such as the apparent
comprehensibility and utility of the technology, the level of faith placed in the technology,
and the individual's disposition towards its utilisation. The adoption of FINTECH products is
significantly influenced by the perceived advantages they offer, including ease, speed, and
cost-effectiveness. Financial institutions can enhance their service delivery and competitive
advantage by developing strategies to promote the adoption of FINTECH solutions, through a
comprehensive understanding of these variables.

In addition, Utami et al. (2021) performed a comprehensive analysis of existing research on

the adoption of FINTECH products, examining the various factors that impact customer
choices and the patterns of adoption. This collection of research highlights the changing
nature of FINTECH adoption in emerging nations and indicates a growing interest in
investigating the potential effects of sophisticated FINTECH solutions, such as blockchain,
on promoting financial innovation and inclusivity. With the increasing adoption of FINTECH
solutions in emerging countries, there is a rising chance to connect banking methods with
digital progress. By utilising the results and perspectives derived from research carried out in
both developed and developing nations, forthcoming investigations can further explore the
incorporation of inventive FINTECH solutions within conventional banking systems. This, in
turn, can lead to improved financial inclusivity, customer contentment, and operational
effectiveness within the worldwide banking industry.

2.5.2. CHALLENGES AND STRATEGIES IN FINTECH INTEGRATION

Banks, in general, are crucial to the economy, and FINTECH on the other hand, enhances
individual financial inclusion by offering efficient financial services (Chen, 2024). The
section above showed that traditional banks are increasingly adopting and implementing
FINTECH solutions into their service, and this section outlined the challenges inherent in this
move the banks are making. The integration of FINTECH solutions poses multifaceted
challenges for traditional banks in developing countries, ranging from regulatory hurdles to
technological constraints as the advent of FINTECH has introduced a new set of risks and
challenges for the financial sector. The first challenge which banks face when incorporating
FINTECH solutions into their service is the security risk which is a primary concern as
FINTECH often involves handling sensitive financial data (Ebrahim et al., 2021). Breaches
on the banks’ firewalls as a result of the implemented FINTECHs often lead to significant
financial losses and damage to the institution’s reputation. One example is the 2019 data

29
breach at Capital One, a major US bank which exposed the records of more than 100 million
customers. A hacker was able to access American and Canadian Capital One customers’ data
hosted on Amazon Web Services (AWS), a cloud service provider. The breach exposed
names, addresses, phone numbers, credit scores, payment histories, and social security
numbers and this incident underscores the security risks associated with the adoption of
FINTECH solutions and the importance of robust cybersecurity measures (Novaes-Neto et
al., 2020). Another challenge that banks face relates to technical issues which affects
effective implementation of FINTECH by banks and the embracing of the technologies by
customers (Swacha-Lech, 2017). Technical issues arise from the reliance on complex
technologies which are susceptible to system failures, software bugs, or disruptions which
affect service delivery and customer trust. In addition, regulation challenges especially in
African countries also confronts the implementation of FINTECH solutions due to the
fluidity or absence of the regulatory landscape for fintech (Olomukoro, 2023). Non-
compliance with regulations can result in penalties and legal issues which also culminates in
potential monetary losses and negative public perception, which can harm the institution’s
customer base and profitability.

To overcome the challenges associated with FINTECH integration, banks employ several
strategies focusing on operational efficiency, customer satisfaction, and employee training.
Firstly, the banks that adopt and implement FINTECH solutions in their operations and
services must significantly invest in robust technological infrastructure to support FINTECH
solutions, ensuring system reliability and minimizing downtime and they can also leverage
data analytics provided by FINTECH to streamline operations and make informed decisions
(Murinde, Rizopoulos & Zachariadis, 2022). In addition, banks implementing must enhance
customer satisfaction by ensuring the security and privacy of customer data and this is done
by implementing robust cybersecurity measures can help prevent breaches and maintain
customer trust (Murinde et al., 2022). Additionally, banks can use FINTECH to improve
service delivery, offering convenient and personalized services to meet evolving customer
expectations. Banks also need to invest in comprehensive training programs to equip their
employees with the necessary skills to navigate the digital transformation and this includes
understanding new technologies, managing cybersecurity risks, and complying with
regulations (Chen, 2024). Banks should stay abreast of the changing regulatory landscape for
FINTECH and this includes understanding and complying with data protection laws,
cybersecurity regulations, and other relevant legal requirements (Chen, 2024). By

30
implementing these strategies, banks can effectively navigate the challenges of FINTECH
integration, enhancing their operational efficiency, customer satisfaction, and overall
competitiveness in the digital age. Studies done on the subject show that strategies employed
by banks to overcome these challenges vary across regions, with developed countries
focusing more on regulatory compliance and partnerships with FINTECH startups to drive
innovation and developing countries, implementing initiatives such as financial literacy
programs and government support for FINTECH innovation (Chen, 2024). The next section
outlines the opportunities inherent for banks to adopt FINTECH solutions.

2.5.3. OPPORTUNITIES FOR EFFICIENCY, CUSTOMER SATISFACTION, AND

INCLUSION
FINTECH, or financial technology, presents a wealth of opportunities for enhancing
operational efficiency and customer satisfaction, particularly in developing countries. Studies
by Brown and White (2020) in the UK and Germany have shown how FINTECH solutions,
such as AI-powered chatbots and personalized services, significantly improve customer
engagement and loyalty as these technologies streamline customer interactions, provide
personalized recommendations, and automate routine tasks, thereby improving operational
efficiency and enhancing the customer experience. The situation in developing countries
presents a different set of challenges and opportunities as there is a pressing need for more
research on how to tailor FINTECH solutions to meet the unique needs of diverse customer
segments in these regions, particularly in rural and underserved areas (Didenko, 2017). The
banking infrastructure in these areas is often inadequate or non-existent, making it difficult
for residents to access financial services such that FINTECH solutions, such as mobile
banking and digital wallets, can bridge this gap by providing accessible and affordable
financial services. It must also be noted that the potential of FINTECH for financial inclusion
in developing countries is significant as it enhances the availability and equality of
opportunities to access financial services as espoused by the research by Lopez et al. (2021)
in Mexico and South Africa which highlighted the transformative impact of mobile banking
on financial access for unbanked populations. In addition, mobile banking platforms allow
users to conduct financial transactions, such as money transfers and payments, using their
mobile devices, thereby bypassing the need for physical banking infrastructure. However, the
adoption and impact of FINTECH in developing countries are influenced by several factors,
including regulatory environment, technological infrastructure, and user digital literacy
(Ndung'u and Oguso, 2023). Therefore, academically exploring the specific mechanisms

31
through which FINTECH enhance financial inclusion in developing economies presents a
rich area for further investigation for scholars and this involves studying the impact of
different FINTECH applications, understanding user behavior and preferences, and
examining the role of regulatory policies in promoting or hindering FINTECH adoption.
Such research could provide valuable insights for policymakers, financial institutions, and
FINTECH companies seeking to leverage FINTECH for financial inclusion in developing
countries.

2.6. CONCEPTUAL FRAMEWORK OF THIS STUDY

A conceptual framework provides a structure that outlines the relationships between variables
and concepts underpinning a research study (Shikalepo, 2020). This framework outlined the
interplay between key independent, dependent, and mediating variables of this study to
understand how fFINTECH influences operational efficiency, customer satisfaction, and
financial inclusivity within banking institutions. The independent variables of this study were
related to the implementation of fFINTECH solutions which denotes the extent to which
Zimbabwean commercial banks adopt and integrate FINTECH solutions into their operations
and the regulatory environment which denotes the regulatory policies and frameworks
governing FINTECH adoption and operation in the Zimbabwean banking sector. The
dependent variables in this study were operational efficiency, customer satisfaction, and
financial inclusivity. Operational efficiency measures the effectiveness and productivity of
banking services following the integration of FINTECH solutions (Harsono & Suprapti,
2024). Customer satisfaction reflects the level of customer contentment and engagement with
banking services enhanced by FINTECH innovations (Ntwiga, 2020). Financial inclusivity
indicates the accessibility and availability of financial services to a broader spectrum of the
population, facilitated by FINTECH-enabled initiatives (Feyen, Natarajan & Saal, 2023). The
mediating variables in this study included technological infrastructure, employee training and
adoption, and user experience design. Technological infrastructure refers to the quality and
capacity of the technological infrastructure within banks, which influences the successful
implementation of FINTECH solutions and subsequent operational efficiency (Ntwiga,
2020). Employee training and adoption pertains to the level of training and readiness of bank
personnel in utilizing FINTECH tools, which impacts both operational efficiency and
customer satisfaction (Sakr & Viitanen, 2023). User experience design involves the design
and usability of FINTECH interfaces, which shapes customer interactions and satisfaction
levels, thereby influencing financial inclusivity (Bolaji, 2022).

32
 Figure 1: Conceptual Framework of this study

(Source: Researcher’s conceptualization of the topic)

In Figure 1, the level of FINTECH integration has a direct impact on operational efficiency of
the banking sector. In addition, efficient systems and streamlined processes that result from
FINTECH implementation leads to improved service delivery and reduced operational costs.
the regulatory environment also plays a crucial role in customer satisfaction. A conducive
regulatory framework fosters innovation and customer-centric FINTECH services. this leads
to enhanced customer satisfaction through secure, convenient, and personalised banking
experiences. Lastly, the technological infrastructure is a key factor in financial inclusivity. A
robust technological infrastructure enables the delivery of FINTECH-driven services to
underserved populations. this promotes financial inclusivity by providing digital access to
banking products and services. By establishing the relationships and interactions between
these variables, the conceptual framework informed the development of a structured model
that delineates how FINTECH influences operational efficiency, customer satisfaction, and

33
financial inclusivity within Zimbabwean commercial banks. This framework guided the study
in analysing the impact of FINTECH adoption on banking services and proposing strategic
recommendations for enhancing banking operations and customer experiences in the evolving
financial landscape.

2.7. RESEARCH GAPS AND DIRECTIONS

The literature review in Sections 2.4 to 2.6 elucidated various pivotal facets of FINTECH
integration in conventional banking, including the prospects, obstacles, and tactics for
surmounting these obstacles. Nevertheless, there exist several areas of research that want
additional inquiry. The review primarily focused on the influence of FINTECH on
operational efficiency and customer happiness, but it did not extensively go into the precise
mechanisms by which FINTECH improves these dimensions. Further investigation on this
subject is showing signs of moving towards the exploration of operational procedures that are
primarily impacted by FINTECH and the subsequent implications for enhanced customer
satisfaction. furthermore, the evaluation underscored the difficulties associated with
incorporating FINTECH, including concerns around security vulnerabilities and technical
complications. However, there was a comparatively lesser focus on the tactics for effectively
mitigating these risks. Current research endeavors are prioritizing the advancement and
assessment of risk management methodologies within the realm of FINTECH
implementation. Moreover, the assessment addressed the impact of regulatory frameworks on
promoting the use of FINTECH. However, it did not delve into the particular regulatory
obstacles encountered by banks in various geographical settings. Future research on the topic
is pointing towards the analysis of the regulatory frameworks of different nations and their
influence on the adoption of FINTECH in traditional banks. Finally, the assessment
emphasised the potential of FINTECH in promoting financial inclusion, with a specific focus
on developing nations. Nevertheless, further investigation was required to determine the most
effective methods of customising FINTECH solutions to cater to the distinct requirements of
various consumer segments, particularly in rural and underserved regions. To summarise, the
literature study yielded useful insights regarding the integration of FINTECH in conventional
banking and it also identified other areas where further research is needed. The existence of
these gaps in knowledge provides potential avenues for future research aimed at enhancing
our understanding of the impact of FINTECH on the banking industry.

34
2.8. CHAPTER CONCLUSION
This chapter examined the FINTECH in Zimbabwe’s banking sector and analysed how the
implementation of FINTECH solutions and the regulatory environment affect operational
efficiency, customer satisfaction, and financial inclusivity within the sector. The chapter also
showcased FINTECH's potential to revolutionise banking processes, enhance customer
services, and promote financial inclusion and also revealed gaps specific to Zimbabwe's
economic and regulatory landscape and future research directions of current research on the
subject. This chapter laid the groundwork for further exploration of FINTECH's capacity to
transform banking operations, enhance customer experiences, and promote financial
inclusivity in Zimbabwe, contributing significantly to FINTECH research in developing
economies. The next chapter outlines the research methodology that was utilised by this study
to find answers to the research questions.

35
 CHAPTER THREE: RESEARCH METHODOLOGY

3.1. INTRODUCTION
This chapter discusses the research methods used to gather data for the study. This chapter
focuses on the following areas among others: research philosophy, research design, study
population, sample size, data collection instruments, data collection procedure, validity and
reliability, ethical considerations, data presentation and analysis.

3.2. RESEARCH PHILOSOPHY

The study adopted a positivist research philosophy. This was appropriate largely due to the
quantitative nature of the study. According to Kivunja (2017), this research philosophy was
used for this study in order to be able provide a single, tangible reality, which is ‘out there’,
and which can be broken apart into pieces. Furthermore, several researchers in the FINTECH
domain notably (Harsono & Suprapti, 2024; Sakr & Viitanen, 2023) suggested that the
analysis of the impact of FINTECH adoption behaviour in traditional requires the use of
quantitative data. Likewise, this study adopted the same approach. This chosen philosophy is
particularly suitable for this study because it allowed for the objective measurement of the
FINTECH on banking services. As such, this study employed a quantitative approach,
because it allowed for the collection of numerical data that can be statistically analysed to
draw conclusions (Junjie & Yingxin, 2022). Moreover, this approach was particularly useful
in this study as it allowed for the measurement of the extent of the impact of financial
technology on banking services. The focus of this analysis for this study was on individual
banks and the broader financial sector within Zimbabwe and it was chosen because it allowed
for a comprehensive understanding of the FINTECH on the entire banking sector. It also
allowed for the identification of any variations in the impact across different banks and this
study was based on the constructs outlined in conceptual framework adopted from the
reviewed literature.

3.3. RESEARCH DESIGN

According to Dawson (2002), research is the process of gathering, analyzing, and interpreting
data in order to provide answers to the research questions. The term research design
constitutes the blueprint for a study, delineating the methodological approach to investigate a
research problem which in this study is the framework for FINTECH adoption in
Zimbabwean banking service, and serves as the architectural framework that guides the

36
researcher in collecting, analysing, and interpreting data (Creswell, 2014). There are many
different study designs, including descriptive, exploratory, explanatory, correlational, and
more. As outlined earlier there is a general lack of knowledge in the study area as Woods
(2018) highlights that, “FINTECH adoption decision making is still an understudied
substantive area”. The research design that was adopted for this study was expository in
nature. An expository research design was chosen because it allowed for the detailed
explanation of the FINTECH in Zimbabwean banking services. This design is particularly
suitable for this study as it allowed for the comprehensive exploration of the research topic
and assisted in deepening the understanding of this subject, figuring out how or why a
specific phenomenon is occurring, and making predictions about the future.

3.4. STUDY POPULATION

According to Creswell (2013), a population is the body of people or objects under
consideration for research purposes. A target population is the entire set of objects or people
that are the focus of the research project and about which the researcher wants to determine
some characteristics (Bless et al., 2013). The population for this study constituted bank
management staff, users of the commercial bank services and regulatory authorities from the
Reserve Bank of Zimbabwe (RBZ). The inclusion criteria for a potential participant are the
ability to know detailed information about FINTECH and its adoption in Zimbabwean
commercial banks. However as with any research not all people who were selected to be part
of the research could be reached from a resource and time consideration, therefore this study
focused on delimiting the research to a minimum number of participants as outlined in the
next section.

3.5. SAMPLE SELECTION METHOD AND SIZE

Denzin and Lincoln (2018), defined the term sampling as the process of selecting a
representation of the population for the sake of saving time since it is not possible to find data
on all elements of the population. There are two sampling strategies predominantly used in
research i.e., probability and non-probability sampling techniques with the former used with
positivism studies and the later associated with interpretivism (Creswell, 2014). Probability
sampling (that includes simple random sampling, stratified random sampling, proportional
random sampling, cluster sampling, and systematic sampling), and non-probability sampling
(which includes: convenience sampling, quota sampling, and purposive sampling) are the two
predominantly used in academic research studies (Leedy & Ormrod, 2015).

37
To select the sample from the population, this study used probability sampling methods
which allowed statistical inferences about the population under study to be made since it
adopted a positivist philosophy. It is important when conducting research to collect data
about a phenomenon that helps the researcher to reach appropriate conclusions. For this to
happen, Dawson (2007) is of the opinion that the researcher’s methods must be reliable, valid
and not biased. Wright (2014) noted that a common cause of sampling bias lies in the data
collection procedure. A sampling method is biased if it favors some outcomes systematically
over others, for example, a sample is considered biased by Suter (2012) when the sample is
not a representation of the population. A sample is also biased if certain members are
underrepresented or overrepresented relative to others in the population. It is important,
therefore, for the study not to be biased in anyway, as biasness reduces the reliability of the
research and, therefore, also the usability of the outcome/results. To prevent bias in this
study, the stratified sampling method and its principles were applied in the choosing of the
study participants in this study.

This study utilised stratified sampling because it reduced the researcher bias and ensured that
all groups within the population were equally represented hence giving this study validity. In
this method of sampling, according to Mukherji and Albon (2015), the researcher decides
beforehand what variables are likely to affect the study, finds out the proportions of these
variables within the population and then chooses a sample that reflects these proportions. For
example, the same class list mentioned above is used but the candidates are first sub-divided
into males and females and then every second male and every second female are chosen so
that the sample is a correct representation of the gender distribution of the class.

This study used a sample of 100 people who are management staff and users of the
commercial banks Zimbabwe and regulatory authorities from the Reserve Bank of Zimbabwe
(RBZ). The sampling frame was the register of the tree types of participants; the regulators
(10), the managers (30, (5) from each of the ten commercial banks which took part in this
study) and the clients (60) of the commercial banks that allowed this research to be conducted
within their premises.

3.6. DATA COLLECTION

This section outlines the data collection strategy of this study, by addressing issues like the
data sources used, the research instruments and their administration. This stage is very
important because according to Bryman (2016), the entire research planning, design and

38
literature review processes converge on the data collection stage. All the hard thinking is a
preparation for the actual process of collecting primary data on the topic from the research
subjects. The following subsections outline the explicit detail of the data collection strategy
and execution in this study:

3.6.1. DATA SOURCES

Ajay (2017) describes the original data collected by the researcher as primary data, the study
also further highlighted that the already available data which is in document publications and
previous studies is termed secondary data. The key distinction is that primary data is from the
source and raw whilst secondary data has already been analysed and interpreted. This
research used both primary and secondary data. The primary data was collated from the
respondents through questionnaires that were administered to the aforementioned sample of
100 participants. This enabled the researcher to gather first hand insights about FINTECH
adoption and integration into the banking systems in Zimbabwe and allowed for the
development of a framework on the aforementioned subject. The secondary data sources
included similar previous studies from books, peer reviewed journals and reports from the
institutions such as Bankers Association of Zimbabwe (BAZ) and the Reserve Bank of
Zimbabwe (RBZ).

3.6.2. RESEARCH INSTRUMENTS

A pretested structured (closed) questionnaire was used to collect primary data from
respondents of this study. Participants were kept from straying from the topic at hand by the
closed-ended nature of the questions which also made it easier to analyse the data. The
questionnaire had two parts, Section A and Section B. There were eight demographic
questions on nominal and ordinal scales in Part A. In Part B, a discussion on how the
adoption and integration have been carried out in the traditional Zimbabwean Banks and the
replies in the section were rated on a five-point Likert Scale, with 1 indicating strongly
disagreeing, 2 indicating disagreeing, 3 indicating neutral, 4 indicating agreeing, and 5
indicating strongly agreeing.

3.6.3. QUESTIONNAIRE ADMINISTRATION

The survey was conducted across multiple demographics so as to collect as many
differentiated views as possible, from the diversified financial community demographics. The
researcher administered questionnaires to the sampled participants using a multi-media
approach. Questionnaire administration was conducted from the 1 st to the 27h June 2024. In

39
instance where the participants were available, they were given the hard copy or soft copy of
the questionnaire in form of google forms, where the participants were busy, questionnaires
were forwarded either to their WhatsApp or e-mail addresses so that they reviewed them later
when they are available.

3.7. VALIDITY& RELIABILITY

In quantitative studies, the concepts of validity and reliability play a crucial role in research.
Concepts are said to be valid if and only if they can be quantified reliably in studies (Roberta-
Heale, 2015). Ten participants were used in pilot research to test out the questionnaire and
establish construct validity. In addition, comments on the survey were solicited from other
academics with expertise in financial sciences and statistical analysis. Consultations with
these experts was constant throughout questionnaire development to guarantee the reliability
and validity of the final data gathering tool. At the same time, the reliability of the
questionnaire, which assessed the consistency of the instrument in getting the same results in
different situations was tested using a test-retest strategy and Cronbach’s Alpha using SPSS
was also applied to measure reliability. The researcher will engage a statistician for the
design of a representative questionnaire and for data analysis leading up to a framework
development. The strategies for data analysis will incorporate statistical analysis to decipher
data, detect key patterns, and derive insights. Statistical analysis is chosen because it allows
for the objective interpretation of the data (Creswell, 2014). It also allows for the
identification of trends and patterns that may not be immediately apparent.

3.8. DATA ANALYSIS

Research includes the formal and informal process of gaining, utilising and systematically
applying knowledge to an area of interest which in this case was the fintech in the
Zimbabwean banking sector. The aim of this section was to establish a link between what one
knows and what one learns about a research problem through a review of relevant literature
and gathering primary data from individuals located in the research situation using the data
collection strategies outlined in the section 3.6 above. As such data analysis aims to make
sense of the respondents ‘recorded experiences (Bless, Higson-Smith & Sithole, 2013).
Therefore, interpreting numerical or factual information is the focus of quantitative research
data analysis methods and in analyzing quantitative data, it is important to understand, at the
outset, the inherent nature of the data being collected, because this, in fact, determines the
type of analysis which is appropriate and legitimate in the context of the study and the data
collected. It includes a system for statistically evaluating and interpreting numerical

40
information (Creswell, 2007). Quantitative data refers to all data that can be reduced to
numerical values, ranging from the numerical frequency of occurrences to complex
presentation of data in terms of graphs and charts and to convey meaning within the
framework of the study, this data has to be analyzed and interpreted. This study used IBM's
Statistical Package for the Social Sciences, SPSS Version 22 and Microsoft Excel to perform
both descriptive and inferential analyses of the quantitative data to better understand how
FINTECH in the banking sector in Zimbabwe. SPSS was selected because of its abundance
of analyses that help researchers break down complicated data sets and can make other data
visualization info-grams which helps in presenting descriptive data (Folley, 2018).

3.9. ETHICAL CONSIDERATIONS

Ethical behaviour is accepted as an integral part of the research. It is, therefore, important that
researchers protect their research participants and develop a trusting relationship with them.
They also need to promote the integrity of research, guard against misconduct and cope with
new challenging problems (Creswell, 2013). These issues are important and apply to
qualitative, quantitative and mixed-methods research as well as to all the stages of research
(Creswell, 2013). Thus, research ethics should always be considered when conducting
academic studies and in accordance with this all aspects of the study were conducted
ethically. Before beginning data collection, the researcher made sure that they received the
university and the financial institution’s authorisation to conduct the study. The research did
not involve any kind of intervention or intrusion which resulted in the violation of the
respondent’s confidentiality or harm in any way. In any case, this study was conducted in
accordance with the rules and regulations in place for financial studies of this nature in
Zimbabwe as regulated by the Bankers Association of Zimbabwe. Participant identities and
survey responses were coded with numbers, and the researcher kept both sets of information
confidential in a locked cabinet, in a manner that only the researcher could access the
completed forms to ensure that no third parties accessed primary information to prevent harm
from the befalling the participants. Participants were free to withdraw from the study if they
found any aspect of it to be too burdensome. All of the data provided by the participants were
kept secret and confidential and this was stressed both verbally and in writing throughout the
data collection process.

3.10. CHAPTER CONCLUSION

This chapter on research methodology described the study techniques that were used to
satisfy the objectives stated in the first chapter. There was a discussion of the research

41
philosophy and research design used. The quantitative method was used and the research
followed a positivistic approach. The primary data collection instruments were
questionnaires. 100 respondents were selected from the management staff and users of the
commercial banks Zimbabwe and regulatory authorities from the Reserve Bank of Zimbabwe
(RBZ). The research participants were chosen using the stratified sampling technique. The
validity, reliability and ethical considerations associated with the study were explained. The
following chapter deliberates on the data analysis, presentation and interpretation of the
findings.

42
 CHAPTER 4

FINDINGS, DATA PRESENTATION AND ANALYSIS

4.1. INTRODUCTION
This chapter conducts a quantitative analysis of the relationship between financial technology
(FINTECH) and banking services in Zimbabwe. Descriptive statistics are used to illuminate
respondents' demographic profiles and contextualise quantitative findings and inferential
statistical approaches, aided by SPSS version 20, are used to identify underlying patterns and
relationships in the data. The following discussion is consistent with the study's objectives,
providing insights into the complex influence of Fintech on the banking services in
Zimbabwe. The chapter begins by outlining the questionnaire response rate, then it analyses
the reliability of the questionnaire and then outlines the demographic characteristics of the
study participants. The chapter then outlines the main findings of the study which are
anchored on descriptive and inferential statistics and discusses the findings and it ends with a
summative conclusion section.

4.2. QUESTIONNAIRE RESPONSE RATE

The researcher employed stratified random sampling which targeted 100 participants. 100
questionnaires were allotted to the respondents who were drawn from bankers, clients and
regulatory authorities. Table 4.1 below shows the response rate of participants:

Table 4.1: Questionnaire response rate

Administered Returned Response Rate (%)

100 87 87

Total 100 87 87

SOURCE: PRIMARY DATA (2024)

This study had a very high response rate, with 87 of the 100 sent questionnaires being
returned. However, even though it's rare for research to yield a 100% response rate, a number
of things worked together to make this situation work out well such as a greater participation

43
rate which might have been prompted by employing successful respondent engagement
techniques, such as providing incentives and making the study's significance evident. As
such, the strong response was also aided by the targeted targeting of participants in the
banking industry, which is a rather cooperative and accessible group. According to
Blumenberg and Barros (2018), significant data gathering can only occur when the response
rate is higher than 50%, thus the response rate for this study was much higher than this
threshold, which gave data analysis and trustworthy conclusions a solid basis.
4.3. RELIABILITY TEST
The questionnaire employed a Likert scale format to assess respondents' perceptions
regarding various aspects of FINTECH in the Zimbabwean banking sector. To evaluate the
internal consistency of the measurement scales, Cronbach's alpha reliability coefficients were
computed for each construct as outlined in the following table 4.2:

Table 4.2: Reliability Coefficients

CONSTRUCT NO. OF ITEMS ALPHA

Types of FINTECH Utilized 5 0.823
Challenges in Integrating FINTECH 4 0.812
Opportunities Provided by FINTECH 4 0.835
Leveraging FINTECH 4 0.804
OVERALL 17 0.871
SOURCE: PRIMARY DATA (2024)

The results indicate that all constructs exhibited acceptable levels of internal consistency,
with all Cronbach's alpha values exceeding the recommended threshold of 0.70. The overall
reliability of the questionnaire was also found to be excellent at 0.871, suggesting that the
measurement instrument is reliable for capturing the intended constructs. These findings
provide confidence in the data collected and support the validity of the subsequent analyses.

4.4. DEMOGRAPHICS
Section A of the administered questionnaire consisted of demographic information of the
participants who responded. The tables and figures below show the demographic variables of
the study respondents.

44
Figure 4.13.2: Gender of respondents

Gender

Female, 39, 39%

Male, 61, 61% Female

Male

SOURCE: PRIMARY DATA (2024)

Figure 4.1 illustrates that of the 83 respondents more males (62.7%) participated in the study
than females (37.3%). The statistics show that more male participants were reached and
responded that their females’ counterparts.
Table 4.3: Age of respondents

Characteristic Frequency Percentage

Age (years)
>30 0 0

31-40 27 31.7

41-50 32 38.6

>50 27 32.5

Not stated 1 1.2

Overall 87 100

SOURCE: PRIMARY DATA (2024)

Table 4.3 shows that there were more respondents between 41 and 50 age range, 38.6%. No
respondents aged less than 30 years old were reached. This shows that all individuals who
responded are more seasoned banking practitioners and customers who relatively know more
details of the FINTECH use and changes in the banking service they have witnessed over
time.

45
Figure 4.4.34.2: Race of respondents

1.2 % Race
SOURCE:
9.6 %
6% PRIMARY
Black
Caucasian
DATA

83.2 %
Asian (2024)
Other
Figure 4.2
illustrates
the racial

demographics of the respondents. The majority (83%) of participants identified as Black,

followed by a smaller proportion of Asian (9.6%) and Caucasian (6%) individuals. A very
small percentage (1.2%) indicated other racial backgrounds. These findings suggest that the
banking sector in Zimbabwe is predominantly composed of Black professionals, with a
notable presence of individuals from Asian and Caucasian ethnicities.

Table 4.4: Highest Level of Education

HIGHEST LEVEL OF EDUCATION FREQUENCY PERCENTAGE

High School 23 23%

Diploma 19 19%

Bachelor’s Degree 36 36%

Master’s Degree 15 15%

Doctorate 4 4%

Other (please specify) 3 3%

SOURCE: PRIMARY DATA (2024)

The educational attainment of participants spanned a wide spectrum, with majority (36%) of
the participants holding a bachelor’s degree. This diversity in educational backgrounds
enriches the data by incorporating varying levels of financial literacy and technological
acumen. While a sizeable number 19% possessed advanced degrees, indicating a strong
theoretical foundation, the presence of respondents with lower educational qualifications
ensures a grounded perspective on the practical implications of financial technology.

46
Figure 4.4.44.3: Years of experience

SOURCE: PRIMARY DATA (2024)

The length of banking experience acts as an indicator for awareness to the changing financial
landscape and the incorporation of financial technology (FINTECH) solutions. Figure 4.3
shows that a large percentage of banking sector respondents (62.7%) had more than two
decades of work experience. This implies the presence of experienced professionals in the
field, which may affect the acceptance and use of FINTECH solutions.

The above subsections show that the surveyed participants provided valuable context for
understanding the population's diversity and perspectives regarding the integration of
FINTECH in Zimbabwean banking services, thereby laying a foundation for understanding
the main study findings in the following section.

4.5. MAIN STUDY FINDINGS

This section provides critical insights into the FINTECH integration within Zimbabwean
banking services. The section provides the findings of this study derived from the 5-point
Likert style section the structured questionnaire used to collect data for this study. The
following subsections outlines the specific findings related to each of the research objectives
stated in chapter one of this study.

47
4.5.1. TYPES OF FINTECH USED IN ZIMBABWEAN BANKING SERVICES
This section outlines the types of FINTECH outlined by the participants to be used in the
respective banks they work for or use or regulate. The figure 4.5.14. below show the findings
of the questionnaire in detail:

Figure 5.5.14.4: Types of FINTECH used in Zimbabwean banking services

1 2 3 4 5 6
100% 89%
90%
80% 71% 75%
70%
60%
50%
FREQUENCY

40%
40% 33%
30%
18%
20%
10%
0%

NUMBER OF USERS

SOURCE: PRIMARY DATA (2024)

The findings of the study outlined in the Ffigure 4.5.14 above shows that mobile banking is
the most extensively used FINTECH in Zimbabwean banking services with 89% of the
respondents citing its usage. The next most widely used FINTECH is digital wallets (mobile
money) with 75% of the respondents agreeing that it is used in banking services they know
of; this is followed by internet banking which was cited by 71% of the respondents. Among
the least usedFINTECHin the banking services are artificial intelligence (AI) and machine
learning (ML) which was cited by 40% of the respondents, while 30% cited that banks use
other unspecified FINTECHs and the least used FINTECH is blockchain which was
identified by only 18% of the study’s respondents. The dominance of mobile banking is
unsurprising, this is attributed to the low-tech infrastructure and internet connectivity
challenges that are encountered in some parts of Zimbabwe which gives mobile banking the
ability to offer convenience to customers countrywide and wider reach compared to
traditional branch-based banking, making it a suitable solution for geographically dispersed
or underbanked populations (Maune, 2022; Makurumidze & Rwodzi, 2023). The popularity
of digital wallets, is attributed to the increasing popularity of mobile money transfer services

48
like EcoCash, OneMoney and TeleCash in Zimbabwe which leverage mobile network
connectivity to facilitate peer-to-peer and merchant transactions, further extending financial
inclusion in the country (Maune, Nyakwawa and Magara, 2022). Moreover, the relatively
lower usage of internet banking and blockchain technology reflects the impetus and extent of
the internet connectivity limitations and technology infrastructure challenges mentioned
above. The low usage of AI and ML in Zimbabwean banks is due to the nascent stage of
these technologies in the Zimbabwean banking sector. However, the study by Katsamba,
Kandiero and Chizwina (2024) shows that AI and ML are used in Chatbots in most
Zimbabwean financial institutions to enhance service delivery. This shows that fintech is
playing a crucial role in expanding financial inclusion in Zimbabwe, despite the
infrastructural and ICT constraints. However, low tech FINTECHs such as mobile banking
and digital wallets appear to be the most prevalent FINTECH solutions, catering to the needs
of the underbanked population and mitigating challenges associated with limited internet
connectivity. The next section shows that challenges affecting FINTECH adoption in
Zimbabwean banking services.

4.5.2. THE CHALLENGES THAT COMMERCIAL BANKS IN ZIMBABWE FACE

IN INTEGRATING FINTECH INTO THEIR EXISTING OPERATIONAL
FRAMEWORKS
The table below shows the level of agreement among the participants on the extent to which
they perceive various factors as challenges in integrating FINTECH into Zimbabwean
banking services:

Table 4.5.2: Challenges in Fintech Integration

CHALLENGE Strongly Disagree Neutral Agree Strongly Mean

Disagree Agree
REGULATORY 0.0% 0.0% 11.5% 54.0% 34.5% 4.23
COMPLIANCE
CYBERSECURITY 12.3% 9.2% 13.0% 48.3% 17.2% 3.5
RISKS
CUSTOMER 21.0% 5.2% 18.6% 26.4% 28.9% 3.4
ADOPTION
TECHNOLOGICAL 15.7% 17.2% 26.8% 28.7% 11.5% 3.0
INFRASTRUCTURE
OVERALL MEAN 3.53
SOURCE: PRIMARY DATA (2024)

49
The results in the Ttable 4.5.2 shows that the survey respondents highly agreed that there are
number of challenges affecting FINTECH into banking services in Zimbabwe and chief
among them was regulatory challenges (Mean=4.23), followed by cybersecurity risks (3.5),
customer adoption (3.4) and finally technology infrastructure (3). The findings show that a
substantial majority of respondents (88.5%) strongly agreed that regulatory compliance is a
primary obstacle to FINTECH integration into banking services in Zimbabwe and this
correlated to a mean score of 4.23 on the five-point Likert scale. This finding aligns with
previous research by Chitimira and Ncube (2023), which highlights that complex and often
restrictive regulatory environment is a significant barrier to FINTECH innovation and to
address this challenge, policymakers should consider regulatory sandboxes to foster
experimentation and innovation, while ensuring consumer protection and financial stability.
Moreover, cybersecurity risks were deemed by the study’s participants to be a significant
concern with a mean score of 3.5, emphasising the need for robust security measures for
effective integration of FINTECH into Zimbabwean banking services. This aligns with the
findings by Maune, Nyakwawa and Magara (2022) which calls for regulatory authorities to
implement stringent cybersecurity frameworks, foster cybersecurity awareness in people and
enterprises, and to invest in cybersecurity technologies which are crucial to building trust and
protecting sensitive financial data. Customer adoption was also perceived to be a significant
challenge and this is shown by the relatively high mean score of 3.4. This calls for
implementation of financial literacy programs, targeted marketing campaigns, and incentives
which encourage wider adoption of FINTECH services. Technological infrastructure
limitations were also identified as another key challenge, with a moderate mean score of 3)
which suggests that inadequate digital infrastructure is hindering FINTECH adoption in the
country. Investing in robust telecommunications networks, digital literacy programs, and
financial inclusion initiatives can mitigate this challenge (World Bank, 2019). The
moderately high mean score of 3.53 across all challenges indicates that the challenges
outlined poses difficulties in integrating FINTECH into the Zimbabwean banking sector and
addressing these challenges requires a multifaceted approach involving collaboration between
government, regulators, financial institutions, and technology providers.

4.5.3. THE OPPORTUNITIES AFFORDED TO ZIMBABWEAN COMMERCIAL

BANKS BY FINTECH
The table below shows the level of agreement among the respondents on the extent to which
they believe Fintech offers various opportunities for Zimbabwean commercial banks.

50
Table 4.65.3: Fintech Opportunities

OPPORTUNITY Strongly Disagree Neutral Agree Strongly Mean

Disagree Agree Score

FINANCIAL 1.0% 9.1% 18.5% 50.6% 20.8% 3.811

INCLUSION

OPERATIONAL 12.0% 5.2% 15.6% 43.4% 23.8% 3.618

EFFICIENCY

INNOVATION IN 8.0% 12.0% 30.0% 35.0% 15.0% 3.37

SERVICES

CUSTOMER 14.9% 7.5% 23.4% 32.3% 21.0% 3.343

SATISFACTION

OVERALL MEAN 3.54

SOURCE: PRIMARY DATA (2024)

The findings in the Ttable 4.5.36 above indicate that Fintech holds significant promise for the
Zimbabwean banking sector. Firstly, the respondents expressed a strong belief (mean score of
3.811) that FINTECH can enhance financial inclusion by providing alternative and accessible
financial products to the unbanked and underbanked population, echoing sentiments
expressed by Zimunhu (2023). This finding is also in agreement to the findings in section
4.5.1 which outline the popularity of mobile money and banking systems as they enhance
financial inclusion in the country. Moreover, the respondents outlined Fintech's potential to
streamline operations and boost efficiency (mean score of 3.618). This finding relates with
those of the study by Nyagadza, Muzira, and Chuchu (2023) that state that operational
efficiency is achieved through automation and technologies like RPA and AI. Many
Zimbabwean financial institutions are using this technology in form of chatbots and
automated teller machine technology to streamline their operations and make customer
connection with the bank strong and efficient. The respondents also stated that FINTECH
adoption enhances customer satisfaction through convenient and accessible services, as
indicated by the mean score of 3.343. Findings align with Maune (2022) who emphasized the
role of mobile banking and digital platforms in improving customer experience. Lastly,
Fintech's capacity to drive innovation through new products and services, particularly in areas

51
like blockchain technology, as noted by Chitimira and Torerai (2023), is undeniable. Overall,
the moderately high mean score of 3.54 across all Fintech opportunities suggests a positive
outlook on Fintech's potential to transform the Zimbabwean banking sector. Therefore, by
leveraging Fintech, banks can enhance operational efficiency, elevate customer satisfaction,
expand financial inclusion, and drive innovation.
4.5.4 HOW FINTECH CAN BE EFFECTIVELY LEVERAGED TO ENHANCE
BANKING SERVICES
The following table presents the respondents' perceptions on how Fintech can be leveraged to
enhance banking services, expand access to financial products, and promote financial
inclusion.
Table 4.75.4: Improvements which can be made to fintech adoption to improve banking service

LEVERAGING FINTECH Strongly Disagree Neutral Agree Strongly Mean

Disagree Agree Score
ENHANCING BANKING 0.0 % 2.3 % 11.5 % 50.6 35.6 % 4.20
SERVICES %
EXPANDING ACCESS TO 1.1 % 4.6 % 18.4 % 48.3 27.6 % 3.97
FINANCIAL PRODUCTS %
PROMOTING FINANCIAL 0.0 % 3.4 % 16.1 % 52.9 27.6 % 4.05
INCLUSION %
OVERALL MEAN 4.07

SOURCE: PRIMARY DATA (2024)

The findings in the tTable 4.5.46 underscore the significant potential of FINTECH in
transforming the Zimbabwean banking landscape. The respondents exhibited strong
confidence in Fintech's capacity to enhance banking services with a mean score of 4.2,
aligning with previous research and emphasising FINTECH’s role in improving efficiency,
customer experience, and service delivery according to Sarma (2016). This suggests that
Fintech is perceived as a catalyst for operational excellence and customer satisfaction in the
Zimbabwean banking industry. Concurrently, there is a growing recognition of FINTECH's
role in expanding financial access with respondents demonstrating that there is a positive
outlook (mean score of 3.97) on FINTECH's ability to reach underserved populations,
corroborating the findings of Demirguc-Kunt et al. (2015) on FINTECH's potential for
financial inclusion. This indicates a promising trajectory for bridging the financial divide in
Zimbabwe through Fintech-driven solutions. Furthermore, the study revealed a strong
consensus on fFINTECH's capability to promote financial inclusion (mean score of 4.05).

52
This underscores FINTECH's potential as a powerful tool for driving economic growth and
development by extending financial services to previously excluded segments of the
population. Overall, the data unequivocally supports the notion that FINTECH holds
immense promise for the Zimbabwean banking sector and by capitalising on FINTECH's
potential to enhance services, expand access, and foster inclusion, banks can significantly
contribute to the country's economic well-being. The next section outlines the inferential tests
which are used to make sense of the results obtained in this section 4.5 and its subsections
and to test hypotheses of the study.

4.6 INFERENTIAL STATISTICS AND HYPOTHESIS TESTING

The inferential tests section provides a comprehensive analysis of the hypotheses formulated
to evaluate the impacts of integrating FINTECH within traditional banking services in
Zimbabwe. This section employs two statistical tests Kaiser-Meyer-Olkin (KMO) and
Bartlett’s test of sphericity to assess data adequacy and determine the validity of the proposed
hypotheses related to operational efficiency, customer satisfaction, and financial inclusivity
which were outlined in chapter one of this study. The KMO test measures sampling
adequacy of the study, while Bartlett’s Test evaluates the sphericity of the correlation matrix
and both tests are critical for understanding the relationships between FINTECH integration
and various banking outcomes (Shrestha, 2021). Therefore, by examining the KMO values
and the p-values from Bartlett's tests, the study can ascertain whether the data supports the
hypotheses and contributes to the overall goals of the study. Table 4.86 below show the
outcomes of the factor analysis:

Table 4.68: Factor Analysis results

VARIABLE *KAISER-MEYER- **BARTLETT'S TEST OF DECISION

OLKIN (KMO) SPHERICITY
OPERATIONAL 0.675 0.001 Accept H1
EFFICIENCY
CUSTOMER 0.482 0.035 Reject H2
SATISFACTION
FINANCIAL 0.712 0.0009 Accept H3
INCLUSIVITY
*SIGNIFICANT AT >0.50 **SIGNIFICANT AT <0.05

SOURCE: PRIMARY DATA (2024)

53
The following subsections outlines the meaning of the results of the factor analysis conducted
in Ttable 4.86 above.

4.6.1. HYPOTHESIS 1

H1: Integrating FINTECH within banking services in Zimbabwe positively enhances

operational efficiency.
Table 4.86 above displays a KMO value of 0.675, which exceeds the acceptable threshold of
0.50, and a p-value of 0.001 from Bartlett’s Test of Sphericity, significantly below 0.05. This
suggests that the integration of FINTECH is positively correlated with enhanced operational
efficiency in Zimbabwean banks and when banks utilize FINTECH solutions, they can
streamline processes, reduce transaction times, and improve service delivery, thereby
enhancing overall efficiency. The analysis leads to the acceptance of the hypothesis that
FINTECH integration boosts operational efficiency and this finding is consistent with
research by Nyagadza et al. (2023), which highlights the vital role of the mobile FINTECH
ecosystem in improving operational functionalities in the banking sector. This finding aligns
with the one of the theoretical frameworks underpinning this study which is the TAM in that
it outlines that FINTECH adoption by Zimbabwean banks enables the streamlining of
processes and reduction of transaction times, which shows that FINTECH solutions increases
the perceived usefulness of technology, leading to greater acceptance and adoption within
banks. This also shows that banks continually adopt newer technology to build on the
technology they are already using.

4.6.2. HYPOTHESIS 2

H2: Integrating FINTECH within banking services in Zimbabwe positively enhances

customer satisfaction.
As shown in Table 4.86, the KMO value for this hypothesis was reported at 0.482, indicating
insufficient sampling adequacy, while the p-value of 0.035 from the Bartlett’s Test is
significant. However, given the low KMO value, which falls below the acceptable threshold
of 0.50, this suggests that the data may not be suitable for factor analysis. Therefore, the
hypothesis that integrating FINTECH enhances customer satisfaction is rejected. These
findings corroborate the views of Munyengeterwa (2020), who proposed that while some
digital solutions may improve customer interactions, the overall effect has not been uniformly
recognised across the customer base. While the results regarding customer satisfaction did
not yield significant findings for factor analysis, the SQT provide important insights about the

54
importance of service quality in customer satisfaction. Moreover, while the study did not
directly measure service quality, the positive perception of FINTECH's ability to enhance
banking services suggests that it may contribute to improved service quality, indirectly
influencing customer satisfaction.

4.6.3. HYPOTHESIS 3

H3: Integrating FINTECH within banking services in Zimbabwe positively enhances

financial inclusivity
Table 4.6 indicates a KMO value of 0.712, demonstrating a good fit for factor analysis, along
with a p-value of 0.0009 from Bartlett’s Test of Sphericity, which is highly significant. This
evidence supports the hypothesis that integrating FINTECH promotes financial inclusivity
among previously underserved populations. The findings suggest that various FINTECH
solutions, such as mobile banking and digital wallets, facilitate access to banking services for
a wider demographic. Based on the analysis, the tests accept the hypothesis that integrating
FINTECH enhances financial inclusivity. This is in alignment with Zimunhu (2023), which
emphasises the role of financial technology solutions in bridging the gap between financial
services and those traditionally excluded from the banking system. The positive relationship
between Fintech integration and financial inclusion supports the IDT which is another
theoretical framework underpinning this study. The IDT theory suggests that innovations
spread through a population over time, thus FINTECH solutions, such as mobile banking and
digital wallets, can be seen as innovations that are diffusing through the population,
particularly among the previously unbanked and underbanked segments.

4.7. FRAMEWORK DEVELOPMENT

The sections above outlined the findings of this study and proved the hypotheses of the study
to fulfil the first four objectives of the study which were outlined in chapter one of the study.
This section fulfils the last research objective of this study which is concerned with
developing a framework for FINTECH adoption in the Zimbabwean banking services. The
framework is designed to address the identified challenges and leverage the opportunities
presented by FINTECH, as outlined in the section 4.5 above. This framework is anchored on
four key pillars.

The first pillar, shows that a conducive regulatory environment, necessitates a balanced
approach combining regulatory sandboxes for innovation and risk-based supervision for
operational stability and this calls for collaborative efforts between the central bank (RBZ),

55
commercial banks, and FINTECH start-ups for development of effective regulations.
Infrastructure development is the second pillar, which emphasise the need for robust
telecommunications, robust cybersecurity measures, and financial literacy programs to
support FINTECH growth. The third pillar, fintech innovation and adoption, focuses on
incentivising collaboration between banks and FINTECH start-ups, thereby facilitating secure
data sharing, and prioritizing customer needs in Fintech development. The final pillar,
financial inclusion, underscores the importance of expanding agent banking networks,
promoting interoperability between mobile money platforms, and implementing targeted
financial literacy programs. To ensure the framework’s effectiveness, ongoing
implementation, monitoring, and evaluation are essential. Public-private partnerships are vital
for successful execution, and continuous adaptation to the evolving Fintech landscape is
necessary. A visual representation of the fintech framework developed from the results of this
study is shown in figure 4.7 below:

Figure 4.7: Fintech adoption framework

SOURCE: PRIMARY DATA (2024)

The FINTECH framework shown in fFigure 4.7 operates by addressing the key challenges
and leveraging opportunities within the Zimbabwean banking sector and it promotes a
56
synergistic approach, where all the components of the framework interact and reinforce each
other. For instance, a conducive regulatory environment (pillar 1) encourages FINTECH
innovation (pillar 3) and financial infrastructure development (pillar 2), which in turn drives
financial inclusion (pillar 4). Moreover, the framework's practical application spans multiple
sectors from government to the final user. Government agencies can utilise it to formulate
policies fostering FINTECH innovation and financial inclusion, financial regulators can
adopt the framework's guidelines to establish regulatory sandboxes. From this framework it is
clear that concerted investments in telecommunications and digital infrastructure by both
government and private entities are crucial. Banks and Fintech companies can also leverage
the framework to develop targeted strategies for expanding financial access. It is also clear
from the framework that collaborative efforts through public-private partnerships can address
specific challenges and seize opportunities within the Fintech ecosystem. A tangible example
of the framework in action is a partnership between the government, a commercial bank, and
a FINTECH start up to introduce a mobile-based agricultural lending product. The
government's role involves creating a regulatory sandbox for product testing, while the bank
invests in enhancing rural internet connectivity. The FINTECH start-up contributes by
developing the mobile app and integrating it with the bank's systems. The product is designed
to serve smallholder farmers, thereby promoting financial inclusion. This collaborative effort
demonstrates how the framework can be operationalized to deliver concrete benefits.

4.8. CHAPTER CONCLUSION

This chapter provided an in-depth assessment of the data obtained from the structured
questionnaire to address the study's objectives. It began with an introduction of the research
objectives, explored the questionnaire response rate and Cronbach’s reliability assessments,
which ensured data integrity. The next parts provided a thorough assessment of the
questionnaire demographic and Likert style responses, organised according to the study's
objectives. Therefore, by carefully presenting and evaluating the facts, this chapter laid the
groundwork for the forthcoming discussion of conclusions and recommendations in the next
chapter.

57
58
 CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1. INTRODUCTION
This chapter summarises the research results, evaluates how well the study's goals were met,
and highlights the study's addition to the body of current knowledge. The chapter starts by
giving a statement of objectives, then outlines the study’s conclusions and then outlines the
recommendations and suggestions for further study which are derived from the study’s
conclusions.

5.2. STATEMENT OF OBJECTIVES

This section discusses the degree to which the research objectives were realised.

OBJECTIVE 1: IDENTIFY AND CLASSIFY TYPES OF FINTECH

The study successfully identified and classified the predominant types of FINTECH utilized
in Zimbabwean banking services, including mobile banking, internet banking, digital wallets,
blockchain technology, AI and machine learning. These findings provide a foundational
understanding of the FINTECH landscape in the country. The successful identification and
classification of predominant FINTECH types in Zimbabwean banking aligns with IDT. This
initial stage corresponds to the 'knowledge' phase of the diffusion process, where potential
adopters become aware of the innovation. Thus, by identifying the existing Fintech offerings,
the study laid the groundwork for understanding the diffusion potential of these technologies
within the Zimbabwean banking sector.

OBJECTIVE 2: EVALUATE CHALLENGES OF FINTECH INTEGRATION

The research effectively identified key challenges faced by Zimbabwean commercial banks
in integrating Fintech, such as regulatory compliance, technological infrastructure,
cybersecurity risks, and customer adoption. These findings provide valuable insights for
developing strategies to overcome these hurdles and this finding aligns with the TAM's
emphasis on external factors influencing technology adoption. These challenges represent
perceived barriers that can negatively impact the attitude and behavioural intention of banks
towards Fintech adoption, such that by addressing these issues, banks can enhance their
perceived usefulness and ease of use of FINTECH, thereby increasing the likelihood of
successful integration.

59
OBJECTIVE 3: ANALYSE FINTECH OPPORTUNITIES
The study successfully analysed the opportunities afforded by Fintech for enhancing
operational efficiency, customer satisfaction, and financial inclusion. The research
demonstrated a positive correlation between Fintech adoption and these outcomes. The
identification of Fintech's potential to enhance operational efficiency, customer satisfaction,
and financial inclusion aligns with the SQT. By improving operational efficiency, FINTECH
can contribute to increased service quality, which is a core component of SQT. Similarly,
enhancing customer satisfaction through Fintech innovations directly impacts the service
quality dimension of tangibles, responsiveness, and empathy. While financial inclusion is not
explicitly addressed in SQT, it can be indirectly linked to service quality by broadening
access to financial services and improving customer experiences.

OBJECTIVE 4: LEVERAGE FINTECH FOR ENHANCED BANKING SERVICES

The research effectively examined how Fintech can be leveraged to enhance banking
services, expand access to financial products, and promote financial inclusion. The findings
highlight the potential of Fintech to drive innovation, improve customer experience, and
reach underserved populations. The findings demonstrating Fintech's potential to enhance
banking services, expand access to financial products, and promote financial inclusion align
with the concept of innovation diffusion. By highlighting Fintech's ability to drive innovation
and reach underserved populations, the study contributes to understanding the early adopter
and early majority stages of the diffusion process. The findings suggest that Fintech has the
potential to become a mainstream innovation within the Zimbabwean banking sector, leading
to widespread adoption and impact.

OBJECTIVE 5: CONSTRUCT A FINTECH FRAMEWORK

Based on the research findings, a comprehensive framework for FINTECH integration within
traditional banking services was developed. The framework addresses key challenges, such as
regulatory compliance and infrastructure limitations, while emphasizing the potential of
FINTECH to drive innovation and financial inclusion.

The above subsections show that all the research objectives of the study were successfully
achieved and the findings provide a solid foundation for understanding the FINTECH
landscape in Zimbabwe, identifying key challenges and opportunities, and developing a
strategic framework for FINTECH integration.

60
5.3. CHAPTER CONCLUSION
The study has demonstrated the significant potential of FINTECH in transforming the
Zimbabwean banking landscape. The findings underscore the positive impact of
FINTECH on operational efficiency, customer satisfaction, and financial inclusion.
Moreover, the study revealed that FINTECH can streamline processes, enhance
customer experience, and expand access to financial services, particularly for
underserved populations. However, while the study provides valuable insights into the
FINTECH landscape in Zimbabwe, it is essential to acknowledge certain limitations in
the findings such as that the cross-sectional design of the study precludes causal
inferences about the impact of FINTECH on banking performance. Additionally, the
reliance of the study on self-reported data may have introduced potential biases in the
findings. Furthermore, the study focused on a specific set of FINTECH applications,
and the findings may not be generalisable to other emerging financial technologies.

We conclude based on objectives. Please conclude for each and every objective you have

5.4. RECOMMENDATIONS
Based on the results and conclusions of the study in chapter four and section 5.2 and 5.3
above, the following recommendations were made:
 The findings of this study have important implications for policymakers, financial
institutions, and FINTECH innovators, however to fully realise the potential of
Fintech, it is imperative to create a conducive regulatory environment, invest in digital
infrastructure, and promote financial literacy.
 Furthermore, collaboration between banks and FINTECH start-ups is crucial for
developing innovative solutions that address the specific needs of the Zimbabwean
market.
 Additionally, comparative studies with other countries can provide valuable insights
into best practices for FINTECH adoption.
Thus, by addressing the identified limitations and building upon the findings of this study,
policymakers and industry stakeholders can work together to harness the power of Fintech for
the benefit of the Zimbabwean economy and its citizens.
What are the Policy Recommendations? Managerial Recommendations? General Public
Recommendations?
What is the contribution of the study to Education 5.0?

61
What is the methodological contribution of the study?
What about contributions to Research knowledge?

5.5. SUGGESTIONS FOR FURTHER RESEARCH

Given the limitations of this study outlined in section 5.3 above, several avenues for future
research emerge:

 To establish causal relationships between Fintech adoption and banking performance,

longitudinal studies are necessary.
 By tracking changes in banking metrics over time, researchers can gain deeper
insights into the impact of Fintech.
 Additionally, employing experimental or quasi-experimental designs can strengthen
causal inference.
 To mitigate the potential biases associated with self-reported data, future studies could
incorporate multiple data sources, such as transaction data or customer feedback.
 Moreover, triangulation of data from various stakeholders, including regulators,
banks, and customers, can enhance data validity.
 Finally, to broaden the understanding of Fintech's influence, future research should
explore a wider range of Fintech applications beyond those examined in this study.
 Emerging technologies such as artificial intelligence, machine learning, and
blockchain offer exciting possibilities for the banking sector and warrant further
investigation.

62
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 APPENDIX SECTION
APPENDIX A: QUESTIONNAIRE

INTRODUCTION

My name is Dube Bongani Oswald (R2210793) and I am conducting a research study titled
“A Framework of Financial Technology on the Banking Service: A Case Study of
Zimbabwe.” The purpose of this questionnaire is to gather valuable insights from bank
management staff, users of commercial banks, and regulatory authorities from the Reserve
Bank of Zimbabwe (RBZ). Your responses will help us identify and classify the types of
FINTECH used in Zimbabwean banking services, evaluate the challenges faced in integrating
FINTECH, analyze the opportunities provided by FINTECH, and examine how FINTECH
can be effectively leveraged to enhance banking services and promote financial inclusion.
Your participation is crucial in developing a comprehensive framework for the integration of
FINTECH within traditional banking services in Zimbabwe.

SECTION A: DEMOGRAPHIC DATA

1. Role in the Banking Sector:

o Bank Management Staff

o Commercial Bank User

o Regulatory Authority (RBZ)

2. Years of Experience in the Banking Sector:

o Less than 1 year

o 1-3 years

o 4-6 years

o 7-10 years

o More than 10 years

3. Age Group:

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 o 18-25

o 26-35

o 36-45

o 46-55

o 56 and above

4. Gender:

o Male

o Female

o Prefer not to say

5. Highest Level of Education:

o High School

o Diploma

o Bachelor’s Degree

o Master’s Degree

o Doctorate

o Other (please specify)

SECTION B: LIKERT SCALE QUESTIONS

Objective 1: Identify and classify the types of FINTECH used in Zimbabwean banking
services.

1. Types of FINTECH Utilized:

o Mobile Banking

o Internet Banking

o Digital Wallets

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 o Blockchain Technology

o AI and Machine Learning

o Other (please specify)

Objective 2: Evaluate the challenges that commercial banks in Zimbabwe face in

integrating FINTECH into their existing operational frameworks and the strategies
employed to overcome these challenges.

Rate the extent to which you agree with the following statements:

REGULATORY COMPLIANCE IS A MAJOR CHALLENGE IN INTEGRATING FINTECH.

Strongly Disagree Disagree Neutral Agree Strongly Agree
TECHNOLOGICAL INFRASTRUCTURE IN ZIMBABWE IS ADEQUATE FOR FINTECH
INTEGRATION.
Strongly Disagree Disagree Neutral Agree Strongly Agree
CYBERSECURITY RISKS ARE A SIGNIFICANT CONCERN FOR FINTECH INTEGRATION.
Strongly Disagree Disagree Neutral Agree Strongly Agree

Objective 3: Analyse the opportunities afforded to Zimbabwean commercial banks by

FINTECH for enhancing operational efficiency, customer satisfaction, and financial
inclusion.

Rate the extent to which you agree with the following statements:

FINTECH HAS ENHANCED OPERATIONAL EFFICIENCY IN ZIMBABWEAN BANKS.

Strongly Disagree Disagree Neutral Agree Strongly Agree
CUSTOMER SATISFACTION HAS IMPROVED DUE TO FINTECH SERVICES.
Strongly Disagree Disagree Neutral Agree Strongly Agree
FINTECH HAS SIGNIFICANTLY PROMOTED FINANCIAL INCLUSION IN ZIMBABWE.
Strongly Disagree Disagree Neutral Agree Strongly Agree

Objective 4: Examine how FINTECH can be effectively leveraged to enhance banking

services, expand access to financial products, and promote financial inclusion in
Zimbabwe.

Rate the extent to which you agree with the following statements:

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 FINTECH CAN BE EFFECTIVELY LEVERAGED TO ENHANCE BANKING SERVICES.
Strongly Disagree Disagree Neutral Agree Strongly Agree
ACCESS TO FINANCIAL PRODUCTS HAS EXPANDED DUE TO FINTECH.
Strongly Disagree Disagree Neutral Agree Strongly Agree
FINTECH PLAYS A CRUCIAL ROLE IN PROMOTING FINANCIAL INCLUSION.
Strongly Disagree Disagree Neutral Agree Strongly Agree

Conclusion

Thank you for taking the time to participate in this questionnaire. Your insights and
experiences are invaluable to our research and will contribute significantly to understanding
the impact of FINTECH on the banking sector in Zimbabwe. We appreciate your cooperation
and honesty in providing your responses. If you have any questions or need further
information, please feel free to contact me at [email protected].

Thank you once again for your participation.

Sincerely,

Dube Bongani Oswald (R2210793)

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