Online Banking Services in Zimbabwe

¶ … Online Banking Services in Zimbabwe

In this age of rapid technological development, more and more economic agents strive to include it applications within their products and services in order to increase both customer satisfaction, as well as organizational efficiency, both which lead to increased financial results. One such application is internet banking, which offers a wide series of advantages to both banking institution, as well as customers. On the one hand, customers are no longer forced to stand in line, but can honor their payments from the comfort of their own desks, without consideration to geographic or temporal hurdles. On the other hand, banks register reduced operational costs and reduced levels of work.

Despite its attractiveness in highly developed economies, internet banking remains a relatively unpopular service within emergent economies. One such example is Zimbabwe. Academicians Dube Thulani, Chitura Tofara and Runyowa Langton, all scholars at universities in the South African country, have edited a study on the Adoption and Use of Internet Banking in Zimbabwe. Throughout the study's 13 pages, the authors evaluate the evolution of electronic systems and innovations within the Zimbabwean financial sector. They continue their effort by looking at the studies already produced by other researchers in order to set a theoretical framework for the study conducted. They offer the definition, characteristics and benefits of internet banking, followed by the presentation of the methodology used in the analysis and formulation of the conclusions. The statistical means by which the results are generated is also briefly discussed.

After the analysis is completed, Thulani, Tofara and Langton come to the realization that there are six types of inhibitors to internet banking in Zimbabwe. These challenges are succinctly revealed below:

internet banking requires newer and technologically superior systems infrastructure, which does not exist in all Zimbabwean banks, meaning that there exists a gap in compatibility

the costs of implementation are increased the banking managers and prospective customers fear the lack of adequate security the parties involved lack the proper computer and internet expertise the Zimbabwean legislation does not offer a proper context for online banking services due to the previously mentioned aspects, as well as other personal ones, customers' acceptance of internet banking remains low (Thulani, Tofara and Langton)