The development of mobile money operators: implications for Zanaco mobile banking customers in Lusaka

Abstract

The growth of Mobile Money Operators (MMOs) as providers of financial services has affected the way bank customers conduct their transactions in Zambia. The study appraised the development of MMOs in Zambia on the population of Zanaco customers accessing mobile financial services. It addressed customer satisfaction and the factors that influence customers to opt for MMOs for conducting financial transactions even in the presence of the traditional banking sector with similar services available. The theory applied to this study is the rational choice theory. The philosophical underpinnings approaches were ontology, epistemology, phenomenology and axiology. The mixed method adopted was that with the descriptive research design. A random sample of 120 Zanaco customers picked, with some informants from Zanaco, MTN, Airtel and Zamtel selected purposively. Data collection used questionnaires with the Zanaco retail customers and structured interviews with the informants. Data was analysed using descriptive statistics and regression with p-value 0.05. To analyse customer satisfaction, a SERVQUAL analysis model was used. The Study found that customers’ overall expectations were higher than the actual experience (perceptions) with both the MMOs and Zanaco. It was evident that there were aspects when the Banks provided a better service as in terms of customer service, professionalism and infrastructure. The theory of rationality was a valid measure for determining an individual’s preferences among available alternatives, the aggregate of customer choice between the Bank and the MMO were based on their individual needs and financial transacting objectives. As long as the financial services offered provided benefits, the customers adopted them. The study recommends for Zanaco and the financial institutions regulators to develop strategies that would contain the competition from the MMOs and provide products for customer satisfaction. In close, customers used either MMOs or the Bank out of choice and as such, variables used in the study had very little or no influence on customers opting for MMOs’ services. Keywords: Bank, Financial Institution, Financial Services, Mobile banking, Mobile Financial Services, Mobile Money Operators, Mass customer