A review of strategies banks have adopted to gain market share of the unbanked community dominated by mobile network operators: a case of Zanaco bank.

Abstract

The study sought to review strategies banks have adopted to gain market share of the unbanked community dominated by mobile network operators: a case of Zanaco bank. The theoretical framework was based on the Ansoff Matrix. The study was based on Zanaco marketing managers and top management. 103 questionnaires were distributed however only 52 questionnaires were retrieved. Thus the response rate for the study was 50.50%. Qualitative data was collected from respondents using a structured questionnaire; the questionnaire was generated based on Ansoff Matrix’s theoretical framework. The study identified a number of strategies that Zanaco has implemented in order to counteract the effects of mobile money services operated by mobile network operators. These include increasing mobile banking transaction services; strategic alliances with mobile network operators; downsizing; Zanaco mobile agents and Zee wallet. The study revealed that strategic alliances with mobile network operators and increase of mobile banking transactions as the most effective strategies to counteract any effects that mobile money transfers have brought about. The study recommended that Zanaco must build stronger partnerships with mobile network operators as the two cannot exist without the other. The study further recommended that Zanaco must increase its transactions of direct transfer from bank account to mobile network account and vice versa; considering the increase in sellers who are now able to receive payments via mobile money transfer services and also to retain their existing clients.