Digitalisation of Financial Services and its Impact on the Relationship between Microfinance Institutions and their Clients in Zimbabwe

Title: Digitalisation of Financial Services and its Impact on the Relationship between Microfinance Institutions and their Clients in Zimbabwe
Creator: Mutanda Bronson; Mthombeni Admire; Maireva Chrispen
Abstract: This article presents the impact of financial service digitalisation on the relationship between microfinance institutions and their customers. The study reveals challenges currently faced from digitalisation of financial services and clients‘ readiness for a full digitalisation of financial services. The rate of technological advancement in the context of the Fourth Industrial Revolution(4IR) left microfinance institutions without an option but to embrace digital financial technology to allowtheir clients to enjoy financial services without visiting banking halls. The impact of financial services digitisation on the relationship between microfinance institutions and their clients remains a topic of controversy that has been inconclusive in the scholarly discourse. To contribute to this ongoing debate, this research adopted a mixed method approach in which a sample of 110 microfinance clients were selected through convenience sampling for responding to questionnaires, while 10 loan officers and10 microfinance clients were chosen through convenience sampling for responding to interview questions. Findings of the study reveal that some clients are not yet ready for full digitalization, but, rather ,for a blended approach where traditional banking runsin tandem with digital financial services. The study also establishes that digitalisation of financial services positively affects he relationship between microfinance institutions and their clients, However, microfinance institutions need to use theblended approach. The study recommends microfinance managers to allow the existence of traditional banking and digital financial technology side by side. Financial education is also the need of the hour if majority of microfinance clients are to adopt digital financial services.
Keywords: customer relationship, productivity, digital technology, economic integration
Date: 2024
Source: Lighthouse: The Zimbabwe Ezekiel Guti University Journal of Law, Economics and Public Policy
volume: 3
issue: 1&2,
issn: ISSN 3007-2182

Item sets: Research Publications - Department of Applied Business Sciences

Site pages: Research Papers – Department of Applied Business Sciences

Media: Digitalisation of Financial Services and its Impact on the Relationship between Microfinance Institutions and their Clients in Zimbabwe