Enhancing the Adoption of Digital Banking in Rural Communities in Zimbabwe
Abstract
Objectives: The study aims to determine the level of adoption of digital banking services in rural areas in Zimbabwe and develop a framework to encourage the adoption of digital banking services. Prior work: Despite efforts by banks and governments to improve the adoption of digital banking services, customer adoption remains low. Approach: The research was conducted in five villages in the Mashonaland East Province using 380 smallholder farmers. Data were analysed and quantitatively collected using correlational methods, inferential statistics, descriptive statistics, and hypothesis tests. Results: Research findings confirm low awareness and adoption of digital banking services in rural areas. Adoption of digital banking by rural smallholder farmers is influenced by the ease of use, trust, internet connectivity, cost, and incentives provided to encourage adoption. Implications: The study recommends a framework that enhances the adoption of digital financial services. There is a need to improve internet connectivity, increase awareness and education, reduce transaction costs and provide tailor-made services to suit rural communities. Value: The study uses a unique study population, rural smallholder farmers, identified as a relevant population cohort for the achievement of financial inclusivity in Zimbabwe. Results address SDG of poverty alleviation, and address Zimbabwe’s NDS 1 and Vision 2030.
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