Exploring the Challenges of Customer Adoption of Digital Banking Solutions at Natsave Bank in Lusaka

Abstract

The banking industry is undergoing a digital transformation, integrating online and mobile banking to enhance customer service delivery. While digital banking offers numerous advantages, like 24/7 availability and reduced costs, its adoption in Zambia is low compared to the bank targets, with many customers preferring traditional teller services. Hence, this study explored the specific challenges faced by Natsave Bank customers in adopting digital banking solution in Lusaka. The study employed a concurrent mixed-methods approach, combining qualitative and quantitative techniques to gather data and insights. The study was conducted at three Natsave Bank branches located in Lusaka. The study population consisted of bank management personnel and customers of Natsave Bank. A total of 96 customers selected using convenience sampling participated in the quantitative study, while ten customers and two bank management personnel participated in the qualitative study. The results reveal that a majority of participants (72.9%) currently use digital banking services offered by Natsave Bank. Slow internet connection was identified as the primary barrier to digital banking adoption (42.5%), followed by security concerns (25.5%). However, experiences with technical issues were common, with 24.2% encountering them frequently and 49.5% sometimes. Participants prioritised faster transaction processing (60.6%) and enhanced security features (40.4%) as key areas for improvement. Qualitative results revealed that the primary difficulties include insufficient support for customers navigating digital platforms, a lack of self-service options, poor network, and the need for substantial customer education. The study highlights that poor internet connection, security concerns, and technical issues remain major impediments to adoption and active usage of digital, highlighting the need to address these challenges to improve adoption.