The impact of mobile banking on financial inclusion in Zimbabwe: A case for Masvingo province

Abstract

The purpose of this article is to examine the impact of mobile banking on financial inclusion in Zimbabwe. Financial inclusion is an urgent issue because of great numbers of 'unbanked' people in developing countries. The unemployed and low income people find themselves excluded from financial services offered by financial institutions due to access barriers. The paper adopts a qualitative research methodology and a survey design. The survey covered Masvingo district in Zimbabwe. Literature sources were also used to strengthen the field survey findings. The results revealed that the low income people are willing to adopt mobile banking and the reasons are that it is easily accessible, convenient, cheaper, easy to use and secure. Recommendations made are that there is need for the Central bank to supervise non-bank led mobile banking models and manage their cash holding limits and cost structures. The poor people have been traditionally located in the informal sector where they hardly enjoy banking services. With mobile banking, they can now enjoy the same basket of financial services through mobile banking. The mobile banking system is definitely ideal for the remote areas given that it is an easily accessible, cheaper, more convenient and faster means of sending and receiving money. Financial activity is increased in the rural areas and therefore economic growth is boosted.