Analyzing Factors Influencing the Adoption of Mobile Banking Services at Natsave Bank in Lufwanyama District of Zambia

Abstract

This study investigates the factors that influence mobile banking adoption at NATSAVE Bank in Lufwanyama District, Zambia which is a rural area with only 38% internet penetration and low digital literacy. Using a mixed-methods design, the study applied logistic regression and thematic analysis to data from 117 participants. Findings reveal that although 90% of customers are registered for mobile banking, only 30% actively use the platform, signaling a significant adoption gap. Adoption was significantly influenced by trust (Odds Ratio = 4.26), cost perception (Odds Ratio = 3.32), and network reliability (Odds Ratio = 1.82). The study builds on the Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT), linking empirical findings to key theoretical constructs like perceived usefulness, ease of use, and social influence. It fills a gap in literature that often neglects rural-specific adoption barriers such as cultural resistance, infrastructural limitations, and competitive pressure from MNOs like Airtel and MTN, which dominate over 70% of Zambia's mobile money market. Novel to this study is its contextual focus on rural micro-entrepreneurs and low-income customers, paired with a robust blend of statistical and qualitative insights. By proposing actionable strategies like expanding agent networks, introducing tiered pricing, and enhancing digital literacy, this research contributes both theoretically and practically to Zambia’s financial inclusion agenda. The implications extend to policy, banking strategy, and future research on technology adoption in low-resource environments.