The FinTech Evolution and Its Effect on Traditional Banking in Africa—A Case of Zambia - Open Journal of Business and Management

OJBM > Vol.9 No.2, March 2021

Open Journal of Business and Management

Volume 9, Issue 2 (March 2021)

ISSN Print: 2329-3284 ISSN Online: 2329-3292

Google-based Impact Factor: 2.35 Citations

The FinTech Evolution and Its Effect on Traditional Banking in Africa—A Case of Zambia ()

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Download as PDF (Size: 372KB) PP. 838-850

DOI: 10.4236/ojbm.2021.92043 3,992 Downloads 10,173 Views Citations

Author(s)

Edward Iluba¹, Jackson Phiri²

Affiliation(s)

¹Graduate School of Business, The University of Zambia, Lusaka, Zambia.
²Department of Computer Science, School of Natural Sciences, The University of Zambia, Lusaka, Zambia.

ABSTRACT

The popularization of FinTechs has sparked new competition for banks as FinTechs are said to be more convenient, efficient and faster unlike bureaucratic requirements of financial institutions such as banks. The aim of this study was to assess the factors leading to adoption of FinTech financial services and how this affects traditional banking in Zambia. The objectives of the study were to evaluate factors influencing the adoption of FinTech financial services and to develop strategies that can help banks to remain relevant and competitive. The study adopted a quantitative research approach to collect data through self-administered questionnaires. The sample size was arrived at using the Cochran formula. The respondents were selected based on a convenient sampling technique which is a non-probability sampling method. The study adopted the diffusion of innovation theory whose variables were used to come up with hypotheses. The data collected through the questionnaires was analyzed using Pearson Correlation and the SPSS software. Results indicated a strong positive correlation of 0.450 between relative advantage and adoption. Further, the study shows that there is a strong positive correlation of 0.621 between Compatibility and Adoption. The study proposes a revised model that shows factors affecting adoption of an innovation that might help banks.

KEYWORDS

Financial Technology, Adoption, Diffusion of Innovation, Mobile Money

Share and Cite:

Iluba, E. and Phiri, J. (2021) The FinTech Evolution and Its Effect on Traditional Banking in Africa—A Case of Zambia. Open Journal of Business and Management, 9, 838-850. doi: 10.4236/ojbm.2021.92043.

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