ASSESSING THE IMPACT OF MOBILE MONEY ON

ASSESSING THE IMPACT OF MOBILE MONEY ON THE PERFORMANCE OF RETAIL BANKING IN ZAMBIA
BY
CATHERINE MUWEMA
()
A Research Report Submitted in Partial Fulfilment of the Requirements for the Masters in Business Administration of Mulungushi University
Mulungushi University
November 2018
DECLARATION AND COPYRIGHTI Catherine Muwema with NRC Number ………………declare that although I may have conferred with others in preparing this research proposal and drawn upon a range of sources cited in it, it is exclusively my own original work and has not and will not be presented to any other university for a similar or any other degree award.

CERTIFICATIONThe undersigned hereby certify that they (he/she) have read and recommend the Research Report to be accepted by Mulungushi University in (partial) fulfillment of the requirements for the award of the degree of Mulungushi University.

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Date:………………………………………………………………………………………..ABSTRACTKey Terms: Mobile Network Operators, Mobile Money, and Retail Banking
Mobile money has emerged as a strong competition to financial institutions especially commercial banks in Zambia. According the draft National Financial Inclusion Strategy document released by the Bank of Zambia, as at 31 March 2018, Zambia had about 6 million mobile money registered accounts compared to about 3 million registered bank accounts. There are 3.9 million transactions on a monthly basis and this surpasses surpassed the number of traditional bank accounts in Zambia with 2.6 million transactions from commercial banks (World Bank, 2018). In this regard mobile phone service providers have taken mobile money services deeper into the financial sector by offering a range of financial services through their networks. The Zambia Information Communication Technology Authority (ZICTA)) have allowed service providers to offer mobile money services as there appears to be no reprieve as competition in the financial sector as business is still heating up. Thus this study aims at exploring the impact of mobile money on the performance of commercial bank’s retail banking and Kabwe district will be the study area. The study will apply descriptive research design. The target population will be 8 commercial banks operating in Kabwe district, 21 customers who are account holder from the banks and 30 users of mobile money from Airtel, MTN and Zamtel in Kabwe district respectively. Data will be collected through the use of interview guide, journal article and relevant financial institutions publications. Data will be analyzed through the use of Statistical Package for Social Sciences (SPSS) and Excel
TABLE OF CONTENTS
TOC o “1-3” h z u CERTIFICATION PAGEREF _Toc527217348 h 2DECLARATION AND COPYRIGHT PAGEREF _Toc527217349 h 3ABSTRACT PAGEREF _Toc527217350 h 4LIST OF FIGURE PAGEREF _Toc527217351 h 6LIST OF TABLES PAGEREF _Toc527217352 h 6ACRONYMS AND ABBREVIATIONS PAGEREF _Toc527217353 h 6CHAPTER ONE PAGEREF _Toc527217354 h 61.1 Introduction PAGEREF _Toc527217355 h 61.2 Background PAGEREF _Toc527217356 h 61.3 Problem Statement PAGEREF _Toc527217357 h 91.4 Aim PAGEREF _Toc527217358 h 91.5 Research Questions PAGEREF _Toc527217359 h 101.6 Significance of Research PAGEREF _Toc527217360 h 101.7 Theoretical Framework PAGEREF _Toc527217361 h 101.7.1 Innovation diffusion theory PAGEREF _Toc527217362 h 101.7.1 Transaction Costs Theory PAGEREF _Toc527217363 h 112.0Literature review PAGEREF _Toc527217364 h 122.1Review of Banking PAGEREF _Toc527217365 h 122.2 Overview of Banking in Zambia PAGEREF _Toc527217366 h 122.3 Mobile Money PAGEREF _Toc527217367 h 132.4 Mobile money in Zambia PAGEREF _Toc527217368 h 13CHAPTER THREE PAGEREF _Toc527217369 h 153.1Description and location of study area PAGEREF _Toc527217370 h 153.2Research Design PAGEREF _Toc527217371 h 163.3 Population and sample PAGEREF _Toc527217372 h 163.4 Data collection PAGEREF _Toc527217373 h 173.5 Data analysis PAGEREF _Toc527217374 h 173.6 Limitation Of The Study PAGEREF _Toc527217375 h 173.8 Ethical Considerations PAGEREF _Toc527217376 h 17References PAGEREF _Toc527217377 h 18LIST OF APPENDICES PAGEREF _Toc527217378 h 18Appendix i.Work plan PAGEREF _Toc527217379 h 18Appendix ii. Budget PAGEREF _Toc527217380 h 19Appendix iii. Interview guide for Bank Managers/employees PAGEREF _Toc527217381 h 19Appendix iv. Interview Guide for Mobile Money Users PAGEREF _Toc527217382 h 21Appendix v. Interview Guide for Bank Account Holders PAGEREF _Toc527217383 h 22
LIST OF FIGURE TOC h z c “Figure” Figure 1; Location of Study Area PAGEREF _Toc527217574 h 16
ACRONYMS AND ABBREVIATIONSBoZBank of Zambia
GRZGovernment of the Republic Of Zambia
MNOMobile Network Operator
MTNMobile Telecommunication Network
ZICTAZambia Information Communication and Technology Authority
ZamtelZambia Telecommunications
CHAPTER ONEINTRODUCTIONMobile money payment systems have spread rapidly around the world in the last decade. Given developing countries are powered by informal economies that traditionally have had limited access to information technologies, mobile payment system infrastructure has the potential to transform the way people manage their finances. Commercial banks have been facing stiff competition as majority of the unbankable/bankable population and small enterprises have resorted to use mobile money, thus affecting retail banking in the long run. Thus this research aims to find the impact of mobile money on the performance of commercial bank’s retail banking interms of clientele, transactions, profitability and other challenges faced. The research will use Kabwe district as study area.
1.2 BackgroundResearch by the Harvard Business Review between 2014-17, found out that current generation is busier than preceding generations. This generation is said to be less patient and more inclined towards quicker or faster solutions to whatever service they need. When it comes to choosing a bank or branch in which to transact, the average client’s main priority usually comes down to “which bank is quicker and faster to transact” (Havard, Business Review, 2018). It is from this generation that financial institutions have come up with business models to ensure faster and efficient delivery of services, like the introduction of mobile money and mobile banking.
A number of banks in Zambia have not changed in accordance to current needs of society. For example, Chiti (2018) found out that an average customers spends 30 minutes on the queue to make a cash or cheque deposit or withdraw on the counter. Even though banks have introduced alternative solutions such as Automated Teller Machines (ATM), a few have introduced direct deposit service at ATM. A few of our Zambian banks have introduced direct deposit service ATMs in urban areas and at major shopping malls leaving out the rural areas.

The Bank of Zambia noted that in 2016, 3 major banks which are Barclays, Standard Chattered and First National Bank launched mobile banking applications which allow their clients to have 24 hour access to cashless money transfer services. In total 12 out of our 19 commercial banks have fully functional mobile banking applications. (BoZ and CSO, 2017). Kajube (2018) and Chiti (2018) carried out a research on the efficiency of mobile banking. The results indicated there mobile applications where inconsistence and causes account reconciliation problem such as miss-posted transactions, miss-matching transaction reference details, erroneous debits/credits, duplicate bank charges and bouncing back of transfers.
Long queues, scams, spending quite some time in the bank, system down and other bad precedence has forced some people to ‘swear’ that they will never do any transaction with banks. A survey on Access and Usage of ICT in Zambia was conducted in 2015 by the Zambia Information and Communications Technology Authority (ZICTA) in collaboration with the Central Statistical Office (CSO) and the Ministry of Transport and Communications. The findings revealed that 86% of Zambians did not have bank accounts. This means that only a minor population of 14 percent are the one with bank accounts and this is not conducive both for the government and banks to determine the flow of money.
Challenges faced by clients in the banking sectors lead to the emerging and changing of Zambia’s money transaction business, when mobile service providers joined the financial sector. It is against this background that mobile service and telecommunication companies joined the competitive mobile money market. Their target was mainly adults with limited or no access to formal financial services. They created a simple but highly efficient business model which only requires a customer’s national Identification card when registering, a mobile number and a security pin which a person has to keep in secret. Within a few minutes, the transaction is done and the beneficiary can collect their money from any both. The one withdrawing the money pays a small commission which ranges from K2.5 to K50 or more, depending on the amount of money being sent. (MTN 2018, Aitrel 2018, World bank, 2018 and Chiti, 2018)
In 2002 Celpay, a subsidiary of Celtel was the first to offer mobile banking services. The company was later acquired by Zain and became its subsidiary. In 2010 Zain was subsequently bought by Bharti Airtel which finally rebranded to “Airtel” as we know it today which offers airtel mobile oney. MTN Zambia also launched mobile money services, with Zamtel only joining the bandwagon in 2017, launching a service dubbed “Zamtel Kwacha.” Next in line was the Zambia Postal Services Corporation (Zampost) which developed a new payment system called Swift cash. The newly developed payment system targeted clients in unbanked remote parts of the country and endavoured to help reduce the risk of moving large sums of money. (Chiti, 2018, and Fredrick 2017)
Zambia was amongst the first countries in Africa to launch digital financial services in 2002 through Celpay, a spinoff company from the then Celtel. The company was later acquired by Zain and became its subsidiary. In 2010 Zain was subsequently bought by Bharti Airtel which finally rebranded to “Airtel” as we know it today which offers Airtel mobile money. MTN Zambia also launched mobile money services, with Zamtel only joining the bandwagon in 2017, launching a service dubbed “Zamtel Kwacha.”
The promise of mobile money is particularly high in a low population density country with a large unbanked rural population like Zambia with about 84 percent not having bank accounts (World Bank, 2018 and Chiti, 2018). The drive to get the majority of Zambians join the formal financial sector has also been affected by a skewed regulatory regime that has limited or no provision for community banking, with entry barriers that are pegged at levels which local entrepreneurs cannot afford. This leaves the financial services in Zambia to be largely dominated by mobile service and telecom providers holding over 80% cash transfers.

ZICTA (2018) survey also revealed a significant increase in the number of mobile phone subscribers from 2.6 million in 2007 to 10.9 million in 2015 and 12.1 million in 2017 due to increased investment in the sub-sector by mobile service providers. With 12.1 million potential clients now having mobile phones and access to the internet, the mobile money industry will grow. According Research ICT Africa, (2017) not all of them are literate enough to easily navigate a complex mobile banking app from banks, not all of them are willing to spend time filling forms and attaching the numerous mandatory Bank compliance documents. Some of them just want to urgently send money to a parent, child, relative, friend, worker, and supplier and so on.

1.3 Problem StatementInitially Mobile Network Operators (Airtel, MTN and Zamtel) were developed to improve communication from the earlier primitive forms of communications such as voice and short message service, and internet. When the banks failed to capture clientele for low density and low income households, MNO came up with a convenient way of cash transfers through the mobile money services. Mobile money only requires a phone password to make cash transfers. The Mobile money has emerged as a strong competition to financial institutions especially commercial banks in Zambia. According the National Financial Inclusion Strategy (NFIS, 2018) document released by the Bank of Zambia, as at 31 March 2018, Zambia had about 6 million mobile money registered accounts compared to about 3 million registered bank accounts. There are 3.9million transactions on a monthly basis and this surpasses surpassed the number of traditional bank accounts in Zambia with 2.6 million transactions from commercial banks (World Bank, 2018).
In this regard MNO providers have taken mobile money services deeper into the financial sector by offering a range of financial services through their networks. The Zambia Information Communication Technology Authority (ZICTA)) have allowed service providers to offer mobile money services as there appears to be no reprieve as competition in the mobile money business is still heating up with the new entry of Zamtel through the “Zamtel Kwacha” mobile money. Thus, this research aims to find out the impact of mobile money on clientele, and profitability of retail banking in Zambia. On the other hand, there has been little or no research of mobile money on performance of commercial banks interms of clientele, transaction and profitability.

1.4 AimThe aims of this research to assess the impact of Mobiles Network Operators providers’ mobile money on the performance of retail banking in Zambia.

Objectives
To assess the impact of mobile Network Operator’s mobile money on retail banking in Zambia;
To establish the extent of to which banks have been making profit from retail banking and;
To find out the commercial banks business response strategies in light of the rise in mobile money transactions.

1.5 Research QuestionsWhat is the impact of mobile money on retail banking in commercial banks?
Have the banks been making profit from retail banking?
What are some of the business response the banks have come up with in the advent of mobile money services?
1.6 Significance of ResearchThe findings of this study will provide useful information to different stakeholders.

The study will enable managers of retail commercial banks to understand the impact of mobile money from mobile service and telecommunication providers on clientele, transactions and profitability. It will also influence competition amongst financial institutions hence the need to commit resources for research and development to help improve on its financial performance. The study will also highlight issues of flexibility, confidentially, efficiencies and access of financial servers to the customers.

The study will provide useful information to the government and policy agencies like the Bank of Zambia on matters of policy formulation, taxation and regulation of the mobile money services provided by mobile service and telecommunication providers. The information from this research will also be helpful to the academics and researchers who are interested on further research on the mobile money and their effects on the financial sector as a reference material and in providing guidance on areas that require further research.

1.7 Theoretical Framework1.7.1 Innovation diffusion theory
Mahajan and Peterson (1985) defined an innovation as any idea, object or practice that is perceived as new by members of the social system and defined the diffusion of innovation as the process by which the innovation is communicated through certain channels over time among members of social systems. Diffusion of innovation theory attempts to explain and describe the mechanisms of how new inventions in this case mobile money is adopted and becomes successful Clarke (1995). Sevcik (2004) stated that not all innovations are adopted even if they are good it may take a long time for an innovation to be adopted. He further stated that resistance to change may be a hindrance to diffusion of innovation although it might not stop the innovation it will slow it down.
Rogers (1995) identified five critical attributes that greatly influence the rate of adoption. These include relative advantage, compatibility, complexity, triability and observability. According to Rogers, the rate of adoption of new innovations will depend on how an organization perceives its relative advantage, compatibility, triability, observability and complexity. If an people in Zambia observes the benefits of mobile money they will adopt this innovation given other factors such as the availability of the required tools. Adoption of such innovation will be faster with individuals with cellular phones than those without. A mobile phone is a very user friendly device hence potential customers may feel that mobile money system is far less complex to use therefore are more likely to use the services. Some scholars argue that perceived complexity of using a mobile phone has a negative impact on the attitude towards adopting or continuing to use mobile money.

1.7.1 Transaction Costs Theory
The transaction theory explains why banks exist and why they expand to the external environment. Commercial banks world over try to reduce the costs of exchanging their services to the external environment and also within the company. The point to note is that, when external transaction costs are higher than the company’s internal costs, then the company is expected to grow and make profit since it will be able to carry out its operations more cheaply (Coarse, 1977). This means that, transaction costs rise every time a product or service is being transferred from one end to another. Most efforts to increase financial access have focused on reducing transaction costs by introducing low fee accounts, extending the geographical reach of banks via agency banking and integrating banking services with mobile money products. Low-cost banking can bring a considerable number of customers who formerly could be served only at a very high cost (Datta, Pasa, & Schnitker, 2001). According to Mallat 14 (2007), a transaction cost has a direct effect on consumer adoption if the cost is passed on to customers. Although the transaction costs of sending money through the mobile money technology are lower than those of banks and money transfer companies, still more people are adopting mobile banking especially due to its convenience which is a clear indicator that banks will continue to generate more profits from mobile banking services. Customer usage of mobile banking is influenced not only by absolute prices but by the way a service is priced (Rosenberg, 2010). Therefore banks can compete on such service costs. For instance, some banks offer free deposit service which make branchless banking an affordable way to save while in others charge a customer small fee in form of airtime or service charge when performing bank transaction. Thus, depending on how much cost the customers incur determines whether they are willing to pay thereby affecting adoption of mobile banking. It is still not clear that lowering transaction costs will always be beneficial with regard to the banks performance.

Definition of Term
Mobile Banking- refers to provision and ailment of banking and financial services through the help of mobile telecommunication devices.

Mobile Money- Mobile money is commonly defined as an electronic wallet, which is a transactional account linked to a mobile phone number, typically offered by a telecommunication provider.

Retail Banking-Banks having direct interactions with their individual customers and providing help to them with monitoring their accounts while depositing and withdrawing money
CHAPTER TWO
LITERATURE REVIEWThis chapter review literature on mobile money and retail banking in Zambia, sub region and global trends in the area under study.

2.1Review of BankingBanking in general is divided in two forms, which are retail and investment banking. Retai banking involves banks having direct interactions with their individual customers and providing help to them with monitoring their accounts while depositing and withdrawing money. The other one is investment banking which involves banks working with large corporations and businesses with the aim of helping them generate more capital and increase markets. However, research by the Economist (2012) has proved that retail banking was and remains to be the main force driving profitability. Acker and Mbiti, (2010) observed that that retail banking is responsible for generating annual revenue for more than half of the banks worldwide, while Investment banking was more popular for investment managers as they seem to be paid more.
2.2 Overview of Banking in ZambiaAccording to BoZ (2018), there are 16 commercital banks and the following are registerd and licensed banks ; Access Bank Zambia Limited; Atlas Mara Bank Zambia Limited; Bank of China Zambia Limited; Barclays Bank of Zambia; Cavmont Bank Limited; Citibank Zambia Limited; Ecobank Zambia Limited; First Alliance Bank Zambia Limited; First Capital Bank Zambia Limited; First National Bank of Zambia Limited; Indo-Zambia Bank Limited; Investrust Bank Zambia Limited; Stanbic Bank Zambia Limited; Standard Chartered Bank Zambia Plc.; United Bank for Africa Zambia Limited and ; Zambia National Commercial Bank Plc. (Zanaco).

Financial institutions including those in zambia worldwide have the idea that low income earners are bad for business bringing about dilemmas on whether to make this group of people to be customers or not. This in turn has left most poor people in Zambia with no bank accounts and hashindered possibilities for them to save money, as revealed by CSO/ BOZ (2017) that 84 percent of Zambian do not have bank accounts. The low of account holding is attributed to the fact that most saving of families are inform of goods and material possessions like land, livestock, crops among others (Acker and Mbiti, (2010. The other reasons could be, it is expensive to open a bank account plus high charges in monthly account, maintenance, that’s why most people have chosen not to be banking.
2.3 Mobile MoneyIn today’s society, mobile cellular phones are taking over traditional banking and has allowed people from different backgrounds to social networking, shopping and carrying out financial transactions. The Economist (2012) noted that Not only are people able to carry out their financially related activities through mobile money transfers, but also the feature has played an important role in helping to develop digital finance and banking as a whole. Mobile money is prevalent developing countries like Zambia where there is uneven distribution of banks, poor infrastructure and with little or no internet connection or access. In contrast to theformal banking system, this mobile money services requires little operational knowledgeand has less strict rules even illiterates can manage to operate and make transactions. For example, in formal banking full details of a customer are required and sometime physical presence, but with mobile money little information about the customer is required (Chiti, 2018).

There are over 200 live mobile money deployments around the world today in 84 countries. Over half of these live deployments are currently in Sub-Saharan Africa. The number of active mobile money accounts globally, which is growing quickly has reached 61 million as of June 2013, with 42.4 million alone in Sub-Saharan Africa. In 44 countries there are now more mobile money outlets than bank branches. Mobile money agents globally number 886,000 of which 464,000 are active (June 2013), which means they are reliably funded. Additional trends in mobile money distribution indicate substantive number of users accessing ATMs for cash-in/cash-out.
2.4 Mobile money in ZambiaThere are three mobile money services available today: Aitel’s Airtel Money, launched in2016, MTN in 2012 and Zamtel launched in 2017. All of these products are managed by an Mobile Network Operators (as opposed to a bank) and all require a customer to register for a mobile wallet, or stored value account. The primary use of mobile money in Zambia is the ability to send and receive money to and from friends and family, referred to as P2P (person to person) transfers. At the same time, as mobile money has matured, a variety of additional services have been applied to the product. Service offerings can be broken down into five general categories, all of which are currently being offered by at least one of the four primary mobile money service providers: Airtime Top-Up, P2P, Bulk Payments (B2P), Bill Payment (P2B), Mobile Banking, and International Money Transfers. Currently
In late 2016 most of the banks introduced no deposit fees when opening a bank account and reduce bank charges. The scrapping off of bank deposit on account opening let many people to maintain open a bank account and increased savings (BoZ, 2018). I2 2002, GRZ came up with financial regulative policies which allowed MNOs to penetrate in the financial sector. That gave birth to the rise in mobile money transfers and this has brought about stiff competition between retail banking and the mobile money operators.

2.5 Mobile money vs. Banking in the Sub-Region
Safaricom’s money transfer and money saving services have proven to be a great success inKenya and its neighboring countries. The use of the M-pesa system has experienced radicalgrowth since its introduction. The reason for this is because of its efficiency to reach a widerpopulation of users and also promoting financial literacy to the young and old alike (Mwangi &Njuguna 2009). Kenya has over 40 banks and 1500 SACCOS, MFIs, insurance companies and the Nairobi stock exchange. All these offer different financial services to the adult population in the country and are all follow regulations set by the government of Kenya. The Central bank of Kenya (CBK) and Financial Sector Deepening identified that only 22.6% of the adult populations haveaccess to financial services. (Nzioka & Palakurthi 2010, 20-25)
Mobile money service providers in Tanzania have developed an impressive network of cash-in, cash-out points (agents) nationwide. A recent census of cash outlets in Tanzania conducted by the Financial Sector Deepening Trust, found nearly 17,000 unique M-Pesa mobile moneyagents throughout the country. Though the census only mapped the M-Pesa mobile moneyproduct, most agents serve multiple mobile money services, this is likely very close to the total number of mobile money agent locations. The rapid growth of mobile phone subscriptions, as compared to the relatively slow growth of commercial bank accounts over the same time period, is a clear indicator of the ability of mobile money to extend financial services to new groups of people in Tanzania
2.6 Mobile Money in international trends
In Europe, the growth of mobile based money transfers has experienced little or no growth atall (The Economist 2012). On the other hand in Brazil and India, telecommunicationcompanies and banks have promoted financial aptitude among individuals in the remote areasto reach a wider population (Nzioka & Palakurthi 2010)
CHAPTER THREEMATERIALS AND METHODS
3.1Description and location of study areaThe study will be conducted in Kabwe district of central province. Kabwe District is a district of Zambia, located in Central Province. As of the 2010 Zambian Census, the district had a population of 195,979 people. The district has seven Commercial Banks Barclays bank PLC, Zambia National Commercial Bank (ZANACO), First National Bank (FNB), Atlas Mara, Stanbic Bank, Invest Trust PLC, and National Savings (NATSAVE). There other financial institutions like Madison Finance, Unity Finance, and Bayport Financial Services among others. The district is endowed with all government departments, industries, mining firms, and farmers making it a hub for financial investments.

Figure SEQ Figure * ARABIC 1; Location of Study Area Source: CSO/BOZ, 2018
3.2Research DesignThe research design to be used will be a descriptive research design since it is concerned with the what, where and how of a phenomenon hence more placed to build a profile on that phenomenon. This design method will be designed to provide further insight into the research problem by describing variables of interest and the relationship between variables and therefore conclude on the impact of mobile banking on performance of commercial banks. It will also help to map out circumstances, situations or events to describe what business response strategies the commercial banks have come up with.

3.3 Population and sampleThe population of interest in this study will consist of 8 commercial banks operating in Kabwe district. The commercial banks are Barclays bank PLC, Zambia National Commercial Bank (ZANACO), First National Bank (FNB), Atlas Mara, Stanbic Bank, Invest Trust PLC, and National Savings (NATSAVE). The managers, employees and customers will be targeted as the key respondents. There was a need to sample the population because not all the population elements use mobile money.

Therefore convenient sampling will be uses for 3 clients from each of the 7 banks operating in Kabwe bringing it to 21 respondents. Again 10 clients from each mobile money service provider will be conviniently chosen in this cases from Airtel money, MTN Money and Zamtel Kwacha bringing it to 30 respondents. The triangulation method was used so as to have in-depth information on the phenomenon.

3.4 Data collectionData collection will involve both primary and secondary source
Primary Source will be derived from books, journal articles, financial publication, government documents and mobile money operator’s sites.

Secondary source will be collectec through personal interviews with bank managers or employees, and through interview guide with bank clients and mobile money users
3.5 Data analysisDescriptive statistics will be used to analyse data. Once data is collected it has to be edited to verify to the completeness of data, coded in order to assign numbers or symbols to the various answers for effective categorization/classification, entered in order to convert the information gathered to a medium for viewing and manipulation. Excel and statistical package for social sciences SSPS will be used and finally displayed data through the use of frequency tables and charts.
3.6 Limitation Of The StudyThe study has a number of limitations among the notable ones are; ethical considerations, time factor that has been necessitated due to the researcher’s busy schedule at the place of work, family challenges and financial constraints
3.8 Ethical ConsiderationsThe research topic under the study is mainly based on a number of ethical considerations since it involves personal preferences and choice of financial services. Therefore, strict measures of respecting people’s opinions and views will be considered. Both individual and institutional rules and regulations will be adhered to accordingly.

ReferencesAcker, J. ; Mbiti, I., (2010), ‘Mobile phones and economic development in Africa’ PDF document http://sites.tufts.edu/jennyaker/files/2010/09/aker_mobileafrica.pdf. (Downloaded on 9th October 2018).

Chiti Mwatula (2018). Time is Money: The mobile money revolution in Zambia. Lusaka times.

Laura I. Frederick (2017), Impact of Mobile Money Usage on Microenterprise Evidence from Zambia. University of San Francisco,
Kajubi Michael, (2018). Analysis of the Effects of Mobile Banking On the Activities of Commercial Banks; Kyambogo University.

National Financial Inclusion Strategy Zambia (2018)
Osterwalder, A. ; Pigneur, Y., (2010). Business Model Generation. John Wiley ; Sons.

The Economist, (2012), ‘International Banking: Retail renaissance’ Volume 403 Number 8785,23.

Research ICT Africa, (2017). Household and Small Business Survey. Confidential Report (commissioned by Intelecon).

World Bank (2018). Mobile at the Base of the Pyramid: Zambia. Washington, DC: World Bank. License: Creative Commons Attribution.

World Bank, (2018). Global Financial Development Database (GFDD). Available at http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTGLOBALFINREPORT/0,,contentMDK:23492070~pagePK:64168182~piPK:64168060~theSitePK:8816097,00.html
Zambian Information Communication Technology Authority, (2018). Available at http://www.zicta.zm.

LIST OF APPENDICESAppendix i.Work planActivity Dec- Jan Feb March April
Proposal X Data collection X X Data analysis X Submission of first draft
X Submission of final report X
Appendix ii. Budget
ITEM QUANTITIY UNIT AMOUNT(K) AMOUNT(K)
Stationery 150 150 150
Sound recorder 1 450 450
Food 6 50 300
Stipend for research assitantas3 700 2100
Printing and binding of report 3 500 1500
Miscellaneous 1 1500 1500
Total K6000
Appendix iii. Interview guide for Bank Managers/employeesI am CATHERINE MUWEMA a student with Mulungushi University under the School of Business. I’m based in Kabwe Town. This interview guide is administered to solicit your responses on the impact of mobile money on the performance of commercial banks. This is solely for academic purposes and all information obtained will remain as such.

Name of Bank……………………………………. Date Of Interview…………………
Position of Respondents………………………………………………
What has the impact of mobile money service providers in on retail banking
Tick were appropriate
SN IMPACT Low medium high
clientele cash/cheques transactions dormant account Mobile banking Savings Account opening Others specify Others specify………………………………………………………………………………
2.How has been the performance of the bank interms of the following as compared to the previous years.
S/N SERVICES Tick were appropriate
High Medium low
1 Deposit cash 2 Inter bank transfers 3 Withdraw cash 4 Pay bills 5 Purchase commodity 6 How have profits been from retail banking ben for the past 4 years
SN YEAR Tick were appropriate Give figures if possible
high moderate low 1 2017 2 2016 3 2015 4 2014 What are the banks business response strategy to the rise of mobile money service?
SN Response SrategyTick were appropriate
Yes No
1 Mobile banking 2 Zero fees in opening account 3 Scraped off minimum account balance 4 Money transfers service from account to mobile money 5 Bank agents/kiosks 6 promotions 7 Opening new branches in new areas (rural) 8 9 Appendix iv. Interview Guide for Mobile Money UsersI am CATHERINE MUWEMA a student with Mulungushi University under the School of Business. I’m based in Kabwe Town. This interview guide is administered to solicit your responses on the impact of mobile money on the performance of commercial banks. This is solely for academic purposes and all information obtained will remain as such.

Date of interview…………………………………………. QN……
Mobile money Networ Airtel, MTN and Zamtel
1When did you start using Mobile money?
Tick were appropriately
1 Below 1 year 2 1 to 2 years 3 Above 3 years 2.Do you prefer using Mobile money than the bank or other banking servicesto do your banking?
Yes 2. No
Give reasons for your answer………………………………………………………………………….

3.What type of tasks do you do with the money in your Mobile money account?
SN Tasks Tick were appropriate
Person to person transfer Bill payment Saving Airtime top-up International money transfers Mobile banking Others specify 5.Do you plan to continue using the mobile money services in thenear future?
1. Yes 2. No
Appendix v. Interview Guide for Bank Account HoldersInterview guide for bank account holders
I am CATHERINE MUWEMA a student with Mulungushi University under the School of Business. I’m based in Kabwe Town. This interview guide is administered to solicit your responses on the impact of mobile money on the performance of commercial banks. This is solely for academic purposes and all information obtained will remain as such.

Date of interview…………………………………………. QN……
Bank where account is held…………………………
1When did you start being a client of the bank mentioned above?
Tick were appropriately
1 Below 1 year 2 1 to 2 years 3 Above 3 years 2.Do you prefer using banks for banking services other than mobile money
Yes 2. No
3.Give reasons for your answer………………………………………………………………………….

4.Do you plan ti continue using banking services in the near feature (other than for salaries or cheque clearance)

x

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