The Impact of the Adoption of FINTECH by Commercial Banks in Lusaka CBD for Profit & Provision of Quality Services

Abstract

The Global financial crisis of 2008 set the stage for the expansion of financial technology, an innovation that uses technological systems to enhance efficiency and effectiveness in financial transactions and operations. The emergence of fintech posed a threat to the market share of traditional banks, through its ability to reach and serve vast numbers of people spread out in different geographical locations including the unbanked. This awakened the need for collaboration of fintech and traditional banks. The limited knowledge pertaining to the impact of the integration of fintech led to the investigation of its impact on commercial banks in the Lusaka Central Business District for profit and provision of quality financial services. This study was guided by the following specific aims; firstly, to find out what the impact of the adoption of fintech by commercial banks in Lusaka central business district has been, to analyse how the adoption of fintech by commercial banks in Lusaka central business district influences the provision of quality financial services, to find out the role that fintech plays in commercial banks’ provision of quality financial services, and to investigate how the adoption of fintech by commercial banks has led to profit for commercial banks. Using the mixed methods approach, this study utilized the concurrent design to collect data using a self-administered questionnaire as well as a structured interview guide. Furthermore, non-probability sampling was used, particularly, the purposive and convenience sampling to narrow down our sample after which the quantitative data collected was input into SPSS and qualitative data was analyzed thematically. Subsequently, the conclusion was that there indeed has been adoption of fintech by commercial banks. It was established that fintech has been a contributor to banks profit and provision of quality financial services. Although fintech has not been the sole contributor to profits and provision of quality financial services, it has been a catalyst to ensuring the attainment of profit. The future of banking hinges heavily on innovation and customer centricity among other factors, therefore, the onus is for banks to determine the direction of these innovations to maintain their place as market leaders