MWALE, Chikumbutso2026-05-132026https://research.unilus.ac.zm/handle/123456789/632Master of Business Administration General - ThesisThe purpose of this study was to assess the impact of alternative banking channels (ABCs) on financial performance of Commercial Banks in Zambia which includes Internet banking, mobile banking, agency Banking and automated teller machines (ATMs), focusing on Stanbic Bank, First National Bank Zambia, and Zanaco from 2021 to 2023. The findings of the study confirmed that alternative banking channels exert a statistically significant and positive influence on the financial performance of commercial banks in Zambia. This suggests that the ongoing digital transformation in Zambia’s banking sector is generating measurable financial benefits, and that banks that invest in diverse and integrated alternative banking channels stand to achieve superior financial performance. Anchored on financial intermediation theory and agency theory, the research adopted a quantitative approach with a correlational research and causal-comparative design. Secondary data was sourced from various sources such as Bank of Zambia publications and banks’ annual reports. These were analyzed using panel regression, descriptive statistics and correlation matrix techniques through MS Excel and SPSS. The findings of the study revealed a statistically significant positive relationship between financial performance and Alternative Banking Channel adoption. Mobile banking showed stronger marginal effect (coefficient = 0.041, p = 0.000), followed by the aggregate Alternative Banking Channel index (coefficient = 0.468, p = 0.000). Agency banking, ATMs and internet banking also positively contributed to Banks net profits. However, cybersecurity risks, infrastructural deficits, and limited financial literacy constrain Alternative Banking Channels effectiveness. The study recommends enhanced financial literacy initiatives and more investments in digital infrastructure to maximize the benefits of Alternative Banking Channels and contribute to policy formulation and academic discourse in Zambia’s banking sector.enThesis