An evaluation of the disintermediation of Zimbabwean commercial banks by mobile money (2011 - 2013)

Mobile money is facility that allows individuals and corporates to make financial transactions using a mobile device. The advent of the mobile money transfer services has transformed the way the financial services industry conducts business, enabling organisations to develop new business models. The purpose of this research was to determine if payment processing functions have increased for mobile money at the expense of banks, determine services being offered by mobile money which are required by the bank and non-bank users, and finally examine the factors that have led to the shift in use from banks to mobile money. The main objective was to determine if Zimbabwean commercial banks were disinter mediated by mobile money use. The research used a cross sectional study design and a quantitative research approach. For data analysis, descriptive and inferential statistics together with Chi-Squared tests were used to test hypotheses and Cramer’s V was used to determine the strength of the relationship between two variables. Findings indicate that mobile money has taken some of the functions of banks such as payment processing and lending. The study recommends that commercial banks should form strategic alliances or enter into joint ventures with mobile network operators. This will provide banks with effective models to reach clients beyond their physical reach into poor and rural areas through the use of mobile devices. This will also result in banking services being offered at lower prices. Commercial banks should also focus on the products that are not provided by mobile network operators. The back office functions such as treasury and trade finance can be enhanced such that bank users get value and at the same time increasing the banks’ revenue