FACULTY OF BUSINESS SCIENCES

DEPARTMENT OF BANKING AND FINANCE

RESEARCH TITLE: IMPACT OF FINTECH IN THE TRANSFORMING THE

BANKING INDUSTRY

NAME GOITSEMODIMO MLILO

LEVEL 4:2

REG NUMBER R213282R

SUPERVISOR MISS MUZIRA

i
APPROVAL FORM

The undersigned certify that they have supervised the student Goitsemodimo Mlilo on the dissertation “The impact
of financial technonology in banking industry” submitted in partial fullfilment of the requirements of the Bachelor
of Commerce Banking and Finance Honors Degree at Midlands State University.

..................................................... ......................................................
SUPERVISOR DATE

.................................................... .......................................................

CHAIRPERSON DATE

..................................................... .......................................................

EXTERNALEXAMINER DATE

ii
RELEASE FORM

NAME OF STUDENT GOITSEMODIMO MLILO

DISSERTATION TITLE THE IMPACT OF FINTECH IN TRANSFOTMING THE

BANKING INDUSTRY

YEAR THIS DEGREE GRANTED 2024

Permission is hereby granted to the Midlands State University library to produce single copies of this
dissertation or to lend or sell such copies for Private, scholarly or research purposes only. The author does
not reserve other publication rights and neither the dissertation nor may extensive extracts from it be
printed or otherwise reproduced without the author’s written permission.

SIGNED --------------------------------------------------

PERMANENT ADRESS 14522 COWDREY PARK BULAWAYO

DATE December 2024

iii
DEDICATION

This dissertation in dedicated to Mlilo family whose support have been the linchpin of my academic
journey.Their presence in my life has been a true blessing to my success

iv
ACKNOWLEDGEMENTS

I am grateful to the Almighty who, through His unconditional grace and love, made it possible forme to
complete the project. Special thanks to my supervisor, Munashe Muzira, whose patience, encouragement,
criticism and constant guidance saw me through. To all my lecturers who impartedknowledge to me during
my studies, I express my sincere gratitude.

v
ABSTRACT

The banking sector is undergoing a significant transformation with the advent of Fintech. While fintech
offers numerous opportunities for improvement, its adoption also poses significant challenges. This study
assesses current fintech applications in Zimbabwe’s banking sector, explores the opportunities and
challenges of fintech adoption and proposes strategies for overcoming the challenges. The study employs
a mixed research methodology .This reveals that fintech is currently being used in fraud detection, credit
scoring and customer service. The opportunities of fintech include enhanced customer experience,
improved efficiency and increased accuracy. However, challenges include job losses, data privacy issues
as well as ethical concerns. The study goes on to propose strategies for overcoming the challenges such as
upskilling personnel and training of employees. Lastly, the findings of this study contribute to the
understanding of fintech incorporation in the banking sector and provide insights for policymakers,
regulators and industrystakeholders

Keywords-Artificial Intelligence, Banking sector, Opportunities, challenges, Digital Divide, financial technology
and Zimbabwe

vi
LIST OF CONTENTS

Contents
APPROVAL FORM ............................................................................................................................................... ii
RELEASE FORM ................................................................................................................................................. iii
DEDICATION ....................................................................................................................................................... iv
ACKNOWLEDGEMENTS ................................................................................................................................... v
ABSTRACT ........................................................................................................................................................... vi
LIST OF CONTENTS........................................................................................................................................... iv
LIST OF FIGURES ............................................................................................................................................... iv
LIST OF TABLES ................................................................................................................................................ vii
LIST OF FIGURES ............................................................................................................................................... xi
LIST OF APPENDICES ...................................................................................................................................... xii
LIST OF ACRONONYMS .................................................................................................................................. xii
CHAPTER 1 ............................................................................................................................................................... 1

iv
 1.0 Introduction ...................................................................................................................................................... 1
1.1 Background of the study .................................................................................................................................. 1
1.2 Problem Statement: .......................................................................................................................................... 3
1.3 Objectives of the study ..................................................................................................................................... 3
1.4 Research questions ........................................................................................................................................... 4
1.5 Significance of the Study .................................................................................................................................. 4
1.6 Delimitations of the study ................................................................................................................................ 5
1.7 Assumptions of the study ................................................................................................................................. 5
1.8 Limitations of the study ................................................................................................................................... 6
1.9. Definition of terms ........................................................................................................................................... 6
Financial technology ........................................................................................................................................... 6
Artificial intelligence ........................................................................................................................................... 7
Banks and banking sector .................................................................................................................................. 7
Digitalization ....................................................................................................................................................... 9
1.10 Organization of the study............................................................................................................................... 9
CHAPTER 2 LITERATURE .................................................................................................................................. 10
2.1 Introduction .................................................................................................................................................... 10
2.1.2 Current Fintech applications in the banking sector ................................................................................. 10
2.1.3 Current applications of Fintech in Zimbabwe .......................................................................................... 16
2.1.4 Opportunities impacted by the impact of fintech in banking industry .................................................. 18
2.1.5 Challenges impacted by fintech in the banking industry......................................................................... 21
2.1.6 Ways of overcoming impacts of fintech in the banking industry ............................................................ 26
2.2 Theoretical literature ....................................................................................................................................... 28
2.3 Empirical literature review............................................................................................................................ 29
2.3.1 Research gap ................................................................................................................................................ 31
2.4 Conclusion ....................................................................................................................................................... 32
CHAPTER 3 RESEARCH METHODOLOGY .................................................................................................... 34

vii
 3.1 introduction ..................................................................................................................................................... 34
3.2 research design ................................................................................................................................................ 34
3.3 research population ........................................................................................................................................ 34
3.4 research sample............................................................................................................................................... 34
3.5 data collection methods and instruments ..................................................................................................... 36
3.6 data validity and reliability ............................................................................................................................ 36
3.7 data presentation and analysis plan .............................................................................................................. 37
3.8 Ethical considerations .................................................................................................................................... 37
3.9 Summary ......................................................................................................................................................... 39
CHAPTER 4 ............................................................................................................................................................. 39
4.1 Introduction .................................................................................................................................................... 39
4.2 Response rate and demographics .................................................................................................................. 40
4.1.0 Interviews response rate.............................................................................................................................. 40
4.1.1 Questionnaire response rate ....................................................................................................................... 40
4.1.2-Demographics .............................................................................................................................................. 41
4.1.2.1-Age of respondents ................................................................................................................................... 41
4.1.2.2-Gender ....................................................................................................................................................... 42
4.1.2.3-Geographic location ................................................................................................................................. 43
4.2 Current fintech applications in Zimbabwe ................................................................................................... 43
4.2.1 opportunities presented by fintech in the banking sector ........................................................................ 45
4.2.2 challenges associated with adopting fintech in the banking sector.......................................................... 46
4.2.3 strategies for overcoming these challenges ................................................................................................ 47
4.3 Challenges........................................................................................................................................................ 49
CHAPTER 5 SUMMARY CONCLUSIONS AND RECOMMENDATIONS ................................................... 50

viii
5.1 Introduction .................................................................................................................................................... 50
5.2 Summary of the findings ................................................................................................................................ 51
5.3 Conclusion ....................................................................................................................................................... 52
Objective 1 Assess the fintech applications in the banking sector in Zimbabwe. ........................................... 52
Objective 2 To identify the opportunities presented by fintech In the banking sector .................................. 52
Objective 3 To establish challenges associated with adopting fintech in the banking sector. ....................... 53
Objective 4 To recommend strategies for overcoming these challenges. ........................................................ 54
5.4 Recommendations ........................................................................................................................................... 55
5. 5 Suggestions ..................................................................................................................................................... 56
1.To learn about the quality of services in Fintech ............................................................................................ 56
2.To learn the attractive Fintech products ......................................................................................................... 57
3.To enable speed of services, convenience and simplicity in Fintech services ............................................... 57
references ............................................................................................................................................................... 57
APPENDICIES ..................................................................................................................................................... 66
2.1 APPENDIX A QUESTIONNAIRE............................................................................................................... 66
2.2 APPENDIX B INTERVIEW ........................................................................................................................ 75
APPENDIX C DATA COLLECTION FORM .................................................................................................. 77

ix
LIST OF FIGURES

Fig 2.1 –fintech applications

Fig 4.1-Questionnaire response rate

x
LIST OF TABLES

Table 2.1-Literature review

Table 4.1-Interview response rate

Table 4.1.2-Demographics

Table 4.1.2.1-Age of respondents

Table 4.1.2.2-Gender of respondents

Table 4.1.2.3-Geographic location of respondents

Table 4.2-Current fintech applications

Table 4.3-Opporrunities presented by fintech

Table 4.4.Challanges associated with fintech

Table 4.5-Strategies for overcoming fintech challenges

xi
xii
xi
LIST OF APPENDICES
APPENDIX A QUESTIONNAIRE
APPENDIX B INTERVIEW
APPENDIX C REASEARCH PAPER

xii
LIST OF ACRONONYMS

xiii
xiv
CHAPTER 1

1.0 Introduction
The advent of fintech has revolutionized numerous sectors, and one industry that has witnessed a significant impact
is banking. Traditional banking systems have often struggled to keep pace with rapidly evolving customer
expectations, technological advancements, and the need for financial inclusion. However, the rise of fintech has
disrupted this stagnant landscape, offering innovative solutions that have transformed the way financial services are
accessed and delivered.

1.1 Background of the study

Due to opportunities for creative, tech-driven solutions brought about by a decline in confidence in traditional
financial institutions, the global financial crisis of 2008 acted as a catalyst for the fintech industry's explosive rise.
Digital currencies first appeared in the early post-crisis period, with e-gold acting as a forerunner in the creation of
Bitcoin. Even though e-Gold, which gave users the ability to open accounts with gram-denominated gold and
facilitate instantaneous transactions, was eventually shut down due to legal issues, it set the stage for other digital
currencies.
An important turning point in the development of digital currencies and decentralized finance was the creation of
Bitcoin in 2008 by an unknown developer going by the moniker Satoshi Nakamoto. Bitcoin's creative application of
blockchain technology spurred a surge in cryptocurrency creation, creating new opportunities for decentralized,
transparent, and safe financial systems.
New payment processing businesses joined the market as the fintech sector developed further, providing developer-
friendly APIs that significantly streamlined the integration of online payments. These businesses were instrumental
in facilitating the rise of new fintech firms and spurring innovation in the industry by reducing the entry barriers for
online financial services and e-commerce.
The partner banking concept, which first appeared in the early 2000s, became quite popular after the financial crisis.
This strategy developed into increasingly extensive collaborations between traditional banks and fintech firms, going
beyond its original "rent-a-charter" idea. Through these partnerships, fin-techs were able to quickly innovate and
enter new markets by utilizing the infrastructure and regulatory compliance of well-established banks while also
contributing their own technological know-how and customer-focused strategies. This made it possible for digital-
first financial services to proliferate and further accelerated the fintech industry's expansion. The development of this

1
model opened the door for the emergence of neobanks, which redefined client expectations in the banking industry
by providing totally digital experiences and challenging established banking assumptions.
The emergence of mobile-first financial solutions was fueled by the growing use of smartphones. Small companies
were able to take credit card payments using cellphones because to Square's 2009 development of a mobile card
reader, which democratized access to payment processing and demonstrated the revolutionary potential of mobile
technology in the financial services sector.
The introduction of Google Wallet in 2011 and Apple Pay in 2014 further popularized mobile payments and
illustrated the rising demand from consumers for easy, safe, and intuitive payment methods, marking the next step
in the development of mobile payment systems.
Peer-to-peer, or P2P, payment programs also became more popular at this time. These platforms allowed for rapid
and simple transactions between users, revolutionizing the way people move money. P2P payment applications
greatly decreased the friction in personal financial transactions by enabling quick, direct payments via mobile devices.
This made it easier for consumers to send money to friends and family, divide bills, and share expenses.
The worldwide COVID-19 pandemic, which started in early 2020, had a significant effect on the fintech sector by
speeding up the use of digital financial services and emphasizing how crucial technology is to maintaining the
accessibility and resilience of financial institutions. Fintech solutions saw a spike in demand as lockdowns and social
distancing tactics made organizations and customers rely more on digital platforms.
Fintech apps that were mobile-first had unheard-of growth at this time. In the early months of the epidemic, millions
of newly financed accounts were added to several trading platforms, which reported notable increases in the number
of new user accounts. A significant move towards digital financial services was also seen in the significant user
growth of payment and money transfer applications, with some platforms more than tripling their monthly active
users over a three-year period.
The 2020 events also made clear how inadequate traditional financial institutions are at serving the demands of
businesses and people during emergencies. Fintech businesses were better equipped to handle the difficulties
presented by the quickly evolving environment because of their flexible and technologically advanced business
models. They provided cutting-edge solutions for digital lending, contactless payments, and remote banking.
Due to a thriving stock market and cheap borrowing rates, venture capital values for fintech startups skyrocketed
during this time. Significant capital inflows characterized the flow of fintech investments, which raised values and
increased the frequency of exits through IPOs and special purpose acquisition companies. Record-breaking values
for a number of well-known fintech startups highlight the industry's expansion and investor confidence.

2
The transition to digital financial services at this time also sped up the use of cryptocurrencies and blockchain
technologies. Interest in decentralized finance and non-fungible tokens increased as central banks worldwide
investigated the prospect of issuing digital currencies, creating new opportunities for innovation in the fintech
industry.

1.2 Problem Statement:

The traditional banking industry has long been followed by inefficiencies and outdated practices, leading to slow
processes, high costs, and limited access to financial services for certain segments of the population. However, with
the rise of financial technology (fintech), the banking industry is undergoing a significant transformation. It is crucial
to understand and analyze the impact of fintech on the banking industry to assess the potential benefits and challenges
it presents. Fintech refers to the integration of technology and financial services to provide faster, more efficient, and
cost-effective solutions. It encompasses various areas, including mobile banking, online payments, peer-to-peer
lending, robo-advisors, blockchain technology, and digital currencies. These technologies have empowered
consumers, reduced barriers to entry, and encouraged competition within the banking industry. This dissertation aims
to explore the impact of fintech on the banking industry, focusing on how it has transformed traditional banking
practices, improved financial inclusion, and addressed the existing challenges. By analyzing the advancements and
disruptions caused by fintech, we can gain valuable insights into the opportunities and challenges that lie ahead for
banks in the digital era. Through this examination, we seek to understand the key drivers behind the rise of fintech,
the benefits it brings to consumers and businesses, and the potential risks and regulatory considerations associated
with its implementation.

1.3 Objectives of the study

To assess the challenges and opportunities caused by using fintech to transform the banking sector.
Sub research Objectives
⚫ Assess the fintech applications in banking sector in Zimbabwe.
⚫ To identify the opportunities presented by fintech in the banking sector.
⚫ To establish challenges associated with adopting fintech in the banking sector.
⚫ To recommend strategies for overcoming these challenges.

3
1.4 Research questions
• How does the impact of Fintech transform the banking industry?

• What are the key areas of the banking industry that have been disrupted by Fintech?

• How does Fintech contribute to lower costs and greater efficiency in the banking sector?

• What are the challenges faced by traditional banks due to the rise of Fintech?

• How does Fintech enhance convenience and accessibility in banking services?

• How does the adoption of Fintech affect the use of loan allocation in banking?

1.5 Significance of the Study

This study looks at how Fintech is changing the banking industry, which is important for banks, financial institutions,
policymakers, and consumers.
Changing Banking Models: Fintech is challenging traditional banks by offering new online services like digital banks
and neobanks, which can threaten established banks.
Increasing Financial Access: Fintech can help provide financial services to people who don't +have access to
traditional banking. This study explores how Fintech can improve financial inclusion.
Boosting Efficiency and Customer Experience: Fintech makes banking more efficient and affordable, enhancing
customer experiences through technology like AI and data analytics.
Finding Opportunities and Challenges: The study identifies both the benefits and difficulties that come with Fintech's
rise, helping banks create better products while competing with user-friendly startups.
Policy and Regulation Needs: As Fintech grows, regulators must create rules to protect consumers and ensure
financial stability. This study offers insights into how policies can be shaped around Fintech
Banks: they benefit from this research since it provides better ways of understanding and managing risks associated
with emerging technologies such as cybersecurity, regulatory compliance, and data privacy. This can enable banks
to make more informed decisions and implement robust risk management practices.

4
Customers: they benefit since they aware of the changes that fintech have brought to the banks and how they are
affected. Most of the changes affect them in a positive way especially based on mobile banking there is no need to
go to the bank therefore reduces amount of time wasted when going to the bank.

1.6 Delimitations of the study

The study on how Fintech affects the banking industry is complex. To narrow it down, we will set specific focus
areas:
Focus on certain Fintech technologies: The study will analyze the effects of specific technologies, such as blockchain,
AI, mobile payments, or robo-advisors, on banking.
Geographical scope: The study will focus on a Zimbabwe to see how Fintech is changing banking there, highlighting
unique challenges and opportunities.
Impact on specific banking functions: The study will examine how Fintech influences areas like customer experience,
risk management, lending, or payment systems for a more detailed analysis.
Comparison between traditional banks and Fintech startups: The study will compare how traditional banks and
Fintech startups adapt to technology and compete in the market.
Regulatory and policy implications: The study will investigate how regulations are responding to the challenges and
opportunities from Fintech in banking.

1.7 Assumptions of the study

The study assumes that advancements in fintech have greatly changed traditional banking. Key points include:
Rapid Growth: The fintech sector has proliferated in the last decade due to technology, changing customer needs,
and support from investors and regulators.
Market Value: By July 2023, publicly traded fin-techs were worth $550 billion, and there were over 272 fintech
unicorns valued at a total of $936 billion.
Funding Trends: Although fintech growth slowed in 2022, funding and deal activity remained strong, despite fewer
IPOs and new unicorns.
Future Growth: Fintech revenues are expected to grow nearly three times faster than traditional banking from 2022
to 2028, driven by digital adoption and demand in developing countries.
Banking Restructuring: The banking industry is changing, with banks and nonbanks competing to meet different
customer needs in areas like everyday banking and investment advice.

5
Digital Trust: About 73% of bank interactions are now digital, and consumers trust fin-techs as much as traditional
banks, especially in developing markets.

1.8 Limitations of the study

Studying how Fintech affects the banking industry is important, but there are some limitations to consider:
Limited data availability: There isn't enough reliable data because Fintech is new and changes quickly.
Lack of long-term studies: It's hard to conduct studies that track changes over time due to the industry's fast pace.
Difficulty in isolating Fintech's impact: Many factors influence banking, making it tough to pinpoint Fintech's
specific effects.
Sample bias: Research often focuses on certain regions or types of banks, which may not represent the whole industry.
Ethical and privacy concerns: Using customer data raises ethical issues that researchers must address carefully.
Rapidly evolving landscape: New technologies and models appear quickly, making it hard for studies to stay current.
Limited research on long-term effects: While short-term impacts are studied, there’s less understanding of long-term
risks and consequences of Fintech in the banking industry

1.9. Definition of terms

Financial technology
Financial technology, or fintech, has emerged as a transformative power within the financial services business. Based
on this study, fin tech refers to a range of innovative technologies meant to streamline, automate, and eventually
improve the delivery and use of financial services (Kagan 2024). This includes specialized software and technological
solutions that have revolutionized how we deal with financial goods and processes.
The word "fintech" initially appeared in the early 21st century, mainly referring to the technology applied within the
backroom systems of established financial institutions like banks (Daley, 2024). However, its scope has widened
greatly. Fintech's core goal is to make financial services more efficient, faster, and more safe. Driven by things like
the sharing economy, supportive laws, and improvements in information technology (Lee and Shin, 2018), fintech
has become a critical innovation engine within the financial environment, experiencing fast evolution. Fintech goes
beyond simply enhancing current systems. It offers entirely new business models that question standard banking
structures. Crowdfunding, peer-to-peer (P2P) lending, and business-to-business (B2B) deals are just a few examples
of these new models, driven by disruptive technologies that redefine how financial services are provided (Mehdiabadi,
2020). The fintech business includes a vast array of solutions, including:
⚫ Payment Processing Solutions: Streamlining and simplifying how we make and receive funds.
6
⚫ Mobile financial Apps: Providing easy and ubiquitous access to financial services through smartphones.
⚫ Retail Banking: Transforming standard brick-and-mortar banking experiences.
⚫ Financial Education: Making financial knowledge more available to a bigger audience.
⚫ Investment Management: Offering new tools and systems for handling investments.
⚫ Fundraising and Crowdfunding: Enabling new paths for raising cash.
⚫ Cryptocurrency and Block chain Technology: Exploring the possibilities of independent financial systems.

The effect of fintech is obvious even in Zimbabwe. Banks have actively worked with fintech companies to offer
digitalized banking services (Gono, 2012). These services harness technology that connects seamlessly to local and
foreign debit and credit card networks. Mobile money, for instance, has gained broad acceptance, giving faster,
cheaper, and easier access to banking services. In fact, over 70% of retail payments in Zimbabwe are now performed
through digital platforms, showing the amazing success of fintech in this nation (cite a relevant source on mobile
money usage in Zimbabwe). This is a proof to the transformative power of fintech in closing the financial inclusion
gap and changing how Zimbabweans access and utilize financial services.

Artificial intelligence
Artificial Intelligence (AI) is a broad field of computer science that aims to build machines that can do jobs that
normally require human intelligence., with advancements in machine learning and deep learning driving a paradigm
shift across industries (Glover, 2024). AI allows machines to equal or surpass human capabilities, as intelligent
systems meant to assist humans in their fundamental operations (Nwachukwu, 2018). Moreover, AI, also referred to
as machine intelligence, simulates human intelligence in machines, displaying intellect that contrasts with natural
human knowledge (Kaur et al., 2020). Based on this study According to artificial intelligence (AI) is described as
the replication of human intelligence through software-coded heuristics (Scott 2023), which has proliferated across
a variety of platforms, including consumer apps, embedded firmware, and cloud-based enterprise apps (Glover, 2024).

Banks and banking sector

Several authors and economists have offered varied definitions of banks. From a legal standpoint, the Indian
Company Law of 1936 describes a bank as a financial institution accepting deposits through different accounts and
allowing withdrawals via cheques or promissory notes (Indian Company Law, 1936). Barone (2023) takes a similar
approach, defining a bank as a licensed institution that accepts checking and savings deposits, facilitates loans, and

7
offers additional services like IRAs, CDs, foreign exchange, and safe deposit boxes. Based on this study a bank is a
financial intermediary that protects, transfers, exchanges, or lends money (Angadi 2023).
Shifting to a broader viewpoint, Anderson (2023) highlights the banking sector's critical role within global economies.
As a significant subset of the bigger financial services sector, which includes venture capital, private equity, asset
management, and insurance, is how they characterize it. The banking sector itself is made of various institutions,
including retail banks, credit unions, and commercial banks, each catering to specific needs of people, small
businesses, and large corporations.

Banking 4.0 and Business 4.0

With the rise of Banking 4.0, the banking business is going through a major change. Based on what Mehdiabadi
(2020) says, this idea represents a big change that makes the customer and performance experience smooth and
unified. It is possible to do this with an open, flexible, and changeable architectural structure. Banking 4.0 is more
than just regular office banking. In his book, Brett King describes it as an all-encompassing and common feel (King,
2018). Imagine a layer of technology that is easily integrated into our daily lives and gives us access to banking
services anywhere and at any time. This revolution is closely tied to the larger idea of Industry 4.0, also known as
the fourth industrial revolution (Hassoun et al., 2022). Industry 4.0 brings together cutting-edge technologies such as
AI, cloud computing, intelligent robots, the Internet of Things (IoT), and other scientific advances. This powerful
combo is changing not just economies, but society as a whole. Cividino et al. (2019) emphasize the widespread nature
of Industry 4.0, highlighting its potential to combine technology across all social aspects, including production,
finance, services, transportation, and communication. Automation and digital merging are what are making this
change possible.
In this rapidly changing environment, banks face the crucial challenge of adapting to current technologies and
improving their business models to stay competitive and relevant (Kotabe & Helsen, 2022). Mishra (2022) shares
this view, placing Banking 4.0 as a basis for "creative destruction." Fintech companies, innovation, and the strategy
reorganization of traditional retail banks around digital principles like platforms, apps, data intelligence, and
embedded finance are the key drivers of this creative destruction. This change points to a future where customers
will be happy with their experiences, thanks to platform-based banking that uses the best methods to provide great
service. Industry 4.0 needs its banking system. Industries 4.0 are largely foreign in scope, with users from all over
the world choosing them. A radical change in banking customer marketing and segmentation ensures that each
customer is special. (Mehdiabadi,2020).

8
Digitalization
Digitalization has become a transformative force across all businesses, and the banking sector is no exception. Based
on this study Gupta (2020) defines, digitalization as the process of leveraging digital technologies and digitized data
to either build new processes or greatly improve current ones. In simpler terms, it is the conversion of information
and processes from a real structure to a digital one, often combined with the acceptance of new technologies.
For banks, technology presents a wealth of possibilities. Firstly, it allows them to give a bigger range of services
through user-friendly online and mobile platforms. This provides customers with 24/7 access to handle their finances,
perform transactions, and access financial goods, all from the convenience of their devices. Secondly, digitalization
simplifies internal processes within banks, lowering manual chores and human error. This leads to faster transaction
processing times and better operational efficiency, eventually saving both time and money. Thirdly, by offering an
easy and user-friendly banking experience, digitalization promotes customer happiness and loyalty. Customers value
the ability to receive services on their terms, leading to a better relationship with their bank. Furthermore,
digitalization creates vast amounts of data on customer behavior and tastes. Banks can leverage this data to gain
valuable insights, adjust financial goods and services, and make data-driven choices that better cater to customer
needs. Finally, by automating manual chores and simplifying processes, digitalization can lead to significant cost
saves for banks. This helps them to spend in further innovation and development, eventually benefiting both the bank
and its users.
The acceptance of digitalization is no longer choice for banks in today's competitive world. It is a critical step towards
staying relevant, efficient, and customer-centric in a rapidly changing financial climate.

1.10 Organization of the study

The study is organized as follows:
Chapter 1
The research objectives are clearly outlined together with the statement of the problem which creates the basis for
the need to undertake a research study of such nature.
Chapter 2
analyses various literature which has been developed in order to understand the subject topic under consideration.
Any gaps, arguments or conclusions presented by previous researches are critically analyzed in accordance with the
research objectives for this project.
Chapter 3

9
highlights the methodology that is used to carry out the study. It spells out the research design, the sample population,
and the research method used for data collection. It concludes by developing, explaining, and justifying the
presentation plan for chapter four. All the data which is gathered is presented and analyzed in this chapter
Chapter 4
This forms the basis for the research findings, conclusions, and recommendations executed in Chapter 5.
Chapter 5
gives the research findings and the recommendations out on the findings gathered. This chapter is largely conclusive.

CHAPTER 2 LITERATURE
2.1 Introduction
This chapter goes over the study and information that has already been done on how Fintech can be used in
Zimbabwe's banking sector. A critical analysis of scholarly articles, policy papers, and existing research is meant to
give this topic a full understanding. The main goal of this study is to look at how fintech is being used in Zimbabwe's
banking industry and what problems and chances it brings up. How fintech has been accepted around the world, in
Africa, and Zimbabwe i

n particular will help with this study. The existing literature will be the base for this study. It will be used to look at
how fintech has changed over time, how it is being used around the world, the problems it causes, and how it might
lead to a digital divide. This study will use a methodical approach to look at both old and new fintech and banking
writings. The purpose of this study is to look into how fintech has been used in banking in the past, suggest a service
strategy, and find clear areas where more research is needed. As Bavaresco et al. (2020) point out, it is important to
keep in mind that there aren't many systematic research reviews that look at fintech in the management field. Also,
the current literature often doesn't focus on a specific sector enough or doesn't do enough study in enough depth and
breadth. This study aims to set itself apart from previous assessments by concentrating on the banking industry and
utilizing a more thorough method that integrates various analytical modalities.

2.1.2 Current Fintech applications in the banking sector

The banking industry is no stranger to change. According to Farishy (2023), Banking 4.0, echoing the wider fourth
industrial revolution, has fundamentally reshaped the economic and social environment. Cutting-edge technologies

10
like intelligent robots, artificial intelligence (AI), cloud computing, huge datasets, the Internet of Things (IoT), and
even 3D printing are revolutionizing the way we pay. For banks, fintech offers a strong tool to improve customer
service efficiency and streamline daily processes (Shambira, 2020). This digital wave has been building for decades,
with the rise of digital banking, neo-banks, digital currencies, and a steady stream of new technologies fundamentally
altering the financial services industry (Feyen, 2021). Latimore (2018) stresses the diverse potential of AI for banks.
Advanced analytics, Chatbots, Robotic Process Automation (RPA), and even AI-powered report generation all add
to a more efficient and effective banking environment. These technologies are seamlessly integrated into different
banking systems, from back-office operations to front-facing customer service conversations and mobile banking
experiences. In recent years, AI-based technologies have transformed the banking scene, showing their effectiveness
and practicality in a constantly changing financial ecosystem.

Here are some uses of fintech

Machine Learning (ML)

Building on the basis of Artificial Intelligence (AI), machine learning (ML) offers another layer of transformative
potential for the banking industry. As Taulli (2019) describes it, machine learning enables machines and robots to
learn and improve their performance without the need for explicit programming. Kanade (2022) elaborates on this
idea, placing machine learning as a subfield of AI that equips machines with the ability to learn independently from
data and past experiences. Through this process, machines can spot patterns, make predictions, and function freely –
all with minimal human assistance. Kanade (2022) stresses that machine learning helps machines to not only receive
new data but also learn, grow, develop, and change on their own. This presents exciting prospects for the banking
business, where Jindal (2022) shows the potential for automated processes, analyzing data, and eventually providing
more personalized services to customers. Machine learning applications stretch across various banking tasks,
including customer service, personal financial or wealth management, and fraud/risk management (Leo et al., 2019).
Machine learning algorithms, for example, can be used to proactively spot weaknesses in payment systems, discover
fraudulent activities, and finally improve the security and efficiency of banking operations as a whole. This machine
learning merging is a big step in the direction of an automatic and intelligent banking setting.

Natural language processing

Text summarization, machine translation, and mood analysis are the three main uses of natural language processing
(NLP), which improve the usefulness of processing methods (Moloi and Marwala, 2021b). NLP, according to Rayhan
et al. (2023), is a diverse field that helps robots make sense of unstructured data by understanding, interpreting, and

11
making human language in a useful and culturally appropriate way. NLP is used in the banking industry to reduce
risks, simplify repetitive processes, find new sources of income, make smart loan choices, and give individualized
financial advice (Arif, 2024). By leveraging NLP, banks can improve operational efficiency, better customer
experience, identify fraud and money laundering more effectively, and increase total performance (Bhattacharyya,
2022). NLP's uses in banking are vast, ranging from text analysis to sentiment analysis, allowing banks to make data-
driven decisions and drive business growth.

Customer support/engagement (Chatbots)

According to Ortiz (2024), Fintech Chatbots hold a wide range of skills; including code writing, email composition,
report drafting, art generation, and Excel formula creation, among others. The popularity of ChatGPT has inspired
rivals to create their own versions, resulting in a diverse market with different strengths, use cases, and difficulty
levels (Punjani, 2022). Chatbots offer a high return on investment (ROI) in cost savings, making them a widely
accepted AI tool across industries. They efficiently handle common jobs like balance questions, mini statements, and
fund transfers (Sinha, 2022), lowering the pressure on other channels like call lines and online banking. Alagarsamya
and Mehroliab (2023) stress that because Chatbots are internet-based and flexible, they play a vital part in banking
processes. Thembie is one notable case of a Chatbots in use in Zimbabwe.
Financial planning and financial services are becoming automated by robot-advisors, a kind of digital platform, with
little or no human control (Murry, 2024). A robo-advisor usually conducts online polls to gather client information,
provides personalized advice, and invests accordingly. Automated advice is a contentious problem in financial
services, but robo-advisors measure individual financial situations, understand future needs, and work towards
meeting set financial goals (Tan, 2020). By analyzing shared data and financial experience, robo- advisors make
informed investment recommendations, even down to specific goods or stocks. Robots that carry out manual jobs
like assembly, relieving humans of their everyday burdens, are widely linked with the word RPA (Robotic Process
Automation) (Kiming et al., 2023).

Predictive statistics for general uses

Predictive analytics, according to Cots (2021), uses data to predict future patterns and occurrences, showing insights
that lead strategic decision-making. General-purpose semantic and natural language processing, along with predictive
analytics which finds trends and connections in data that older technologies were unable to find are two common
uses of Fintech (Cots, 2021). These trends may point to underutilized cross-sell and sales possibilities as well as
operational indicators, all of which could have an instant effect on income. Predictive analytics is highly successful

12
in several areas, including as risk management, fraud detection, customer behavior analysis, forecasting, and
operational optimization (Halton, 2024). Businesses may reduce risks, find chances proactively, and boost growth
by utilizing predictive analytics.

Cybersecurity

Fintech presents a powerful weapon in the ongoing fight to strengthen cybersecurity defenses. Unlike traditional
security systems that rely on set rules and signatures, Fintech can leverage vast amounts of data from past threats to
spot and stop attacks with amazing accuracy. This data includes information on earlier hacks, malware behaviour,
and network abnormalities. By studying this data, Fintech can learn to identify minor trends and signs that might
seem unrelated to the untrained eye. These trends, when found by Fintech, can act as early warning signs, allowing
banks to effectively handle potential dangers before they grow into full-blown attacks.
The benefits of Fintech in defense stretch beyond just external threats. Fintech can also be deployed to watch internal
systems for suspicious behavior, acting as an alert guardian against insider threats or data breaches. By constantly
analyzing user behaviour and network data, Fintech can discover anomalies that deviate from established trends. For
instance, an employee trying to access illegal data or a sudden spike in data transfer activity co2uld cause an alert
from the AI system. This real-time tracking allows banks to find and handle possible breaches much faster,
minimizing the risk of data theft or misuse. Furthermore, AI can examine the root cause of these events and suggest
corrective actions, such as user access limits or additional security measures. This proactive method not only
improves the bank's defences but also helps to avoid similar incidents from happening in the future.
The integration of Fintech into cybersecurity strategies offers a major edge in the current arms race against
cybercriminals. By continuously learning and adapting, Fintech can stay ahead of new risks and weaknesses. This
ensures that banks are not solely reliant on static defence mechanisms, but rather possess a dynamic and intelligent
system capable of anticipating and neutralizing even the most advanced hacks. As cyber threats become more
complicated and targeted, Fintech stands as a critical line of defence for banks securing private financial data and
protecting their customers' privacy.

Credit Scoring/Direct Lending

Fintech is changing the way banks measure creditworthiness and approach direct loans. Traditionally, credit scoring
depended greatly on a borrower's credit history, income, and job position (Beck et al., 2002). This narrow reach often
excluded people with limited credit records or those who are self-employed or gig workers (Bhargava, 2021). Here

13
is where Fintech steps in, giving a more sophisticated and inclusive approach. Fin-tech powered credit score models
can analyze a much wider range of data points beyond the standard metrics. This includes alternative data sources
like energy bill payments, rental history, social media activity (with user consent) (Xu et al., 2019), and even mobile
phone usage trends (Liu et al., 2018). By analyzing these varied data sets, Fintech can create a more complete picture
of a borrower's financial health and creditworthiness. This is particularly helpful for people who may have a thin
credit file (Iyer et al., 2023) or those who work outside the standard employment landscape (Nguyen et al., 2020).
The perks of Fintech-based credit scoring stretch beyond inclusivity. Fintech algorithms can find subtle trends and
connections within the data that might be missed by traditional methods. This makes for a more accurate and
predictive assessment of a borrower's ability to return a loan (Li et al., 2021). For instance, Fintech model might
identify a borrower with a history of on-time energy payments but a limited credit history as a lower credit risk than
someone with a perfect credit score but a history of late payments on smaller bills. This detailed analysis helps banks
to make more informed loan choices, eventually lowering the risk of failures (Huang et al., 2020).
Furthermore, Fintech enables the automation of various parts of the loan application process. This simplifies the
process for both the customer and the bank (Nguyen et al., 2020). Imagine a scenario where an AI-powered system
can quickly analyze a borrower's data, check their information, and even pre-approve them for a loan – all within
minutes. This not only reduces processing times but also gives a more easy and user-friendly experience for loan
applicants (KPMG, 2020).
The integration of Fintech in direct lending opens doors to a new age of financial equality. FinTech start-ups and
challenger banks are at the head of this trend, leveraging Fintech to give loan products to underserved groups (Chen
et al., 2023). This enables individuals who may have previously been removed from standard banking channels to
access the credit they need to achieve their financial goals, be it starting a business, buying a home, or settling debt
(World Bank, 2022).
However, it is important to recognize the possible difficulties involved with AI-powered credit scoring. Ensuring
justice, openness, and unbiased decision-making is essential (Athey, 2020). Banks must be watchful in avoiding any
form of discrimination based on factors like race, culture, or socioeconomic background in their AI models (Carvalho
et al., 2019). Additionally, the use of different data sources raises worries about privacy (Agrawal et al., 2019). Banks
need to ensure that they obtain user permission for accessing and utilizing such data and keep robust data security
measures (European Banking Authority, 2018).
In conclusion, Fintech offers a transformative chance for credit scoring and direct loans. It offers a more open and
data-driven method to credit rating, streamlining the loan application process, and expanding access to financial

14
services. However, responsible application and handling possible biases are crucial to ensure a fair and inclusive loan
environment for all.

Risk Assessment and Management

Fintech has become a game-changer in risk management for the banking industry. By leveraging algorithms, banks
can now predict and measure a variety of risks with greater accuracy, empowering them to make informed choices
and develop robust risk management strategies.
Traditionally, risk assessment leaned greatly on past data and statistical models. However, these methods often fell
short in catching the complexities of the financial world. Fintech, on the other hand, possesses the ability to analyse
vast amounts of data, including past data, market trends, and even external factors (e.g., geopolitical events, social
media opinion) (McNeil et al., 2018). By finding minor patterns and connections within this data, algorithms can
predict and measure loan, investment, and market volatility risks with a higher degree of accuracy (Chen et al., 2023).
This improved risk forecasting power translates into several benefits for banks. Firstly, it helps them to make more
informed choices regarding loan approvals and investment plans. With a clearer picture of possible risks, banks can
set more interest rates that are suitable, adopt stricter loan standards for high-risk borrowers, and spread their
investment strategies to reduce vulnerability to market fluctuations (Huang et al., 2020). Secondly, AI allows banks
to create more effective risk management strategies. By effectively finding and quantifying potential risks, banks can
transfer resources more strategically and adopt preventive steps to minimize potential losses (KPMG, 2022).
In conclusion, Fintech offers a powerful tool for banks to successfully measure and manage risk. Through its ability
to examine vast datasets and predict possible risks with greater accuracy, Finteh allows banks to make informed
decisions, develop robust risk management strategies, and ultimately safeguard their financial stability.

Anti-money laundering (AML) and Know Your Customer (KYC)

The ever-evolving world of financial crime needs a robust defense system for banks. Fintech has emerged as a strong
ally in this fight, particularly within the areas of Anti-Money Laundering (AML) and Know Your Customer (KYC)
compliance.AML and KYC processes usually involve a significant amount of manual effort, depending heavily on
human analysts to sift through customer data and transaction records. This method, while important, can be time-
consuming and prone to human error. Fintech, on the other hand, offers a faster and more efficient answer (Nguyen
et al., 2020).
Fintech systems shine at analyzing vast amounts of customer data, including account information, transaction history,
and personal details. By applying advanced algorithms, these systems can spot patterns and anomalies that might

15
escape human review (Xu et al., 2019). For instance, AI can flag transactions exceeding normal spending habits,
identify odd geographic areas for financial activities, or discover shady links between accounts. This newfound
ability to watch transactions and spot suspicious behavior in real-time allows banks to proactively identify and
examine potential money laundering or terrorist financing attempts (Li et al., 2021).
The benefits of Fintech in AML and KYC stretch beyond just speed. By automating routine jobs such as data analysis
and risk scores, Fintech frees up human resources to focus on complicated investigations and higher-level decision-
making (KPMG, 2020). Furthermore, Fintech-powered systems can continuously learn and change, improving their
ability to identify new financial crime tactics over time (Chen et al., 2023).
However, it is important to recognize that Fintech is a tool, and its usefulness hinges on the quality of the data it
analyses. Furthermore, ensuring fairness and openness in Fintech-driven decision- making within AML/KYC
processes is essential (Athey, 2020).
In conclusion, Fintech serves as a powerful tool in the fight against financial crime. By analyzing vast amounts of
data, spotting suspicious behavior, and automating regular tasks, Fintech allows banks to improve their AML and
KYC compliance efforts. This eventually safeguards the financial system and saves customers from the harmful
impacts of money laundering and terrorist funding.

Personalized Banking Services

Fintech helps banks to provide personalized services based on individual customer tastes. Algorithms can improve
the customer experience by offering personalized product suggestions, focused marketing campaigns, and tailored
financial advice based on customer data and behavior.

Expert Systems

Financial experts have practical knowledge that cannot be found in books or gained in any other way, but is invaluable
to a firm's or financial institution's business success (Nedovic 2002).

2.1.3 Current applications of Fintech in Zimbabwe

Traditional banking institutions in Zimbabwe have not always offered the most available or efficient financial
services for a large part of the population. This gap has been filled by the amazing rise of mobile money, which
provides a faster, cheaper, and more convenient option.

16
Five mobile network providers control Zimbabwe's mobile money market: Ecocash, OneMoney, Telecash, Omari,
and InnBucks (Business Times, 2023). These services are subject to rules set by the Reserve Bank of Zimbabwe
under the Banking Act and National Payments Systems Act. This regulatory framework ensures financial stability
and protects customers engaging in the mobile money environment.
The success story of mobile money in Zimbabwe is clearly visible in the rise of active subscriptions. Reports by the
Postal and Telecommunications Authority of Zimbabwe show that between March 2016 and March 2020, registe2red
mobile money subscriptions experienced an exponential growth of over 140%, hitting a staggering 7.67 million
(Business Times, 2023). Notably, Ecocash stands out as the clear market winner, having a user base that tops the
total number of bank account holders across all 19 of the country's banking institutions. This broad acceptance
underscores the crucial role that mobile money plays in financial inclusion for a large part of the Zimbabwean people.
Recognizing the value of a smooth user experience, Ecocash launched Thembie, an AI- powered Chatbots (Business
Times, 2023). This new service provides an additional digital touchpoint for customers, allowing them to easily
access services and perform transactions through a user-friendly interface. This commitment to giving multiple
channels for customer contact shows Eco cash’s dedication to continuous growth and its focus on catering to evolving
customer tastes.
The Reserve Bank of Zimbabwe has taken a careful stance on cryptocurrencies. In 2018, they gave a directive to
banks instructing them to stop all operations related to cryptocurrencies (Reserve Bank of Zimbabwe, 2018). This
order covered a ban on trading cryptocurrencies, offering services to crypto users, and keeping any ties with
cryptocurrency exchanges. This government move resulted in the closing of Golix, the sole bitcoin exchange
operating in the country. However, a spark of hope came in the
2020 Monetary Policy Statement, where the Reserve Bank Governor announced plans to adopt a regulatory sandbox
system (Reserve Bank of Zimbabwe, 2020). This framework would function as a controlled setting where creators
could test and pilot their financial technology goods. This suggests a possible change in the governing environment,
paving the way for a more inclusive approach towards responsible innovation in the digital asset field in the future.
Mobile money has become an essential component of the financial ecosystem in Zimbabwe, giving a faster, cheaper,
and more accessible option to traditional banking. While the regulatory environment surrounding cryptocurrencies
remains unclear, the planned introduction of a regulatory sandbox suggests a possible future for responsible
innovation in the digital asset field. These changes hold great potential to further financial inclusion and economic
growth in Zimbabwe.

17
2.1.4 Opportunities impacted by the impact of fintech in banking industry
The integration of Fintech into the banking sector has become a prominent trend, fundamentally reshaping financial
operations (Noreen, 2023). This technology, essentially the simulation of human intelligence in machines, offers a
wide range of benefits for the financial industry, considered the backbone of modern economies (Globant, 2022).
From facilitating financial transactions to safeguarding assets and promoting economic growth, Fintech is leaving a
lasting impact.
Recent advancements have empowered Fintech to drive enterprise cognitive computing, a concept where algorithms
are embedded within applications to streamline organizational processes (Tarafdar, 2019). This translates to several
advantages: significantly faster information analysis, generation of more accurate and reliable data outputs, and the
ability for employees to focus on higher-level tasks.
The potential applications of Fintech in banking are vast, encompassing everything from front-end customer services
to back-end operations like risk assessment, credit scoring, and personalized financial recommendations (Noreen,
2023). By leveraging AI and Machine Learning (ML) technologies, banks can massive datasets, uncovering patterns
and anomalies that might signal fraudulent activity (Ris et al., 2020). The COVID-19 pandemic further underscored
the value of Fintech in banking, as it enabled contactless transactions, enhanced fraud detection capabilities, and
streamlined risk assessment processes.
Zimbabwe's banking sector has already begun to witness the transformative potential of Fintech. From improved
customer service experiences to more accurate credit risk assessments, Fintech is making a significant impact on
asset management, crime detection, and regulatory compliance within the country's financial institutions
(Machingauta, 2024). Considering the crucial role banks play in managing currency, credit, and other financial
activities that fuel the economy (Eeghen, 2021), Fintech presents itself as an essential system for ensuring the smooth
operation of banking systems. As Fintech technologies continue to evolve in the financial services sector, banks have
the opportunity to optimize revenue generation while minimizing costs through innovative customer engagement and
service delivery strategies. This paves the way for the future of banking - the "AI bank" - equipped to serve customers
in revolutionary new ways (Thomas, 2021).

Optimize Client Conversations with NLP and Conversational AI.

Fintech is transforming the way banks interact with stakeholders, streamline operations, and manage credit risk. This
powerful technology is fostering a new era of effective communication, enhanced customer satisfaction, and data-
driven decision-making within the financial sector.

18
Boosting Customer Satisfaction Through AI-powered Communication

AI empowers banks to cultivate stronger relationships with their customers. By analyzing customer data and
preferences, banks can tailor their communication strategies to ensure customer happiness and understanding
(Noreen, 2023). This not only improves customer satisfaction but also fosters trust and loyalty. Additionally, AI
facilitates the development of new financial products and services that cater to specific customer needs.

Streamlines Banking Operations for Efficiency and Growth

Fintech goes beyond customer interaction, transforming core-banking operations across various departments. From
accounting and sales contracts to cybersecurity, leverages data analytics, block chain, and machine learning to
automate processes and generate valuable insights (Eeghen,2021). Many traditional banks are collaborating with
fintech startups to advantage cutting-edge AI solutions and offer contemporary banking services to their customers.

Conversational Banking: A 24/7 Customer Service Revolution

Conversational banking, powered by Natural Language Processing (NLP) and machine learning, is revolutionizing
the customer experience. AI-powered Chatbots, like Thembie in Zimbabwe, provide instant and accurate responses
to customer queries, 24/7 (Machingauta, 2024). This not only reduces the need for human intervention but also offers
a convenient and efficient way for customers to access information and conduct transactions.

AI and Machine Learning: Enhancing Credit Risk Management

AI and machine learning (ML) are transforming credit scoring and risk management within the banking industry.
Predictive models powered by AI and ML enable lenders to more accurately assess default and prepayment risks
associated with loan applications (Khandani et al., 2010). Research suggests that ML can potentially reduce losses
on delinquent loans by up to 25% (Khandani et al., 2010). Furthermore, automated financial underwriting systems
powered by AI can benefit underserved populations by increasing borrower approval rates, particularly for small
businesses and individuals with limited credit history (Gates et al., 2002; Bazarbash, 2019).
By automating underwriting and credit analysis decisions through the analysis of massive data sets, Fintech
streamlines the loan approval process, improves decision accuracy, and ultimately reduces the risk of defaults. This
integration of AI and machine learning significantly affects credit risk management by addressing information
asymmetry problems, a historical challenge in traditional lending practices (Mhlanga, 2021).

19
In conclusion, Fintech is rapidly transforming the banking landscape. From fostering effective communication and
enhancing customer satisfaction to streamlining operations and improving credit risk management, Fintech offers a
multitude of benefits for banks and their stakeholders. As AI continues to evolve, its transformative potential within
the financial sector is limitless.

Automation of the investment process

The transformative power of Fintech in banking extends beyond streamlining operations and enhancing customer
service. Banks are increasingly leveraging Fintech's potential to delve into the realm of investment decisions and
research, empowering both institutions and individual investors.

Fintech Uncovers Hidden Gems: The Future of Investment Banking

Financial institutions like UBS in Switzerland and ING in the Netherlands are harnessing Fintech systems to scour
vast market data for hidden investment opportunities (Schmelzer, 2023). These Fintech systems act as powerful
research assistants, analyzing market trends and identifying potential investments that might escape traditional
human analysis. Furthermore, Fintech informs algorithmic trading platforms, enabling more precise and data-driven
execution of investment strategies. While the final decision-making authority remains with human experts, Fintech
plays a crucial role in uncovering new avenues for wealth creation.

Robo-advisors: Democratizing Investment Management

Many financial services firms are embracing Fintech through the development of robo-advisors, automated
investment platforms that assist customers with portfolio management. These Fintech- powered tools leverage
personalization, Chatbots, and customer-specific models to deliver high- quality investment guidance, readily
available 24/7.Beyond offering investment advice, robo-advisors can provide users with personalized learning
experiences, budgeting tools, and access to information on a variety of banking products and services. This fosters
financial literacy by bridging the digital divide and empowering individuals with the knowledge to make informed
financial decisions.

AI Levels the Playing Field: Informed Decisions for Every Investor

By providing Fintech-driven investment advice and portfolio management tools, banks are democratizing access to
financial expertise. These tools empower individuals to make informed investment decisions aligned with their risk
tolerance and financial goals, regardless of their prior investment experience. Ultimately, Fintech is redefining

20
investment management, offering both institutions and individuals the potential to unlock new avenues for financial
success.

Fraud Detection

The ever-growing prevalence of online fraud necessitates robust defense mechanisms for banks and financial
institutions. Fortunately, advancements in artificial intelligence (AI) offer powerful tools to combat this financial
threat .One of the key strengths of Fintech lies in its ability to analyze vast amounts of data and identify complex
patterns. This capability translates perfectly to the realm of fraud detection. Banks leverage advanced pattern-
matching analytics within their systems to scrutinize transactions and identify fraudulent activities (Alhajeri, 2023).
These AI-powered systems act as vigilant sentinels, constantly scanning for anomalies that might indicate suspicious
behavior.The benefits of Fintech extend beyond simply detecting existing fraud. Machine Learning (ML), a subfield
of AI, empowers financial institutions and fintech companies to be proactive in their approach to fraud prevention
(Owczarek, 2023). ML algorithms can analyze historical data and customer behavior to predict the likelihood of
future fraudulent activity. This predictive power allows institutions to take preemptive measures, such as flagging
suspicious transactions for manual review or automatically blocking them altogether.
Traditional fraud detection methods often rely on a set of predetermined rules to identify suspicious activity. However,
these rule-based systems can struggle to adapt to new and evolving fraud tactics. AI, on the other hand, offers greater
flexibility. ML algorithms can continuously learn and adapt, improving their ability to detect even the most subtle
patterns indicative of fraud. This dynamic adaptability ensures that the fight against fraud remains effective in the
face of ever- evolving criminal strategies.
In conclusion, the integration of AI and machine learning into bank systems has revolutionized the way financial
institutions combat online fraud. By analyzing vast amounts of data, identifying complex patterns, and predicting
potential threats, fintech empowers banks to safeguard their customers' financial assets and maintain the integrity of
financial transactions. As AI technology continues to evolve, so too will its effectiveness in protecting against the
ever-present threat of online fraud

2.1.5 Challenges impacted by fintech in the banking industry

The use of fintech in the banking sector holds immense promise, but navigating its implementation requires careful
consideration of its capabilities, limitations, and potential risks.

21
Complexity of Fintech

A key barrier to AI adoption is the public's limited understanding of the technology. Fear of intelligent machines
taking over, often perpetuated by science fiction, hinders public trust and slows the acceptance of AI's potential
benefits. To bridge this knowledge gap, fostering public education about AI's current applications and responsible
development is crucial.While AI offers a powerful toolkit for the banking industry, it is important to acknowledge
the challenges it presents. One of the primary requirements for effective AI implementation is access to large volumes
of high-quality data. As banks collect and store vast amounts of sensitive customer information, data privacy and
robust cybersecurity measures become paramount. Another challenge lies in explaining the decision-making
processes of AI algorithms. These algorithms can uncover complex correlations in data sets that might be difficult
for humans to interpret. The lack of transparency surrounding these decisions can raise concerns about accountability
and fairness. Furthermore, AI models trained on historical data may struggle to adapt to sudden economic shifts or
unforeseen circumstances. This could lead to inaccurate decisions with negative consequences for both banks and
their customers.
The successful integration of AI into the banking sector requires a collaborative effort. Banks must prioritize data
privacy and security, while also developing user-friendly interfaces and fostering public trust. By addressing these
challenges and harnessing the power of AI responsibly, banks can unlock a future of enhanced efficiency, security,
and personalized financial services.

Skill Gap and Workforce Adaptation

Generative Fintech presents exciting possibilities for the banking sector, but its successful implementation hinges on
a critical factor – human expertise. Here, we explore the challenges banks face in building a workforce equipped to
harness this powerful technology.

The Skills Gap: A Looming Challenge

The cornerstone of successful generative Fintech adoption lies in a highly skilled workforce (Piwali, 2023). Banks,
however, may face difficulties on two fronts: upskilling existing employees and attracting new talent with the
necessary expertise in AI and machine learning. The current market suffers from a shortage of these specialized
professionals, further complicating the implementation process.

Building an AI-Ready Culture

22
Beyond technical skills, fostering an Fintech-adoption culture is equally crucial. Banks must create an environment
where employees feel empowered to embrace the changes brought about by generative Fintech. This requires
addressing potential anxieties and fostering a spirit of collaboration between human and artificial intelligence.

Bridging the Gap: Strategies for Success

To overcome these challenges, banks can explore several strategies. Upskilling existing employees through targeted
training programs can equip them with the necessary knowledge and skills to work effectively with generative
Fintech. Furthermore, forging partnerships with educational institutions can help develop a future pipeline of fintech
talent specifically tailored to the needs of the banking sector.
By addressing the fintech talent gap through proactive measures, banks can position themselves to leverage the full
potential of generative fintech. Building a skilled and adaptable workforce will be instrumental in unlocking the
transformative potential of this technology in the financial landscape.

Legacy Systems and Infrastructure

The path towards generative fintech adoption in banking is not without its obstacles. One of the most significant
challenges lies in the very foundation of many banks – their complex IT infrastructure and legacy systems.
• The Burden of the Past: Incompatible Infrastructure
Many banks rely on intricate systems built upon older technologies. These legacy systems may struggle to meet the
demanding requirements of generative Fintech Omasi (2024). Integrating fintech models and algorithms into these
existing infrastructures can be a complex and resource-intensive task. Banks may need to invest heavily in data
storage, cutting-edge software, and upgraded hardware to ensure compatibility with generative fintech.
• Agility vs. Antiquated Systems
The dynamic nature of fintech technology poses another challenge. Legacy systems are often characterized by a lack
of agility and flexibility. This inflexibility can create significant integration issues and potentially disrupt daily
banking operations during the implementation of generative fintech.
• A Call for Transformation
As Omasi (2024) aptly points out, legacy systems are a major hurdle on the path to digital transformation. These
outdated technologies often lack the adaptability and innovation required for the digital age. Their rigid and siloed
nature can hinder the seamless integration of new technologies like generative fintech.

23
 • Conclusion: Modernization for a Generative AI Future
Overcoming the limitations of legacy systems is crucial for banks to embrace fintech. Investing in infrastructure
modernization, including data storage upgrades and software updates, will pave the way for a smooth integration
process. By adopting a forward-thinking approach and prioritizing digital transformation, banks can unlock the
transformative potential of fintech and secure a competitive edge in the evolving financial landscape.

Cybersecurity: A Rising Threat

Cybercrime is a growing menace in today's digital world, and banks are a prime target for malicious actors. The use
of fintech can introduce new vulnerabilities, as these systems rely on vast amounts of sensitive customer data.
Individuals with malicious intent may exploit these vulnerabilities to conduct illegal transactions, commit fraud, or
violate customer privacy (Balu et al., 2022). Ensuring robust cybersecurity measures is paramount to protect both
banks and their customers from these evolving threats.

The Black Box Effect: Understanding fintech Decisions

The complexity of fintech, particularly neural networks, can create a phenomenon known as the "black box effect."
This refers to the difficulty of understanding the logic behind an fintech's decision-making process (McKinsey, 2022).
This lack of explainability can pose challenges for regulatory compliance and erode trust in AI-driven decisions. To
address this, banks need to prioritize explainable AI (XAI) solutions. XAI frameworks and visual interpretation tools
can help stakeholders understand how AI arrives at its conclusions.
For instance, in an AI-powered anti-money laundering system, if the system flags a transaction as suspicious, the
bank should be able to explain the reasoning behind this decision. Without this explainability, regulatory bodies and
auditors cannot effectively assess the system's fairness and accuracy.

Fraud: A Double-Edged Sword

While fintech empowers banks to combat fraud, it can also be a weapon wielded by fraudsters. Criminals are
increasingly using Fintech to create synthetic identities, a blend of real and fabricated personal information
(Betsun, 2023). These synthetic identities can be used to open fraudulent accounts and conduct unauthorized
transactions. AI's ability to generate realistic details makes it difficult for traditional fraud detection systems to

24
identify these synthetic identities. As reported by VentureBeat, attackers harvest vast amounts of personal data,
including Social Security numbers and birthdates, to fuel the creation of these synthetic identities.

The successful use of fintech in banking necessitates a multi-pronged approach to mitigate risk. Banks must invest
in robust cybersecurity measures, prioritize explainable fintech solutions, and stay vigilant against emerging fintech
fraud tactics. By addressing these challenges proactively, banks can harness the immense potential of fintech while
safeguarding their customers and financial systems.

Regulatory compliance and ethical considerations

The transformative power of fintech in banking is undeniable, but its implementation necessitates careful
consideration of ethical and regulatory frameworks. Here, we explore the key challenges banks face in ensuring
responsible fintech adoption.
• Keeping Pace with Regulation
The banking industry operates within a strict regulatory environment designed to ensure transparency, fairness, and
customer protection (Piliwal, 2023). However, these regulations often struggle to keep pace with the rapid
advancements in fintech technology. Banks must navigate this complex landscape, adhering to existing regulations
while anticipating and adapting to new ones. This requires careful planning, legal expertise, and a commitment to
ethical AI implementation.
• The Ethical Imperative: Bias, Explainability, and Transparency
Beyond regulatory compliance, banks must prioritize the ethical implications of fintech. This includes avoiding
biased outcomes in fintech decisions, ensuring explainability of fintech models, and maintaining transparency
throughout the development and deployment process. Biased algorithms can perpetuate discrimination and erode
trust in the banking system.
• Building Customer Trust in an Fintech Future
As fintech becomes a more prominent feature in banking, customer trust becomes paramount. One of the primary
concerns surrounding fintech adoption is the potential loss of privacy (Francis, 2023). Fintech systems rely on vast
amounts of data, often including sensitive personal and financial information. Banks must address these concerns by
prioritizing data security and implementing robust privacy safeguards. Failure to do so may lead to customer
hesitancy towards fintech services and hinder the overall adoption of this technology. Building trust requires
transparency about data collection practices and a commitment to responsible fintech development.
25
 • Data Security: The Price of Progress
Data security is a cornerstone of the banking industry. Fintech models require access to large datasets, often
containing sensitive personal information (Piliwal, 2023). This necessitates robust security measures to protect this
data from unauthorized access or breaches. Banks must invest heavily in cybersecurity infrastructure and compliance
frameworks to meet these heightened security demands. Balancing the need for data-driven innovation with the
imperative of data protection is a crucial challenge in the age of fintech.
• Conclusion: A Collaborative Path Forward
The successful use of fintech in banking hinges on a collaborative effort. Regulators, banks, and technology
developers must work together to establish ethical guidelines, ensure regulatory compliance, and prioritize customer
trust. By addressing these challenges proactively, banks can unlock the transformative potential of fintech while
safeguarding customer privacy, building a more ethical, and secure financial future.

2.1.6 Ways of overcoming impacts of fintech in the banking industry

To handle these rising issues, banks and other industry stakeholders must adopt a proactive strategy. Here are some
methods to consider.

Cybercrime and Fraud Management

Data breaches and cybercrime rank among the banking industry's most serious problems, according to Gundlapalli
(2023). In the global banking sector, the average cost of a data theft as of 2022 was $5.97 million. "A major cyber
incident, if not properly contained, could seriously disrupt financial systems, including critical financial infrastructure,
leading to broader financial stability implications," the Financial Stability Board warned in 2020. AI/ML systems
that track client behaviour can spot possible breaches quickly. Applying fintech to vast amounts of customer
behaviour data improves the efficiency of fraud spotting based on data analytics. In a similar way, it can help in
stopping fraudulent transactions and telling customers. Using conversational chatbots to check client identity can
also help prevent unauthorized users from accessing accounts.

Transparency and Explainability

Banks must value transparency in fintech applications so that users understand how and why decisions are made
(Francis, 2023). This could include building explainable fintech models that can provide clear and understandable

26
reasons for their outputs. Additionally, banks should make an effort to explain their fintech policies and practices to
customers in an open and honest way. Clear descriptions of how fintech is used, its benefits, and the safeguards in
place can help ease concerns. Allowing customers to connect with human agents as needed can also boost trust and
acceptance.

Ethical AI Development and Regulatory bodies

Banks should prioritize creating and implementing ethical fintech practices (Francis, 2023). This means ensuring that
fintech models are objective and do not support current biases. Furthermore, fintech should be built to support rather
than replace human decision-making, thereby mitigating concerns about loss of control. Banks should focus on
responsible fintech creation. According to Potter (2024), this means broadening the training. Data, identifying and
fixing biases, and completing regular checks to ensure fair and equitable. Providing diverse and relevant training
data, tracking algorithm performance, and adopting transparency measures can all help to ease ethical concerns.

Data governance methods

Pinchuk (2023) a wide range of actions relating to managing, accessing, and controlling banking data is included in
data governance in the banking business. All that is needed to ensure the usefulness, accuracy, availability, integrity,
quality, and security of the data banks use is the creation and improvement of policies and procedures. Algorithms,
tools, and technologies that increase a financial institution's productivity, improve its data analytics practice, promote
industry innovation, assist risk management, and simplify regulatory reporting are among the outputs of a suitable
data governance program.

Training and Reskilling

Emerging technologies, moving customer standards, and changing laws are all causing a major upheaval in the
banking sector (Payne, 2020). In order to stay competitive in this rapidly changing world, banks need to make
investments in the skills and abilities of their staff. To offer these experiences, banks must retrain and upskill their
staff members, leveraging data and analytics to understand the wants and needs of their clients. Banks need to spend
money on training programs that give staff members fintech abilities like natural language processing, machine
learning, and data analytics (Majumdar, 2024). These upskilling efforts make use of fintech technologies to improve
customer interaction, risk management, and operational efficiency.

27
Modernizing IT systems

Investing in cloud-based solutions, agile development processes, and updating their IT systems are suggested for
banks (Omasi, 2024). Banks should create a modernization plan that outlines the processes and timetable for updating
or swapping out outdated systems with more adaptable and AI-ready alternatives. Through a number of complex
efforts, it involves updating the layers of platforms, operating models, data, intelligence, decision- making (business
logic), infrastructure, and systems (Lyer 2024).

2.2 Theoretical literature

Technological Acceptance Model (TAM)

Ajzen and Fishbein (1980) presented the Theory of Reasoned Action (TRA), which led to Davis (1989) suggesting
the Technology Acceptance Model (TAM) as a derivative. TAM is a widely used theory framework that explains
how people accept and adopt new technologies (Papagiannidis, 2023). Understanding the principles underlying
technology acceptance, predicting technology behaviour, and giving a theoretical base for successful application are
the main goals of Technology Acceptance Modelling (TAM).

According to the Technology Acceptance Model (TAM), perceived ease of use and perceived usefulness are the two
main factors influencing an individual's desire to use new technology (Davis, 1989; Charness et al., 2016). Perceived
ease of use refers to the degree to which individuals think technology is simple to use, improving their self-efficacy
and trust (Yi He et al., 2018). Perceived usefulness, in the context of fintech banking, refers to users' views of the
benefits and value of fintech technologies in banking processes and customer interactions.

With the addition of new factors, the Technology Acceptance Model (TAM) has experienced multiple studies,
evolving and improving over time. Users' opinions of the usefulness of technology are currently thought to be affected
by social impact processes (social norm and picture) and cognitive tool processes (job relevance, output quality, and
result demonstrability) (Dirsehan, 2022). Experience and voluntariness variables were added to the TAM2 model,
which reduced the effect of subjective norm on expected use. TAM 3 built on perceived ease of use, adding factors
like computer playfulness, perceived pleasure, computer anxiety, views of external control, and objective usability
28
(Bala, 2008).

Technology Acceptance Models (TAM) are applied to evaluate user acceptance and uptake of technologies, find
adoption barriers and enablers, and build strategies to improve technology adoption and usage.

Unified theory of acceptance and use of technology theory (UTAUT)

Venkatesh et al. (2003) suggested the Unified Theory of Acceptance and Use of Technology (UTAUT) model,
aiming to integrate different usage models by analyzing eight rival models that explain users' goals and acceptance
of technology. The UTAUT framework finds four key factors that directly affect purpose or use: facilitating
conditions (FC), effort expectancy (EE), social influence (SI), and performance expectancy (PE).

According to the literature review, facilitating conditions (FC) directly influence adopting behaviour, backed by
observational proof. Venkatesh et al. (2003) stress that behavioural intention does not indirectly affect other
behavioural intentions. Rather, these components are important separate indicators of user acceptability and usage
habits. The UTAUT model offers insights for enhancing user adoption and usage rates by giving a full knowledge of
the factors that affect technology acceptance and use.

2.3 Empirical literature review

The current section of the research looks at how many nations have adapted Fintech in banking, outlining
the problems they have encountered as well as potential positive effects. The researcher will use Google
Scholar, online university library journals, and textbooks from the library to review the literature for this
study. Additionally, an empirical study will be conducted in this research, and a comparative methodology
will be applied. The area of the field where the researcher can conduct the study is known as the research
gap. The researcher has examined and evaluated the writings in relevant journals and articles in order to
identify the gap.

Subudhi (2019) The Indian

29
Banks need to make sure that their employees know about the newest technology and processes in the
banking industry that have to do with Fintech. The current push to digitize banks is having a big effect on
the old ways of doing things. On the other hand, it has also made online dangers more likely to hit banks.

A study by Rahman, Hui Ming, Baigh, and Sarker (2023) in Malaysia looks at how fintech is being used
in banking services. Fintech is an important tool for reducing risk and finding scams. Adoption of Fintech
is badly hindered by the lack of legal requirements, data privacy and security, and the availability of IT
infrastructure and related skills

Noreen, Shafique, Ahmed, Ashfaq (2023) Asian Countries (Pakistan, China, Iran, Banking 4.0 AI in
Banking business & consumer’s view The banks management can lower the risk of using digital
technology by updating and revising their marketing strategy aimed at fostering or gaining customer trust.

Hassan, Aziz, Andriansyah (2023) (Indonesia) Focuses on the role of Fintech in modern banks a study of
Fintech driven methods for improved scam prevention, risk management, and regulatory compliance
.Large amounts of transactional data may be quickly examined by fintech, which can then spot anomalies
and possibly fraudulent conduct as it happens.

Sankar, Deivasigamani, Khan, Pradeepa, Prakash, Janki (2023) (Europe) focuses on Fintech as a game
maker tool to remake the banking services in digital transformation European economic letters (EEL) .This
8study discusses how fintech is transforming the banking business.

Ahmed, Khalid and Ghafoor (2024) (Pakistan) focuses on Fintech Adoption in developing countries
exploring the use cases and challenges for using fintech in banking services in Pakistan .The study made
clear how important it is to improve security, efficiency, financial equality, and customized services. But
there are problems with skills, technology, data, and cultural views on fintech.

Nwachukwu (2018) (Nigeria) The study focuses on the amount of use of fintech in Nigeria Banks.
Applications of fintech in banks have many benefits. The majority of banks are underutilizing the Internet
of Things,robotic process automation, and cognitive computing systems, all of which are becoming more
and more common in the banking business.

(Darangwa, Vongai and Praise ,2021) (South Africa) explores fintech in the South African banking
business.According to the study, banks are using fintech in their back offices (underwriting), middle
offices (fraud detection), and front offices (conversational banking).
30
Mamela, Tebogo and Lucky (2021) (South Africa) Assess the effect of fintech on the performance of the
workforce at a South African banking company. The study's findings show that the workforce's success is
highly impacted by each of the research factors.

According to Moyo, Watyoka, and Chari (2022). (Zimbabwe) looks on challenges in the adoption of Finteh
and machine learning in Zimbabwe’s insurance business.The study's results show that the high cost of AI-
compliant products, a lack of finance, and a lack of understanding are all adding factors to Zimbabwe's
insurance industry's struggles with applying AI. To ensure the successful acceptance of AI, these
researchers suggest spending resources, giving employee training, changing the culture, and staying up
with technological developments.

Shambira (2020) (Zimbabwe) Explores the adoption of fintech in the Zimbabwe banking business. The
study found that in order to improve bank operations, security, and risk management, the banking industry
in Zimbabwe has adopted fintech into its software
2.3.1 Research gap

1. Integration of Traditional Banking with Fintech Solutions

Current State: While several studies have studied fintech innovations, there is limited research on how
traditional banks are integrating these technologies into their current systems.

Gap: Investigating the obstacles and best practices for integration could provide insights into effective
partnership between fintechs and banks.

2.Consumer Behavior and Adoption Rates

Current State: Existing literature covers fintech acceptance, but there is a lack of thorough studies on
customer behavior in different groups.

Gap: Researching factors driving adoption across different age groups, income levels, and physical regions
can help tailor fintech goods to diverse needs.

3. Regulatory Challenges and Compliance

Current State: Many fintech studies focus on innovation but ignore the regulatory environment and its
effect on the banking industry.

31
Gap: Analyzing how laws affect fintech usage and the general change of the banking industry is vital for
understanding the future environment.

4. Impact on Financial Inclusion

Current State: While fintech is often praised for promoting financial inclusion, empirical studies on its real
effect in underserved areas are sparse.

Gap: Research is needed to examine how fintech services reach and help marginalized groups and the
barriers that still remain.

5. Cybersecurity and Risk Management

Current State: The rise of fintech has brought new hacking problems, but studies on risk management
techniques in this context are sparse.

Gap: Investigating how banks and fintechs are handling cybersecurity threats could show weaknesses and
effective strategies for risk reduction.

6. Long-term Sustainability of Fintech Models

Current State: Many fintech companies experience rapid growth but fight with sustainability; however,
longitudinal studies on their effect on the banking industry are missing.

Gap: Examining the long-term feasibility of fintech solutions and their effects on traditional banking
profits can guide future investments and strategies.

7. Technological Disparities

Current State: The digital divide between different areas affects fintech adoption, but there is limited study
on its effects for global banking.

Gap: Exploring how technological disparities affect the competitive scene of banks could guide policy and
business decisions.

Furthermore, there is a notable policy gap concerning the legal and ethical dimensions of Fintech
implementation in the banking sector. Research has not adequately addressed policy responses to
embedded bias issues. Developing a comprehensive framework for the governance and ethical use of
32
fintech applications is essential. This framework should guide the deployment of fintech in ways that are
fair, transparent, and accountable, thereby fostering trust and ensuring the technology's benefits are widely
shared
2.4 Conclusion

This chapter addressed the current impact of fintech, as well as the possibilities, difficulties, and methods
for addressing the difficulties posed by fintech in banking. An review of the pros and difficulties of fintech
in banking was given in this part. A full description of the research techniques used in the study will be
given in the next chapter

33
 CHAPTER 3 RESEARCH METHODOLOGY
3.1 introduction
This chapter outlines the research strategy employed in the study. The document provided a comprehensive outline
of the research design, target population, sample size, sampling methodology, data collection instruments, and the
reliability and validity of these instruments, along with the analysis and presentation of the data. This section
addressed the ethical considerations observed by the researcher to maintain confidentiality. The chapter presented a
framework for data analysis that is instrumental in testing the research and deriving conclusions from empirical
evidence.

3.2 research design

The present study uses a mixed-methods research strategy to explore the possible benefits and drawbacks of
integrating fintech into Zimbabwe's banking industry. This is achieved by mixing quantitative and qualitative data
gathering and analysis methods. By utilizing the advantages of both quantitative and qualitative methods, this strategy
allows for a full understanding of the phenomenon (Creswell & Creswell, 2020). The validity and reliability of the
results are improved by triangulation, which is made possible by the wide range of data sources (Creswell & Creswell,
2020). A deep and complicated understanding of the study issue is also given by the selection of various data sources,
which ensures the representation of important stakeholders' viewpoints (Bryman, 2020). Finding themes and patterns
that would not be visible using a single-method approach is another benefit of the mixed-methods design, which also
allows for the study of detailed relationships between variables (Denzin, 2020).

Utilizing a mixed-methods approach was made necessary in order to answer the study goals, which call for a full
understanding of the advantages and disadvantages of fintech adoption in Zimbabwe's banking industry. The
qualitative data offers thorough insights into the events,attitudes, and opinions of important players, while the
quantitative data gives a general picture of the frequency and adoption trends of fintech. . This mixed-methods
approach facilitates the integration of quantitative and qualitative data, enhancing the understanding of the study
problem. The integration of both material types facilitates a more comprehensive understanding of the event.

3.3 research population

Orodho (2015) defined the target population as a collection of all instances and objects in the universe that
contained the data the researcher needed. The samplings frame is the set of elements from which the sample is

34
drawn (Smith et al., 2018).As William (2015) says, the "population" is the total number of cases that are being
looked into. It includes every item that the investigation's results can be used on. Population, on the other hand, is a
group of study units with similar traits that the study's results can be used for in general (Shukla, 2020). The people
who are taking part in this study are Zimbabwean bankers, regulators, and users who have used fintech in banks or
know a lot about the banking business. The study's population was limited to people in Bulawayo, the researcher's
home city however the population was made up of bankers, buyers, and officials in Zimbabwe.

3.4 research sample

According to Shukla (2020), sampling is the process of picking a subset of a bigger group of units to study. When
it's not possible to measure the whole population, the main reason for picking a small part of a larger group is to
make statistically significant connections for the whole population based on a small part. A mix of 50 probability
and non-probability picking methods will be used to pick a group that is representative of the whole. First, a list of
all banks in Zimbabwe, including commercial banks, private banks, and microfinance institutions, will serve as the
sample frame. Next, chance sampling will be used to pick banks from this list that are representative of all of them.
Non-probability picking will then be used to choose volunteers from each chosen bank.This includes purposive
sampling to select bankers and officials with knowledge in fintech adoption and snowball sampling to select
customers who have dealt with fintech banking services.The sample will be split into three groups: bankers,
regulators, and clients. Bankers will include professionals from different banking and finance fields with
experience in fintech adoption.

Calculating sample size

Raosoft sample calculator=

Where:

⚫ n = required sample size

35
⚫ N = population size (total number of individuals in the group)

⚫ Z = Z-value (the number of standard deviations from the mean corresponding to your confidence level)

For 90% confidence, Z ≈ 1.645

For 95% confidence, Z ≈ 1.96

For 99% confidence, Z ≈ 2.576

⚫ p = estimated proportion of the population (if unknown, use 0.5 for maximum sample size)

⚫ E = margin of error (expressed as a decimal, e.g., 5% = 0.05)

Population = 1000 ,confidence level we can use 95% ,margin of error 5%,estimated proportion of population is
50%

Sample size is 278 which is more than 100 we can confidently use 100 as the sample size

Regulators will comprise officials from the Reserve Bank of Zimbabwe, the Ministry of Finance, and other
regulatory bodies. Customers will include people and businesses that have utilized fintech-powered banking
services. Data collection will involve surveys, interviews, and focus groups, leveraging both online and offline
means to reach people from varied areas and backgrounds.

The selection strategy is supported by the need to select a diverse and knowledgeable group that can provide in-
depth insights into fintech adoption in Zimbabwe's banking industry. Probability sampling ensures
representativeness, while non-probability sampling allows for the selection of people with special skills and
experiences. Combining the two methods makes it possible to record a variety of views and experiences, which
improves the results' validity and dependability (Etikan et al., 2016). This study aims to provide a rich and detailed
understanding of the experiences, views, and opinions of bankers, regulators, and customers regarding fintech
deployment in Zimbabwe's banking sector by picking a group of 100 participants.

36
3.5 data collection methods and instruments
This study uses a multi-method approach, combining surveys, interviews, and focus groups to gather both
quantitative and qualitative data from a sample of 100 people. This method allows for triangulation, improving the
logic and consistency of the results (Creswell & Creswell, 2020).

Surveys are used to collect numeric data through an organized online questionnaire, getting information on
demographics, AI adoption experience, and views of AI-powered banking services. This method is cost-effective,
easy, and allows for a big sample size (Etikan et al., 2016).

Interviews are performed to collect qualitative data, using semi-structured questions to gather in- depth information
on experiences, thoughts, and opinions regarding AI adoption in Zimbabwe's banking industry. This method offers
rich, detailed data and allows follow-up questions to clarify answers (Kvale & Brinkmann, 2015).

The study tools were picked for their ability to collect both quantitative and qualitative data, and to reach
participants from different areas and backgrounds. The combination of surveys, interviews, and focus groups gives
a full empathetic of the research study, giving a more complete picture of AI adoption in Zimbabwe's banking
industry.

3.6 data validity and reliability

The researcher ensured the truth and trustworthiness of the study by taking several steps. First, they met with their
supervisor to confirm that the research tools correctly counted the targeted variables, aligning with the study's
goals. This guaranteed construct validity, which is important for measuring the intended concepts (Creswell &
Creswell, 2020). To improve reliability, the researcher tried the study tools' ability to constantly give correct results
when repeated, ensuring consistency and dependability in the data collection process (Kline, 2015).

Regular talks with the supervisor and peer students throughout the research process further improved the study's
approach. This allowed for varied views and expert opinions, improving the validity and reliability of the results
(Marshall & Rossman, 2016). Additionally, the researcher sought comments from other students, which helped to
spot possible biases and limits, eventually improving the overall accuracy of the study.

To further prove validity, the researcher considered face validity, topic validity, and criterion validity. Face validity
ensured that the study tools looked to measure what they claimed to measure. t Content validity ensured that the

37
research tools covered the full range of ideas being examined. Criterion validity ensured that the study tools
predicted the expected results (Kline, 2015).

Moreover, the researcher guaranteed dependability by using a consistent data collection process, teaching data
collectors, and using a pilot study to test the research tools (Kline, 2015). This helped to reduce errors, improve
precision, and enhance the general reliability of the results.

3.7 data presentation and analysis plan

The numeric data received for this study will be given using descriptive statistics, tables, graphs, and charts.
Descriptive statistics will provide an overview of the basic aspects of the data, such as means, medians, and
standard deviations (Field, 2020). This will allow for a better understanding of the center trend and dispersion of
the data. Tables will be used to order and show the data in a clear and concise way, allowing for easy comparison
and analysis (Creswell & Creswell, 2020). Charts will be employed to visualize the data, making it easier to spot
trends, patterns, and connections (Few, 2020). For example, bar charts will be used to compare the frequency of
answers to survey questions, while line graphs will be used to show the trend of fintech growth in Zimbabwe's
banking industry over time.

The qualitative information gathered from interviews, and open-ended poll questions will be given via narratives.
This methodology will provide a more thorough study of the viewpoints, experiences, and views of the participants
concerning the benefits and difficulties in use of fintech into Zimbabwe's banking industry (Braun & Clarke, 2020).
Additionally, by using tales, themes and patterns that might not be seen through numeric data alone can be found
(Nowell et al., 2020). For instance, the tales will provide insight into the perceived benefits and limits of fintech in
banking, as well as the perceived hurdles to its acceptance. Thematic analysis will be used to find, code, and
categorize the themes that appear from the data (Braun & Clarke, 2020).

This study will adopt a mixed-methods approach, combining both quantitative and qualitative data analysis
methods to provide a complete understanding of the possibilities and challenges of incorporating fintech in
Zimbabwe's banking industry. This combined method allows for a more complete understanding of the research
question and gives a more detailed understanding of the data.

Quantitative data analysis methods will be used to describe and explain the demographic qualities of the subjects
and their answers to the survey questions. Descriptive statistics (mean, median, mode, standard deviation) will
38
provide a summary of the data, will be applied to study the links between factors and test ideas about the
differences between groups. These quantitative methods work great for looking at the poll data, which is made up
of numbers and can be analyzed with statistical methods.

Qualitative data analysis methods will be used to find, code, and sort themes and trends in the interview and focus
group data. Thematic analysis will provide a better understanding of the subjects' experiences, views, and opinions,
while content analysis will study the number and strength of themes and patterns in the qualitative data. These
qualitative methods are ideal for studying the interview and focus group data, which is written and needs a more
interpretive approach. Finally, mixed methods analysis will be used to combine the quantitative and qualitative
results, giving a full understanding of the study event. By mixing the two approaches, the researcher can find trends
and themes that may not have been apparent through a single method approach. This combined method allows for a
more full understanding of the study question and gives a more thorough knowledge of the data

3.8 Ethical considerations

The rise of fintech has greatly transformed the banking sector, bringing both opportunities and challenges. Here are
some key ethical factors to contemplate:

1. Data Privacy and Security

⚫ User Consent: Ensure that customers are fully aware of how their data will be used and receive explicit
consent.

⚫ Data Protection: Implement strong security steps to protect sensitive financial information from breaches and
unauthorized access.

2. Accessibility and Inclusion

⚫ Digital Divide: Address the risk of excluding individuals without access to technology or the internet,
especially in underbanked communities.

⚫ User-Friendly Design: Create platforms that are intuitive and available for users of all ages and tech-savviness.

3. Transparency and Fair Practices

39
⚫ Clear Communication: Provide clear and transparent information about fees, terms, and conditions connected
with fintech services.

⚫ Avoiding Hidden Charges: Ensure that there are no deceptive practices that could lead to unexpected costs for
users.

4. Consumer Protection

⚫ Fraud Prevention: Develop robust mechanisms to protect consumers from fraud and scams that can come from
new digital platforms.

⚫ Dispute Resolution: Establish effective methods for resolving disputes between consumers and fintech
businesses.

5. Algorithmic Bias and Fairness

⚫ Bias in Algorithms: Regularly audit algorithms to ensure they do not perpetuate biases against certain groups.

⚫ Fair Lending Practices: Ensure that lending practices are fair and do not discriminate based on race, gender, or
socioeconomic position.

6. Regulatory Compliance

⚫ Adhering to Regulations: Stay compliant with existing banking regulations and push for new regulations that
address the unique challenges posed by fintech.

⚫ Collaboration with Regulators: Work with regulatory bodies to build frameworks that ensure consumer
protection and market integrity.

7. Impact on Employment

⚫ Job Displacement: Consider the potential effect of automation and AI on employment within traditional
banking roles.

⚫ Reskilling Initiatives: Invest in training programs to help displaced workers transition to new jobs in the
fintech landscape.

40
8. Sustainability and Social Responsibility

⚫ Environmental Impact: Assess the environmental impact of fintech activities and aim for sustainable practices.

⚫ Community Engagement: Encourage fintech companies to invest in local communities and help to social well-
being.

3.9 Summary
The possibilities and challenges of using fintech in Zimbabwe's banking sector will be thoroughly examined
through a mixed methods approach that includes both quantitative and qualitative data collection and analysis. This
method makes it possible for polls with customers and managers to give information about how fintech is used and
how people feel about it, but also recognize the limits of using only quantitative methods and stress the value of
using qualitative data from conversations to get a better understanding. The study wants to get a full picture by
putting these results together. The mixed methods approach could also have problems, like the need for careful
planning and knowledge of how to handle and analyze data. But these problems can be fixed with things like a
clear study plan, a team that works together, and clear reporting. This method also takes more time and resources
than either quantitative or qualitative methods alone. For this study, the Pragmatic Paradigm is the best research
paradigm because it focuses on using research results to solve problems in the real world. This way of thinking fits
with the mixed methods approach and its focus on how environment affects things. This is especially useful for
looking into how fintech is being used in a growing economy. The Pragmatic Paradigm also allows for freedom in
research methods and stresses cooperation, crucial for working with various partners. The chosen study design is a
sequential explanatory mixed methods design. In the first phase, surveys and interviews are used to collect
quantitative data. In the second phase, interviews and focus groups with a smaller sample size are used to collect
qualitative data. This design allows for the collection of both numerical and written data, giving a more full picture,
and enables the use of quantitative data to find areas for further study with qualitative methods. Overall, the
sequential explanatory design is the most suitable due to its ability to mix quantitative and qualitative data
collection and analysis, its flexibility, and its capacity to provide a complete understanding impact of fintech in
Zimbabwe's banking sector.

41
 CHAPTER 4
4.1 Introduction

Findings from different types of data collection are analyzed in Chapter 4 of this study to find out the pros and cons
of using fintech in Zimbabwe's banking industry. This chapter uses both quantitative and qualitative data to give a
full picture of the current state of fintech growth in the field. The beginning of this chapter talks about how
important it is to analyze data in order to find ideas that are necessary for making smart decisions. By using a
mixture of methods, the study takes advantage of the best parts of both quantitative polls and qualitative 57–58
conversations. This makes sure that the analysis is strong and covers all the different aspects of fintech growth in
banking. This chapter prepares for a complete look at the data by explaining the methods that were used and why
they were chosen.

4.2 Response rate and demographics

This section examines the response rate, mostly using data from Section A of the questionnaire.
The information about the respondents and their demographics is what Section A is there to collect.
Important information is included, including participant completion rate and, most importantly,
gender, age, well as geographic location.

4.1.0 Interviews response rate

The number of people interviewed is presented in the table 4.1

Table 4.1: Summary of interviewees

Categories Interviewees
Bank Mangers 5
Customers 6

42
 Regulators 5
Operations manager 5
Bank tellers 6
Total 27

4.1.1 Questionnaire response rate

The response rate is the proportion of completed questionnaires that were gathered for the study.
The researcher used convenience sampling to select respondents, and then distributed 100
questionnaires to them in order to support the investigation. Figure 4.1 below shows the response
rate distribution that the study found.

43
 Figure 4.1: Summary of questionnaire response rate

Responses

Bankers
18%

Regulators Bankers
55% Customers
Customers
27%
Regulators

Source -Primary Data (2024)

Figure 4.1 shows that 100 people responded to the study. Of those 100, 55% were officials, 18% were bankers, and 27% were
customers. Out of the 100 people who took the poll, 91 finished it, which means that 91% of them answered. In 2009,
Mugenda and Mugenda said that an answer rate of 50% is enough for reporting and analysis, 60% is good, and 70% or more
is really great. As a result, the answer rate to this study is very high. A lot of different methods were used to get the really
high 91% answer rate (100 people). During the recruitment process, there was clear communication that stressed how
important the participants' efforts would be to the study. This method made sure that people who might be interested in taking
part in the study were properly educated and motivated to do so. To make sure everyone participated, people who didn't reply
got several follow-up messages.
4.1.2-Demographics
The demographic data of the respondents is provided in this section, it include the age, the genderas well
as geographic location of the respondents.

4.1.2.1-Age of respondents
The respondents' ages were determined by the study. Table 4.1.2.1 displays the outcomes.

Table 4.1.2.1-Summary of Interviewee age details

44
 Age Frequency Percentage%
18 -25 years 30 33
25-35 years 28 31
35-45 years 19 21
45-50 years 10 11
50 and above 4 4
Total 91 100%
Source -Primary Data (2024)
The above table 4.1.2.1 shows that ages 18-25 years took part the most, this is due to curiosity this age group is
curious and uses fintech especially for the future of banks. Another reason is due to social impact and development
stage. Only a few from the age group of 50 and above took part in both surveys and interviews this is because of
limited knowledge regarding fintech in the banking sector.

4.1.2.2-Gender

The respondents' gender was determined by the study. The table 4.1.2.2 displays the outcomes.

Table 4.1.2.2-Summary of Interviewee gender

Gender of respondents Frequency Percentage%
Male 43 47
Female 48 53
Total 91 100%
Source -Primary Data (2024)

45
 There is high response from females than males this might be due to high interest in topic as well
as communication style, females shared their thoughts and opinions in the interviews as
compared to the other gender.

4.1.2.3-Geographic location

The respondents' geographic location was determined by the study. Table 4.1.2.3 displays the
outcomes.

Table 4.1.2.3-Summary of Interviewees geographic location

Frequency Percentage%
Urban areas 78 86
Rural areas 13 14
Total 91 100%
Source -Primary Data (2024)

The above table 4.1.2.3 shows that most respondents re from urban areas that is 86% while the
remaining 14% is from urban areas. Response rate is high from urban areas due access to
technology, schooling and level of literacy as well as exposure to the research while the response
from rural areas is low due to factors such as less exposure to research and the geographic isolation.

4.2 Current fintech applications in Zimbabwe

Assessing the current fintech applications in Zimbabwe’s banking sector was the study’s first goal.
Table 4.2 displays the generated results.

46
Table 4.2-Responses on Current fintech applications in Zimbabwe

Rating statement Strongly Agree Disagree Strongly Total Mean SD

Agree Disagree
Chatbots in Banks 62 21 5 3 91 3.4505 6.808

68% 23% 6% 3% 100%

fraud detection - 4 20 67 91 0.8681 0.5135

4% 22% 74% 100%

Personal financial recommendations 36 24 22 9 91 2.472 5.2623

40% 26% 24% 10% 100%

process loan applications 20 19 29 23 91 1.758 3.969
automatically
22% 21% 32% 25% 100%
Source -Primary Data (2024)

Based on the data from table 4.2 it appears that the majority of respondents (68%) strongly agree
that their bank currently uses Chatbots for customer services, suggesting that Chatbots are a
common tool used by banks for customer service and respondents are aware of their presence,
only, a few which is 3% of the respondents who are not aware Chatbots. In the interviews 18 out
of 27 people alluded to being aware of Chatbots; however, 6 out of 27 are not aware of the position
of Chatbots in banks. Based on the interview data, it is evident that Zimbabwean banks are
currently utilizing technologies in different capacities. One customer noted that Chatbots are
highly used, while another stated its application in collecting customer-specific data through big
data analytics. Additionally, an interviewee claimed that fintech is utilised on websites for
customer service assistance. Both the interviews and questionnaire show high use of the Chatbots
in customer enquiries and services. However, bank employees have more information on Chatbots
as reflected by the questionnaire as well as the interviews. The data also showed that 74% of the
47
 respondents are not aware fraud detection systems used by banks, only 4% agree to be aware of
fraud detection systems; however 16 out of 27 people in interviews are aware of the use of fintech
fraud detection systems. One bank manger stated that fintech is the future of banking especially in
reducing fraudulent activities. Interviews showed high knowledge of fintech in banking whereas
questionnaires indicated high results of not being aware of fraud detection. The data also indicates
that high-rate respondents are aware of banks utilizing fintech for personalised financial
recommendations; 23 out of 27 interviewees being aware of those systems also support this data.
Lastly, 25% of respondents strongly disagree that banks use fintech for automated loan processing;
only a few are aware of such a system. From interviews one customer noted that loans are provided
instantly through links from banks 4 out of 6 customers are aware of the personalised financial
recommendations.

Our linkert scale spans from 1 to 4 so it implies that all values close to 4 the highly agree and
numbers close to 3 are agreed and figures ranging around 2 imply it's a disagree and then figures
ranging around 1. Our replies fall between highly agreeing and agree as our statistics range from
0.8681 to 3.4505.It means that answers below 2 in mean they are below the agreement the
respondents are not agreeing with the assumptions

Overall, the data from both questionnaire and interviews suggests that respondents have
knowledge regarding current fintech applications in Zimbabwe but programmes regarding their
use and accessibility should be considered.

4.2.1 opportunities presented by fintech in the banking sector

The second objective sought to identity the opportunities presented by fintech in the banking
sector.SPSS V 20.0 was used to analyse the data, and the findings are shown in table 4.3.1

Table 4.3-Summary of responses on the opportunities of fintech in the banking sector

48
 Rating statement Strongly Agree Disagree Strongly Total Mean Standard
deviation
Agree Disagree
Potential to improve banking sector in 69 20 2 - 91 3.6923 7.1667

Zimbabwe 75% 23% 2% 100%

Enhancing security and fraud prevention 52 34 4 - 91 3.406 6.321

Capabilities 57% 37% 6% 100%

Convenient and customer centric 54 31 - 6 91 3.461 6.419407
388
banking experience 59% 34% 7% 100%
Valuable insights for decision making 80 - 11 91 3.6043 7.6172

within banks 88% 12% 100%

transforming banking sector in 91 - - - 91 4 8.124

Zimbabwe 100% 100%

Source -Primary Data (2024)
The data from table 4.3 shows an overwhelming majority of respondents (75%) believe that fitech has the potential
to greatly improve the efficiency of banking operations in Zimbabwe. A significant proportion of 2% disagrees
showing minority view that fintech may not have a significant impact on efficiency.
The data presented by interviews show that out of 27 interviewees 22 think that fintech has potential to improve
banking operations; however, the operational manager noted that banking apps are fast and reliable than going to
the bank itself. The data also shows that a significant majority of respondents (57%) think fintech can enhance
security and fraud prevention capabilities of Zimbabwean banks. A large proportion of 37% agree while 6%
disagree. Data from interviews showed that 20 out of 27 interviewees think the potential fintech has in improving
security and fraud capabilities. Thirdly data shows that a high rate of respondents believe that fintech driven
personalisation can lead to a more convenient and customer banking experience, however only 7% disagrees
showing scepticism about the potential of fintech. The data shows that 88% of respondents are aware of the useful
insights for decision making within banks, which is brought by fintech. Data from conversations agrees with the
questionnaire data as well showing 17 out of 27 people who are aware of fintech in decision making 100%
response is shown from both questionnaire and interviews in terms of how fintech is transforming the banking
industry.

49
Since our linkert scale ranges from 1 to 4 so it means that all figures close to 4 the strongly agree and numbers
close to 3 they are agree and figures ranging around 2 it means it’s a disagree and then figures ranging around 1
it’s a strongly disagree . From our results our figures are ranging from 2.59 to 3.91 so it means our responses are
ranging between strongly agreeing and agree.

Overall, when considering the possibilities for fintech to improve the efficiency and effectiveness of banking
operations in Zimbabwe, several interviewees voiced optimistic views. One interviewee predicted that fintech
would improve customer services, while another thought it would lead to faster services. Additionally, an
interviewee claimed that fintech will enhance fraud detection and protection, and another mentioned that it would
provide more accurate customer recommendations.
Overall, the data from both the questionnaire and interviews suggests that fintech is perceived as a technology with
significant potential to improve the efficiency and effectiveness of banking operations in Zimbabwe, particularly in
areas such as customer service, speed, fraud detection, and customer recommendations.

4.2.2 challenges associated with adopting fintech in the banking sector.

The third goal was to determine the difficulties that fintech poses for the bankingsector. The data was
analysed using SPSS V 20.0, and the results are displayed in the table 4.

50
Table 4.4-Response from challenges of adopting fintech in banking sector
Rating statement Strongly Agree Disagree Strongly Total Mean Standard
deviation
Agree Disagree
Job losses due to automation 48 22 11 10 91 2.846 6.0219

53% 24% 12% 11% 100%

Biasness and lack of fairness 27 21 33 10 91 1.98 4.5789

29% 23% 36% 11% 100%

Data privacy and security risks 43 31 12 5 91 2.967 5.7646

47% 34% 13% 6% 100%

High maintanance costs 74 17 - - 91 3.813 7.4021
81% 19%
100%
Unsure about fintech overall effect 40 20 21 10 91 2.5274 5.5072
on bank Customer service quality
44% 22% 23% 11% 100%

Source Primary data 2024

The data from table 4.4 shows that the respondents are divided regarding their concerns about possible challenges
associated with the incorporating of fintech in the banking sector. Some are certain about the challenges that can be
brought about by fintech in the banking while a few some are disagree that fintech can bring about challenges, this
indicates that the respondents lack understanding regarding the fintech applications 20 out of 27 interviewees are
aware of the challenges can brought about by the introduction of fintech in the banking sector. A bank manger noted
that globally the workers agreeing replaced by the by the fintech, thus Zimbabwe is likely to face job losses due to
the incorporation of fintech in banks. However, one customer noted that regardless of these difficulties fintech in
banks is making life easier for them in terms of customer enquiries and fast services when banking instead of going
to the bank itself. Results drawn from both interviews and questionnaires show high knowledge regarding challenges
of fintech in the banking sector.

51
Since our linkert scale extends from 1 to 4 thus it means that all figures close to 4 the highly agree and numbers close
to 3 they are agree and figures ranging around 2 it means it’s a disagree and then figures ranging around 1 it’s a
strongly disagree . From our results our statistics are varying from 1.98 to 3.813 therefore that suggests our mean has
no fixed variation however it is distributed between agreeing and not agreeing.

4.2.3 strategies for overcoming these challenges

The last and final objective was to recommend strategies for overcoming associated challenges in
adoption of fintech in Zimbabwe’s banking sector. The analyses data is shown in the table 4.5.

Table 4.5-Responses from strategies of mitigating fintech challenges in banking sector

Theme question Strongly Agree Disagree Strongly Total Mean Standard

deviation
agree Disagree
Ethics-based fintech adoption and 70 9 - 12 91 3.50549 7.1667731
policiescreated by the government. 77% 10% 13% 100% 4

Staff retraining and upskilling 78 9 4 - 91 3.72527 7.56074303

initiatives.
86% 10% 4% 100%
Establishing trust with clients through 41 34 10 6 91 2.98901 5.6549113

transparency in fintech decision-making 45% 37% 11% 7% 100%

Robust cybersecurity measures 69 16 - 6 91 3.62637 7.1483495

76% 17% 7% 100%

Funding education and awareness 89 2 91 3.91208 8.0342672

initiatives in banks 98% 2% 100%

Source-Primary data source (2024)

52
The data from table 4.5 shows that a high number of respondents agree with the strategies for
overcoming fintech challenges in banking. However , the results of building trust with clients
through transparency in decision making are low, most respondents do not agree with it, this might
be due to not understanding how this will be done .When considering strategies for overcoming
fintech challenges, interviewees offered various measures to prepare the workforce for fintech
environment and mitigate data privacy and security risks. To prepare the workforce, banking
manager recommended implementing training and professional development programs to equip
employees with the necessary skills to work successfully in an fintech environment.

To mitigate data privacy and security risks associated with fintech applications in banking,
interviewees suggested several steps. One out of 6 bank tellers emphasized the importance of data
encryption to protect sensitive information. Another interviewee recommended protection against
viruses and malware to prevent cyber-attacks, while another suggested implementing two-factor
authentication and access control to ensure that only authorized personnel have access to sensitive
data.
The interviewees also stated that training and reskilling are crucial strategies for overcoming
challenges in fintech implementation in the banking sector. As fintech technologies continue to
evolve, banks must invest in programs that upskill their employees in fintech-related areas, such
as machine learning, data science, and programming. This enables employees to effectively
develop, implement, and maintain fintech systems, ensuring a smooth transition to fintech-driven
processes.Moreover, reskilling programs help employees adapt to new roles and responsibilities,
minimizing the risk of job displacement.

Modernizing IT infrastructure is the interviewees also mentioned another essential strategy for
successful fintech implementation in banking. Legacy systems and outdated infrastructure can
hinder the adoption of fintech, making it necessary for banks to invest in modernizing their IT
infrastructure. This includes upgrading hardware, software, and network resources to support the
processing and analysis of large data sets, as well as ensuring seamless integration with existing
systems. By modernizing their IT infrastructure, banks can create a robust foundation for fintech
adoption, enabling them to harness the full potential of fintech and stay competitive in the market

Since our linkert scale ranges from 1 to 4 so it means that all figures close to 4 the strongly agree
and numbers close to 3 they are agree and figures ranging around 2 it means it’s a disagree and
53
 then figures ranging around 1 it’s a strongly disagree . From our results our figures are ranging
from 2.59 to 3.91 so it means our responses are ranging between strongly agreeing and agree.

Overall, the data from both questionnaires and interviews suggests that banks can overcome
fintech challenges by investing in workforce development and implementing robust security
measures toprotect data and prevent cyber threats. By adopting these strategies, banks can ensure
a smooth transition to a fintech environment and maintain the trust of their customers.

4.3 Challenges

The detailed summary of Chapter 4 encompasses the findings derived from the analysis of the
collected data, presenting a nuanced understanding of the opportunities and challenges associated
with fintech in Zimbabwe's banking sector. The chapter dives into the prevalence of fintech
technologies currently in use, highlighting key areas such as customer service, fraud detection, and
personalized financial services. It identifies significant opportunities presented by fintech,
including enhanced operational efficiency, improved customer experiences, and better risk
management. However, theanalysis also reveals substantial challenges, such as concerns over data
privacy, the potential displacement of jobs, and the need for substantial investment in technology
and skills development. The chapter discusses the perspectives of various stakeholders, including
bankers, customers, and regulatory officials, providing a balanced view of the enthusiasm and
apprehensions surrounding fintech adoption. By synthesizing the quantitative and qualitative data,
the chapter offers comprehensive insights into how fintech is shaping the banking sector in
Zimbabwe, concluding with strategic recommendations to address the identified challenges and
leverage the opportunities for a more effective and innovative banking environment. According to
empirical literature, most people are expected to be using fintech due to the benefits it offers. This
means that it expects that the adoption rate of fintech has to go up significantly. Our data shows
that the number of registered users on digital sites has grown in the last few years, which works
with this. Also, the research stresses the importance of fintech in improving financial inclusion,
especially for groups that haven't had bank accounts before. Our results show that fintech projects
are expected to cut the number of people who don't have bank accounts to a more significant
number. This confirms the positive effects found in earlier studies. Collectively, these insights not
54
 only add to what is already known, but they also give us a more complete picture of how fintech
has changed banking practices and customer behavior in Bulawayo.

CHAPTER 5 SUMMARY CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

Here in Chapter 5, the results of the study that looked into the pros and cons of using fintech in
Zimbabwe's banking field are put together. The goal of this chapter is to summarize the most
important findings, look at what they mean, and talk about the possible future of fintech in
Zimbabwe's banking business. The chapter starts with an overview of the research results, then
moves on to talk about the suggestions for further research, and finally ends with an overview of
the chapter. The main goal is to fully understand how fintech can be used in Zimbabwe's banking
sector in a way that is both successful and moral, taking into account both the opportunities and
problems that were found in the study.

5.2 Summary of the findings

One of the goals of the study was to find out what effects using financial technology might have
in Zimbabwe. The goal was to find out what makes the Zimbabwean banks want to use financial
technology, what effects financial technology might have on Zimbabwean. Also whether fintech
technology can help Zimbabwe's crisis.

The Technological Acceptance Model (TAM) and the Unified Theory of Acceptance and the use of
technology were the two primary principles that this study was founded on Technological acceptance
Model (TAM) is a framework established to describe how consumers come to accept and utilize
technology. It was introduced by Fred Davis in 1989 and has subsequently been widely implemented in
different domains, including information systems and banking. The model focuses on the elements that
impact consumers' decisions to adopt new technology.

55
Unified Theory of Acceptance and Use of Technology (UTAUT) incorporates parts from TAM and
other theories, adding components including performance expectancy, effort expectancy, social
influence, and enabling factors.

The researcher employed the interpretive paradigm during this investigation. The researcher picked this
paradigm because it allows the researcher to examine the world via the views and experiences of the
participants. Chong, (2017) claim that an interpretivist research philosophy allows the researcher to use
participant’s experiences to create and interpret his understanding from the acquired data. A deductive
research technique was employed which is more flexible and includes spotting patterns in a data set to
achieve conclusion.

The researcher employed mixed approach, qualitative and quantitative research methodology option
which combines the numerical representation and manipulation of observations so as to explain and
describe the processes that the observations reflect. A single case study research technique
concentrating on fintech sector enterprises in Zimbabwe was adopted. The questionnaire was employed
as the study tool to acquire data. Data types employed were both primary and secondary data and the
stratified sampling and convenience sampling procedures were used to choose the sample for the
investigation. Challenges were faced while performing this investigation.

Getting approval from the tested companies took a while. Also several respondents had hectic
schedules and thus took a long time before they could answer to the questionnaire. The researcher,
nevertheless managed to overcome these hurdles by securing a letter of recommendation from the
college. The researcher was very tolerant with the respondents’ hectic schedules.

Data for this study were first coded and then entered into the SPSS Excel sheet. Data was examined
using both descriptive and inferential statistics. Services of statisticians were recruited to guide the data
analysis process.The study applied multiple statistical methodologies to quantitatively examine the data.
The data was provided in the form of tables and pie charts

56
5.3 Conclusion
Objective 1 Assess the fintech applications in the banking sector in Zimbabwe.

This study was assessing the fintech applications in the banking sector in Zimbabwe, it is clear
that these innovations are playing a pivotal role in transforming the financial landscape. The
adoption of fintech solutions has greatly enhanced accessibility to financial services, especially for
underbanked populations, thereby promoting greater financial inclusion. Furthermore, the focus
on mobile banking and digital wallets has streamlined transactions, making banking more efficient
and user-friendly.

Despite these advancements, obstacles such as regulatory hurdles and cybersecurity concerns
continue. Addressing these problems is crucial for creating a secure and robust fintech ecosystem.
Overall, the growth of fintech applications in Zimbabwe's banking sector not only shows a shift
towards modernization but also lays the groundwork for sustainable economic development.
Continued collaboration among stakeholders, including fintech companies, traditional banks, and
regulatory bodies, will be important to harness the full potential of these technologies and ensure
that they contribute positively to the financial well-being of all Zimbabweans.

Objective 2 To identify the opportunities presented by fintech In the banking

sector.

This research aimed to identify the opportunities offered by fintech in the banking sector,
highlighting the transformative potential of these technologies in enhancing financial services.
Throughout the study, it became clear that fintech innovations offer significant advantages,
including increased accessibility, improved efficiency, and enhanced customer experiences.

One of the foremost opportunities found is the ability of fintech to bridge the gap between
traditional banking services and underserved groups. By leveraging mobile banking and digital
platforms, fintech can reach customers in remote areas, thereby promoting financial inclusion and
reducing the barriers to accessing important financial services.

Additionally, the adoption of advanced technologies such as artificial intelligence and big data
analytics presents banks with the chance to offer personalized services, optimize operations, and
make data-driven decisions. These technologies allow banks to better understand customer needs,
tailor their offerings, and enhance risk management practices.
57
 Moreover, the collaborative potential between fintech companies and traditional banks makes a
dynamic ecosystem where innovation can thrive. Partnerships can lead to the development of new
goods and services that cater to the evolving demands of consumers, eventually driving growth in
the banking sector.

Despite these opportunities, it is crucial for stakeholders to remain vigilant regarding regulatory
challenges and cybersecurity risks linked with fintech. Addressing these concerns will be vital to
ensuring a sustainable and safe fintech environment.

Objective 3 To establish challenges associated with adopting fintech in the banking sector.

This research set out to establish the challenges associated with adopting fintech in the banking
sector, showing a complex landscape marked by both potential and obstacles. Through thorough
analysis, several key challenges emerged that impact the successful integration of fintech solutions
within traditional banking frameworks.

First and foremost, regulatory compliance remains a major hurdle. The rapid pace of fintech
innovation often strips current regulatory frameworks, leading to uncertainty for banks regarding
compliance requirements. This mismatch can stifle innovation and discourage investment in
fintech partnerships, as banks manage the complexities of adhering to regulatory standards while
trying to stay competitive.

Additionally, cybersecurity worries pose a critical risk to the adoption of fintech. As financial
services increasingly rely on digital platforms, the threat of cyberattacks grows, making it
imperative for banks to spend heavily in security measures. The possibility for data breaches not
only jeopardizes customer trust but also necessitates ongoing investment in technology and
training, which can strain resources.

Another notable issue is the cultural resistance within traditional banking companies. Many
established banks work under legacy systems and practices that may not align with the agile and
innovative nature of fintech. Overcoming this resistance requires a change in mindset and
organizational culture, which can be difficult to achieve without strong leadership and a clear
vision for integrating fintech solutions.

Moreover, the digital divide must be addressed to ensure that all segments of the population can
gain from fintech innovations. While fintech has the ability to improve accessibility, disparities in
58
 technology access and digital literacy can exclude vulnerable populations from participating in the
financial ecosystem.
Objective 4 To recommend strategies for overcoming these challenges.

This dissertation aimed to recommend strategies for overcoming the challenges associated with
the adoption of fintech in the banking sector. Through a thorough examination of the existing
barriers—such as regulatory compliance, cybersecurity threats, cultural resistance, and the digital
divide—several actionable strategies have emerged that can facilitate more effective integration
of fintech solutions. First, fostering a collaborative relationship between fintech companies and
regulatory authorities is essential.

Establishing regulatory sandboxes can allow banks to experiment with fintech innovations in a
controlled environment, providing insights that can inform future regulations. This approach not
only encourages innovation but also helps regulators understand the implications of new
technologies, leading to more adaptive and relevant regulatory frameworks. Second, enhancing
cybersecurity measures is critical. Banks should invest in advanced security technologies and
conduct regular audits to identify vulnerabilities.

Additionally, fostering a culture of cybersecurity awareness among employees through ongoing

training can significantly reduce the risk of breaches. Collaborating with fintech firms to share best
practices and tools can also strengthen overall security measures across the sector. To address
cultural resistance, banks must prioritize change management initiatives. This involves engaging
employees at all levels to create a shared vision for fintech integration.

Providing training and development opportunities can empower staff to adapt to new technologies
and workflows, fostering a more innovative organizational culture. Finally, bridging the digital
divide is vital for ensuring that fintech benefits are accessible to all. Banks should invest in digital
literacy programs and collaborate with community organizations to enhance technology access in
underserved areas. By promoting inclusivity, banks can not only expand their customer base but
also contribute to broader economic development.

5.4 Recommendations

1. Foster Collaborative Partnerships:

59
Recommendation: Encourage traditional banks to work with fintech companies to leverage their
innovative technologies. Establishing partnerships can ease knowledge sharing, improve service
offerings, and drive innovation. Regulatory sandboxes can help create a safe setting for
experimentation and collaboration.

2. Enhance Regulatory Frameworks:

Recommendation: Work with regulatory bodies to build adaptive regulations that accommodate
the rapid evolution of fintech. Policymakers should create frameworks that support innovation
while ensuring consumer protection and financial stability. Regular consultations with industry
stakeholders can ensure regulations stay current and effective.

3. Invest in Cybersecurity:

Recommendation: Banks should prioritize investment in robust cybersecurity means to protect

customer data and enhance trust in fintech solutions. This includes employing advanced
technologies such as AI for threat detection and conducting regular security audits to spot
vulnerabilities.

4.Promote Financial Literacy:

Recommendation: Implement educational efforts aimed at improving financial literacy among

consumers, especially regarding the use of fintech services. Empowering users with knowledge
about digital banking, investment options, and personal finance management can enhance their
ability to handle fintech solutions effectively.

5. Focus on User Experience:

Recommendation: Design fintech apps with user-centric principles to ensure accessibility and
ease of use. Conduct user testing and gather feedback to continuously improve the functionality
and design of digital platforms, catering to diverse customer needs.

6. Address the Digital Divide:

60
 Recommendation: Implement strategies to bridge the digital divide, ensuring that underserved
groups have access to fintech services. This could involve partnerships with community groups to
provide training and resources, as well as improving internet access in remote areas.

7. Leverage Data Analytics:

Recommendation: Utilize data analytics to improve customer insights and tailor financial products
to meet individual needs. Banks should spend in technologies that allow for personalized service
delivery, improving customer satisfaction and loyalty.

8. Monitor Industry Trends:

Recommendation: Establish a dedicated team within banks to watch fintech trends and emerging
technologies. Staying informed about industry developments will enable banks to adapt quickly
and stay competitive in a rapidly changing landscape.

5. 5 Suggestions

1.To learn about the quality of services in Fintech

From the study there must be simplicity of use of technology in Fintech services in order to encourage
all sorts of users. There must be 24x7 customer care to address the consumers problems. The goods and
services must be created based on the demands of the clients. There must be openness in regulations
and legislation in Fintech transactions. The concern must ensure speedier rate of approval in order to
grow the users for the services.

2.To learn the attractive Fintech products

From the research of appealing fintech goods there must be effective mobile payments, card integration
and smart card technology in the services for clients. The service firms must ensure least cost of
transaction for the users. The concern must produce information about successful block chain technology
integration and its advantages to the users. There must be chat bots to serve the clients in effective method.
The E-wallets must offer good features similar to other competitive providers. It must be altered regularly
based on the existing scenario.

61
3.To enable speed of services, convenience and simplicity in Fintech services
It must deliver clear reports and state of the transactions to the users. The app must be user friendly one.
It must be easy one to utilize all options supplied in the program. It must assure minimum data storage and
there must not be too disruption in the apps. The connection must be really fast. The access of program
must demand least storage of data

references

2014https://www.linkedin.com/pulse/20140703081533-253159716-the-evolution-of-financial services-in-
zimbabwe

After data and analytics, AI puts BFSI on upskilling path again

AI adoption in banking transformation Authored By – Globant Publishe August 2022

https://www.linkedin.com/pulse/ai-adoption-banking-transformation-globant

Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour.
Prentice-Hall.

Alagarsamya,and Mehroliab (2023)Exploring chatbot trust: Antecedents and behavioural outcomes

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10189503/

Allen (2020)Digital Marketing Models: The Technology Acceptance

Model https://www.smartinsights.com/manage-digital-transformation/digital-transformation-
strategy/digital-marketing-models-technology-acceptance-model/

Are We Ready for the Challenge of Banks 4.0? Designing a Roadmap for Banking Systems in Industry 4.0
Mehdiabadi , Tabatabeinasab , Spulbar , Yazdi and Birau(2020) https://mdpi-
res.com/bookfiles/book/7114/The_Financial_Industry_40.pdf?v1681543255

Arif(2024) NLP in Finance: Examining the Impact of Natural Language Processing in Financial and
Banking Services https://www.johnsnowlabs.com/examining-the-impact-of-nlp-in- financial-
services/#:~:text=Banks%20use%20NLP%2Dpowered%20chatbots,and%20provide%20
personalized%20financial%20advice.

62
Arrieta, A. F., Rodríguez, D. Z., & Gómez, J. M. (2020). Explainable AI in finance: A systematic review.
Expert Systems with Applications, 143, 112954.

Artificial Intelligence (AI): What It Is and How It Is Used by JAKE FRANKENFIELD Updated December
04, 2023 Reviewed by Gordon Scott
https://www.investopedia.com/terms/a/artificial-intelligence-ai.asp

Balu. L and Challa Rishitha, Banking 4.0 New Era in The Banking Sector, International Journal of
Advanced Research in Management (IJARM). 13(1), 2022. pp. 89-98.
https://iaeme.com/Home/issue/IJARM?Volume=13&Issue=

Bank 4.0: Banking Everywhere, Never at a Bank By Brett King

Banking 4.0: Transforming How Banks Deliver Value Mishra (2022)

https://www.valuebound.com/resources/blog/banking-40-transforming-how-banks- deliver-value

Betsun (2023) AI for fraud in financial services and Banking use cases and solutions
https://www.avenga.com/magazine/ai-for-fraud-in-financial-sector/

Bhattacharyya (2022)6 Applications of NLP in Finance https://www.analyticssteps.com/blogs/6-

applications-nlp-finance

Bryman, A. (2020). Social research methods. Oxford University Press.

By ADAM BARONE Updated March 28, 2023 Reviewed by SOMER ANDERSON

Caffrey Francis (2023) AI and Banking Consumers: Growing Fears on Being Controlled
https://coruzant.com/ai/ai-and-banking-consumers-growing-fears-on-being-controlled/

Chamboko, Richard, and Sevias Guvuriro. 2021. The Role of Betting on Digital Credit Repayment,Coping
Mechanisms and Welfare Outcomes: Evidence from Kenya. International Journal of Financial Studies 9:
10. https://doi.org/10.3390/ijfs9010010

63
Chandra Gundlapalli (2023) How To Overcome Five Roadblocks When Implementing AI/ML In The
Financial Sector assessed online at
https://www.forbes.com/sites/forbestechcouncil/2023/02/03/how-to-overcome-five- roadblocks-when-
implementing-aiml-in-the-financial-sector/?sh=5d57a5f85c54

Chidiebere Omasi (2024)Top 5 Challenges of Digital Transformation in

Banking. https://www.linkedin.com/pulse/top-5-challenges-digital-transformation-banking-
chidiebere-omasi-hdrhf/

Cochran, W. G. (1977). Sampling techniques. John Wiley & Sons.

Creswell, J. W. (2020). Research design: Qualitative, quantitative, and mixed methods approaches.
Sage Publications.

Culnan, M. J., & Bies, R. J. (2020). The privacy paradox: Personal information disclosure intentions versus
behaviors. Journal of Consumer Research, 46(4), 751-768.

Cybersecurity in Banking: Importance, Threats, Challenges Vitesh Sharma ,

2024https://www.knowledgehut.com/blog/security/cyber-security-in-banking

Davis, F.D. and Davis, F., 1989. Perceived usefulness, perceived ease of use, and user acceptance of
information technology. MIS Q. 13 (3), 319–340 (1989).

Debleena Majumdar,(2024) SECTIONSAfter data and analytics, AI puts BFSI on upskilling path again
https://economictimes.indiatimes.com/jobs/mid-career/after-data-and-analytics-ai- puts-bfsi-on-
upskilling-path-again/articleshow/107813430.cms?from=mdr

DEFINITION artificial intelligence (AI) Nicole Laskowski, Senior News DirectorLinda Tucci, Industry
Editor -- CIO/IT Strategy 2022
https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence

Divya Iyer (2024) For banks to drive the AI imperative, they must modernize core banking now
https://www.hfsresearch.com/research/core-banking-modernization-ai/

64
Dr Niyaz Panakaje and Madhura K. 2023): Bank for Tomorrow: Role of an Artificial Intelligence (AI)
in Banking Sector assessed online at
https://www.researchgate.net/publication/371938063_Bank_for_Tomorrow_Role_of_an_
Artificial_Intelligence_AI_in_Banking_Sector Assessed on 04/11/2023
Dr. Navleen Kaur, Supriya Lamba Sahdev, Dr. Monika Sharma and Laraibe Siddiqui, Banking 4.0: “The
Influence of Artificial Intelligence on the Banking Industry & How AI is Changing the Face of Modern
Day Banks”. International Journal of Management, 11 (6), 2020, pp. 577-585.
http://iaeme.com/Home/issue/IJM?Volume=11&Issue=6
E-BANKING ADOPTION BY ZIMBABWE BANKS An Exploratory Study FEATURED
PAPER By Tariro Mavaza https://pmworldjournal.com/article/e-banking-adoption-by- zimbabwe-banks.

Eubanks, V. (2020). Automating inequality: How high-tech tools profile, police, and punish the poor. St.
Martin's Press.

EXPLORING THE ADOPTION OF ARTIFICIAL INTELLIGENCE IN THE ZIMBABWE

BANKING SECTOR. European Journal of Social Sciences Studies, 2020. ISSN 25018590. Available
https://oapub.org/soc/index.php/EJSSS/article/view/942>. Date accessed: 28 March 2024. Doi:
HTTP://dx.doi.org/10.46827/ejsss.v5i6.942.

Faden, R. R., & Beauchamp, T. L. (2020). A history and theory of informed consent. Oxford University
Press.

Favour Olaoye and Kaledio Potter(2023) Ethical Considerations in Artificial Intelligence March
2024Machine Learning
https://www.researchgate.net/publication/379033670_Ethical_Considerations_in_Artifici al_Intelligence

Financial Technology (Fintech): Its Uses and Impact on Our LivesUpdated March 25, 2024
,Reviewed by ERIC ESTEVEZ ,Fact checked by SUZANNE KVILHAUG Assessed at
https://www.investopedia.com/terms/f/fintech.asp

Fintech Meaning -assessed online at https://builtin.com/fintech

65
Fintech: Ecosystem, business models, investment decisions, and challenges (Lee and Shin,2018)
https://www.sciencedirect.com/science/article/pii/S0007681317301246

Gillon, R. (2020). Philosophical medical ethics. John Wiley & Sons.

How Banking Works, Types of Banks, and How to Choose the Best Bank for You
https://www.investopedia.com/terms/b/bank.asp
https://www.sciencedirect.com/science/article/abs/pii/S1566253519308103#:~:text=Explainable
%20Artificial%20Intelligence%20(XAI)%3A%20Concepts%2C%20taxonomies%2C%2
0opportunities%20and%20challenges%20toward%20responsible%20AI

Human-Machine-Interaction in Innovative Work Environment 4.0 – A Human-Centered Approach

(Kreuzwieser, Andreas, Kimmig, Michel,et al 2023)
https://link.springer.com/chapter/10.1007/978-3-031-26490-0_5

Illia Pinchuk (2023) Data governance for banks: Top 5 benefits of

implementing https://diceus.com/data-governance-banks-benefits/

International Journal of Consumer Studies Digital consumer engagement in a social network: A literature
review applying TCCM framework

Investigating subjective norm and moderation effects. Information & Management, 44, 90–103.
doi:10.1016/j.im.2006.10.007

JINDAL (2022) AI and ML in Banking: How Technology is Revolutionizing the Banking Industry
https://www.hellotars.com/blog/ai-and-ml-in-banking-how-technology-is-
revolutionizing-the-banking-industry/

Julia Kagan Financial Technology (Fintech): Its Uses and Impact on Our Lives

Kanade (2022) What Is Machine Learning? Definition, Types, Applications, and Trends
https://www.spiceworks.com/tech/artificial-intelligence/articles/what-is-ml/

66
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities.
Educational and Psychological Measurement, 30(3), 607-610.

Kurakin, A. (2020). Adversarial examples in the physical world. IEEE Security & Privacy, 18(2), 14-23.

Leo, et al (2019)Machine Learning in Banking Risk Management:A Literature Review

https://www.studocu.com/da/document/copenhagen-business-school/quantitative- methods/leo-et-al-
2019-machine-learning-in-banking-risk-management-2/89177061

M.Sankar, Sudhakar Deivasigamani, Swapna Datta Khan, S.V. Pradeepa, Om Prakash C, L. Janaki. (2023).
Artificial Intelligence as a Game Changer Tool to Reshape the Banking Services in Digital Transformation.
European Economic Letters (EEL), 13(5), 1344–1350. https://doi.org/10.52783/eel.v13i5.915

Marikyan, D. & Papagiannidis, S. (2023) Technology Acceptance Model: A review. In S. Papagiannidis

(Ed), TheoryHub Book. Available at https://open.ncl.ac.uk / ISBN: 9781739604400

McKinsey (2022), Impact of AI In Banking: Opportunities and Challenges https://profinch.com/impact-of-

ai-in-banking-opportunities-and-challenges/

Mhlanga, David. 2021. Financial inclusion in emerging economies: The application of machine learning
and artificial intelligence in credit risk assessment. International Journal of Financial Studies 9:
39 https://mdpi- res.com/bookfiles/book/7114/The_Financial_Industry_40.pdf?v1681543255

Moloi, T., & Marwala, T. (2021b). Natural Language Processing in Strategy and Implementation. In
Artificial Intelligence and the Changing Nature of Corporations (pp. 77-95). Springer, Cham

Morgan, D. L. (2020). Integrating qualitative and quantitative methods: A pragmatic approach.

Sage Publications.

Nedović and Vladan ( 2002 )Devedžić Expert systems in finance

https://www.sciencedirect.com/science/article/abs/pii/S0957417402000271

67
Neil Charness, Walter R. Boot (2016) Technology, Gaming, and Social Networking, in Handbook of the
Psychology of Aging (Eighth Edition) https://www.sciencedirect.com/topics/social- sciences/technology-
acceptance-model

Opportunities and challenges of artificial intelligence in banking and financial services

Owczarek ,2022 ,AI-Based Fraud Detection in Banking and Fintech: Use Cases and Benefits
https://nexocode.com/blog/posts/ai-based-fraud-detection-in-banking-and-fintech-use- cases-and-benefits/

Patton, M. Q. (2020). Qualitative research & evaluation methods. Sage Publications.

Payne(2020) Reskilling and Upskilling in Banking: Preparing for the Future of Work
https://alphadevelopment.com/insights/reskilling-and-upskilling-in-banking-preparing- for-the-future-of-
work/

Punjani (2022) A STUDY OF LATEST TRENDS IN THE INDIAN BANKING AND FINANCIAL
SYSTEM
https://www.researchgate.net/publication/361361616_A_STUDY_OF_LATEST_TREN
DS_IN_THE_INDIAN_BANKING_AND_FINANCIAL_SYSTEM

Rayhan, Kinzle, Rayha, Rayhan, Dhaka,(2023) NATURAL LANGUAGE PROCESSING:

TRANSFORMING HOW MACHINES UNDERSTAND HUMAN LANGUAGE
https://www.researchgate.net/publication/373398043_NATURAL_LANGUAGE_PROC
ESSING_TRANSFORMING_HOW_MACHINES_UNDERSTAND_HUMAN_LANG UAGE

Saravanan, K., and K. Muthu Lakshmi. 2016. A Study on Banking Services of New Generation Banking in
the Indian Banking Sector. Purakala with ISSN 0971-2143 is an UGC CARE Journal 31: 552–61. [Google
Scholar]

Schepers, J., & Wetzels, M. (2007). A meta-analysis of the technology acceptance model:

Schmelzer, (2023) The top 5 benefits of AI in banking and finance the strategic deployment of AI in banking
and finance can bring substantial benefits. Learn about how AI tools are transforming financial
servicesand the risks to be mindful of.

68
https://www.techtarget.com/searchenterpriseai/feature/AI-in-banking-industry-brings- operational-
improvements

Schuh, Günther, Reiner Anderl, Jürgen Gausemeier, Michael ten Hompel, and Wolfgang Wahlster, eds.
2017. Industrie 4.0 Maturity Index: Managing the Digital Transformation of Companies. Acatech Study.
Munich: Utz, Herbert. [Google Scholar]

SCOOP. 2017. Industry 4.0: The Fouth Industrial Revolution Guide to Industrie 4.0. Available online:
www.i-scoop.eu/industry-4-0

September 2023International Journal of Science and Research Archive

DOI:10.30574/ijsra.2023.10.2.0947 Authors: Balaji Dhashanamoorthi
Infosys

https://www.researchgate.net/publication/375838058_Opportunities_and_challenges_of_
artificial_intelligence_in_banking_and_financial_services

Taşkın Dirsehan, and Liesbet van Zoonen(2022) Smart city technologies from the perspective of technology
acceptance
https://ietresearch.onlinelibrary.wiley.com/doi/full/10.1049/smc2.12040

Technology Acceptance Model -The technology acceptance model (TAM) is an information systems theory
that explain how to encourage users to accept and utilise new technology (Davis, 1989). From: International
Journal of Information Management, 2018

Teddlie, C., & Tashakkori, A. (2010). Foundations of mixed methods research: Integrating quantitative and
qualitative approaches in the social and behavioral sciences. Sage Publications.

Teddlie, C., & Tashakkori, A. (2010). Foundations of mixed methods research: Integrating quantitative and
qualitative approaches in the social and behavioral sciences. Sage Publications.

Teddlie, C., & Tashakkori, A. (2010). Foundations of mixed methods research: Integrating quantitative and
qualitative approaches in the social and behavioral sciences. Sage Publications.

69
Teddlie, C., & Tashakkori, A. (2020). Foundations of mixed methods research: Integrating quantitative and
qualitative approaches in the social and behavioral sciences. Sage Publications.

Teddlie, C., & Tashakkori, A. (2020). Foundations of mixed methods research: Integrating quantitative and
qualitative approaches in the social and behavioral sciences. Sage Publications.

The Use of Artificial Intelligence in Banking Industry International Journal of Social Service and Research
by Farishy (2023 )
https://www.researchgate.net/publication/372671363_The_Use_of_Artificial_Intelligence
_in_Banking_Industry

This article was published in Issue 2 of 2020 of the Institute of Bankers of Zimbabwe (IOBZ) Magazine
available on this LINK.

Umara Noreen , Attayah Shafique , Zaheer Ahmed and Muhammad Ashfaq (2023) Banking 4.0: Artificial
Intelligence (AI) in Banking Industry & Consumer’s Perspective assessed online at
https://www.mdpi.com/2071-1050/15/4/3682 Last assessed on 04/11/2023

Utilization of artificial intelligence in the banking sector: a systematic literature review Original Article
Published: 11 August 2022 Volume 28, pages 835–852, (2023)
https://idp.springer.com/authorize?response_type=cookie&client_id=springerlink&redire
ct_uri=https%3A%2F%2F2.zoppoz.workers.dev%3A443%2Fhttps%2Flink.springer.com%2Farticle%2F10.1057%2Fs41264-022- 00176-7

V.Venkatesh, M.G. Morris, G.B. Davis, F.D. Davis (2003)User acceptance of information technology:
Toward a unified view MIS Quarterly, 27 (3) (2003), pp. 425-478

Venkatesh, V., Bala, H.: Technology acceptance model 3 and a research agenda on interventions.
Decis. Sci. J. 39(2), 273–315 (2008). https://doi.org/10.1111/j.1540-5915.2008.00192.x

Venkatesh, V., Brown, S. A., & Bala, H. (2013). Bridging the qualitative-quantitative divide: A hybrid
approach to research in information systems. MIS Quarterly, 37(3), 565-595.

70
 Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User Acceptance of Information Technology:
Toward a Unified View. MIS Quarterly.

Winee Saikia, Abhigyan Bhattacharjee(2023) https://doi.org/10.1111/ijcs.12981

Yalamati, S. (2023). Enhance banking systems to digitalize using advanced artificial intelligence techniques
in emerging markets. International Scientific Journal for Research, 5(5), 1–24. Retrieved from
https://isjr.co.in/index.php/ISJR/article/view/203

Yi He,Qimei Chen &Sakawrat Kitkuakul |Len Tiu Wright (2018) Regulatory focus and technology
acceptance: Perceived ease of use and usefulness as efficacy
https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1459006

APPENDICIES
2.1 APPENDIX A QUESTIONNAIRE

Thank you for participating in this survey. This research aims to understand the current state of fintech
adoption in Zimbabwe's banking sector, exploring its potential opportunities and challenges. Your honest
responses will be invaluable to this study.

Instructions:

Please rate your level of agreement with the following statements using the scale provided below.

Scale:

1. Strongly Disagree

2. Disagree

71
 3. Neither Agree nor Disagree

4. Agree

5. Strongly Agree

Section A Demographics

Please mark your choice with an (X).A1

Indicate your age category.

18-25years
25-35 years
35-45 years
46-50 years
Above 50

72
A2 Indicate your gender

GENDER

Male
Female

GEOGRAPHIC LOCATION

A3 Indicate your location

Urban areas
Rural areas

OCCUPATION

A3 Indicate your occupation category.

Bankers
Regulators
Customers

73
Occupation

Indicate your occupation category.

Bankers
Customers
Regulators

Current AI Applications in Banking

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. My bank currently uses AI-poweredchatbots

for customer service inquiries.

2. I am aware of any frauddetection systems used

by my bank.

74
 3. My bank utilizes fintech for personalized
financial recommendations.

4. fintech is employed in my bank for automated

loan application processing.

5. I believe fintech plays a significant role in

transaction categorization and analysis within my
bank.

Opportunities of fintech for Banking

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. fintech has the potential to significantly improve

the efficiency of banking operations in Zimbabwe.

2. I believe fintech can enhance the security and

fraud prevention capabilities of Zimbabwean
banks.

75
3. fintech-powered personalization can lead to a
more convenient and customer-centric banking
experience.

4. fintech can offer valuable insights for financial

risk management and decision- making within
banks.

5. Overall, I am optimistic about the potential of

fintech to transform the Zimbabwean banking
sector.

76
Challenges of fintech in Banking

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. I am concerned about the potential job losses in

the banking sector due to automation.

2. The lack of transparency in algorithms raises

concerns about bias and fairness.

3. Data privacy and security risks associated with

applications in banking are a significant worry.

4. The high cost of implementing and maintaining

systems could be a barrier for some banks.

5. I am unsure about the overall impact of fintech

on the quality of customer service in banks.

77
78
Strategies for Overcoming fintech Challenges

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. The government should develop regulations and

frameworks for ethical implementation in banking.

2. Banks should prioritize employeere training and

upskilling programs to adapt to changes.

3. Transparency in decision-making processes is

crucial to build trust withcustomers.

4. Robust cybersecurity measures are essential to

mitigate data privacy and security risks associated
fintech

5. Investing in education and awareness programs

can help address knowledge gaps and concerns
within the banking sector.

79
2.2 APPENDIX B INTERVIEW

Introduction:

Thank you for agreeing to participate in this interview. This research aims to understand the currentstate of
fintech adoption in Zimbabwe's banking sector, exploring its potentialopportunities and challenges. This
interview will take approximately 15 minutes, and all your responses will be kept confidential.

Background (Brief)

1. Can you briefly describe your role and experience within the Zimbabwean banking sector?

2. How familiar are you with the concept of fintech and its applications in the banking
industry?

Current fintech Applications in Banking

1. In your experience, how are Zimbabwean banks currently using financial technologies?
(e.g.,Chatbots, fraud detection, personalized recommendations)

2. Are there any specific examples of fintech implementations within your bank (or banks
you arefamiliar with) that you find particularly impactful?

3. From your perspective, what are the main limitations or challenges hindering the wider
adoption of fintech in Zimbabwean banks?

Opportunities of fintech for Banking

1. Looking ahead, what opportunities do you see for fintech to improve the efficiency and
effectiveness of banking operations in Zimbabwe?

80
 2. How can finech be leveraged to enhance customer experience and satisfaction within
thebanking sector?

3. In your opinion, how can fintech contribute to improved risk management and
financialdecision-making within banks?

4. Overall, how optimistic are you about the potential of fintech to transform the
Zimbabweanbanking sector? (Probe: Why or why not?)

Challenges of fintech in Banking

1. What are your main concerns regarding the potential negative impacts of fintech
adoption inthe banking sector? (e.g., job losses, bias, data privacy)

2. How can these challenges be addressed to ensure responsible and ethical implementation
of fintech in banking?

3. What role do you see for government regulations and industry standards in promoting
responsible fintech adoption within the financial sector?

Strategies for Overcoming fintech Challenges

1. What strategies can be implemented by banks to prepare their workforce for the transition to a
more fintech-driven environment?

2. How can banks build trust with customers regarding the transparency and fairness of fintech-
powered decisions?

3. What steps can be taken to mitigate data privacy and security risks associated with AIapplications in
banking?

81
APPENDIX C DATA COLLECTION FORM

82
83
84
85
86
87
88
89
90
91