TITLE:
The FinTech Evolution and Its Effect on Traditional Banking in Africa—A Case of Zambia
AUTHORS:
Edward Iluba, Jackson Phiri
KEYWORDS:
Financial Technology, Adoption, Diffusion of Innovation, Mobile Money
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.2,
March
31,
2021
ABSTRACT: The popularization of FinTechs has sparked new competition for banks as
FinTechs are said to be more convenient, efficient and faster unlike
bureaucratic requirements of financial institutions such as banks. The aim of
this study was to assess the factors leading to adoption of FinTech financial
services and how this affects traditional banking in Zambia. The objectives of
the study were to evaluate factors influencing the adoption of FinTech
financial services and to develop strategies that can help banks to remain
relevant and competitive. The study adopted a quantitative research approach to
collect data through self-administered questionnaires. The sample size was
arrived at using the Cochran formula. The respondents were selected based on a
convenient sampling technique which is a non-probability sampling method. The
study adopted the diffusion of innovation theory whose variables were used to
come up with hypotheses. The data collected through the questionnaires was
analyzed using Pearson Correlation and the SPSS software. Results indicated a
strong positive correlation of 0.450 between relative advantage and adoption.
Further, the study shows that there is a strong positive correlation of 0.621
between Compatibility and Adoption. The study proposes a revised model that
shows factors affecting adoption of an innovation that might help banks.