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August 21, 2025Open Access

Evaluating the Effect of Financial Technologies and Agency Banking on the Financial Performance of Selected Commercial Banks in Zambia

CKChileshe KasondeUniversity of Zambia RYRomeo YohaneUniversity of Zambia

Puntos clave

Financial performance is significantly influenced by the adoption of fintech, and a notable correlation exists between fintech use and banking outcomes.
Data indicates that 51% of bank employees reported no use of fintech services, highlighting the reliance on traditional methods in the sector.
Research utilized a mixed-methods approach, collecting quantitative data from financial reports and qualitative data from interviews with bank staff.
Addressing challenges like implementation costs and cybersecurity risks is essential for enhancing service delivery and fostering financial inclusion.

Resumen

This study evaluated the effect of financial technologies (FinTech) and agency banking on the financial performance of selected commercial banks in Zambia. The primary aim of this dissertation was to determine the extent to which FinTech and agency banking could enhance financial performance in Zambian commercial banks, while simultaneously addressing challenges related to financial inclusion, operational costs, and technology integration. The research objectives included identifying banks that have adopted agency banking, evaluating the impact of FinTech and agency banking on financial performance, and developing strategies to integrate these technologies effectively. A mixed-methods approach was employed, combining quantitative data from financial reports and qualitative insights from semi-structured interviews with bank employees and agents. The findings reveal a significant reliance on traditional banking practices, with 51% of respondents not utilizing any FinTech services. The inferential statistics from the regression analysis further emphasize this landscape; the model summary indicates a moderate correlation (R = 0.593) between FinTech adoption and financial performance, suggesting that the extent of FinTech use could significantly influence operational outcomes. While some banks, like Access Bank Zambia, demonstrated improved financial metrics due to FinTech adoption, scepticism remains regarding the overall impact of agency banking on customer acquisition and retention. Key challenges identified include high implementation costs, cybersecurity risks, and inadequate infrastructure. The limitations included the sample size, which was limited to 93 participants; there was a reliance on self-reported data from bank employees and agents and the varying levels of FinTech and agency banking adoption among the selected banks complicated clear comparisons and analyses, making it challenging to present and discuss the findings comprehensively. The study recommends that banks prioritize investments in technology infrastructure, enhance training and support for agents, and strengthen cybersecurity measures. By addressing these areas, banks can improve service delivery, operational efficiency, and ultimately foster greater financial inclusion within the Zambian banking sector.

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