Challenges of E-Banking in Zambia
A CRITICAL EVALUATION OF THE CHALLENGES OF INTRODUCING E-BANKING TO RURAL AREAS OF ZAMBIA
A CASE STUDY OF ZANACO Chapter 1
1.0 Introduction
This chapter highlights the topics covering the background of electronic banking in relation to rural areas, problem statement, objectives, justification of the study followed by limitation of the study and ends with the disposition of the study.
1.1. Background
Banking for the rural community is a topic that requires attention in Zambia today, simply because the rural dwellers find it difficult to access banking services. With reference to many initiatives bank related around the world, electronic banking has proved to be a cheaper as well as cost effective way of offering financial services to those in rural areas. With the fast paced technological advancements, banks in Zambia are slowly introducing more electronic channels that enhance the access to financial services. Currently in Zambia we have two main electronic channels bank related, these being; Mobile banking and Automatic Teller Machine (ATM) banking.
Sadly, these electronic services have only been accessible to those along the line of rail, as this is the area that seems to have a larger concentration of development relative to the rest of the country. Delivery of financial services to rural areas has been dogged by many challenges. Technology offers the potential to dramatically decrease operational costs, improve the quality of financial information and makes banking for the rural community more profitable and less risky for mainstream financial institutions. The challenge is that developing a successful e-banking initiative for people in rural areas entails managing of a host of interrelated issues, technology, pricing, financial literacy, functionality, partnerships, delivery channels, POS distribution e.tc
This dissertation considers the strides that banks have taken to overcome some of the challenges that have harbored the technological
A CASE STUDY OF ZANACO Chapter 1
1.0 Introduction
This chapter highlights the topics covering the background of electronic banking in relation to rural areas, problem statement, objectives, justification of the study followed by limitation of the study and ends with the disposition of the study.
1.1. Background
Banking for the rural community is a topic that requires attention in Zambia today, simply because the rural dwellers find it difficult to access banking services. With reference to many initiatives bank related around the world, electronic banking has proved to be a cheaper as well as cost effective way of offering financial services to those in rural areas. With the fast paced technological advancements, banks in Zambia are slowly introducing more electronic channels that enhance the access to financial services. Currently in Zambia we have two main electronic channels bank related, these being; Mobile banking and Automatic Teller Machine (ATM) banking.
Sadly, these electronic services have only been accessible to those along the line of rail, as this is the area that seems to have a larger concentration of development relative to the rest of the country. Delivery of financial services to rural areas has been dogged by many challenges. Technology offers the potential to dramatically decrease operational costs, improve the quality of financial information and makes banking for the rural community more profitable and less risky for mainstream financial institutions. The challenge is that developing a successful e-banking initiative for people in rural areas entails managing of a host of interrelated issues, technology, pricing, financial literacy, functionality, partnerships, delivery channels, POS distribution e.tc
This dissertation considers the strides that banks have taken to overcome some of the challenges that have harbored the technological