The Impact of Electronic Banking on the Competitiveness of Commercial Banks in Zimbabwe (2014-2015)

The purpose of the study was to investigate the impact of e-banking on the competitiveness of commercial banks in Zimbabwe. With the world experiencing a global electronic revolution where almost every business transaction can be done through electronic means, Zimbabwean banks have not been left out. The rise of e-banking in Zimbabwe poses a challenge on the competitiveness of commercial banks. The study focused on the impact of e-banking on traditional banks' market share growth, profitability and customer satisfaction. A descriptive design was employed and a sample of 100 e-banking customers and 100 commercial banks' staff was used in this study. The study was conducted in the capital city, Harare. Questionnaires with closed questions were used to gather primary data. The research found out that the establishment of electronic banking has brought about an increase in bank profits due to a decline in the operating costs as well as an expanded market base. The study found out that convenience of e-banking services is the major reason for customer satisfaction. The research also found out that banks have put in place strategies including increasing ATMs, integrating with mobile telecommunications firms as well as building strong customer relations as means to minimize the impact of e-banking on their performance and competitiveness. The study recommended that commercial banks should expand their services to remote areas such as the rural areas