CAVENDISH UNIVERSITY ZAMBIA ASSESSING THE EFFECT OF FINANCIAL TECHNOLOGY ON COMMERCIAL BANK DEPOSITS IN ZAMBIA. A CASE STUDY OF ZANACO NAME : WEZI NYALAZI STUDENT NO : 002-997 COHORT : BACHELOR OF BUSINESS ADMINISTRATION SUPERVISOR : MR. JOHN C. PHIRI A dissertation submitted in Partial Fulfilment of the requirement for the Awards of The Bachelor’s Degree of Business Administration from Cavendish University of Zambia. Table of Contents ABSTRACT ................................................................................................................................... i DECLARATION........................................................................................................................... ii DEDICATION.............................................................................................................................. iii ACKNOWLEGEMENTS ........................................................................................................... iv LIST OF ACRONYMS ................................................................................................................ v LIST OF TABLES………. .......................................................................................................... vi LIST OF FIGURES .................................................................................................................... vii CHAPTER ONE 1.0 Introduction ........................................................................................................................... 1 1.2 Background……..…...……………………………………………………………………1-2 1.3 Statement of the Problem ...................................................................................................... 4 1.4 Research Purpose .................................................................................................................. 4 1.5 Rationale of the Study ........................................................................................................ 4-5 1.6 Objectives of the Study ......................................................................................................... 5 1.7 Research questions ................................................................................................................ 5 1.8 Significance of the Study ...................................................................................................... 5 1.9 Scope of the study…………………………………..……………………………………....5 1.10 Outline of the study………………………………………………………………………..6 CHAPTER TWO LITERATURE REVIEW ............................................................................................................ 7 2.1 Introduction ........................................................................................................................... 7 2.2 Theoretical Framework .................................................................................................... 7-14 2.3 Previous Studies ............................................................................................................. 14-20 2.4 Research Variables .............................................................................................................. 20 2.5 Conclusion........................................................................................................................... 20 CHAPTER THREE RESEARCH METHODOLOGY .............................................................................................. 21 3.1 Introduction ......................................................................................................................... 21 3.2 Research Philosophy and Approach.................................................................................... 21 3.3 Research Design ............................................................................................................. 21-22 3.4 Conceptual Framework………………………………………………………………...22-23 3.5 Source of data ................................................................................................................. 23-24 3.6 Sampling frame ................................................................................................................... 24 3.7 Data Collection Techniques ................................................................................................ 25 3.8 Data Processing Techniques ............................................................................................... 25 3.9 Reliability and Validity ....................................................................................................... 25 3.10 Ethical Considerations ...................................................................................................... 26 3.11 Limitation of Study ........................................................................................................... 26 CHAPTER FOUR DATA ANALYSIS ...................................................................................................................... 27 4.1 Introduction ......................................................................................................................... 27 4.2 Qualitative Data Analysis .............................................................................................. 27-30 4.3 Content Analysis ................................................................................................................. 30 CHAPTER FIVE DISCUSSION OF FINDINGS…………………………………………………………...…31-35 CHAPTER SIX CONCLUSION AND RECOMMENDATIONS ...................................................................... 36 Introduction ............................................................................................................................... 36 Conclusions and Implications .............................................................................................. 36-37 Recommendation ....................................................................................................................... 37 REFERENCES ....................................................................................................................... 38-40 APPENDICES ........................................................................................................................ 41-48 ABSTRACT Over the years, we have witnessed extraordinary advances in financial technology. This include innovation in mobile payments, digital currencies, peer-to-peer lending and many more. It is imperative to note that most of these financial technology innovations have emerged outside the traditional financial and banking system since they are largely driven by non-bank entities. The aim of this study is to summarize the research and findings in this developing field. It thereof assesses the effect it has brought on the traditional financial and banking system as it identifies the gaps in between and provides directions for further studies. Lastly, with the pressure that financial technology has erected in the traditional financial and banking system to embrace new technologies, the banking system has taken a significant step in this track in a quest to protect its stakeholders and its market. i DECLARATION I…………..,………………………..….declare that the work presented in this dissertation is original. It has not been presented to any other university or institution. Where the work of other people has been used references have been provided. It is in this context that I declare this work as originally mine, and it is hereby presented in in fulfillment of the requirements for the award of the Bachelor of Business Administration, Cavendish University, Zambia. Student’s signature………………………...… Date……………… I…………………………....…being the supervisor, has read this dissertation and approved it for the requirements of the Bachelor of Business Administration, Cavendish University, Zambia. Supervisor’s signature…………………….…. Date……………………. ii Dedication This study is dedicated specially to my elder brother George and elder sister Jessie for their tireless effort and sacrifice to ensure I attain university education. My parents and rest of my siblings for their guidance, encouragement and caring support. The Almighty God for His never-ending blessings without which it is impossible to accomplish anything. iii Acknowledgements Thank you to my supervisor, Mr. J.C Phiri for providing guidance and feedback throughout this project. iv List of Acronyms ACH- Automated Clearing Houses APIs - Application Programming Interfaces ATMs-Automated Teller Machines BoZ- Bank of Zambia CCPC- Competition and Consumer Protection Commission COVID-19- Corona Virus 2019 FinTech-Financial Technology ICT- Information and Communications Technology IT- Information Technology MoH- Ministry of Health MNOs- Mobile Network Operators MoMo- Mobile money MTN- Mobile Telephone Network PACRA- Patents and Companies Registration Agency SMEs- Small and Medium Enterprises UNCDF- United Nations Capital Development Fund W.H.O- World Health Organization ZANACO- Zambia National Commercial Bank ZECHL- Zambia Electronic Clearing House Limited ZICTA- Zambia Information and Communications Technology Authority v List of Tables page Table 1: Platform………………………………………………………………………….....42 Table 2: Preference………………………………………………………………………......42 Table 3: What influence has fintech brought?…………………………………………….....42 Table 4: Relevance of banks………………………………...…………………………….....42 Table 5: Gender composition of respondents……………..……………………………….....43 Table 6: Age of respondents……………………………………………………………….....43 vi