The Future Of Digital Banking Services In Malawi: Exploring The Challenges And Growth

Abstract

Globally, banks continue to invest in Information and Communication Technology (ICT) to accelerate the growth of digital banking. Banks have now migrated from the usual “brick and mortar” to what is called “click and mortal”. Developing countries have not been left out, they are also doing anything possible to compete in the global market. This research aimed to explore the knowledge and usage of e-banking services, identify challenges that affect the growth of digital banking in Malawi and explore the growth strategies for the acceleration of digital banking services. Five banks in the Southern Region took part in this research where four customers from each bank were interviewed. Key informants from the banks were also interviewed to understand the challenges and possible remedies banks would use to accelerate digital banking growth. Using thematic analysis to analyze the data, the study came up with the following themes: lack of awareness (of banks’ products and services), banks’ complacence, the need for change and external factors challenges. Participants highlighted the need for the banks to act with urgency whenever they present their grievances to the bank. Automation of more services on e-banking was also highlighted as one of the areas that the banks need to improve on to keep away customers from the banking halls. The desire for cyber security enhancement and sentitisation of the banks’ products are services were also emphasized. These results have significant implications for policymakers, who have an important role to play in making sure that the country’s e-banking infrastructure and services are improved to have a conducive environment for digital banking adoption. The research was cross sectional as five banks were sampled for this research. It is therefore recommended that for future research, all the banks in the country should take part in this research to have a better perspective of the delivery of digital financial services. It is also important that for further research, third parties in the service delivery of digital financial services be included to also have a better understanding from all concerned parties.