Abstract :

The financial services sector in Zambia has become increasingly exposed to the ever-growing challenges posed by mobile network operators (MNOs). The introduction of mobile money by MNOs has witnessed increased usage of mobile money services. During the same period, there has been a noticeable decline in the usage of digital banking services. The research study therefore sought to establish whether there was a correlation between increased usage of mobile money services and usage of digital banking services in Zambia. The study was quantitative in nature and was based on secondary data sources. Data from 19 of the 21 digital financial services providers in Zambia were analysed using times series trend analysis and simple linear regression analysis. In order to establish whether a correlation existed between increased usage of mobile money services and usage of digital banking services in Zambia, a t- test was conducted. This acted as a guide to the decision as to whether or not to accept or reject the null hypothesis. The study failed to reject the null hypothesis and therefore concluded that no correlation existed between increased usage of mobile money services and usage of digital banking services. However, the study expounded the research results in terms of Schumpeter, Christensen and Foster’s ideas on disruptive innovation.

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Keywords :

Creative Destruction; Disruptive Innovation; Digital Financial Services; Digital Banking Services; Financial Services Sector; Innovation; Mobile Network Operators; Mobile Money Services

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