Impact of Information and Communication Technology (ICT) on the Growth of Microfinance Institutions (MFIs) in Zimbabwe

Givemore Moyo; Linnet Zimusi; Valentine Zimusi

doi:10.36948/ijfmr.2023.v05i04.5778

Impact of Information and Communication Technology (ICT) on the Growth of Microfinance Institutions (MFIs) in Zimbabwe

Author(s)	Givemore Moyo, Linnet Zimusi, Valentine Zimusi
Country	Zimbabwe
Abstract	The aim of the study was to evaluate the impact of Information and Communication Technology on the growth of Microfinance Institutions in Zimbabwe. The study used a sample of thirty (30) MFIs registered with the Reserve Bank of Zimbabwe, with operations in Harare Central Business District. A sequential explanatory research design was adopted with the view of adopting a mixed research approach. Purposive sampling technique was adopted. Data was gathered through interviews which were administered to branch managers of MFIs and questionnaires which were administered to MFI employees. The study revealed that most of the MFIs have partially adopted ICT. The study found out that customers’ lack of knowledge in the use of ICT, higher costs of setting up ICT, customers’ lack of ICT resources, poor network connectivity and ICT related complaints raised by MFI clients are the challenges faced by MFIs in adopting and using technology. The study revealed that adoption and usage of ICT has positively affected the operational growth of MFIs through improving revenue base, customers’ touch points, market share, and outreach to previously inaccessible customers, debt recovery and customers’ contact points. The study revealed that adoption and usage of ICT has positively affected the business efficiencies of MFIs through improvement in speed of execution of transactions, loan processing, communication with clients and business acumen of MFI employees. The study recommends that MFIs should advocate the institutions of higher learning in Zimbabwe to introduce banking and finance programmes linked with technology. The study also recommended that there should be collaboration between MFIs, technology companies and higher learning institutions to come up with technology driven products that are accessible and affordable to MFI clients.
Keywords	Information and Communication Technology, Microfinance Institutions, business efficiencies, operational growth, adoption and usage, customers’ touch points.
Field	Business Administration
Published In	Volume 5, Issue 4, July-August 2023
Published On	2023-08-30
Cite This	Impact of Information and Communication Technology (ICT) on the Growth of Microfinance Institutions (MFIs) in Zimbabwe - Givemore Moyo, Linnet Zimusi, Valentine Zimusi - IJFMR Volume 5, Issue 4, July-August 2023. DOI 10.36948/ijfmr.2023.v05i04.5778
DOI	https://doi.org/10.36948/ijfmr.2023.v05i04.5778
Short DOI	https://doi.org/gspcgj

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Impact of Information and Communication Technology (ICT) on the Growth of Microfinance Institutions (MFIs) in Zimbabwe

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