Impact of Digital Transformation in the Remittances Sector in Zimbabwe

Abstract

This study was conducted to investigate the impact of digital transformation in the remittances sector in Zimbabwe. To achieve the major objective, the study used descriptive design and simple random sampling to gather data from Mukuru customers. Forty-five sites were selected from a total of 450 Mukuru sites (representing a 10% sample size). The research stratified the sites into six regional management zones and targeted to select 10 from each. Within each stratum, the research applied simple random sampling technique using random number tables to select the participating sites. At the end, the 6 samples were then combined to form the overall sample. The study used digital questionnaires to collect data. The sample population was the company's walk-in customers across the six provinces within the company’s regional subdivisions. The study used convenience sampling to select participants. The target was at least fifty customers per location for all the locations, and this exercise was carried out over a calendar month resulting in at least 1200 responses per location for the duration of the exercise. Chi square tests were done on the categorical data obtained from the chosen variables. The variables under study were type of device, place of residence, age, and remittance value. The research findings reveal a notable disparity in technology utilization within the remittance sector with 60% of the customers used Feature phones to transact, while 30% used android and 10% used other devices such as iPhone. More customers below the age of 30 use advanced android technology (12 %) compared to the other age groups i.e., middle-aged people, which is at par with senior citizens.at which were at 9 %, respectively showing that the customers below 30 years of age have a higher appetite for technology. Consequently, this has the effect of slowing digital advancement and consequently digital financial inclusion. It is from this result that the study highlights that the kind of remittances that are pushed through basic phones result in cash withdrawals as a means of cashing out. It implies that the country is still a bit far in terms of cashless transactions that result from remittances. This underscores the digital divide, where a considerable portion of the population remains anchored to rudimentary technology. Results indicated that majority of those transacting with basic technology are rural area dwellers, so the study recommended that remittance companies lead the way by providing their front-line staff with advanced technological gadgets. Leveraging on the NGO system that reach out to rural people to give food aid and relief cash transfers, Mukuru can partner on an NGO funded device disbursements together with cash so that they have basic Android devices; it is also a form of technological hunger that needs the assistance of donors. Furthermore, Mukuru can engage in customer awareness campaigns so that they pique their customer’s interest to shift to advanced devices from the obscure feature phones.