The Impact of Emerging Market Trends on the Development and Marketing of Financial Service Products in Zimbabwe Post Dollarization
Abstract
Abstract: The research sought to analyse the impact of emerging market trends as measured by competition, technology and consumer demographics on the development and marketing of financial service products in Zimbabwe post dollarization. The Zimbabwean financial service sector has been largely characterised by new and changing market trends since dollarization. These trends have largely manifested in the form of entrance of new players in the market, a growing informal sector at the expense of the formal financial sector and the emergence of new technology paving way for the need to develop and market new financial service products. There is therefore need for financial service providers in Zimbabwe to continually embrace innovative product development and marketing strategies so as to shape banking products to fit consumers’ evolving financial needs much of which are well beyond the realm of traditional banking products. An explanatory research design was adopted in conjunction with a descriptive research design. Results from the study indicate that the entry of new financial institutions, removal of barriers between institutions, emergence of non-regulated financial institutions, increased consumer access to financial information owing to increased adoption of technology, market fragmentation and increased formal unemployment have a significant impact on the way financial service products are structured, provisioned. In light of that, it is recommended that financial service providers should design and tailor new business models to suit the emerging market environment.
Keywords: Emerging market trends, development, financial services, Zimbabwe, post-dollarization
Downloads
References
Alao, A. E., Diyaolu, G. O. & Afuape, A. M. (2014). The changing trend in marketing of financial services: an empirical study on bank performance in Nigeria. International Journal of Business and Economic Development (IJBED), 2(2). Anand, S. & Murugaiah, V. (2004). Marketing of Financial Service: strategic issues. Ekerete, P. P. (2005). Marketing of Financial Services: A Case Study of Selected Merchant Banks in Nigeria. Pakistan Economic and Social Review, 3, 271-287. Estelami, H. (2012). Marketing financial services. 2nd Edition, Dog Ear Publishing.
Farquhar, J. D. & Meidan, A. (2010). Marketing Financial Services. 2nd ed. England: Palgrave MacMillan. Freedman, C. & Goodlet, C. (1998). The financial services sector: past changes and future prospects (No. 82). Bank of Canada. Grais, W. & Kantur, Z. (2003). The changing financial landscape: opportunities and challenges for the Middle East and North Africa. World Bank Policy Research Working Paper, (3050).
Gundani, K. (2015). Unpacking Banking Sector Challenges. The Zimbabwean Independent. Available at www.theindependent.co.zw. Accessed on 13 August 2015.
Harrison, T. & Estelami, H. (2014) Paradigm Shift in Financial Services Marketing. The European financial review. Available at www.europeanfinancialreview.com.
Jan, A. (2012). Services Marketing Theory Revisited: An Empirical Investigation into Financial Services Marketing. Journal of Business and Management, 4(4), 36-45. Available at www.iosrjournals.org. Accessed on 13 August 2015. DOI: https://doi.org/10.9790/487X-0443645
Joseph, A. (1997). Strategic Alliances in the Financial Services Sector: Implications for Trinidad and Tobago. Social and Economic Studies, 46(2/3), 199-229.
Kotler, P. & Armstrong, G. (2012). Principles of Marketing. 4th Ed. New Jersey: Prentice Hall.
La Croix, K., Stone, M. & Komolafe, F. (2002). Managing change in the financial services industry. Journal of Change Management, 3(1), 81-95. Available at www.tandfonline.com. DOI: https://doi.org/10.1080/714042519
Levin, P. (2013). Big Ambition Meets Effective Execution. How Eco Cash is Altering the Zimbabwe Financial Landscape. Accessed on www.gsma.com. Accessed 18 September 2015.
Mangudya, J. P. (2015a). Mid-Term Monetary Policy Statement: Beyond Stabilisation. Reserve Bank of Zimbabwe. Available at www.rbz.co.zw. Accessed 15 August 2015.
Mangudya, J. P. (2015b). Monetary Policy Statement: Rebalancing the Economy through Competitiveness and Compliance. Reserve Bank of Zimbabwe. Available at www.rbz.co.zw. Accessed 23 July 2015.
Mbiti, I. & Weil, D. N. (2011)Mobile banking: The impact of M-Pesa in Kenya (No. w17129). National Bureau of Economic Research. Available at www.econstor.eu. Accessed 23 August 2015. DOI: https://doi.org/10.3386/w17129
Moyo, T. (2008). Financial Sector Liberalization and the Poor: A Critical Appraisal. For the SAPRI – Zimbabwe Initiative Poverty Reduction Forum.
Nhavira, J. D. G., Mudzonga, E. & Mugocha, E. (2014). Financial Regulation and Supervision in Zimbabwe: An Evaluation of Adequacy and Options. Available at www.elibrary.acbfpact.org. Accessed on 26 August 2015.
Once, G. (2000). Services Marketing in the Banking Sector and Recent Perceptions in Marketing Thoughts. Available at www.opf.slu.cz. Accessed on 01 September 2015.
Sutton, C. N. & Jenkins, B. (2007). The Role of the Financial Services Sector in Expanding Economic Opportunity. Harvard University. Available www.havard.edu. Accessed on 27 August 2015.
Swankie, A. G. & Watson, C. (2006). Marketing Financial Services. Book 1. 4th Ed. The Chartered Institute of Bankers in Scotland. Available at www.charteredbanker.com. Accessed on 27 August 2015.
Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU) and Bankers Association of Zimbabwe (BAZ). (2014). Harnessing Resources from the Informal Sector for Economic Development. Available at www.baz.org.zw. Accessed on 12 August 2015.
Copyright (c) 2017 Journal of Economics and Behavioral Studies
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.