An assessment of the self-service technology (SST) on firm performance in the financial sector in Zimbabwe: A case study of FBC Bank 2009 - 11

Abstract

The fast advancing global information infrastructure such as information technology, computer networks, Internet and telecommunications have enabled the development of the electronic commerce at a global level. The nearly universal connectivity which the internet offers had made it invaluable business tool. These developments have created a new type of economy , which maybe called the “ digital economy”:This fast emerging economy is bring with it rapidly changing technologies, increasing knowledge intensity in all areas of business and creating virtual supply chains and new forms of businesses and service delivery channels such as Self Service Technology (SST). As a direct consequence of the emergence of the “digital economy”, the balance of power seems to be shifting towards the customers. Customers are increasingly demanding more value, with goods customised to their exact needs, at less cost, and as quickly as possible. To meet these demands, business needs to develop innovative ways of creating value which often require different enterprising architecture, different IT infrastructures and different way of thinking about doing business. This transformation of business from old company to a new agile electronic corporation not easy and required a lot of innovative thinking, planning and investment. This study is to find why the local banks have not managed to capitalise on the usage of self-service technologies yet the similar products are doing well in the developed countries such as the United States, Great Britain and Germany. The return on investment as the e-channels struggle to attain a critical mass for them to be profitable. The banks are only implementing the delivery channel as a loss leader and they continue to under pressure from the demanding public. The results indicate that the target market and product development has not been done well for the product to thrive. Product cannibalisation has been cited as the main cause why the products are failing as they are competing for thin resources. The market is largely unbanked and similar strategies have been deployed in Kenya and South Africa This study will focus on what they should do in-order to capitalise on technology as a game changing strategy.