The nexus between technological financial innovation and financial performance of commercial banks in Zimbabwe

Abstract

The present paper examines the nexus between technological financial innovation and financial performance in banking sector. A positivist philosophical orientation guided this paper wherein an eight year quarterly panel data for a time period ranging from 2015 to 2021 for thirteen commercial banks in Zimbabwe was adopted for data collection. STATA software was used to analyse the impact of each dimension of technological financial innovation on commercial financial performance. The results showed that the use of automated teller machines and internet banking have strong positive relationship with financial performance, whilst a weak positive relationship was established between mobile banking and financial performance of commercial banks. Moreover, an insignificant association was established between electronic funds transfer and financial performance of commercial banks. The major implication was that banks should intensify the adoption of financial innovation as it enhances their operations.