Exploring the state of internet banking services in Malawi
Frank Makoza
Abstract
This paper explored the state of internet banking in Malawi as an example of a developing country with a low financial inclusion rate (about 19%) in Africa. Drawing on concepts of the banking environment, services and usage of services, it explains the supply-side of internet banking using secondary data. Content analysis was used to analyse the secondary data. The findings showed that institutions, legislations and regulations related to payment systems were crucial in supporting an enabling environment for commercial banks to offer internet banking services. All the nine banks in the financial sector of Malawi were offering internet banking services to complement walk-in services, point of sale (POS) systems, auto teller machines (ATMs) and agency services. The study confirms the gap between internet banking services and other payment methods (e.g., mobile payments services and cash payments).