The aim of the study was to investigate the effect of mobile money services on Zambia’s banking sector profitability. Profitability was proxied by Return on equity (ROE) and Gross interest income (GII). Using the Johansen Cointegration approach on quarterly data for the period 2012Q1 to 2021Q4, the results suggest a positive relationship between mobile money services and commercial banks’ profitability. Based on the results, the study recommends that there is need for commercial banks to continuously align their operational models with emergent innovative services in the sector while also appealing to regulators to collectively design regulatory frameworks that are responsive to developing sector trends.

The aim of the study was to investigate the effect of mobile money services on Zambia’s banking sector profitability. Profitability was proxied by Return on equity (ROE) and Gross interest income (GII). Using the Johansen Cointegration approach on quarterly data for the period 2012Q1 to 2021Q4, the results suggest a positive relationship between mobile money services and commercial banks’ profitability. Based on the results, the study recommends that there is need for commercial banks to continuously align their operational models with emergent innovative services in the sector while also appealing to regulators to collectively design regulatory frameworks that are responsive to developing sector trends.