An Analysis of the impacts of cybercrime on the performance of financial institutions domiciled in Harare

Abstract

The rapid digitalisation of Zimbabwe's banking sector, through online banking, mobile banking and other ICT-enabled financial services, has improved efficiency and access to financial services but has also exposed financial-sector institutions to growing cybercrime risk. This study examined the impact of cybercrime on the performance of financial-sector institutions in the Harare Central Business District, with specific objectives to assess the link between ICT adoption and cybercrime risk, identify the most prevalent forms of cybercrime, evaluate their effect on operational and financial performance, and recommend strategies for strengthening cyber security resilience. A descriptive survey design using a mixed-methods approach was adopted, combining questionnaires and interviews. Data were collected from 15 participants drawn from the ICT, risk-control, accounting and compliance departments of four financial-sector institutions, as well as bank customers, with an 80% response rate. Findings revealed that the overwhelming majority of participants had adopted technology-based banking systems and perceived a strong link between ICT adoption and cybercrime exposure. Phishing and digitally enabled fraud emerged as the most prevalent forms of cybercrime, followed by insider-related threats, while malware attacks were comparatively less common. Monetary loss was identified as the most significant performance impact, alongside reputational damage, reduced operational efficiency and erosion of client trust. Although institutions had adopted cyber security measures such as firewalls, access controls and awareness training, gaps remained in threat detection, staff awareness and consistent monitoring. The study concludes that technological advancement and cybercrime risk are closely interdependent, and that effective cyber security requires combining technological controls with sustained staff training and regulatory compliance. Recommendations are made for financial institutions, regulators, customers and future researchers to strengthen cyber resilience in Zimbabwe's banking sector.