The Bankers Association of Zambia -BAZ says limited financial business in rural areas discourages financial institutions in the country from establishing banks in the areas.
BAZ Chief Executive Officer Leonard Mwanza has told Money FM in an interview that inadequate infrastructure and limited access to internet services makes it challenging for banks to a operate in rural areas.
Mr Mwanza however says the baking sector has tremendously evolved as a result of digital era, as banks in the country are able to provide banking services through the use of on-line banking.
He says the need for banks to have physical presence in rural areas has been over taken by technology, adding that financial services are being delivered using digital payment systems.
Mr Mwanza further says the financial sector contributed a positive growth of 1.2 percent to the Gross Domestic Products GDP in 2018.
He says this is as a result of a moderate increase in deposits from current accounts.