The Role of Fintech Partnerships in Mitigating Non-Performing Loans at Absa Bank Zambia

Abstract

This study investigated the role of fintech partnerships in mitigating non-performing loans (NPLs) at Absa Bank Zambia. Non-performing loans have persisted above the prudential threshold, undermining bank profitability, operational efficiency, and financial stability. The study adopted a mixed-methods approach, combining quantitative surveys and qualitative insights from employees directly involved in credit assessment, loan monitoring, and risk management. Data were collected through structured questionnaires and analyzed using SPSS for descriptive, correlation, and regression analyses, while qualitative responses were examined thematically. Findings indicated that fintech-enabled solutions, particularly PRobase and JUMO platforms, significantly enhanced credit risk management and reduced loan defaults. Digital credit assessment tools improved borrower evaluation and informed loan approval decisions, whereas automated monitoring systems provided early warning signals and supported proactive interventions such as follow-ups and restructuring. Mobile and online lending platforms promoted timely repayments through notifications and accessible repayment channels, while data analytics and reporting capabilities facilitated evidence-based decision-making and trend monitoring. However, usage and adoption varied across departments, limiting the full potential of these tools. The study concluded that fintech partnerships are instrumental in reducing NPLs, enhancing operational efficiency, and supporting data-driven decision-making. Consistent staff engagement, targeted training, cross-department collaboration, and continuous system feedback are essential to maximize the effectiveness of these technological solutions.