Over the past decade, information and communication technologies have brought about tremendous changes in East Africa’s banking industry. Notable among the changes is the introduction of non-financial institutions such as mobile network operators (MNOs) and Fintech firms in the banking industry. The new players utilize the ubiquity of mobile communication infrastructure to provide financial services such as money transfer, bill payments, loans, savings, and deposits among others. These services were originally understood to belong to retail banking domains. As a result, new players have benefited from the new business model by expanding their service portfolios thereby adding banking to their telecommunication business. To the consumers, the new banking channels have enabled them to access convenient, cheap and fast financial services. The new channels have also enabled financial inclusion, which means that those consumers who were unable to access financial services in the past due to limited reach of retail banks are now able to carry out banking transactions through digital channels. However the new technologies have also lead to increased competition and a battle for consumers in the East Africa’s financial service industry between banks and the new players (MNOs and Fintech firms). This competition can be attributed to the fact that these technologies lower switching costs and the new services provided through mobile have become popular substitutes to traditional retail banks services. The aim of this research is to present two studies that tackle the demand and supply issues in the new digital financial marketplace of East African countries. The first study corresponding to chapter two of the dissertation deal with new consumer technology adoption from a competition and consumer preference perspective. The focus is to understand new demand trends in the banking industry that are unique to markets where banks have limited presence. The second study in chapter three builds on the findings of chapter two to address the questions that are related to supply of financial services from taking into account new market situation. The study specifically focuses on impact of digital financial services on retail banks distribution channel strategies. The research in the first study aims to propose and empirically validate a model for banking service preference in the context of specific developing countries. It utilizes contextualized innovation diffusion and technology acceptance theories testing for cost, compatibility, trust, risk, ease of use, usefulness and behavioral intention to adopt. Two additional variables of social value and agent visibility are proposed to augment and extend IDT/TAM theories. Through the first study, we are able to fill a contextual gap which has been missing in the previous studies’ understanding of banking service adoption in developing countries. In the study, I analyzed data from a survey with 399 respondents that was collected from consumers based in Kenya, Uganda and Tanzania. This study used individual consumer’s responses to a questionnaire focusing on service preference using contextualized variables of innovation diffusion and technology acceptance (IDT/TAM) theories. Structural equation modeling was utilized to empirically test the banking preference model. The findings indicate that an augmented model consisting of agent visibility, perceived social value and contextualized IDT/TAM variables explains well customers’ preference for MNO mobile banking over traditional banking. Considering technological changes in developing countries, mobile banking service providers can use the findings of the first study for devising marketing and customer segmentation strategies. For policymakers, the first study provides a snapshot of the disruption in the finance industries in developing countries that might result in potential risks in the sector and emphasizes a need for regulatory revision. Building on the findings of chapter 2 above and from analyzing the market trends, the third chapter addresses questions related to supply side of new digital finance market place in East Africa. Specifically, the study focuses on how retail banks can strategically respond to the on-going disruption brought up by the digital financial revolution and the new players in East Africa’s financial industry. Based on technology adaption and distribution channel theories, we develop an exploratory model that captures the impact of digital channels on retail banks distribution strategies, and from this we are were able to derive possible business and technology strategies, which incumbent banks can use to compete and thrive in the new digital era. I empirically tested the model through an exploratory survey of 109 experts in East Africa’s banking industry. The results indicate the retail banks will have to explore new strategies that encompasses new service delivery channels and co-opetition in order to thrive and compete with the new popular players in the financial industry. The results from the study provides new implications and insights for academia and industry. First, for academia, the study provides a new framework that extends technology adaption literature, especially on impact assessment of digitization on incumbent banks and banks strategic responses in face of digital disruptions and competition. The research is expected to inspire further research on antecedents to digitization as well as quantitative research on relationship between digitization and firms strategic responses. For the industry, the research findings suggests alternative strategies in consumer segmentation and distribution channel innovations which can be employed by incumbent retail banks to compete and thrive in the new digital finance marketplace.