Behaviour change from traditional to mobile banking channels in South Africa
Date
2015
Authors
Mungar, Sahil Royheath
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Abstract
Mobile banking is a form of customer service channel offered by retail banks to
allow customers to conduct transactions by themselves from a mobile phone.
This was both a need as an evolution of technology and a driver of efficiency by
banks, for customers to self-actualise day-to-day banking needs.
Although research in recent years has focussed on the factors of adoption of
Mobile banking, little has been done in the form of assessing the effectiveness
of migrating customer behaviour away from traditional banking. This research
has analysed the post-adoption behaviour of bank customer transactions to
determine whether a change in behaviour was observed.
Data was collected from a retail bank in South Africa, tested for fit to the South
African population, and via the quantitative method of cluster analysis the
behaviour change from traditional to Mobile banking channels was evaluated.
As a first proposition, factors of the informal economy in South Africa, and thus
the reliance of cash by many South Africans, suggested that although Mobile
banking would be adopted, traditional channel usage would continue with cash
as the key motivator to continue using traditional banking channels.
As a secondary proposition, it was determined that due to accustomed and
habitual use of traditional banking channels, the adoption of Mobile banking
would not shift behaviour of consumers.
Data was analysed for the period from 1 January 2013 to 30 June 2013, and
compared to the period of 1 January 2014 to 30 June 2014. The customers
analysed maintained a continuous relationship with the bank from 1 January
2013 to 30 June 2014, having adopted Mobile banking during July 2013.
Using the process of cluster analysis, five clusters were found in the pre-Mobile
banking adoption period. These clusters primarily transacted on online banking,
ATM and branch banking respectively. During the post-Mobile banking adoption
period, the five clusters reformed in to four clusters primarily transacting on
mobile banking, ATM, and online banking respectively.
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Predominant ATM users continued using the ATM channel after the adoption of
mobile banking. This is likely due to the reliance of cash by this cluster.
Predominant users of online banking continued using the online banking
channel after the adoption of mobile banking. This is likely due to the
entrenched and habitual behaviour of this cluster, as well as the similarity of
transactions offered on online and mobile banking.
Primary users of mobile banking were found to have originated from any
previous channel behaviour, or combination thereof. This indicated that users of
mobile banking were not predisposed to any prior behaviour trait.
It was found that younger individuals tended to have an affinity to mobile
banking, and older individual tended to use the ATM channel (with some people
using both ATM and Mobile channels).
Individuals with higher incomes were found to have an affinity for Online
banking, whilst low income individuals tended to use mobile and ATM channels
after the adoption of mobile banking.
When evaluating the race, gender and marital status of the sample, it was found
that White, Unmarried and Male individuals that used online banking prior to the
adoption of mobile banking, tended to maintain a preference to continue using
online banking predominantly.
It is believed that this research would fill a much-needed gap in the
understanding and perception of customer behaviour after the adoption of
Mobile banking by consumers.
Description
Keywords
Banks and banking -- South Africa.Banks and banking, Mobile -- South Africa. Mobile communication systems -- South Africa.Consumer behavior -- South Africa.