Behaviour change from traditional to mobile banking channels in South Africa

Show simple item record Mungar, Sahil Royheath 2016-03-04T13:52:59Z 2016-03-04T13:52:59Z 2015
dc.description.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. iii 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. en_ZA
dc.language.iso en en_ZA
dc.subject Banks and banking -- South Africa.Banks and banking, Mobile -- South Africa. Mobile communication systems -- South Africa.Consumer behavior -- South Africa. en_ZA
dc.title Behaviour change from traditional to mobile banking channels in South Africa en_ZA
dc.type Thesis en_ZA

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