Faculty of Commerce, Law and Management (ETDs)

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    Understanding factors that influence digital banking user intention: a South African banking perspective
    (University of the Witwatersrand, Johannesburg, 2023) Maharaj, Yashna; Appiah, Erasmus Kofi
    In an increasingly digital landscape, retail banks in South Africa need to keep abreast of the factors that influence consumers digital banking usage intention. According to existing literature, the most prominent factors include economic value, social influence, firm reputation, product features, product rewards and perceived ease of use. This study aims to explain the relationship between these variables and whether a user’s intention to use digital banking is influenced by these factors at the start of their decision-making journey. In order to assess the impact of each of these factors, an online survey was distributed to students from a South African university. The online survey used a 5-point Likert scale to measure statements related to each variable. A cross-sectional approach to data collection was preferred. There were 191 respondents that completed the survey. Majority of respondents in this study were African females between the ages of 18 and 24. 98% of respondents indicated that they use digital banking. The key findings indicated that social influence, firm reputation, product features and perceived ease of use did in fact influence consumers digital banking usage intention in South Africa. However, economic value and product rewards were found to be statistically insignificant. It was therefore concluded that banks should focus on strategies that improve these factors to attract and retain customers, especially within the younger generation.
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    The factors influencing the adoption of mobile banking in South Africa
    (University of the Witwatersrand, Johannesburg, 2023) Choeu, Thobeng; Ndlovu, Chiedza
    The research study investigated the factors that influence mobile banking adoption in relation to the Extended Living Standards Measure in South Africa. The research was focused on the five big banks in South Africa, constituting around 80% of bank account penetration. Despite South Africa having the highest penetration of mobile connections and highest number of users with bank accounts, the level of mobile banking adoption is still not satisfactory. A structured questionnaire was distributed to 300 respondents with a bank account, and only 203 responses were found suitable for this study. The study adopted the UTAUT model to determine whether Social Influence, Effort Expectancy, Utilitarian Performance Expectancy, Hedonic Performance Expectancy, Self-Efficacy, Facilitating Conditions, Attitude, Risk, Security and Trust influence mobile banking adoption. The findings of the study suggest that only four variables, namely, Hedonic Performance, Self-Efficacy, Attitude and Risk, are significant and influence the adoption of mobile banking in South Africa. The demographic profiling of respondents falls within ELSM 8 and higher groups in the South African context. Age, Income and Education also significantly influences the adoption of mobile banking. Self-Efficacy is the most important factor that influences the adoption of mobile banking. The research findings suggest that more theories or variables must be considered to fully understand the influence of mobile banking in this country. The findings from the study are not entirely consistent with the UTAUT model and suggested an updated model be used to further assess the adoption of mobile banking
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    Innovative banking, the unbanked and domestic savings in South Africa
    (University of the Witwatersrand, Johannesburg, 2022-07) Umar, Safiya; Mzyec, Mjumo
    This study explores financial literacy and domestic savings and their impact on the economy, with reference to the unbanked low-income group in South Africa. Innovative and “smart” banking may be the ultimate tool that will serve the bottom of the pyramid and grant exposure to financial credit and means of saving. As almost two billion people in emerging markets are unbanked, the establishment of digital financial services is more about forming markets for future customers than about changing current bank–client relations. The greatest challenge affecting the poor around the world is their inability to adequately participate in the economy because of the challenge of being unbanked, which causes low-income groups to be excluded from mainstream financial activities. Poor communities encounter various obstacles when it comes to banking, including the distance to bank outlets, the prevailing risk of carrying cash, lack of trust, paperwork and identity and document requirements. Financial innovation is important in addressing the two key challenges that financial intermediation faces in Africa, namely high risk and high cost of financial services. The research underpinning the theoretical framework is drawn from the Base of the Pyramid market (BoP). The intention is to encourage an inclusive approach in the adoption of technology in the financial services sector, which is envisioned to create shared value socially, environmentally, and commercially. Studies have demonstrated that combating poverty and financial exclusion requires implementation of commercially viable technological innovations to address needs of the low-income market. Key related concepts are innovation in banking, the unbanked and domestic savings. The population under study is financial services professionals in the South African retail banking industry, mainly from Capitec Bank, as this study was inspired by Capitec Bank’s unique business model as one of the first banks in South Africa to focus on serving the bottom- of-the-pyramid client base. This research report adopts a qualitative research method. The research instrument includes key questions that were asked during semi-structured interviews. The findings of the study highlight the importance of constant enhancements of new technologies in the banking industry to address the matter of inclusion of lower-income groups in the economy by ensuring that banking is made accessible and convenient. The premise of innovation in banking is to benefit society and grow the economy in a manner that is useful for generations to come. Mobile banking has been identified as a key instrument in driving bankingto unserved areas in the most cost-effective way
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    Factors influencing the adoption of mobile banking among lower-income groups in Gauteng
    (University of the Witwatersrand, Johannesburg, 2022) Msimanga, Bongani; Magida, Ayanda
    The focus of the study was to determine factors that influence the adoption of mobile banking among lower income groups in Gauteng. The theoretical framework was based on TAM, UTAUT, Theory of Perceived Risk and Trust Transfer Theory. (SPSS v27) was used to check the quality of the data from 200 respondents in Cities, Towns and Townships in and around Gauteng where data was collected using a self- administered survey to address the research objectives. This quantitative study aimed to investigate the role of Perceived Trust (PT), Perceived Ease of Use (PEOU), Perceived Cost (PC), Perceived Risk (PR), and Facilitation Conditions (FC) in the application of behavioural intention (BI) towards mobile banking services. The initial hypotheses for the following constructs were supported: PC was accepted to have a negative effect on BI; PEOU was accepted toe have a significant positive effect on BI; PR2 was found to have a significant effect on BI; and FC had a significant positive effect on BI. However, the initial hypothesis for PR1 was rejected because it had no significant effect on BI. Age and PEOU variables had no significant relationship, and the hypothesis of income and PC having a significant relationship was also rejected. In the past there are studies that looked at mobile banking adoption in South Africa. However, none of them have focused of mobile banking adoption among lower income groups in Gauteng. This study focuses on factors influencing adoption of mobile banking among lower income groups in Gauteng where they are found to be an important contributor to financial institutions
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    Mobile banking and inclusive innovation at the bottom of the pyramid in South Africa
    (2022) Maseko, Matshidiso
    Financial institutions and technology have a critical role to play in alleviating the plight of people leaving in poverty through innovative and inclusive offerings. Pro-poor innovation is mostly done through non-profit charity organizations. It is now increasingly recognized that inclusive innovations of people living at the bottom of the pyramid (BOP) can be developed and diffused through appropriate and relevant market mechanism. The aim of this study is to examine, through a quantitative analysis, the benefits, and challenges of mobile banking innovations development for BOPs in South Africa. A questionnaire was administered on participants, randomly selected, in Gauteng province. Effective mobile banking implementation is possible with clear regulations on pricing, competition, prudential banking, deposits, and payment system regulation to ensure transparency, consumer protection, safety, integrity, secure and efficient systems. With partnerships, co-creation and collaborative efforts can be combined to bring more awareness to mobile banking innovations. With partnerships, co-creation and collaborative efforts can be combined to bring more awareness to mobile banking innovations. It is recommended that a competitive mobile banking environment, key stakeholder partnerships, adequate awareness campaigns, infrastructure development, BOP clientele focus and balanced regulatory policies be created to facilitate growth within the mobile banking innovation of BOPs in South Africa.