Faculty of Commerce, Law and Management (ETDs)
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Item Assessing the role of Digital Technology in bridging the gender gap for women in South Africa’s Fintech industry(University of the Witwatersrand, Johannesburg, 2024) Hassen, Zaahida; Magida, AyandaDigital tech transforms finance and boosts inclusion. South Africa's fintech industry helps close gender gaps; research evaluates digital solutions to overcome barriers for women and promote progress in this evolving sector. Analysis shows how platforms and mobile banking improve inclusiveness for female empowerment towards financial equity across industries, including marginalised groups. This research aims to study how digital technology can reduce the gender gap in South Africa's fintech sector. The method used is quantitative, integrating the UTAUT framework and sampling 224 participants through a quota-based approach. Factors affecting women's acceptance of fintech are analyzed, including adoption levels, effort expectancy, social influence, enabling conditions, and behavioural intention for future trends among female professionals in the industry. The empirical analysis combined with experience-driven insights will enhance professional growth trajectories for underrepresented groups like females within larger organisational frameworks comprised mostly of elite bodies where access remains limited due to specific barriers hindering progressiveness. These efforts foster diversity, improve efficacy across value streams, and support the biodiversity agenda, increasing productivity when embraced rather than sidelined. South African women in fintech see digital tech as beneficial for financial inclusion and growth but face obstacles due to infrastructural and gender-specific work issues. Effort and social influence drive female utilisation of digital tech within the sector. Digital technology empowers South African fintech women for gender equality and economic growth. Suggestions include female-focused tech programs, inclusive regulatory policies, and collaborations between the government and private sector to promote diversity in fintechItem Investigation of Online Peer to Peer Lending as a means to facilitate entrepreneurial finance in South Africa(University of the Witwatersrand, Johannesburg, 2021) Pholo, Makgowe Adam; Ojah, KaluWith technological advancement in the financial sector over the last few years, there now exists digital business loan providers for both SMMEs and retail borrowers. These digital loans have expanded the scope of alternative sources of borrowing and funding alike. The adoption of these fintech funding models has been somewhat slow in South Africa, but if the success of other countries' adoption of these models, particularly peer to peer lending, is anything to go by, this fintech funding model could fill the gap that currently exists in SMME funding. Data is gathered from SMMEs as well as potential investors on the usage of Online Peer to Peer lending as both a funding mechanism as well as an investment proposition. The purpose of this data gathering -- via a survey -- was to obtain Online Peer to Peer participants' views and/or perceptions about the effectiveness of online peer to peer lending, awareness of alternative (particularly fintech) funding models as well as their receptiveness to conducting financial transactions online. The survey found that the majority of entrepreneurs and investors believe that online peer to peer lending can bridge the financing gap left by traditional financing institutions in South Africa. Awareness of available fintech financing methods in South Africa is very low amongst both entrepreneurs and retails investors according to the research results in this paper. This suggests more could be done around socializing this form of financing to the general populace. The findings of the research also suggested overall that there is a viable business case for alternative financing for SMMEs in South Africa. In addition, the results of the survey indicated that the slow adoption of this fintech financing models in South Africa creates an opportunity for new fintech start-ups to participate in this market due to the low barrier to entryItem The Influence of Temperaments on the Adoption of Branchless Banking by SMMEs(University of the Witwatersrand, Johannesburg, 2023) Maina, George Samwel; Godspower-Akpomiemie, EuphemiaRecently, innovations driven by Financial Technologies (Fintechs) are posing challenges to the conventional financial service providers and might have a widespread and lasting impact on the financial sector. Branchless banking is a classic Fintech that offer financial services to individuals and corporates, especially Small Medium and Micro Enterprises (SMMEs). This study set out to investigate the influence of temperaments on adoption of branchless banking by SMMEs. The study’s main focus was to explore how temperaments of SMME owners influence adoption of branchless banking services. Secondly, to examine the factors which inhibit SMME owners from adopting branchless banking services as well as identify incentives for switching from conventional to branchless banks. To achieve these objectives, 12 SMME owners were interviewed. who were selected from a database provided by iSell, which is a company that deals in the residential, commercial, industrial and leisure property markets in South Africa (very active in Gauteng province). The results indicated that melancholy and phlegmatic temperaments influenced adoption of branchless banking among SMMEs. SMMEs of melancholy temperament were found to be willing to adopt branchless banking compared to their phlegmatic counterparts. The results also showed that the top inhibitors to adoption were preference to engage with physical customer service representatives, requirement of internet access, limited channels to cash out or deposit money and loyalty, trust and satisfaction in the conventional bank services. The results further indicated that lower bank charges were the most important incentive for SMMEs to switch from conventional to branchless banking. In view of the above findings, branchless banking service providers should tailor their marketing approaches to address potential customers who have different temperaments as well as address the identified inhibitors and incentivesItem Organisational Ambidexterity, Dynamic Capabilities and the sustainability of South African Fintech platforms(University of the Witwatersrand, Johannesburg, 2023) Mogari, Komane Dorothy; Ochara, NixonPurpose and objective: This study aimed to examine Organisational Ambidexterity and Dynamic Capabilities on developing sustainable digital platforms (specifically Fintechs) in the South African context. Problem investigated: The concept of organisational ambidexterity ultimately aims to attain the desired objective. In the contemporary landscape, businesses increasingly rely on their ability to function efficiently while demonstrating adaptability within a dynamic and challenging business milieu. The existing body of literature on strategy and innovation management highlights the growing importance of integrating exploitative or incremental innovations and explorative or radical innovations to sustain high levels of organisational performance. Design/methodology/approach: The research employed a qualitative methodology. The collection of data was conducted through the utilisation of semi-structured interviews, which were employed to acquire pertinent information from participants. The data gathered during the study was transcribed into written text and presented in a narrative format. The data was systematically arranged and presented in a structured fashion, employing diverse formats, including sequences, narratives, and tables. The primary objective of this arrangement was to enhance the process of comprehension and analysis. Findings: The analysis revealed several themes, each being distinguished by its propositions; these included; early stages, outsourced capabilities, operational efficiency, effectiveness and efficacy, training, upskilling and reskilling, product development and new markets, and emerging technologies. It became evident that to ensure the success and sustainability of South African digital platforms; Fintechs should balance exploitative and explorative innovation through optimal use of dynamic capabilities.Item Factors that influence the adoption of fintech by small and medium enterprises in South Africa(University of the Witwatersrand, Johannesburg, 2023) Martino, Sibongile; Godspower-Akpomiemie, EuphemiaAdoption of a payment system is considered a steppingstone toward full digital economy participation and has made it simpler for small and medium-sized (SMEs) businesses to acquire financial products and services. However, payment system success strongly relies on merchant involvement, which provides customers with a valued service and contributes to improved customer experience, data collection, and financial performance. The POS market in South Africa is the largest in Africa, however adoption is slowest among SMEs. This research employs the TOE framework to investigate whether the technological, organisational, and environmental contexts of SMEs in Gauteng, South Africa impact their adoption of POS systems. Twenty Gauteng-based SMEs were interviewed for this study to address the research question. This objective was achieved by deconstructing the study findings about the primary and secondary components of the TOE framework. In addition, the interpretivist approach used in this study's analysis of the semi- structured interviews shed light on the factors that influence the adoption of POS by SMEs. This study found that the decision of SME owner-managers to adopt a POS system is influenced by motivating and inhibiting factors that stem from the technological, organisational, and environmental context in which a SME operates. The study also found that the availability of technology, its value proposition, and an enabling organisational structure motivated the adoption of POS systems by SMEs. Nonetheless, the research found that cost, a burdensome regulatory environment, and a lack of infrastructural support, such as lack of a reliable power system, are obstacles to the broad adoption of POS systems.Item The behavioural intention to adopt Digital Financial Services in South Africa(University of the Witwatersrand, Johannesburg, 2023) Bodlani, Olwethu Vuyo Nkosi; Gatara, MaradonaSouth Africa has made significant progress towards expanding financial services by using digital technologies, with 81% of the population above sixteen years of age having formal bank accounts. Despite this significant increase, it still remains a cash-dependent country. The owners of these bank accounts use them as mailboxes, with 40% found dormant for low-income households. This phenomenon indicates that the adoption of the Digital Financial Services (DFS) tools (bank cards) is low. Social grant recipients are found to follow this trend, with 58% using their accounts as mailboxes, while 2% are considered dormant. This study set forth to examine a set of factors (enablers and inhibitors) that were likely to predict DFS tool adoption intention behaviour, using the Unified Theory of Use and Acceptance of Technology (UTAUT), Technology Readiness Index, and the Resistance Theory of Innovation to underpin a conceptual model comprising seven “facilitators” and three “barriers” as identified potential determinants. Quantitative analysis methods were used to test the conceptual model by surveying social grant recipients (n = 215) from the King Sabata Dalindyebo (KSD) Local Municipality in South Africa’s Eastern Cape Province. Findings showed that five enabling factors, namely performance expectancy, effort expectancy, perceived value, price benefit, and trust, were significant predictors of behavioural intention to adopt DFS. Contrary to observations from the existing literature on DFS adoption, all three inhibiting factors, namely perceived cost, unavailability of facilitating conditions and perceived risk, were not found to be significant predictors of behavioural intention to adopt DFS. The study found that among study participants, facilitating factors significantly influenced behavioural intention to adopt DFS barring facilitating conditions and network externalities. The barriers were all found not to have any significant effect on the behavioural intention to adopt DFS. These findings aligned with existing literature on DFS and “fintech” adoption in emerging economies. The study also highlighted the importance of trust and communication between service providers and consumers to drive DFS adoption in South AfricaItem Blockchain technology and international money transfers into the Nigerian Remittance market(University of the Witwatersrand, Johannesburg, 2022) Bah, Aicha; Khumalo, JohnBlockchain has been making a buzz for a moment now. The nascent industry based on a “distributed ledger technology” is being globally explored especially by innovative start-ups and financial institutions looking to benefit from the technology. Revolutionized by the usage of cryptocurrencies in its processes, blockchain algorism is believed to have the potential to indubitably agitate the financial world. The promises of blockchain pretty much touch any domains imaginable provided the necessary resources are allocated towards its implementation. From governmental tools in election processes to individual peer-to-peer transactions, blockchain is being targeted by various parties seeking to extract the obvious advantages, the technology offers. This study focuses on how blockchain technology can benefit the Nigerian remittance market and observes how it has the potential to completely reinvent the financial and money transfer industry. Peer to peer money transfer methods have traditionally been done through financial institutions such as a bank or Western Union. In many regions around the world, especially on the African continent, the charges related to these transfers represent a high cost for the individuals performing them. Additionally, the regulations and required verifications on each step of an operation account for longer processing time. The main objective of this research is to explore an alternative financial solution for cheaper and more efficient remittance transactions internationally. The method used is a combination of desk research and qualitative field research that involves preliminary research on information already available about Blockchain technology, but also interviews with expert on the financial world. This research concluded that Blockchain technology and the use of cryptocurrencies into everyday transactions represents a real chance at entirely transforming the way individuals exchange money. A few limitations were observed in regard to regulations and control over its functioning. Either way, it is expected that both governmental entities and private corporations will lean towards exploring the “true” capabilities of this technologyItem The influence of fintech share trading and investment platforms on the participation of South African professionals in the South African equity capital market(University of the Witwatersrand, Johannesburg, 2023) Ishwarlal, Saiyuri; Sebastian, Avani; Brahmbhatt, YogeshBackground: The emergence of revolutionary financial technology as a result of the transition towards the Fourth Industrial Revolution, is transforming the financial services sector. Innovative financial technology, such as fintech share trading and investment platforms has the potential to increase access to the equity capital market, through enhanced user- experience, minimal trading costs and greater convenience. Purpose: The purpose of this study is to examine the influence of fintech share trading andinvestment platforms on the participation of South African professionals in the South African equity capital market. This study contributes to the emerging stream of fintech research, through examining the impact of fintech platforms on participation in the equity capital market. Method: A survey questionnaire was distributed electronically, and responses were received from professionals with various specialisations. The 199 usable responses were analysed using descriptive statistics and non-parametric tests. Findings: The findings of this study reflect a large percentage of professionals would not engage in the trading and investment of shares in the absence of fintech platforms. This suggests that fintech platforms are positively contributing towards the participation of South African professionals in the equity capital market. An individual’s age, level of education and number of years of investment experience show a statistically significant difference in respect of the dependency on fintech platforms for participation in share trading and investment. Data security and privacy concerns, a low level of trust in fintech platforms and lower levels of awareness of financial products and services are factors that inhibit the use of fintech platforms. Greater ease of use, affordability, efficiency and flexibility are elements that encourage the usage of fintech platformsItem Understanding the attributes and characteristics of cryptocurrency ownership: A South African study(University of the Witwatersrand, Johannesburg, 2023) Jetha, Hesita; Brahmbhatt, YogeshBackground: This study investigates the attributes and characteristics of cryptocurrency investors in South Africa and the attributes of cryptocurrencies that drive investment or non-investment. Objectives: This study aims to explore the demographics and sociodemographic factors of cryptocurrency investors as well as the emotions and biases that impact investors’ decisions to invest in cryptocurrency in order to investigate the individuals who invest in cryptocurrency and the reasons why they invest in cryptocurrency. Methods: A sample of 298 South African residents aged 18 and above completed an online survey that assessed their cryptocurrency ownership, demographics, motives for investment, attitudes toward cryptocurrency, and other relevant variables. Descriptive statistics and logistic regression analyses were conducted to examine the relationship between these variables. Results: The results showed that cryptocurrency investors are more likely to be males, under the age of 35, who are currently employed and have higher income levels. The individuals’ main motives for investing in cryptocurrency were the opportunity to obtain high returns and the new technology that cryptocurrency encompasses. In addition, the results showed that attitudes toward cryptocurrencies significantly impact their decision to invest in cryptocurrency. Conclusion: These findings suggest that more information relating to the risks involved in cryptocurrency investment as well as the potential of cryptocurrency to be used as a medium of exchange is required among individuals to protect themselves against losses and simultaneously allow them to take advantage of the lucrative benefits that cryptocurrencies offer. Furthermore, policymakers, the government, and businesses require more information regarding cryptocurrencies in order to have the necessary policies in place and to stay competitiveItem Fintech as a driver for customer retention in the South African telecommunications industry(University of the Witswatersrand, Johannesburg, 2023) Kalabamu, ErickThis study explored the impact of financial technology (fintech) adoption by customers on customer retention in South Africa’s telecommunication industry. Telecommunications companies in South Africa have been at the forefront of bringing technological innovation into their processes at a very early stage. However, customer retention as a result of fintech adoption by customers is not clear. To retain customers in a competitive business environment, new products and services are usually employed. This study analysed the impact of fintech service adoption and telecommunication service adoption in retaining customers underpinned by the communication theory and UTAUT. Adoption was determined by the customer’s perceived values and usefulness of the services. Customer retention was determined by the customer’s intention to remain with the network provider and had no intention to switch to another network provider. A 33-item questionnaire was used to gather data from 130 telecommunication customers at Wits Business School (WBS). Correlation analysis, exploratory factor analysis and structural equation modelling were used to analyse the data collected. This correlation analysis revealed that there is a positive correlation and a statistical significance (r = 0,515 and p-value < 0,01) between customer retention and fintech service adoption. In contrast, traditional telecommunication services, an essential part of telecommunication companies, have insufficient evidence to suggest a statistically significant relationship (p-value -0,040) and correlation (r = 0,181) with customer retention. The results of this study provide insights for telecommunication firms to develop and expand fintech services for their existing customers. Implementing financial technology services will confer additional iii value beyond the scope of traditional telecommunication services. Communication was also seen to have a positive impact on fintech adoption over telecommunication adoption, thus having a positive impact as an additional variable. As a result of these findings and efforts employed by telecommunication firms as seen in media reports, SMS campaigns, social media, advertisements, mergersand acquisitions of fintech start-ups, fintech service adoption by customers has an impact on customer retention.