An evaluation of internet banking in corporate South Africa .
Date
2016
Authors
Nxumalo, Sbusiso
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Abstract
Technological advancements in the banking industry have changed the way in which banking services have been adopted in the past decade in corporate South Africa. Banks have delivered financial services to corporates through internet banking technology, which has led to an upsurge in its adoption by corporate clients. However, the adoption of this technology has not been as predicted.
The purpose of the study was to evaluate the factors explaining the divergence between the predicted and the actual rate of adoption of internet banking services by corporate clients in South Africa. The study was necessary to provide the banking industry with an understanding of the adoption and use of internet banking by corporate clients in South Africa. It therefore offers an explanation of the factors that influence the decision to adopt and use internet banking by corporates.
A quantitative study was undertaken for this research by means of a survey. The survey focussed on eliciting the main factors that influence the adoption of internet banking by corporate clients. The study used the Technology Acceptance Model (TAM) which has been used in similar studies.
The results show that the main factors influencing the decision to adopt internet banking were perceived ease of use (PEOU) and perceived usefulness (PU), which are the main constructs of TAM. Corporates’ trust and security and reliability were also found to be significant predictors in the adoption of internet banking whilst customer demographics were found to be weak predictors.
To this end, bank management needs to focus on these factors in order to ensure that internet banking adoption rate grows in corporate South Africa. This will in turn help banks realise better profits and improve security standards of the technology. The results also contribute to the current literature on internet banking by extending the current literature to the corporate sector in South Africa.
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Keywords
Electronic commerce -- South Africa. Internet banking -- South Africa.Banks and banking -- South Africa.