Factors Influencing the Consumer Usage of

Abstract

This study is concerned with identifying the relevant factors that currently influence the consumer usage of internet banking in South Africa. The study determines if there has been any change in the factor structure due to the rapid diffusion of the Internet and the rapid growth of internet banking users in South Africa. The Theory of Planned Behaviour and the Adoption of the Diffusion of Innovations Theory formed the conceptual framework to understand the consumer usage of internet banking and helped to identify the relevant factors investigated in this research. 179 valid responses were collected through an online survey and a combination of principal component analysis and multiple regression techniques were used to analyse the numerical ordinal data. A valid factor structure was formulated for the current internet banking consumer in South Africa. Relative advantage, compatibility and trialability of the service were identified as significant promoting factors. A new factor labelled as introductory experiences was confirmed as a promoting factor. Security issues and complexity were confirmed as significant inhibitory factors. Cost, awareness, accessibility, user self-efficacy and the presence of support structures and website information could not be confirmed as factors. A comparison made between the factor structure found by Hoppe, Mugera and Newman (2001) in South Africa and the one formulated in this research report showed similar results with the exception of self-efficacy and support structures not being confirmed as significant positive factors. No other substantial differences were observed.