Influence of perceived risk and trust factors on mobile banking adoption in South Africa.
Date
2016
Authors
Mmbadi, Tshilidzi Clementine
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Abstract
Mobile banking is emerging as an important financial services distribution channel. It offers increased convenience for customers by awarding them an opportunity to be able to conduct banking transactions without location and time constraints. Notwithstanding all known mobile banking relative benefits, the use of mobile devices to conduct banking transactions is below expectations. This view suggests that significant growth opportunities remain and therefore existence of persistent inhibitory issues in mobile banking adoption warrants deeper exploration.
The purpose of this study is to identify perceived risk and trust factors which have a significant influence on the adoption of mobile banking services by South African bank customers. Data were collected quantitatively through a questionnaire yielding a sample of 283 valid responses. All items used to measure the factors were adapted from literature but reconstructed to fit the specific context of this study. Factor analysis and multiple regression statistical techniques were employed to analyse data, stepwise regression was introduced as an alternate and secondary technique to identify factors of statistical significance in mobile banking adoption.
Interpretation of the research findings ascertained that perceived usefulness, trust in the mobile banking service as well as trust in the competence and benevolence of service providers have positive and significant influence on mobile banking adoption. The psychological risk of being fearful to conduct financial transactions via mobile banking and the perceived time loss risk resulting from getting mobile banking transactions errors fixed emerged as negative factors affecting mobile banking adoption by customers.
Mobile banking service reliability emerged as the strongest promoter while fear of using mobile banking for financial transactions came out as the strongest deterrent to mobile banking adoption. Implications of the research findings for
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banks aiming to promote adoption and use of mobile banking services are focused on mechanisms for fostering and increasing customer trust while alleviating fears of perceived risks in the mobile banking system. This can be achieved through implementation of structural assurances and communicating mobile banking system reliability, stability, predictability and trustworthiness along with current marketing messages emphasizing convenience and ease of use of mobile banking.
Description
MBA
Keywords
Banks and banking, Mobile -- South Africa. Mobile communication systems -- South Africa.Consumer behavior -- South Africa.