Factors influencing financial service encounters in rural South African markets

Abstract

Using digital services and touchpoints by financial service providers in South Africa is advancing; however, these services are not accessible to all customers. South African rural markets encounter hurdles in migrating from traditional touchpoints to self-service technologies as financial service providers introduce technologically advanced service touchpoints. The research contributes to knowledge about how rural communities encounter financial services and towards efforts to provide touchpoint solutions for rural markets to build an equal and inclusive market. The study objectives were to establish the financial service encounter needs and preferences of the Mbizana rural market, examine the factors influencing financial service encounters, and identify the measures adopted to encounter services of financial service companies. A qualitative research methodology was used to collect data from 15 participants between the ages of 26 and 55 from Ludeke and Kwajali in Mbizana in the Eastern Cape, South Africa. Five out of six propositions were accepted based on the collected data, while insufficient evidence exists to support one proposition. The results indicate that rural customers fail to experience technological and financial services mainly because of inadequate networks, distant offices of financial service companies, travel costs, and alien technology. The research reflects on the implications for financial service providers on service innovations and service design, government policies, and marketing managers. The results imply that FSPs should ensure that RMs have equal access to financial services and communication; FSPs should focus on research and development and CRM initiatives that constantly deliver data and insights that improve the relationship quality between FSPs and the RM; government and FSPs should introduce sustainable solutions that create SE opportunities and encourage rural customers to use self-service technologies; the needs of rural customers are evolving with time, and they are aware of their struggles; rural customers make an extra effort to experience financial service; and there is a lack of trust in financial touchpoints. This study proposes recommendations for future research.