Exploring factors influencing the use of personal financial management (PFM) features in banking applications

Abstract

South African banks have introduced digital financial advice through personal financial management (PFM) features in their bank applications at no additional cost to their customers. In line with existing studies in other regions, usage of PFM features in South Africa remains modest. Drivers of use are largely unknown in the South African context. The study aims to investigate the factors that influence the intention to use PFM features in banking applications. The TAM extended version of UTAUT2 was used as the framework for this study. Innovativeness, financial knowledge and financial self-efficacy were incorporated into the framework. Collectivism was used to measure how cultural values moderate the role of usage. The study employed a quantitative approach, utilising a survey to collect data from bank application users working in the financial sector. A total of 273 responses were collected through purposive and snowball sampling and analysed using structured equation modelling and moderation analysis. The model explained 67% of the intention to use PFM features in banking applications. Attitude had the strongest direct impact on the intention to use PFM features, followed by performance expectancy and social influence. Innovativeness had a mild effect on the intention to use PFM features, while financial self-efficacy positively influenced effort expectancy. Hedonic motivation and trust improved the explanatory power of the model but did not directly impact usage. Collectivism did not have a moderating effect in this research. The study contributes to the existing literature by providing a South African perspective on PFM adoption and offers banks levers to improve usage.