Factors Influencing Digital Banking Adoption: An Empirical Study in South Africa

Abstract

Purpose Various factors influence banking customers to adopt digital banking, also known as online banking or e-banking. This study sought to determine which factors influence continuous intention to use online banking among individuals over the age of 45 in South Africa Design/methodology The study employed a quantitative approach. A convenience sampling method was used from a total of 256 participants who reside in South Africa. The participants were aged between 45 and 65 years, who had used online banking within the past 6 months completed an online questionnaire. The data was analysed using SPSS 28 and Structural Equation Modelling AMOS 28. Findings All the hypotheses were significant, with perceived ease of use, perceived usefulness and convenience having the strongest relationship on continuous intention to use online banking. This is an interesting finding amongst the 45 – 55 year old generational cohort, showing that technology and convenience play a major role in this age segment. Practical Implications The findings show that favourable banking conditions need to be in place, especially for Generation X (45-55 years) customers, who were the majority of participants. The findings could better assist marketing managers in the banking industry with developing strategies for this generational cohort. Originality/value The findings of the current study add value to the body of knowledge on online banking usage amongst the elderly population, especially because it involves online consumer behaviour