Investigating the digital divide in South Africa as it relates to financial services

Abstract

This study’s aim falls on investigating the digital divide in South Africa. Grounded on the principles and assumptions of positivism, the study adopted the quantitative research approach to investigate the issue. Thus, a structured questionnaire was used to gather data from 211 South Africans: employed, unemployed, students, elderly, and disabled individuals. SPSS version 25 was used to analyze the data and both inferential and descriptive statistical analyses were performed. The results, therefore, revealed that South Africans generally possessed a strong grasp of digital skills, such as using mobile apps, installing mobile apps, completing online applications, and finding information online. However, some South Africans concerns regarding confidence in using banking apps or internet banking and the user-friendliness of banking services. Regarding, transaction monitoring, show positive experiences with daily banking transactions and investment growth, but there are mixed perceptions regarding banking products, monthly bills, electricity, lotto, and airtime transactions, proof of payments and statements, and product exploration and financial education. Drawing on these results, the study provided recommendations in three main categories: improving access and availability, enhancing user confidence and security, and promoting digital inclusion and innovation. These recommendations include enhancing banking infrastructure in underserved areas, reducing transaction costs and fees, strengthening data protection measures, improving user interfaces and experiences, providing financial education, fostering partnerships and collaborations, offering tailored solutions for different user segments, and launching public awareness campaigns. Implementing these recommendations can help bridge the digital divide, promote financial inclusion, and ensure a positive user experience with digital financial services in South Africa