Determinants of consumer perception of cell phone banking in Zimbabwe

Abstract

ABSTRACT The development of advanced mobile technologies has given rise to innovative self-service technologies that allow users with bank accounts to leverage these technologies to transact on their bank accounts anytime and anywhere, without the restrictions of place or time , using their cell phone devices. The advantage for banks has been the low operational costs required to operate these systems, mainly because the user has the confidence to transact without any input from the bank. However, adoption of such technologies has been low and users have had mixed beliefs and attitudes about cell phone banking. Understanding the factors that influence consumer perception about cell phone banking is important to this research. Mobile Network Operators are continuously evolving into financial institutions through virtual money (digital money stored on sim cards) , which has been made possible by decreasing revenue from voice and sms services, increasing the competition that traditional financial institutions are facing. The main challenge for financial institutions is driving the adoption of the technology by its clientele to remain competitive by creating innovative products, such as bill payments. The main advantage of using the technology to the consumer is the ubiquity and convenience to be able to transact without restrictions. The objective of the research is to investigate those determinants of users’ behavioural intention to cell phone banking in Zimbabwe. The research seeks to review prior literature on the factors influencing technology adoption and to validate these factors against determinants of consumer perception of cell phone banking in Zimbabwe. Data for the research was collected through in-depth interviews which were recorded and transcribed. The survey was conducted with two groups, the potential users of cell phone banking and subject matter experts on cell phone banking, who have been involved with the implementation of the technology. A total of 21 participants were interviewed. Demographic information was presented using bar graphs. The results of the interviews were analysed using content analysis to identify patterns and themes in order to evaluate users’ perception of cell phone banking. - iii - The themes that were identified included perceived derived value which was influenced by the convenience, speed, ease of use and low cost of using cell phone banking .The perceived threat factor was also identified as a determinant that created a negative attitude about cell phone banking and this was mainly linked to the uncertainties of using cell phone banking and uncertainty was influenced by trust of the provider and risk of personal information being compromised. Perceived effort to use cell phone banking was seen as a positive factor contributing to a pleasant user experience and hence a positive attitude - this was influenced by easy to use and read menus which the users found to be “easy” to learn. Another observed factor was the provision of educational awareness to consumers. This was explained as educational campaigns to sensitise consumers about the benefits of using the technology, mainly convenience, and the security controls in place to reduce uncertainty. This had the result of changing consumer’s perception about cell phone banking.