Social media strategy and mobile banking in South Africa

Abstract

This purpose of this study was to explore the extent to which, if at all, social media strategy has an impact on the uptake of mobile banking products and services in South Africa. It also explores whether as a result of this strategic intent by the mobile banking service provider, there is a perceived effect on the uptake of these products and services. The study aims to provide recommendations to mobile banking service providers as to how best promote their products and services by means of their social media strategy. South African has an extremely high mobile penetration rate. Given some of the functionality of these devices which include both mobile banking and social media enablement, it is clear that many South African citizens are active on both applications mentioned. The study is based on the premise from the literature which stipulates that social norms have an influence on the way in which consumers behave. The study therefore aims to address whether social norms in online communities have an effect on the way in which consumers behave in this space, and if so, if there is a perceived impact on the uptake of mobile banking products and services, through the influence of social norms by community members on these social media platforms. The methodology used to address the research questions within the study was qualitative, and data was collected through semi structured interviews. The key findings which emerged from these interviews is that social media interactions are in fact perceived to have an impact on the uptake of mobile banking products and services in South Africa, however that social media channels also serve as other important functions for an organization, the most common of which is, as a customer service channel.