Factors that Influence FinTech Adoption in South Africa: A Study of Consumer Behaviour towards Branchless Mobile Banking

The widespread use of mobile phones and growth in internet penetration has created a unique opportunity to increase access to financial services. Financial Technology (FinTech) companies and mobile banking (m-banking) empower customers to use digital platforms to utilise financial services without the physical access requirements of traditional banking. This has led to the rise of FinTech firms that are disrupting traditional industry standards by servicing consumers through a range of digital channels and mobile devices. A new completely branchless bank, Bank Zero, is set to launch in South Africa in 2020 to exploit these opportunities. This consumer behavioural study focuses on analysing FinTech adoption in the South African market. An adapted mixed-method approach was used to identify the enabling and inhibiting factors that motivate consumers to adopt or reject m-banking. Qualitative research was initially conducted via in-depth interviews with 7 respondents. The most salient factors identified in the literature review were tested, and the results were used to develop a quantitative, online questionnaire. A convenience sample of 217 valid responses was collected, and the data was analysed using exploratory factor analysis (EFA). The EFA identified 6 influencing factors: four enabling and two inhibiting factors. The enabling factors that positively influenced FinTech adoption were: Utility, Socio-Economic Influencers, Mobile Device Trust and Youth. The two inhibiting factors were: Perceived Risks and Associated Costs. Interestingly, 74% of the 217 respondents indicated that they would join a completely branchless bank, using only their mobile phones and the internet to access banking services, showing a high propensity to branchless, m-banking. Finally, the Enhancement Criteria Model based on insights gained from the research findings, is proposed. This model provides recommendation criteria for existing and new FinTech providers who are looking to improve their business models. JEL Codes: D18, G40 Keywords: FinTech, mobile banking, m-banking, branchless banking, consumer behaviour, South Africa

Banking Management System Using Salesforce

It is felt that Modern Banking has become wholly customer – driven and technology driven. During the last decade, technology has been dramatically transforming the banking activities in India. Driven by challenges on competition, rising customer expectation and shrinking margins, banks have been using technology to reduce cost. Apart from competitive environment, there has been deregulation as to rate of interest, technology intensive delivery channel like Internet Banking, Tele Banking, Mobile banking and Automated Teller Machines (ATMs) etc. have created a multiple choice to user of the bank. The banking business is becoming more and more complex with the changes emanating from the liberalization and globalization. For a new bank, customer creation is important, but an established bank it is the retention is much more efficient and cost effective mechanism. Customer Relationship Management (CRM) would also make Indian bankers realize that the purpose of their business is to create and keep a customer and to view the entire business process as consisting of Highly Integrated effort to discover, create and satisfy customer needs. But it is surprising to note that much of the activities of the banking and financial remain focused on customer creation not retention.

Revisiting expectation confirmation model to measure the effectiveness of multichannel bank services for elderly consumers

PurposeThis study aims to understand the expectations of elderly bank customers with mobile banking services and to measure its impact on their long-term satisfaction and continued intention. The study is based on two theories, expectations-confirmation theory (ECT) and hedonic adaptation theory.Design/methodology/approachA self-administered longitudinal survey was completed with a sample of 208 elder customers who do not use mobile banking services. Latent growth curve modelling approach was used to determine the change in their post-adoption experience over four time points.FindingsResults of the study confirm that the use of mobile banking services prolongs the duration of customer satisfaction and continued intention level, post-adoption, reinforcing the hedonic adaptation theory.Research limitations/implicationsMobile banking services are going to be a significant component of the multichannel banking agenda. But it might be interesting to review other digital channels of banking services. The key contribution of this study is that it measures the expectation-confirmation link of elderly customers with mobile banking services. The study sheds light on factors that positively influence customer inclination and adoption of multichannel banking services in the long run, which is important for the commercial success of such channels.Practical implicationsThe study highlights the importance of elder customers' pre-expectations, related dimensions which are important for post-adoption experiences of mobile banking services to improve customers' satisfaction and continued intention in the long run. This is crucial for the commercial success of banks.Originality/valueThis is the first such study that used the expectation confirmation model (ECT) and related it with hedonic adaptation theory to assess elderly customer's post-adoption satisfaction and continued usage of mobile banking services over time.

Panel evidence from rural Uganda on mobile money, risk sharing, and educational investment

We investigate the influence of the rapidly developing mobile banking service "mobile money" on rural households' capacity to smooth their investment in education following a negative shock. We find that a negative shock reduces per school-age kid educational spending by 9.3 percentage points in families that do not utilize mobile money but by 8.3 percentage points in homes that have used mobile money. The underlying process is a rise in remittance receipts and sender variety as a result of the lower transaction costs afforded by mobile money. We demonstrate that our findings are resistant to alternative processes. We utilize the extension of the mobile money agent network as an exogenous variable in mobile money access.

Sikap Konsumen dan Kinerja Atribut Produk Mobile Banking (Studi Pengguna Mobile Banking di Kota Surabaya)

Mobile Banking sebagai salah satu bentuk layanan sistem informasi perbankan, yang dapat menjadi solusi terbaik untuk nasabah dengan tingkat kesibukkan yang tinggi. Banyaknya keluhan nasabah terkait aplikasi layanan mobile banking, maka penelitian ini penting dilakukan dengan tujuan untuk menganalisis atribut-atribut apa saja yang mempengaruhi sikap nasabah terhadap penggunaan layanan Mobile Banking, serta bagaimana kinerja atribut Mobile Banking. Metode penelitian yang digunakan adalah pendekatan deskriptif kuantitatif. Teknik pengambilan sampel menggunakan simple random sampling, diperoleh 100 responden pengguna mobile banking. Metode analisis data menggunakan Model Multiatribut Fishbein dan Importance Performance Analysis (IPA). Hasil penelitian menunjukkan sikap konsumen terhadap atribut Mobile Banking secara keseluruhan adalah positif, yakni dengan nilai 218,81. Kinerja atribut Mobile Banking dianalisis dengan Importance Performance Analysis, menunjukkan hasil bahwa atribut yang perlu diprioritaskan untuk ditingkatkan kinerjanya yaitu atribut yang termasuk dalam kuadran I (Prioritas Utama): Website Mobile Banking dan kemudahan Mobile Banking dioperasikan saat bertransaksi.

Quality factors in technology system capability decision interest in transactions using mobile banking

The purpose of this study was to determine the effect of ease of use, transaction success rate, and technological system capability on trust and to determine the effect of ease of use, transaction success rate, technology system capability and interest in transaction using mobile banking. This research was conducted at PT Bank NIAGA which is located in Denpasar. The data collection technique used a questionnaire to 160 PT Bank NIAGA customers who were selected as samples. Data were analyzed by Structural Equation Modeling (SEM) with AMOS program. Ease of use, transaction success rate, and technology system capability have a positive and significant influence on trust and interest in transacting using mobile banking. This means that the better the ease of use, the success rate of transactions, and the capability of the technology system, the higher the customer trust and interest in transactions using mobile banking.

Factors Impacting Mobile Banking in India: Empirical Approach Extending UTAUT2 with Perceived Value and Trust

The aim of this research is to study the factors impacting usage of mobile banking (mBanking) by consumers in India. The study adopts the Extended Unified Theory of Acceptance and Use of Technology (UTAUT2) with Social Value (SV), Monetary Value (MV), Emotional Value (EV), Quality Value (QV), Trust and the moderation effect of gender. Online and offline survey methods were used to collect primary data from 457 Indian consumers using mBanking. SPSS AMOS was utilized to empirically validate the conceptual model, test research hypothesis and moderation effect. The factors effort expectancy (EE), monetary value (MV), emotional value (EV), quality value (QV) and trust (TR) were found to be significant on behavioural intent (BI), whereas performance expectancy (PE) and social value (SV) were not found to be significant. Banking organizations can formulate strategies to attract new consumers and continue to engage in retaining consumers in using these influencing factors to adopt mBanking and other related mobile financial services (MFS). The study integrates perceived value components and trust with UTAUT2 to form a comprehensive model for examining mBanking adoption.