Abstract
Despite the benefits that mobile banking has to offer, coupled with positive mobile penetration rates, the use of mobile devices to perform banking transactions and access financial information is not as widespread as expected. The significantly sized Generation Y cohort is a rewarding market segment for retail banks. In South Africa, however, this cohort’s mobile banking adoption is largely under-researched. Understanding the antecedents that positively influence Generation Y students’ attitudes towards and usage behavior of mobile banking will assist retail banks in their efforts to tailor their business and marketing strategies effectively towards this cohort, and in doing so, foster increased acceptance of their mobile channels. As such, the purpose of this study was to extend the technology acceptance model (TAM) and determine the influence of perceived ease of use, relative advantage, subjective norms, perceived behavioral control, perceived integrity and the perceived system quality of mobile banking on South African Generation Y students’ attitudes towards and usage behavior of mobile banking. Following a descriptive research design, self-administered questionnaires were completed by a non-probability convenience sample of 334 students registered at the campuses of three registered public South African universities located in the Gauteng province. Data analysis included correlation analysis and structural equation modeling. The findings suggest that while perceived ease of use, perceived integrity and the perceived system quality predict Generation Y students’ mobile banking usage behavior, subjective norms, perceived behavioral control and the perceived relative advantage of mobile banking predict attitudes towards mobile banking, which, in turn, predict their mobile banking usage behavior.
Highlights
Prior to Internet connectivity, the banking sector was made up of a large number of relatively small retail banks operating in distinct geographical domestic markets
While some studies (Sharif et al, 2005; Nor and Pearson, 2008) suggest that perceived integrity is an antecedent of trust, this study proposes that individuals that believe that their retail bank has the necessary integrity will likely demonstrate a positive attitude towards their digital channels, such as mobile banking
The majority of the participants identified themselves as Africans (84%), followed by those who identified themselves as White (11%), Indian/Asian (2.7%) and Coloured (2.4%)
Summary
Prior to Internet connectivity, the banking sector was made up of a large number of relatively small retail banks operating in distinct geographical domestic markets. Customers completed their banking transactions with the assistance of a branch service employee (Arnaboldi and Claeys, 2008). This traditional business model of branch banking is instrumental to a retail bank’s success and while it remains an essential distribution channel (Kanchan et al, 2012), retail banks are constantly challenged with transforming and integrating their distribution channel mix (Cox et al, 2008). Retail banks have to account for the momentous shift in consumer behavior brought about by the digital revolution that continuously impact the way businesses and customers transact (Standard Bank, 2015)
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