Abstract
Despite the exponential growth in cell phone usage in South Africa, from 13 million subscribers in 2002 to at least 49 million subscribers today, uptake of cell phone banking in the same period lags. Utilising Rogers’ innovation adoption framework, this research examines banking consumers’ perceptions of cell phone banking attributes, and how these may affect adoption. A survey of 124 cell phone users from Gauteng, Mpumalanga, and Limpopo Provinces participated in the study. Results indicate an improvement in cell phone banking uptake compared to past years. Perceptions of risk and security concerns appear to slow the adoption rate. While banking institutions have done a lot in launching cell phone banking, focussing attention on in-house promotion and customer demonstrations of cell phone banking may further improve adoption rate.
Highlights
In the last three decades, advancements in information and communication technologies (ICTs) forever revolutionised banking (Devlin, 1995)
While banking institutions have done a lot in launching cell phone banking, focussing attention on in-house promotion and customer demonstrations of cell phone banking may further improve adoption rate
Given that South African banking institutions have invested significantly in developing cell phone banking channels, it is important for these institutions to get return on investment
Summary
In the last three decades, advancements in information and communication technologies (ICTs) forever revolutionised banking (Devlin, 1995). ATMs or cash machines iconify 21st Century banking institutions. To some extent, this applies to many African countries. For that reason, Brown, Cajee, Davies, and Stroebel (2003) posit that the widespread adoption of ICTs and mobile phones in South Africa provides opportunities for banking services to reach critical masses of consumers. The latter is applicable even in remote areas inaccessible to bank branches (Kumar & Gupta, 2008). Uptake of cell phone banking (CB) is still low
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