Factors influencing the adoption of cell phone banking by South African students

Abstract

Technology has transformed banking beyond the bricks and mortar bank concept. The modern bank can now be represented by innovations such as cell phone banking. These technologies, when adopted, present a win-win situation for both financial institutions and customers. Increased revenues and cost savings for banks; cheaper and more convenient forms of banking for customers. Although globally cell phone banking (CPB) is among the fastest growing remote banking innovations, in South Africa adoption levels are still very low. Against this background, this study investigates the perceived attributes of cell phone banking and their influence on its adoption, as well as the marketing implications of such. A survey, in which a sample of 282 university students from a South African university participated, was conducted. Statistical techniques were applied to analyse the data. Results suggest self-efficacy, complexity, and relative advantage as being the important factors influencing adoption. Specific marketing interventions tailored to the student market segment are discussed. Key words: Cell phones, cell phone banking, South Africa, students.