Financial Inclusion of the Elderly: Exploring the Role of Mobile Banking Adoption

Abstract

The extant literature highlights that mobile banking offers various benefits for consumers. However, there is only a limited number of studies that investigate mobile banking adoption by the elderly. This study investigates the factors influencing the adoption of mobile banking by the elderly in a developing country context. The authors explore the enablers, barriers and perceptions of the elderly towards mobile banking adoption. Data were collected through interviews and focus group sessions with respondents from KwaZulu Natal Province in South Africa. The study relies on the Actor-Network Theory as a lens through which to understand the interrelated factors that influence the elderly’s perception and adoption of mobile banking. The results reveal a low adoption of mobile banking by the elderly. In addition, it was evident that the barriers that influence the adoption of mobile banking by the elderly include a lack of information and understanding, security and trust issues, demographic factors, language, the complexity of mobile banking applications, and resistance to change. The identified important enablers towards the adoption of mobile banking include convenience, unlimited access, cost-effectiveness. The study proposes a mobile banking adoption model for the elderly and highlights the interrelated technical and non-technical factors influencing mobile banking adoption. Additionally, it offers design guiding principles aligned to the elderly’s needs and perceptions of mobile banking.