Abstract
Mobile banking represents an important addition to retail banks’ digital banking channels and a salient tool for servicing both current and future customers. However, given the cybernetic nature of mobile banking, there is a certain degree of uncertainty and perceived risk associated with the use thereof. This uncertainty and perceived risk elevate the importance of trust in fostering mobile banking adoption. The Generation Y cohort, which encompasses today’s youth, represents an important current and future banking segment and their adoption of mobile banking channels could have a significant effect on the cost of servicing members of this cohort. Understanding the factors that positively contribute to the Generation Y cohort’s trust in mobile banking will help retail banks to better market their mobile banking channels to members of this cohort and thereby foster greater adoption of such channels. The study reported in this article considers the influence of the perceived integrity of the bank and the perceived system quality of mobile banking on Generation Y students’ perceived trust in mobile banking in the South African context. Data were gathered from a convenience sample of 334 students registered at three public South African university campuses using a self-administered questionnaire. The gathered data were analyzed using descriptive statistics, correlation analysis and bivariate regression analysis. The results of the study suggest that Generation Y students’ perceived integrity of a bank, together with the perceived system quality of mobile banking, has a significant positive influence on their perceived trust in mobile banking.
Highlights
Retail banks are looking to digitalize their banking service channels, including the offered mobile banking services (Ernst & Young, 2015)
Despite the obvious advantages offered by digital banking channels to both retail banks and customers, retail banks need to recognize that the use of such channels increases their interpersonal distance from customers, which may create trust issues (Benamati & Serva, 2007)
Generation Y students’ perceived integrity of the mobile bank and their perceived trust in mobile banking was measured using the Internet banking adoption scale (Nor & Pearson, 2008) that was adapted for mobile banking
Summary
Retail banks are looking to digitalize their banking service channels, including the offered mobile banking services (Ernst & Young, 2015). Mobile banking is a revolutionary technology that enables service cost reduction, while simultaneously maintaining and improving customer service (Ernst & Young, 2015). In emerging economies such as South Africa cost-effective digital banking channels including mobile banking provide retail banks with the opportunity to attract and attain new customers. Marko van Deventer, Dr, School of Economic Sciences, North-West University, South Africa. Ayesha Bevan-Dye, Prof., School of Economic Sciences, North-West University, South Africa
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