Abstract
Orientation: Mobile devices are becoming a popular means to access the Internet and conduct e-banking activities. Banks are marketing e-banking solutions to increase their customer base.Research purpose: This study contrasts how the service quality of mobile phone applications and Unstructured Supplementary Service Data banking influence customer loyalty. The study examined e-service quality to validate and determine the nature of the relationship of the proposed model.Motivation for the study: The study was conducted in a mobile banking (MB) setting in South Africa, with a technologically savvy young adult population. To win customer loyalty, banks need to provide innovative solutions to this group of clients.Research approach/design and method: A positivistic paradigm with a quantitative approach and descriptive design was adopted for this study. A convenience sampling method was used to distribute a questionnaire to 300 students, with a response rate of 73%.Main findings: The findings showed that fulfilment, privacy and efficiency were all significantly related to overall service quality and customer loyalty for both banking models. Based on the findings, privacy, fulfilment and efficiency are critical facets to both MB applications and Unstructured Supplementary Service Data banking.Practical/managerial implications: Banks need to target ‘unbanked’ customers to register for a bank account via Unstructured Supplementary Service Data banking or MB applications.Contribution/value-add: However, there is still a lack of knowledge about these services among the population. Therefore, banks need to educate potential and existing customers on these products and services to fully exploit the market segments.
Highlights
Technology is continually changing the way products and services are being delivered from one industry to the other (Hodgkinson 2015)
The mobile phone banking sector in South Africa is still relatively new, which means that consumers may have service quality (SQ) concerns, which may lead to them not adopting this type of banking (Shanka 2012)
It is noteworthy that efficiency features that deal with the interface of USSD and mobile banking (MB) app include simplicity and ease of access
Summary
Technology is continually changing the way products and services are being delivered from one industry to the other (Hodgkinson 2015). Mobile banking has made banking services more efficient and effective, as it increases the convenience and proximity of the services to the customer. The mobile phone banking sector in South Africa is still relatively new, which means that consumers may have service quality (SQ) concerns, which may lead to them not adopting this type of banking (Shanka 2012). In South Africa, the banking sector is very competitive, which means that mobile banking service quality (MB SQ) is critical to the optimisation of service delivery and achievement of customer loyalty and satisfaction (Burger 2010). MB services have increased the competitiveness of banking services in the industry.
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