Cell Phone Banking Research Articles

Does Cellphone Banking Change Lives? Fintech, Poverty, and Remittances in Kenya

Does Cellphone Banking Change Lives? Fintech, Poverty, and Remittances in Kenya

Mobile Banking Applications: Consumer Behaviour, Acceptance and Adoption Strategies in Johannesburg, South Africa (RSA)

There has been a complete disparity in the number of cell phone subscribers when compared to fixed line users in South Africa (referred to as Republic of RSA or RSA). In 2011, results revealed that 29 million South Africans use mobile phones compared to only 5 million using fixed lines (Brown, Cajee, Davies, & Stroebel,2003; Lascaris,2012). It is because of this increased and saturated mobile market that we have seen the extreme growth of mobile applications. This increase is coupled with several benefits that mobile applications bring to the consumer, such as increased functionality, productivity improvements and entertainment (Pranata, Athauda, & Skinner, 2013). Although adoption strategies around internet banking and cell phone banking have been explored in various parts of the world, adoption strategies specifically around mobile banking applications or have not been vastly researched (Jaruwachirathanakul & Fink, 2005). As such, this study focused on examining consumer behaviour and acceptance towards adopting mbapps in Johannesburg RSA, where mbapps are in an emerging phase, but offer potential benefits to both consumers and industry at large. A quantitative research methodology was used for this research. Self-administered quantitative questionnaires were distributed at the University of Witwatersrand as well as to individuals within the Johannesburg area aged between 18 and 60 years. A pilot study of 30 respondents was conducted to ensure validity and reliability of the questionnaire. Following this, the research was then conducted to a sample size of 373 respondents. Due to time constraints, this study made use of convenience sampling. Data collected from the questionnaires was analysed using statistical analysis to investigate the relationship between the variables used in the research model, this being a modified version of the Decomposed Theory of Planned Behaviour model – The decomposed TPB model is successful in predicting and explaining human behaviour across various platforms and breaking outcomes down into specific dimensions. In addition, the decomposed TPB model is most suitable for steering decision makers towards the implementation of innovations. The decomposed TPB model will provide insight into understanding consumers’individual attitudes, subjective norms and perceived behavioural control, which ultimately influences the likelihood of consumers using mbapps. From the findings, it can be concluded that the results of this study support the proposed conceptual model. The findings of this research, which was focused towards, Attitude, Perceived Behavioural Control and Subjective Norms do have a significant relationship on the intention to adopt mbapps. In terms of the hypotheses set and tested, all resulted as postulated. In conclusion to this study the contribution of this research provides the banking industry, marketers and academics with the factors that encourage consumers to adopt mbapps and to utilise the research to exploit the conversion rate of customers towards adopting mbapps. Lastly this study adds value to not only the RSA market but potentially to other developing and developed countries through the recommendations made in chapter 5. Decision makers are advised to take heed of the proposed strategies in maximising the rate of mbapps adoption. DOI: 10.5901/mjss.2014.v5n27p247

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

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.

English

The study investigates the trends and challenges of financial inclusion by commercial banks in Zimbabwe after the adoption of the multiple currency regime. Results showed that some commercial banks made efforts to ensure financial inclusion. New innovations like cell phone banking and internet banking were positive steps towards ensuring financial inclusion by Zimbabwean commercial banks. The foreign owned commercial banks in Zimbabwe however were not doing much as compared to the locally owned commercial banks. A number of challenges to financial inclusion were identified, chiefly being the liquidity challenges and high bank charges. Based on the research findings, we recommend the structuring of sustainable financial products and establishment of supportive infrastructure to enable Zimbabwean commercial banks to mitigate the challenges of financial inclusion in a liquidity constrained environment.

Gender differences in low-income non-users’ attitude towards Wireless Internet Gateway cellphone banking

Globally the adoption of cellphone banking is proceeding more slowly than anticipated. To address this managerial dilemma, the aim of this paper is to investigate the moderating effect of gender on low-income non-users’ attitude formation towards Wireless Internet Gateway (WIG) cellphone banking. An understanding of whether and to what extent gender moderates the formation of attitude can assist marketing managers in developing more effective marketing strategies to enhance adoption. The originality of the research is that it investigates gender differences in WIG-cellphone banking adoption behaviour of low-income non-users of this type of cellphone banking application. Literature on technology adoption, self-efficacy, facilitating conditions, risk and cost is reviewed to provide theoretical support for inclusion of the constructs in the conceptual model and to develop gender difference hypotheses. To assess the moderating effect of gender, a multi-group analysis with SmartPLS is conducted. The results of the multi-group analysis indicate that for males the influences of Usefulness on Attitude, Facilitating conditions on Self-efficacy and Ease of use, and Cost on Usefulness are stronger than for females and significantly different. On the other hand, the influences of Ease of use on Attitude, Self-efficacy on Ease of use and Facilitating conditions on Perceived usefulness are stronger for females than males and significantly different. These results may also be useful to marketing managers of other text-based mobile self-services. Furthermore, more confirmation for the determinants of Usefulness and Ease of use in a private usage and mobile service context is presented.

Understanding resistance to cell phone banking adoption through the application of the technology acceptance model (TAM)

The resistance to the adoption of cell phone banking poses a challenge to managers in banks. Previous research on the adoption of cell phone banking did not examine how the barriers to the adoption of technology influence the behaviour of clients. This article observes how the barriers of technology adoption influence perceived usefulness and perceived ease of use. The population of the study reported in this article consisted of 288 respondents who were non-users of cell phone banking services. The results of the assessment of the structural model demonstrated that both the value barrier and the tradition barrier had a strong negative influence on perceived usefulness. The usage barrier and the information barrier also had a strong negative influence on both perceived ease of use and the value barrier. Perceived ease of use had a strong positive influence on perceived usefulness and intention to use, while perceived usefulness had a strong positive influence on behavioural intention. Recommendations on how to improve the adoption of mobile phone banking are provided. Key words: Technology acceptance model (TAM), cell phone banking, usage barrier, value barrier, tradition barrier, information barrier.

Adoption of Cell-Phone Banking among Low-Income Communities in Rural Areas of South Africa

The maturity of interactive ICT solutions, with related convergence of various services on mobile platforms has revolutionised the way we communicate, and conclude business transactions in the informationage. The rise of e-Commerce, e-Business, e-Health, e-Learning or even internet and mobile phone banking, have simplified and improved access to these basic services for those who can exploit them. To enjoy these benefits however, one needs more than access, but also awareness and willingness to use these tools. The problem in most rural areas is that the majority still lacks awareness and literacy to make effective use of converged technologies in improving their lives. This study was set to explore the understanding of cell-phone banking by rural communities in South Africa. A qualitative approach was followed where individuals from informal settlements of Gugulethu and Nyanga were interviewed to determine whether they acknowledge the existence of cell-phone banking and to understand their reasons for non-usage. A vast majority of the low-income individuals according to the findings, do not use cell-phone banking. In fact, some do not even know what it is, and among the few that know about it most were not using. There are several issues that could possibly make rural individuals not to use or even trust cell-phone banking. Key among these was lack of insight into the facility, most probably, due to a lack of awareness. Issues of trust, where a mobile device is hardly construed as a viable alternative tool to handle one’s finances, also emerged strongly in the findings. Therefore, maybe banking institutions need to initiate a marketing strategy that would best suit the rural individuals. Maybe South African government should intervene because they strongly emphasise on the need for rural development.

Cell phone banking adoption in South Africa

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.

Cell phone banking: predictors of adoption in South Africa—an exploratory study

Cell phone usage has grown phenomenally in Africa, and particularly in South Africa where initial growth forecasts have been greatly exceeded. This technology therefore provides opportunities for services such as banking to reach critical mass. All major retail banks in South Africa provide cell phone banking, but very few customers actually use it. This study examines the factors that influence the adoption of cell phone banking in South Africa, as a means of understanding how to possibly increase the rate of adoption. A framework developed in Singapore identifying factors influencing the adoption of Internet banking was used as a basis, and amended to assess cell phone banking. Factors identified as influences included relative advantage, trialability, and consumer banking needs, with perceived risk having a major negative influence.