Mobile banking applications: Consumer behaviour, acceptance and adoption strategies in Johannesburg, South Africa (RSA)

24 July 2018

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 "mbapps" 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