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Background: The purpose of this study was to review existing research on mobile banking diffusion and investigate the adoption of mobile banking in sub-Saharan Africa (SSA).Objectives: Based on the failure of the M-Pesa in South Africa, this article also attempted to determine why mobile money service systems are difficult to apply transnationally.Method: This was a literature survey, analysing mobile money literature during the period 2006–2016. Because of the current explosiveness of mobile money in SSA, the focus of this literature survey was limited geographically to South Africa, Zimbabwe and Kenya.Results: The results of the literature survey and the real-world examples mainly show that a transnational application of mobile money service systems is difficult to implement.Conclusion: This research elucidates the demand and need for mobile money service systems in SSA while underlining the explosiveness promoted mainly by rapid technological progress.
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South African Journal of Informaon Management
ISSN: (Online) 1560-683X, (Print) 2078-1865
Page 1 of 9 Original Research
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Authors:
Joel M. Chigada1
Benedikt Hirschfelder1
Aliaons:
1School of Management
Studies, University of Cape
Town, South Africa
Corresponding author:
Joel Chigada,
joel.chigada@uct.ac.za
Dates:
Received: 08 Sept. 2016
Accepted: 12 Mar. 2017
Published: 26 July 2017
How to cite this arcle:
Chigada, J.M. & Hirschfelder,
B., 2017, ‘Mobile banking in
South Africa: A review and
direcons for future
research’, South African
Journal of Informaon
Management 19(1), a789.
hps://doi.org/10.4102/
sajim.v19i1.789
Copyright:
© 2017. The Authors.
Licensee: AOSIS. This work
is licensed under the
Creave Commons
Aribuon License.
Introducon
Web 2.0 educed a widely recognised sales channel in Business-to-Consumer and business-to-
business. Because of the consequently connected online payment system, the banking industry
adopted and integrated online transactions into their daily business, and online banking has become
a popular alternative to traditional banking (Akhter 2015; Barbesino, Camerani & Gaudino 2005;
Laukkanen & Pasanen 2008). A relatively new trend, mobile banking, developed worldwide with
mobile phone mobilisation. Mobile banking is defined as any mobile interaction with a money-
managing institute, not necessarily a bank, which allows customers to deposit, send and withdraw
money (Laukkanen & Pasanen 2008; Tobbin 2012). The Online Dictionary (2017) defines online
banking as any banking transaction conducted over the Internet through a financial institution’s
website under a client’s private profile. Common electronic devices used are mobile phones,
smartphones and tablets. Mobile banking is a subset of Internet banking and a portable extension of
it, increasing flexibility for customers and improving the services of a bank (Aker & Mbiti 2010).
With regard to research in the mobile banking field in Africa, the following key points were taken
into consideration. In urban areas, the density of smartphone distribution is relatively high in
comparison to rural areas where the lack of connectivity options impedes the distribution
(Poushter & Oates 2015). Because of this, Africa’s mobile Internet penetration is relatively low in
relation to the rest of the world (Internetlivestats 2016). According to the Internet Society (2015),
subdividing Africa into sub-Saharan Africa (SSA) and the Middle East and North Africa
demonstrates that particularly in SSA, the penetration rate is comparatively low (Table 1).
Besides the locational circumstances, the affordability of mobile phones or telecommunication
devices (smartphones or tablets) must also be considered (Brown 2014). Finally, the necessity of a
bank account plays a significant role in mobile banking, particularly in the low-income class
(Tobbin 2012). With regard to the points above, South African marketing practitioners have
recognised this low-income banking problem and concentrated on money transfers without
affiliation to a bank (Shoprite 2016) and money transfers via mobile communication companies,
which assume the functions of a bank (Abbott 2015; Tobbin 2012).
Although these opportunities provide alternatives for the unbanked population, rapid technological
progress predicts a promising future for mobile banking. Indeed, it has been reported that:
The technological service access methods have already bypassed the traditional branch-based retail
banking and as a consequence technology has become an increasingly essential element in the competing
markets of financial services. (Laukkanen & Pasanen 2008:87)
Background: The purpose of this study was to review existing research on mobile banking
diffusion and investigate the adoption of mobile banking in sub-Saharan Africa (SSA).
Objectives: Based on the failure of the M-Pesa in South Africa, this article also attempted to
determine why mobile money service systems are difficult to apply transnationally.
Method: This was a literature survey, analysing mobile money literature during the period
2006–2016. Because of the current explosiveness of mobile money in SSA, the focus of this
literature survey was limited geographically to South Africa, Zimbabwe and Kenya.
Results: The results of the literature survey and the real-world examples mainly show that a
transnational application of mobile money service systems is difficult to implement.
Conclusion: This research elucidates the demand and need for mobile money service systems
in SSA while underlining the explosiveness promoted mainly by rapid technological progress.
Mobile banking in South Africa: A review and direcons
for future research
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After eight years, are these insights applicable to Africa,
considering the slower technological penetration? In this article,
the researchers explored the following research questions
concerning the literature on the implementation and adoption
of mobile money in SSA, specifically in South Africa:
• Why do alternatives such as the Kenyan mobile money
service provider, M-PESA, have such a large clientele?
• Which factors are crucial in the adoption of mobile money
transfer systems/mobile banking?
• How do South Africans, particularly in the lower-income
segment, operate with their money?
This research addressed these and related questions in its
review of low-income mobile banking perspectives in SSA
and elucidate the mobile banking situation in South Africa.
Research methodology and design
A systematic literature review approach was conducted where
empirical data were collected through desktop research; thus,
researchers were concerned about collecting data for the 2006–
2016 time frame. In addition, systematic literature review
allowed the researchers to formulate research questions, set
inclusion/exclusion criterion and infused meta-analysis to
analyse, synthesise and disseminate the findings. For this
research, data were collected, analysed and interpreted using a
quantitative research methodology. Data were collected from
existing literature for the period 2006–2016. The researchers
analysed quantitative findings from other studies in order to
understand the concept of mobile banking discussed in the
current study. Several studies on mobile banking in SSA were
included in this study; thus, meta-analysis was infused in the
study for standardised statistical procedures (see Table 2: Meta-
analysis of findings). In this research, the researchers adopted a
causal-comparative and descriptive research design to reveal
cause and effect relationships between variables in mobile
banking (van Wyk 2012). The causal-comparative and
descriptive research designs helped to address the ‘why’ and
‘how’ type of research questions that informed this study. The
objective was to unravel reasons why there was a slow uptake
of mobile banking in SSA. However, the study also revealed that
there were SSA economies that had successfully implemented
these mobile money systems. The only exception was the South
African project on the implementation of M-PESA which failed.
South African context of mobile
banking
According to Koech (2012), in SSA, many countries exhibit a
higher subscription to mobile phones than bank accounts. In
this context, the World Bank forecast a bright future for mobile
banking as a new era of financial services, particularly in
developing countries. South Africa exhibits a relatively high
percentage of households with bank accounts (51% – 80%);
thus, this high rate of bank account holders works against any
ideas to transform the traditional banking services into mobile
money. South Africa has a high mobile phone ownership (89%)
and, consequently, matured mobile money services. Thus,
South Africa symbolises a suitable research field (Abbott 2015;
Koech 2012; Poushter & Oates 2015). Mobile banking in South
Africa serves as an important interface between banks and the
lower-income population by providing useful transfer, saving
and investment opportunities.
The researchers suggest that mobile banking in South Africa
serves the following key functions: integration into a bank
system, simplification of banking, enhancement of financial
opportunities and improved control of money operations.
The following sections of this article review these functions
and elucidate focal points. Thereafter, two real-world
applications illustrate the actual state of mobile money and,
finally, limitations and suggestions for future research are
discussed.
Integraon into mainstream
banking systems
Banking has been in existence for thousands of years (Vaupel &
Kaul 2016). Banks operate mainly as service providers, for
example, for cash businesses and in-bank lending and have
numerous functions such as monetary functions (payment
transactions), investment functions (securities) and economic
functions (Vaupel & Kaul 2016). The acceptance of deposits and
other objects of value as well as lending are classical functions of
a bank. Whereas the theory of John Maynard Keynes underlines
the importance of the value stability of currencies (Mankiw
2015), the theory of Milton Friedman, mainly associated with
monetarism, underlines the importance of price stability that is
regulated by the government to control the amount of money
in circulation (Mankiw 2015). Monetarism assumes that the
combination of the government and the central bank and the
accomplished money supply/control influence the gross
domestic product. Therefore, banks play an important role
regarding economic growth and control (Mankiw 2015).
TABLE 1: African mobile Internet penetraon.
Variable Sub-Saharan Africa (%)Middle East and
North Africa (%)
Internet users 17 39
Mobile Internet penetraon 8 23
3G populaon coverage 35 72
Source: Internet Society, 2015, Global internet report 2015, viewed 25 April 2017, from
hp://www.internetsociety.org/globalinternetreport/#main-content
TABLE 2: Mobile phone diusion in Africa 2014.
Country Own a mobile phone (%)Make or receive mobile payment (%)
Zimbabwe 93 47
Nigeria 89 15
Senegal 84 30
Ghana 83 15
Kenya 82 61
Tanzania 73 39
Uganda 65 42
Source: Based on: Gambanga, N., 2016b, Latest POTRAZ report shows leaps in LTE & increase
in Zimbabwe’s internet penetraon, viewed 1 March 2017, from hp://www.techzim.co.
zw/2016/01/latest-potraz-report-shows-increase-in-zimbabwes-internet-penetration/;
Gambanga, N., 2016c, Mobile money subscribers in Zimbabwe increase by 7.1%, viewed 1
March 2017, from hp://www.techzim.co.zw/2016/01/mobile-money-subscribers-
zimbabwe-increase-7-1/; Poushter, J. & Oates, R., 2015, ‘Cell phones in Africa: Communicaon
lifeline texng most common acvity, but mobile money popular in several countries’,
viewed 22 April 2016, from hp://www.pewglobal.org/2015/04/15/cell-phones-in-africa-
communicaon-lifeline/
Page 3 of 9 Original Research
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In the period 2002–2008, South Africa as the second largest
economy in Africa experienced its fastest expansion since the
establishment of democracy in 1994 with an average growth
rate of 4.5% (Ferreira 2016). However, this growth is declining
because of the increasing gap between the rich and poor, low-
skilled labour forces, the high unemployment rate, deteriorating
infrastructure and the high corruption and crime rates (Ferreira
2016). The lower-income class in particular is becoming
progressively appealing to banks because of: (1) growing market
power, (2) growing political power, and (3) technological
progress (Inglesi-Lotz, Van Eyden & Du Toit 2014; Moloi 2014;
Visagie 2013). In the following sections, the researchers review
each key point and elucidate how together they precipitate
integration into the South African bank system.
Growing market power of the lower-income class
The growing market power of the lower-income class in
South Africa is first defined. According to Visagie (2013)
middle-class households (an average of four people) in South
Africa have a total income of R5600 to R40 000 per month
after direct income tax. Every household that has an income
of less than R5600 falls into the lower-income class category.
A report by BusinessTech (2016) states that 70% of the South
African population earns less than R6000 per month, and
thus, they fall into the lower-income class category. With
regard to such a collective buying power but single buying
weakness, savings accounts are rare because of the meagre
lifestyle. Particularly in the lower-income class, saving
schemes called stokvel1 are more popular than traditional
saving systems (UCC 2016). South African banks recognise
this trend by offering tailored banking applications in order
to integrate this income class.
Growing polical power of the lower-income class
South Africa is a democratic country in which the political
landscape is characterised by different political parties. Prior
to the country’s attainment of independence in 1994, the
lower-income members of society were voiceless because of
the oppressive apartheid regime laws (Moloi 2014). There has
been a great paradigm shift in the political dispensation of
the country, and previously disadvantaged members of
society now wield considerable political power and have the
capability to resent, resist or reject policies that infringe their
rights. The dynamics in the political landscape have
culminated in a number of policy reforms in the country, an
indication that civil society is concerned about their well-
being. Unfortunately, political change does not culminate in
economic power or wealth.
Technological progress – Mobile phone or
smartphone diusion
South Africa is among the strongest economies in Africa, and
Inglesi-Lotz et al. (2014) underline the importance of
technological progress in the economic growth of the country.
Accordingly, it is not surprising that in 2014, the mobile
phone diffusion rate of 89% (of which 34% are smartphones)
1.Stokvel: a rotang credit union.
in South Africa was the highest in Africa (Poushter & Oates
2015). Mobile broadband subscription in particular has
experienced notable growth in Africa (Screen Africa 2014).
With regard to the population in South Africa, only 16.4% in
metropolitan areas, 9.2% in urban areas and 2% in rural areas
have Internet access at home. However, because of the
progressive improvement of mobile technology, 30.8% of all
households in South Africa, with 17.9% of rural households,
go online using mobile devices (Statistics South Africa 2014).
Furthermore, 84% of South African Internet users access the
World Wide Web via mobile technology. This demonstrates
the well-engineered South African mobile technological
progress and the pervasiveness of mobile and smartphones
(including tablets with mobile Internet access) being the most
commonly used devices for Internet access.
The price of prepaid data bundles is rapidly falling because
of the competitiveness in the market. In addition,
smartphones are becoming progressively cheaper, which
also contributes to an increase in data usage (Euromonitor
2015). Seventy-eight percent of South African Facebook
users, for example, access this social media platform from
their mobile and smartphones. Regarding the social network
and micro-blogging service Twitter, 85% of people access
this social media platform from their mobile phones
(Bluemagnet 2014). South African companies are
increasingly integrating social media marketing into their
promotional mix and extending their social media budget,
particularly for online content marketing and multimedia
content (Poushter & Oates 2015). One such South African
industry that is progressively making use of the online
service and application is the banking sector (Maduku
2014). Because of the aim of reducing the expenses that
customers incur by visiting branch offices and the decrease
in cost of mobile phone technology, Internet banking has
become a popular alternative to traditional banking in
South Africa (Karjaluoto, Mattila & Pento 2002; Maduku
2014).
Simplicaon of banking
Considering the technological progress concerning mobile
banking, mobile phones and smartphones as relatively
young service communication channels offer potential in
banking (Abbott 2015; Akturan & Tezcan 2012; Laukkanen
& Lauronen 2005). According to Laukkanen and Pasanen
(2008) and Akturan and Tezcan (2012), the main reasons for
mobile banking adoption are convenience, access to banking
services at any time of the day or night and minimisation of
effort, time and consultation costs. Considering these facts,
we acknowledge that South African mobile banking: (1)
improves banking skills, (2) simplifies bank account
maintenance, and (3) simplifies money transfers.
South African banks enable local citizens as well as foreigners
to open bank accounts. To do this, South Africans must provide
proof of income, address and identity; the most important
criteria for a foreigner is a valid visa (AnswersAfrica 2013).
However, because of the relatively open entry requirements
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(valid passport) and the accomplished tourist visa (90 days),
South Africa is at odds with a high number of illegal immigrants
who are not leaving the country after their visas have expired
(Department of Home Affairs 2016). Many people regard the
South African economy as an income-earning opportunity
because the economy is classified as developing and highly
successful in Africa (KEDO 2013). Thus, the need for money
transfer to the home country for family support is high.
Knowing the situation and the resulting illegal unbanked
people, marketing practitioners recognising this trend offer
money transfer systems for the unbanked (FinScope 2014). The
method in which mobile banking addresses this system and
(1) improves private banking skills, (2) simplifies bank account
maintenance, and (3) simplifies money transfers is discussed
in the following subsections.
Improvement of banking skills
Because private banking can include complex calculations, a
bank account is, in most cases, also accompanied by a private
banking consultant (Seidel & Liebetrau 2015). While the
service intensity varies based on salary level and the use of
services, the philosophy of banks does not differ from the
traditional customer concept of ‘customer is king’ (Seidel &
Liebetrau 2015). However, accomplished with the user-
friendly interface of Web 2.0, online banking together with
the ‘do-it-yourself’ mentality that is rewarded with no
consulting costs has become a popular alternative to
traditional face-to-face banking (Khrais 2015; Laforet & Li
2005). Particularly for basic transactions, more and more
customers are making use of online banking or mobile
banking, which is being rapidly pitched by banks offering
online banking websites and mobile banking applications
with user-friendly interfaces (Khrais 2015; Raitani & Vyas
2014). On the one hand, banks might reduce the consulting
efforts required for basic transactions, and on the other hand,
customers will gain more confidence concerning independent
banking, therefore, improving their banking skills.
Simplicaon of bank account maintenance
As is apparent from the previous section, the user-friendly
interface encourages people to adopt independent online/
mobile banking (Khrais 2015; Raitani & Vyas 2014). The
convenience of accessing a bank account at any time in order
to track and administer finances might simplify the
maintenance of private bank accounts. The most decisive
point for the use of online or mobile banking is the time-
saving aspect (Abbott 2015). Research concerning the
effectiveness of smartphone applications illustrates the
sophistication of tablet and smartphone use in life-improving
matters (Couse & Chen 2010; Granado-Font et al. 2015).
Particularly in South Africa, where 84% of the Internet users
access the World Wide Web via mobile technology, online or
mobile banking might simplify bank account maintenance.
Simplicaon of money transfers
In earlier times, bank transactions were connected with much
paper work and associated with time-consuming, in-house,
drop-off costs. Moreover, the receiving party had to wait at
least 1 or 2 days for transactions to be completed. Today, online
or mobile banking allows customers to transfer money,
including international transactions, within a day (Seidel &
Liebetrau 2015). Furthermore, clear, structured interfaces with
explanatory images allow people even with little Internet
experience, to make a transaction (Abbott 2015). Concerning
Internet security, a transaction authentication number (TAN)
serving as a one-time password, authorises the transaction.
This TAN is mostly generated by a TAN-Generator or sent via
a text message to the customer’s mobile phone. Theoretically,
this means online or mobile banking simplifies money
transfers. This might be underlined, for example, by an online
banking penetration of 90% in Norway, 85% in the Netherlands
and a demonstrated 46% average in the European Union in
2015 (Statista 2015). In South Africa, there are currently four
options for customers to access their accounts independently.
Access can be via a computer, a tablet, a mobile phone or a
smartphone. The five most popular banks in South Africa are
ABSA, Capitec, First National Bank, Nedbank and Standard
Bank. All provide mobile applications (Columinate 2015).
An upcoming option that simplifies money transfers is low-
value, real-time, person-to-person payment, also known as
mobile money (Abbott 2015). Real-time payments allow users to
send or receive money with their feature phones, smartphones
or tablet computers. Successfully adopted by more than 2500 US
banks currently, the largest real-time, person-to-person payment
network in the western world has been built, where mobile
money has become rapidly popular. Particularly successful in
introducing financial services to the lower-income class and to
the unbanked, mobile money has become a popular banking
instrument (Abbott 2015). Mobile money allows cashless
consumers to transfer or pay varying amounts by using their
mobile devices (Seidel & Liebetrau 2015).
Applicaon of mobile money in
sub-Saharan Africa
As a consequence of the relatively high mobile phone density
in SSA and the consumer demand that is driven by the need
for secure cash transactions and the simplification of banking,
mobile money has become rapidly popular (Laukkanen &
Pasanen 2008; Poushter & Oates 2015). However, the adoption
level differs significantly from country to country.
M-Pesa
An African example for mobile money adoption is the
Kenyan SMS-based money transfer system known as M-Pesa,
where M stands for Mobile and Pesa means money in
KiSwahili. This system was launched in March 2007 by the
telecommunication company Safaricom (Bengelstorff 2015).
By using the mobile phone number as a virtual bank account
number, M-Pesa allows individuals to deposit, save, send
and withdraw money via their mobile phones. Figure 1
illustrates the simplicity of using M-Pesa (Bengelstorff 2015).
Particularly for the unbanked, M-Pesa facilitates the exchange
of money without physically having to visit a banking
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institution. Considering that most of Kenya’s population are
farmers who live in the countryside and are subjected to long
distances to the nearest banking institution, the options to
move cash are uncertain and risky. In contrast to methods
such as sending cash with a bus driver or sending a postal
money order, M-Pesa only requires a mobile phone with a
Safaricom number to ‘move cash’ virtually over long
distances, including transnationally. Thus, M-Pesa facilitates
the safe storage and transfer of money. Furthermore, a reliable
and safe storage mechanism may increase the household
savings. In addition, M-Pesa allows families progressive
mobility by sending members to high-paying jobs at distant
locations. Another economic benefit of M-Pesa is that it
increases the security of subscribers, particularly in the
poorer segments of the population. For example, M-Pesa
allows taxi drivers to deal with less cash, which has been
found to be the reason for muggings. These facts might be
underpinned by the research of Jack and Suri (2011) who
explored the economics of M-Pesa in Kenya. According to
their study, safety and ease of operation were the two main
factors for adopting M-Pesa. Furthermore, they determined
that the main reason for the non-use of M-Pesa was the
simple fact of not owning a mobile phone (Jack & Suri 2011).
Regarding mobile phone diffusion in Africa, South Africa
and Nigeria are in the pole position. More precisely, 89% of
South African and Nigerian adults owned a mobile phone in
2014. This 89% is subdivided into 34% smartphones in South
Africa, 27% smartphones in Nigeria and 55% mobile phones
in South Africa and 62% mobile phones in Nigeria. Table 2
illustrates the top seven countries’ diffusion of mobile phones
and the use of mobile phones to perform payment transactions
(Poushter & Oates 2015).
Although 89% of South African adults owned mobile phones
in 2014, only 15% used them for mobile payments. Whereas
users in Kenya exhibited a lower diffusion of mobile phones
(82%), but the use of mobile phones for payment transaction
was the highest in Africa at 61%. This inconsistency is
discussed in the next section by comparing the South African
M-Pesa with the Kenyan M-Pesa cases.
South African M-Pesa versus Kenyan
M-Pesa
Two weeks after introducing M-Pesa in Kenya in 2007,
Safaricom reported 20 000 active users (Bengelstorff 2015;
Jack & Suri 2011). This success story continued, exhibiting 20
million customers and 83 000 agents by 2015 (Bengelstorff
2015; Jack & Suri 2011). Today, on this basis, M-Pesa enables
customers to pay electricity and water bills, obtain cash from
an ATM, buy airline tickets, pay taxi drivers and take out
small loans (Bengelstorff 2015; Jack & Suri 2011). In contrast
to Kenya, where Safaricom had the monopoly on mobile
money during its launch, South Africa now exhibits a well-
developed mobile banking system. More precisely, banks in
South Africa provide reliable and easy access to banking
services for all bank customers. This includes the lower-
income customers, reducing the number of unbanked to a
minimum (Abbott 2015). In order to compete, almost every
South African bank provides online banking and mobile
banking applications. Besides this well-developed banking
system, South Africa’s financial system provides similar
money transfer systems to M-Pesa for the unbanked. For
example, Shoprite, Africa’s largest food retailer, provides
money transfers countrywide for R15 per transaction
(Shoprite 2016). Different preconditions, poor distribution
and poor marketing resulted in only 1 million users of M-Pesa
in South Africa by the end of March 2015, which was labelled
as a failure by the two main investors, Vodacom and Nedbank
(Bengelstorff 2015). Consequently, Vodacom South Africa
made the decision to discontinue the M-Pesa product with
effect from 30 June 2016. Potential new customers were not
able to register, and the facility of person-to-person payments
to unregistered customers was terminated on 9 May 2016
(Tshabalala 2015).
On the basis of these two cases, it can be concluded that
technical preconditions alone, in this case, a high mobile
phone density, are not a guarantor for a successful
launch and that environmental conditions should not
be disregarded. The environmental conditions in the
South African context that might deserve further research
are discussed later.
Zimbabwe’s EcoCash
Regarding international, real-time, person-to-person
payments in SSA EcoCash, a mobile money transfer system
launched in Zimbabwe in 2011, enables users to receive
money from more than 50 international countries and
territories (Dann 2014). EcoCash is a person-to-person
mobile transfer system developed by Econet Wireless, a
privately held telecommunications group with operations
Recharge
credit with
M-Pesa
agent
Choose
funcon Enter pin
Enter phone
number of
recipient
Specify
amount Confirm
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Source: Bengelstor, A., 2015, A global success from Kenya, viewed 8 June 2016, from hps://www.credit-suisse.com/us/en/news-and-experse/banking/arcles/news-and-experse/2015/08/
en/a-global-success-from-kenya.html
FIGURE 1: Six payment steps of M-Pesa.
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and investments in Africa, Europe, South America, North
America and the East Asia Pacific Rim. The product, EcoCash,
is based on the development of a mobile payment system to
help NGOs make cash transfers to refugees after the
Burundian Civil War. By adopting M-Pesa’s obscure lines
between telecommunication and banking and with the aim
of helping the lower class or the unbanked to save, transfer
and purchase cashless, EcoCash symbolises a Zimbabwean
copy of the Kenyan M-Pesa (EcoCash 2016; Econet 2016;
Leach 2014). In contrast to where M-Pesa failed to succeed in
South Africa, EcoCash was confronted by three preconditions
in Zimbabwe, similar to M-Pesa in Kenya. Firstly, the Econet
product provider of EcoCash and the Safaricom product
provider of M-Pesa were both telecommunication providers
during their launches. With regard to the launch date of their
mobile money products, both providers were near-
monopolistic players in their home market (Safaricom: 66.6%
in 2007; Econet: 70% in 2011). Secondly, at the launch, both
mobile phone penetration rates were high, with 40% for
Safaricom in 2007 in Kenya and 74% for Econet in 2011 in
Zimbabwe (Africa&middleeast 2011). Thirdly, with 70%
unbanked in Zimbabwe in 2011 and a population that had
lost trust in the banks, Zimbabwe’s environmental
preconditions for an independent banking service were high
(Mangudya 2016). Because of these three preconditions and
the advantage of technological progress over 4 years, EcoCash
had 2.4 million subscribers in the first year, that is, 320 000
more subscribers than M-Pesa in its first year in Kenya
(Kabweza 2012; Techzim 2011). Accompanied by a mobile
penetration of 95.4% in the last quarter of 2015, the mobile
money service, EcoCash, rapidly expanded in Zimbabwe.
With 5.8 million subscribers in 2016 and 26 500 agents across
Zimbabwe, EcoCash has become the largest financial service
provider in the country (Gambanga 2016a). In addition to
the national success, EcoCash allows users to send money to
Zimbabwe from 57 countries worldwide (EcoCash 2016).
It is apparent that the environmental preconditions must be
considered wisely when launching a mobile money service
system. Furthermore, M-Pesa and EcoCash illustrated that
mobile money services improve banking skills, particularly
of the unbanked, simplify bank account maintenance and
simplify money transfers in SSA. How mobile money services
influence the adoption of information and communication
technology (ICT) in South Africa is discussed in the next
section.
Inuence of informaon and
communicaon technology on the
adopon of mobile money
As illustrated by the three real-world examples above and
underlined by Van de Ven (1986) and Rogers (2010), the
implementation of ICT is always associated with
organisational, environmental and individual changes. These
changes and the accomplished implication challenges are
theorised by researchers and practitioners in the research
area that focuses on the acceptance and adoption of
technology (Korpelainen 2011). According to Korpelainen,
the most cited theories are the Technology Acceptance Model
(TAM), the Theory of Reasoned Actions, Diffusion of
Innovations and the Theory of Planned Behaviour. These
theories mainly explore individual technology acceptance by
analysing the organisation and the implementation of ICT.
Regarding the acceptance of the technology of mobile money
in Africa, Table 3 outlines the literature using technology
acceptance theories.
As can be seen in Table 3, TAM is a popular theory for the
technology acceptance of mobile money in Africa. The TAM
describes perceived usefulness and perceived ease of use as
fundamental determinants to examine behavioural intentions
concerning the use of technology and its acceptance. It is
described by Luarm and Lin (2005) as the most widely
accepted model in information system literature. Concerning
the literature above and the use of the TAM, the two
fundamental determinants mentioned above were extended
with individual research perceptions. For example, Tobbin
(2012) added the economic factor and perceived trust as two
additional factors in order to explore the acceptance of mobile
banking technology by the unbanked. On the basis of TAM,
Lule et al. (2012) generated a generic mobile banking adoption
framework. The literature above concludes without exception
that TAM is a suitable technology acceptance theory for
research in the mobile money field.
Taking these facts into account, the authors of this article
illustrate how mobile money systems influence the adoption
of ICT in South Africa with the help of: (1) organisational
changes, (2) environmental changes, and (3) individual
changes.
Organisaonal changes
Regarding organisational changes, the approach of Vodacom
and Nedbank to implement M-Pesa in South Africa showed
that not only environmental requirements but also
organisational tasks were neglected (Bengelstorff 2015).
According to Tshabalala (2015), the marketing and
TABLE 3: Sub-Saharan Africa literature concerning mobile money technology
acceptance theories.
Main theory Content Research design Author(s) and year
TAM Explores the movaons of
the unbanked to adopt
mobile banking in Ghana
Qualitave
research
Tobbin 2012
TAM Examines the factors that
inuence the adopon of
M-banking in Kenya
Quantave
research
Lule, Omwansa
and Waema 2012
TAM; Diusion
of Innovaon
Invesgates the key
factors that inuence the
Ghanaian consumers’
acceptance of mobile
money transfer technology
Quantave
research
Tobbin 2012
TAM Invesgates the success
factors aributable to the
use of mobile payments
by micro-business operators
in Kenya
Quantave
research
Mbogo 2010
TAM, Technology Acceptance Model
Source: Luarm, P. & Lin, H., 2005, ‘ Towards an understanding of the behavioral intenon to
use mobile banking’, Computers in Human Behaviour 21(6), 873–891. hps://doi.
org/10.1016/j.chb.2004.03.003
Page 7 of 9 Original Research
hp://www.sajim.co.za Open Access
organisation of the agents, which are key points of the M-Pesa
service system, were weakly implemented. As progressively
claimed by the banks, the comparatively high bank account
diffusion and accomplished low unbanked population share
the organisational changes for mobile money adoption in
South Africa. For example, Capitec Bank Holdings Limited
provides unstructured supplementary service data, a mobile
banking system applicable to almost every mobile phone.
Because of the rapid technological progress, the smartphone
applications provided by all large banks in South Africa have
become particularly popular in the urban areas (Abbott
2015). Therefore, it can be said that organisational changes
concerning mobile money systems in South Africa have a
decentralised role, starting with the banks.
Environmental changes
Despite the influence of the international oil crisis in the
1970s, the international sanctions to end apartheid from 1985
onwards, democratisation in 1994 and the financial crisis
from 2007 onwards, the economy of South Africa has been
ranked in the top five in Africa continuously (Inglesi-Lotz
et al. 2014). According to Inglesi-Lotz et al., growth-
accounting calculations elucidate the progressive increase
and importance of technological growth in contrast to the
production factors of capital and labour during the 2000s. As
reported by Debsu, Little, Tiki, Guagliardo, and Kitron (2016),
the recent expansion of mobile phone use introduces the
technological change in Africa. With the recent increased
technical infrastructure, mobile technology that was
predominantly used in urban areas has expanded to relatively
remote areas. As illustrated in the previous sections, the use
of ICTs has rapidly increased connectivity and aided in
prosperity for Africa (Debsu et al. 2016). As one of the
industrialised and westernised countries in Africa,
environmental changes improved mobile banking skills in
the rural areas.
Individual changes
With regard to 89% mobile phone diffusion 2014 in South
Africa (Poushter & Oates 2015), the acceptance of mobile
technology is high. However, the acceptance of the technology
regarding mobile money is comparatively low at 15%
(Poushter & Oates 2015). This low acceptancy might be
reasoned by the relatively well-developed bank account
diffusion. Nonetheless, future research is required to verify
this speculation. Because of the decentralisation of mobile
money providers and the large variety of them in comparison
with other SSA countries, South Africa does not possess a
high unbanked population. However, it is the corporation of
the individual mobile money service provider that
complicates transactions. More precisely, for individuals, it is
more convenient to use a mobile money service when their
transaction partner has the same mobile money service
provider (Abbott 2015). Accordingly, the individual changes
in South Africa are because of the advanced organisational
and environmental progress in comparison with the
remaining SSA countries and the smooth cooperation
between the several mobile money service providers, not the
actual mobile money service.
Findings
The findings from this study are illustrated in Table 4. A
meta-analysis summary of findings from Kenya’s mobile
money project, South Africa’s Vodacom M-Pesa and
Zimbabwe’s EcoCash project are presented in Table 4.
Limitaons and suggesons for
future research
This research is limited by the literature concerning mobile
money in SSA and concentrating on the South African
mobile money service market. Because this research is a
literature survey, no quantitative or qualitative data were
raised. Concerning future research, the sections above illustrate
that because of a lack of academic literature concerning mobile
banking in South Africa, both qualitative and quantitative
research is required. More precisely, it would be promoting to
investigate if an existing bank account has an influence on the
adoption of mobile money in South Africa. This could be done
through qualitative research (interviewing specialist) or
quantitative research, taking TAM as a basic conceptual
framework.
Conclusion
Whereas prior mobile banking research studies have
explored consumers’ intentions to adopt mobile banking
services, the purpose of this research was to review
TABLE 4: Meta-analysis of ndings.
Empirical study Findings References
Kenya’s M-Pesa Kenya’s mobile money project is regarded as one of the highly successful projects to have emerged in sub-
Saharan Africa.
Bengelstor (2015); Jack and Suri (2011).
South Africa’s M-Pesa Tshabalala (2015) asserts that the South African version of M-Pesa was a huge failure project, resulng in its
closure.
Tshabalala (2015)
Zimbabwe’s EcoCash Compared to South Africa, Zimbabwe’s EcoCash is regarded as a second success story aer Kenya’s M-Pesa.
Reports indicate that EcoCash is the main mobile money transacon system in Zimbabwe.
Econet (2016); Leach (2014)
Present study Mobile banking is the ideal alternave to tradional online banking. The failure of the South African project
should be the basis for developing user-friendly and eecve mobile banking plaorms. The South African
mobile money project is a clear indicaon that implementaon of such systems is dicult because of a variety
of factors. These factors include technology acceptance behaviour, risk associated with cyberspace
transacons, technological infrastructure and lack of educaon relang to banking services. The Kenya and
Zimbabwe success stories should act as sources of movaon for nancial instuons and other players to
propagate mobile banking. More eorts are required to educate users of mobile banking services so as to
increase the uptake. Kenya has done and connues to excel in that aspect because of visible educaonal
campaigns, while the current economic situaon in Zimbabwe is compelling the nancial and
telecommunicaons industry to devise ways to curb shortages of money supply.
-
Page 8 of 9 Original Research
hp://www.sajim.co.za Open Access
existing research on mobile banking diffusion and
investigate the adoption of mobile banking in SSA. In
addition, the aim of this article was to provide suggestions
for future research in the mobile money field in South
Africa. The findings from this study revealed that both
Kenya and Zimbabwe have recorded success stories in the
areas of mobile banking, whereas the South African story
is a sad note to discuss. This reveals that there is a great
need to educate South African users on the importance of
information communication technologies. The rate of ICT
adoption in South Africa is relatively low despite a high
number of mobile cellular phone users. In addition, private
and public sector institutions have a big role to play to
impart knowledge to users on the need to accept and
embrace information communication technologies because
the world has become a global village. Resistance to
accepting and use of technologies may impede success in
communities that were previously disadvantaged. The
findings from this study also revealed that innovation is
not a preserve of a rich economy, but when the economic
and political conditions are stringent, entrepreneurial
skills enhance innovation. The Zimbabwean political and
economic situation is a clear example. Zimbabwe’s Econet
Wireless Holdings partnered and developed the highly
successful EcoCash system because of the acute shortage
of money supply. This system was ideal to alleviate
traditional banking processes where clients spent time in
banking halls queuing for cash or enquiries. EcoCash is
establishing its operations in South Africa because there
are many Zimbabwean nationals living in South Africa
who send money back to Zimbabwe. Researchers
established that South Africa is confronted with
environmental, organisational and individual challenges
compared to other SSA countries (23.5%). Consequently,
future research exploring these different challenges could
be conducted. With reference to research findings, it is
difficult to deploy mobile money systems transnationally
because of differences in the adoption and acceptance of
information and communication technologies.
Acknowledgements
Compeng interests
The authors declare that they have no financial or personal
relationship(s) that may have inappropriately influenced
them in writing this article.
Authors’ contribuons
Both the authors contributed significantly by drafting the
article and revising it for important intellectual content.
J.M.C. came up with the concept of developing the article on
mobile banking and its success/failure in South Africa, by
providing fundamental issues that formed the structure of
the article. In addition, J.M.C. ensured that the article was
edited through third party services. B.H. was responsible for
collating the article through the collection of various pieces of
literature on the research article. B.H. was also responsible
for final editing and production of this presentation.
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... Incidence of most of these groups tends to be situated in developing countries and also tends to be unbanked. Prior studies, such as those of Chigada and Hirschfelder (2017), have recorded success stories in the areas of MFS adoption amongst the BoP group in both Kenya and Zimbabwe. Examples of MFS in these countries include M-Pesa in Kenya and EcoCash in Zimbabwe (Mago & Chitokwindo 2014;Ouma, Odongo & Were 2017). ...
... The findings show that habit, performance expectancy and uncertainty avoidance are strong predictors of behavioural intent. These findings can have significant implications on how MFS service providers operate (NFC) within the MFS arena (Chigada & Hirschfelder 2017;Jenkins & Ophoff 2016;Richardson & Callegari 2017;Shaikh, Karjaluoto & Chinje 2015). Although these studies explain some of the amalgamated factors associated with the adoption of MFS by the BoP group, there have been limited studies within the South African context that explain and provide insights into specific factors that influence BoP group adoption of MFS. ...
... Previous studies in South Africa have showed that MFS such as M-Pesa have not been successful (Mothobi & Grzybowski 2017). This has been mainly attributed to, amongst other factors, different market preconditions, poor marketing and distribution (Chigada & Hirschfelder 2017). Other researchers take the view that this is partly because the Republic of South Africa (RSA) has the most technologically advanced, financially liquid and accessible banking system on the African continent (Rouse 2017), thereby negatively impacting any ideas to transform the traditional banking services into mobile money services that can include all, even the BoP (Chigada & Hirschfelder 2017). ...
... Factors that affect the adoption of mobile banking applications Adoption of mobile banking applications has remained topical in recent years. According to Chigada and Hirschfelder (2017), the World Bank forecast a bright future for mobile banking as a new era of financial services, particularly in developing countries. However, they go on to highlight that a favourable outlook of mobile banking based on high mobile density is not a guarantee for a successful launch of mobile banking applications the environmental preconditions must be considered wisely when launching a mobile money service system. ...
... However, in South Africa, the South African marketing practitioners have recognized this low-income banking problem and concentrated on money transfers without affiliation to a bank (Shoprite 2016) and money transfers via mobile communication companies, which assume the functions of a bank (Tobbin 2012;Chigada and Hirschfelder 2017). The study by Chigada and Hirschfelder (2017) focused on mobile money services such as Ecocash and M-Pesa, and the aim was to avail this technology to the marginalized, low-income, nonbanking population. ...
... However, in South Africa, the South African marketing practitioners have recognized this low-income banking problem and concentrated on money transfers without affiliation to a bank (Shoprite 2016) and money transfers via mobile communication companies, which assume the functions of a bank (Tobbin 2012;Chigada and Hirschfelder 2017). The study by Chigada and Hirschfelder (2017) focused on mobile money services such as Ecocash and M-Pesa, and the aim was to avail this technology to the marginalized, low-income, nonbanking population. This study, however, zooms in on mobile banking applications which are available for bank account holders. ...
Article
Despite the popularity of mobile banking applications among banks and a phenomenal increase in Commercial Bank of Zimbabwe (CBZ) customer base of 206.6% since 2009, uptake of mobile banking applications has remained deplorably low with CBZ Touch mobile application recording a meagre 8% uptake by 2018. This study sought to determine security, trust and other factors that affect the adoption of CBZ Touch banking application; and then establish a strategy to improve uptake of the application among users. Four-hundred structured, five-point Likert scaled, and self-administered questionnaires and five semi-structured interviews were delivered to conveniently sampled CBZ Touch users. A 60% response rate was recorded. Findings indicate that users do not consider security threats and their consequences as highly probable but are much alive to the social influence, usefulness and cost of the mobile banking app. Though customers of CBZ Touch trust the use of mobile banking app, they are not satisfied with the app and are sceptical about the effectiveness of such apps to meet their banking needs. CBZ has to improve the quality of the mobile banking app, market their app to potential users and regularly update customers on pertinent security threats and security mechanisms. This study proposes a strategy to enhance adoption of CBZ Touch mobile banking app.
... Moreover, a study in South Africa indicated that perceived financial security has consequences for well-being and overall life satisfaction (Møller and Saris, 2001). Despite the financial and socioeconomic limitations on the continent, financial technology innovations are thriving and mobile banking is relatively widespread (Banna et al., 2021;Chigada and Hirschfelder, 2017). The branchless M-Pesa financial service, developed in Kenya, for instance, allows mobile device users without bank account access to access credit and savings; pay for products and services; and deposit, withdraw and transfer money from a network of agents that includes airtime resellers and retail outlets acting as banking agents. ...
... Mobile money has proven popular in countries where customers do not have access to formal bank infrastructures (the so-called unbanked). Currently, in South Africa, there is a major push toward digital-only banking, largely on the part of new market entrants (Chigada and Hirschfelder, 2017). Although there are claims of success in signing up new customers, consumer adoption of digital-only banks could be hampered by inertia, resistance and low technology readiness. ...
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Purpose This study aims to critically evaluate and reflect on the current state of service research in Africa. The purpose is to develop a roadmap to guide future service research in and out of Africa. Design/methodology/approach This study is a conceptual reflection and in situ observation of service research and practice in Africa. Findings This study delineates scholarly, policy and managerial pathways for further service research in the African context. Service research in Africa is often experience-based rather than concept-based, and such research is often conducted in close collaboration with the local business community. Theoretical development and empirical exploration through collaboration initiatives among institutions with mutual research interests are encouraged. Research limitations/implications This study is a theoretical analysis of service research in Africa. Further empirical exploration is needed to delineate service research priorities and methodological directions so as to balance local needs and global relevance. Practical implications Africa represents fertile terrain for experience-based insights regarding financial behavior, ecosystem services and nation branding. Grassroots-level involvement in research represents a key component of managerial relevance. Social implications This study highlights the role of service research in and about Africa. The discussion demonstrates that the African Ubuntu values of community involvement and a collectivist orientation can expand the relevance of research from the academic business field to broader society. Originality/value This study represents a unique perspective on service research in the African context. In doing so, this paper lays the groundwork for more meaningful participation on the part of African-based researchers in the global service research domain. Experience-based research projects focusing on the empirical starting point complement theory development and serve as useful anchors for theory implementation in practice.
... Food and clothing retailers have for a long time optimised their sizeable consumer bases and strong balance sheets to extend financial services, such as basic transactional accounts, personal loans and credit cards (Chigada & Hirschfelder, 2017). In addition to their extensive real estate and consumer bases, retailers have dominated the formal domestic transfer market through their mobile money services (Finmark Trust, 2017;Thompson, 2021;Chigada & Hirschfelder, 2017). ...
... Food and clothing retailers have for a long time optimised their sizeable consumer bases and strong balance sheets to extend financial services, such as basic transactional accounts, personal loans and credit cards (Chigada & Hirschfelder, 2017). In addition to their extensive real estate and consumer bases, retailers have dominated the formal domestic transfer market through their mobile money services (Finmark Trust, 2017;Thompson, 2021;Chigada & Hirschfelder, 2017). They could further extend their services by bundling banking products with discounted retail products to offering greater value to consumers ...
Thesis
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In 2017 the South African Reserve Bank (SARB) issued three banking licences for the first time in a decade. Of significance is that all three of these banking licences were issued to digital banks, i.e. TymeBank, Discovery Bank and Bank Zero. Together with pre-existing, non-traditional competitors, these new entrants added capacity to the retail banking industry in South Africa (SA), which naturally led to increased competition. This prompted this researcher to investigate how these developments impact the competitiveness of traditional banks in the retail banking industry in SA. Accordingly, the purpose of this study was to explore how traditional banks in SA could improve their competitiveness through investment in big data. To achieve this goal, a review of relevant academic literature was undertaken to analyse the competitiveness landscape in retail banking in SA and identify the critical areas of competitiveness in the local retail banking industry. The literature review further explored the opportunities that can be unlocked through investment in big data technology. An open-ended questionnaire was developed and presented to 11 respondents, 9 of whom participated in semi-structured interviews and 2 completed and returned questionnaires with open-ended questions. Using the content analysis method, open coding was applied to the data that was collected to identify emerging codes and themes. These were then assessed against the research questions (RQs) that formed part of the research proposal and they were found to be in line with sentiments expressed in the research data. The research findings revealed that traditional banks are not competitive in the critical areas of competitiveness in retail banking in SA, namely pricing, operational efficiency and customer value management. The reasons range from high fixed cost due to legacy infrastructure and high staff costs to traditional banks’ inability to optimise big data to gain a competitive advantage over competitors. To improve their competitiveness, the research recommends that traditional banks avoid price competition and optimise big data (through investment in big data technology) to unlock cost efficiencies and create unique value for customers. The research further recommends that traditional banks develop new revenue streams to combat margin compression experienced in traditional banking services.
... More precisely, 89% of South African and Nigerian adults owned a mobile phone as of 2016. This 89% is subdivided into 34% smartphones in South Africa, 27% smartphones in Nigeria and 55% mobile phones in South Africa and 62% mobile phones in Nigeria (Chigada & Hirschfelder, 2017). ...
... Besides this well-developed banking system, South Africa's financial system provides similar money transfer systems to M-Pesa for the unbanked. The findings from Chigada & Hirschfelder, (2017) study revealed that both Kenya and Zimbabwe have recorded success stories in the areas of mobile banking, whereas the South African M-Pesa story is a sad note to discuss. The authors added that the failure of the South African project should be the basis for developing user-friendly and effective mobile banking platforms. ...
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The purpose of this paper is to determine the extent to which academic librarians are aware and use mobile banking services in Nigeria. The study used the quantitative research design. Data was collected using online questionnaire designed using SurveyMonkey. The population of the study consisted of academic librarians in tertiary institutions in Nigeria who are customers to various banks in Nigeria. In total 210 academic librarians across Nigeria responded to the survey. The study found that the majority of the academic librarians are aware and mostly used mobile banking services such as buying airtime (self), transfer money, check account balance, get account statement, buy airtime for others, make transaction enquiry, and SMS alerts. Almost all the academic librarians agree and strongly agree that adoption of mobile banking services hasten funds transfer, makes enquiries on account faster, saves time of the customers, enhance prompt response, more convenient to customers, and saves cost. Network failure during transactions, chances of fraud, lack of information privacy, concerns related to non-delivery of transactions, system security is not guaranteed in case of loss of phone where identified as the challenges associated with use of mobile banking services in Nigeria. Adoption and use of mobile banking services will save the time of the customer by conducting their transactions quickly without having to queue up and to use paper documents. The study reported the present level of awareness, acceptance and use of mobile banking services by academic librarians who are customers to various banks in Nigeria.
... Of the bank population in South Africa, only 12 percent used mobile banking in 2020 (Statista, 2022b). In addition, O'Dea (2020) posits that with a high mobile phone penetration rate of more than 100 percent in South Africa expected in 2022, it is concerning that only about 15 percent of South Africans use their mobile phones for banking purposes (Chigada & Hirschfelder, 2017). Although research by McKinsey & Company (2020) found that 42 percent of South Africans would be willing to increase their online and mobile banking interactions with their retail banks after the Covid-19 crises, possibly increasing mobile banking adoption in South Africa, this remains to be seen. ...
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Mobile technology developments have altered the traditional financial services and retail banking sectors. Mobile banking is a popular and robust service delivery model, allowing consumers access to banking from anywhere and anytime. Irrespective of the benefits, usage intentions determine mobile banking success. As such, this paper attempts to test a structural model of the factors influencing mobile banking behavioral usage intention among a growing and essential segment of banking consumers, namely Generation Y. To this end, data were collected from a convenience sample of 334 South African Generation Y mobile banking consumers using a survey questionnaire. Using analysis of moment structures, the path analysis results indicated that perceived self-efficacy , behavioral control, structural assurance and trust have a statistically significant favorable influence on the target population's mobile banking attitude, which, in turn, has a statistically significant positive effect on their mobile banking behavioral usage intention. In addition, all the model fit indices of this original and unique structural model were indicative of acceptable fit (IFI, TLI, CFI and NFI > 0.90). South African retail banks can use the study's findings to add value to their mobile banking offering, especially when targeting the Generation Y banking cohort, which is believed to drive digital channels such as mobile banking.
... Of the bank population in South Africa, only 12 percent used mobile banking in 2020 (Statista, 2022b). In addition, O'Dea (2020) posits that with a high mobile phone penetration rate of more than 100 percent in South Africa expected in 2022, it is concerning that only about 15 percent of South Africans use their mobile phones for banking purposes (Chigada & Hirschfelder, 2017). Although research by McKinsey & Company (2020) found that 42 percent of South Africans would be willing to increase their online and mobile banking interactions with their retail banks after the Covid-19 crises, possibly increasing mobile banking adoption in South Africa, this remains to be seen. ...
... According to Abbortt (2015), all large banks in South Africa are provided smartphone applications and have become particularly popular in the urban areas. Precisely, Chigada and Hirschfelder (2017) mentioned that the five most popular banks in South Africa are ABSA, Capitec, First National Bank, Nedbank and Standard Bank. All provide mobile applications (Columinate, 2015). ...
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ARTICLE INFO ABSTRACT In today's post-modern era, the banking industry is becoming a digital rather than a physical system. Digital banking has been synonymous with the fourth industrial revolution making a notable impact on the African continent. Therefore, the purpose of this research is to empirically investigate consumer attitudes towards mobile banking applications in South Africa. A positivist paradigm underpinned the study, and a descriptive design was employed. To test the proposed hypotheses a unique conceptual model was developed. Non-probability sampling was adopted in selecting appropriate participants. Data was collected from 325 willing participants through a survey. In terms of analysis, SPSS and AMOS were utilised to generate descriptive statistics and hypotheses testing. The results established that attitudes towards mobile banking applications and actual use of mobile banking applications was the strongest relationship. The empirical evidence presented in this study adds value to the existing research on mobile-banking within the 4th industrial revolution, particularly in South Africa, a largely under-researched area. Knowledge of mobile banking applications; Perceived usefulness of mobile banking applications; attitudes towards mobile banking applications; actual use of mobile banking applications
... December 2019 was recorded as the official outbreak of COVID-19 in Wuhan, China, and since then researchers, scientists and other authors have extensively written and published literature on the subject matter (WHO 2020b). Systematic literature review permitted the researchers to formulate the three research questions, set inclusion and exclusion criterion, which were infused with meta-analysis to analyse, synthesise and disseminate research findings (Chigada & Hirschfelder 2017). Researchers used systematic literature review with the objective of identifying and retrieving international evidence on cybercrimes committed during the COVID-19 pandemic. ...
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Background: The novel Coronavirus Disease-2019 (COVID-19) pandemic, a deadly contagious disease has left the global village in disarray, driving people and firms, especially healthcare service providers to rely heavily on information communication technologies (ICTs) for administering telemedicine through digital tools. This study contributes to knowledge and information sharing and debates on cybersecurity. Objective: The objective was to analyse the impact of cybercrimes on the global economy at a time when the whole world is focused on fighting and minimising the spread of COVID-19. The study also analysed common cybersecurity threats, attacks and information systems security vulnerabilities during the period of the pandemic. Method: The study adopted a systematic literature review from December 2019 to June 2020. There are global research studies on cybersecurity issues brought about by the coronavirus pandemic, and therefore, literature survey was not limited to any geographic area. A mixed method research was adopted in this study. Results: The study revealed that there is an exponential growth of cyberattacks and threats because the global economy has been paying much attention to the COVID-19 pandemic. During the pandemic, large corporations, healthcare industry and government agencies have been targets for cyberattacks and threats. Conclusion: It has been demonstrated that cyberattacks and threats during the COVID-19 pandemic are rising exponentially, creating another wave of challenges for the global economy, which is already reeling under the novel coronavirus. Thus, exerting excessive pressure on financial and human resources that have to contend with the novel coronavirus, with the expectation that resources have to be mobilised to deal with cybercrimes. The study recommends that firms and individuals should devise cybersecurity interventions to protect their data and information systems infrastructure.
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This article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation and poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. Given these flaws, the article highlights the need for the government, financial institutions and other relevant stakeholders to adopt legislative and other measures as an antidote to financial exclusion and poverty challenges affecting the poor and low-income earners in South Africa.
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This study examines the importance of technological progress to aggregate economic growth in South Africa. Quantifying the contribution of technological progress to economic growth has become imperative, considering the outcome of a simple growth accounting exercise. The findings of this exercise indicate that the contribution of technological growth to aggregate economic growth increased substantially, over the past three decades. Economic growth is modelled through a Cobb-Douglas production function, employing Kalman filter to determine the evolution of the Solow residual over time. The Solow residual represents both technological progress and structural change. According to the Kalman filter results, technological progress is characterised by an upward trend since the 1980s with a steeper slope during the 2000s. Our results show that technological progress has become a factor as important to production as capital stock and labour; fact that policy makers should take into consideration to boost economic growth.
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As a result of the growing use of the Internet and developing advanced technology systems globally, there has been an apparent increase in the usage of online banking system across the world, accompanied by widespread incidents of fraud and attack. This paper gives a simple description of the online banking mechanism and the nature of the attacks that involved in the process of conducting an online transaction through a computer, along with the security models and measures that can be used to block the threats.
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The purpose of this study was to investigate the effects of Internet usage comfort, Internet technical comfort, and demographic variables (gender, age, education, and income) on two key online transactional behaviors: online shopping and online banking. An ordinal regression model was used to test the effects of these variables. Findings show that Internet usage comfort and Internet technical comfort had significant and positive effects on both online shopping and online banking. Among the four demographic variables, only income had a significant and positive effect on online shopping, but both income and age had significant effects on online banking, the former positively and the latter negatively.
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The middle class is a hot topic in media and policy circles. But how should the middle class be defined, particularly in a country with high levels of inequality? Individuals and households which fall in the actual middle of the income distribution in South Africa have a standard of living well below a ‘middle‐class lifestyle’. Defining the middle class on the basis of the ‘actual middle’ versus ‘relative affluence’ provides vastly different pictures. This necessitates great care in using these conceptions, especially in policy design.
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Innovationsexperten aus der deutschen Banking- und Finance-Szene sowie aus Forschung und Lehre zeigen neue strategische, organisatorische, kulturelle, technische und methodische Problemlösungen in der Bankbranche. Diese Lösungen sind zum Teil bankenspezifisch, zum Teil wurden sie aus anderen Branchen auf den Bankenbereich übertragen. Führungskräfte und Entscheider in Banken und Versicherungen, die kreativ und vor allem langfristig denken und handeln, erhalten hier wertvolle Anregungen. Der Inhalt • Strategie/Vertrieb • Strategie/Struktur • Kultur • Technik • Methoden Die Herausgeber Prof. Dr. Marcel Seidel ist gelernter Bankkaufmann und studierte Wirtschaftswissenschaften an der Universität Stuttgart. Er hat fast 20 Jahre Erfahrung in der Organisations- und Strategieberatung. Er ist Gründer und Geschäftsführer der BIG – Banking Innovation Group GmbH, der europaweit einzigen Beratung für Innovationen und Trends in Banken und Versicherungen. Seine Beratungsschwerpunkte sind Strategieentwicklung, Innovationsmanagement, strategisches Marketing und Veränderungsmanagement. Seit 2012 lehrt er an der FOM Hochschule in Stuttgart in den Themenfeldern Strategische Unternehmens- und Organisationsentwicklung, Human Resources und Marketing. Axel Liebetrau gilt als Deutschlands einflussreichster Experte für Innovationen und Trends in Banking und Insurance. Seit 2005 ist er als Unternehmer in der Innovationsberatung sowie als Keynote Speaker zu Innovation, Zukunft und Trends tätig. Gemeinsam mit Prof. Dr. Marcel Seidel hat er die BIG – Banking Innovation Group GmbH gegründet. Er lehrt (Innovationsmanagement) und forscht (kundenzentrierte Bankarchitekturen) an den führenden Business Schools in der Schweiz und England.
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Micro-business enterprises in the developing world are increasingly deploying the use of mobile payments to enhance the quality of their services and increase growth. The pace of transformation in the micro business sector has speeded up with more micro businesses realizing the potential of using the mobile payments in their service delivery. However, there are only a handful of studies on the application of digital technology for success and growth on micro business.This paper aims to investigate the success factors attributable to the use of mobile payments by micro-business operators. The study is based on a survey conducted through administration of questionnaires. The data was collected from a sample of 409 micro business entrepreneurs in Nairobi, Kenya. The study applies the Theory of Technology Acceptance Model (TAM) which was extended to include other factors to help us predict success and growth in micro-businesses. Analyses of the data reveal that convenience of the money transfer technology plus its accessibility, cost, support and security factors are related to behavioral intention to use and actual usage of the mobile payment services by the micro businesses to enhance their success and growth.Keywords: Mobile payment, M-Pesa, micro business, technology acceptance, business success.