Differences in Mobile Banking trust Amongst Generation Y Consumers of the Major South African Retail Banks

Authors

  • Marko Van Deventer

Keywords:

Trust; mobile banking; Generation Y consumers; retail banks; South Africa

Abstract

Mobile banking is beneficial in terms of saving time and money as well as convenience
and efficiency. However, given its cybernetic nature and risks associated with its use, trust issues are
created. Therefore, it is important that retail banks ensure that their mobile banking channel is
trustworthy. As such, the purpose of this study was to establish whether Generation Y consumers of
the major South African retail banks differ in their mobile banking trust. Following a descriptive and
single cross-sectional research design, self-administered survey questionnaires were completed by a
convenience sample of 334 Generation Y consumers. The data was analysed using descriptive
statistics, reliability and validity measures, Pearson’s product-moment correlation analysis,
collinearity diagnostics and one-way analysis of variance (ANOVA). The findings indicate that there
are differences between Generation Y consumers of the major South African retail banks and
perceived trust in mobile banking, the integrity of the mobile bank, mobile banking structural
assurances as well as the information quality of mobile banking. Understanding the differences in
mobile banking trust and its related dimensions amongst Generation Y consumers of the major South
African retail banks, retail banks can strategise to allay these consumers’ trust concerns, foster greater
trust in their mobile channels as well as gain a competitive advantage and maintain consumer loyalty
amongst this cohort of consumers.

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Published

2020-05-26

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Business Administration and Business Economics