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


  • Marko Van Deventer


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


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.


Afshan, S. & Sharif, A. (2016). Acceptance of mobile banking framework in Pakistan. Telematics and
Informatics, Vol. 33 No. 2, pp. 370–387.
Alalwan, A. A.; Dwivedi, Y. K.; Rana, N. P. & Williams, M. D. (2016). Consumer adoption of
mobile banking in Jordan: examining the role of usefulness, ease of use, perceived risk and selfefficacy.
Journal of Enterprise Information Management, Vol. 29 No. 1, pp. 118-139.
Alarcon, G. M.; Lyons, J. B.; Christensen, J. C.; Bowers, M. A.; Klosterman, S. I. & Capiola, A.
(2018). The role of propensity to trust and the five factor model across the trust process. Journal of
Research in Personality, Vol. 75, pp. 69-82.
Arnaboldi, F. & Claeys, P. (2008). Internet banking in Europe: a comparative analysis. Available at:
http://www.ub.edu/irea/working_papers/2008/200811.pdf (accessed 15 December 2020).
Baptista, G. & Oliveira, T. (2016). A weight and a meta-analysis on mobile banking acceptance
research. Computers in Human Behavior, Vol. 63, pp. 480–489.
Brown, I.; Cajee, Z.; Davies, D. & Stroebel, S. (2003). Cell phone banking: predictors of adoption in
South Africa – an exploratory study. International Journal of Information Management, Vol. 23 No.
5, pp. 381-394.
BusinessTech. (2019). Battle of the banks: South Africa’s big 5 banks compared. Available at:
(accessed 18 January 2020).
Carlin, S. (2019). How banks can turn millennials into lifelong customers. Available at:
3df122916097 (accessed 17 January 2020).
Chatterjee, S.; Kar, A. K. & Gupta, M. P. (2018). Success of IoT in smart cities of India: an empirical
analysis. Government Information Quarterly, Vol. 35 No. 3, pp. 349–361.
Chiu, J. L.; Bool, N. C. & Chiu, C.L. (2017). Challenges and factors influencing initial trust
and behavioral intention to use mobile banking services in the Philippines. Asia Pacific Journal
of Innovation and Entrepreneurship, Vol. 11 No. 2, pp. 246-278.
Coetzee, M. & Eloff, J. H. P. (2005). Autonomous trust for web services. Internet research, Vol. 15
No. 5, pp. 498-507.
Colquitt, J. A.; Scott, B. A. & LePine, A. (2007). Trust, trustworthiness, and trust propensity: a metaanalytic
test of their unique relationships with risk taking and job performance. Journal of Applied
Psychology, Vol. 92 No. 4, pp. 909-927.
Cox, J. C., Kerschbamer, R. & Neururer, D. (2016). What is trustworthiness and what drives it.
Games and Economic Behavior, Vol. 98, pp. 197-218.
DeLone, W. H. & McLean, E. R. (2003). The DeLone and McLean model of information systems
success: a ten-year update. Journal of Management Information Systems, Vol. 19 No. 4, pp. 9-30.
Deloitte. (2010). Mobile banking: a catalyst for improving bank performance. Available at:
mance.pdf (accessed 20 February 2020).
Fawthrop, A. (2019). Biggest banks in South Africa: profiling five of the top lenders by assets.
Available at: https://www.nsbanking.com/analysis/biggest-banks-south-africa/ (accessed:21 February
Fenu, G. & Pau, P. L. (2015). An analysis of features and tendencies in mobile banking apps. The
12th International Conference on Mobile Systems and Pervasive Computing. FNC/MobiSPC.
Garvey, J. & Nicolacakis, D. (2017). Retail banking 2020: the future of the retail banking industry.
Available at: https://www.pwc.com/gx/en/industries/financial-services/banking-capitalmarkets/
banking-2020.html (accessed: 21 February 2020).
Goldgehn, L. A. (2004). Generation who, what, Y? What you need to know about Generation Y.
International Journal of Educational Advancement, Vol. 5 No. 1, pp. 24-34.
Gu, J. C.; Lee, S. C. & Suh, Y.H. (2009). Determinants of behavioral intention to mobile banking.
Expert Systems with Applications, Vol. 36 No. 9, pp. 11605-11616.
Gumussoy, C.A. (2016). Factors affecting users’ decision to continue using mobile banking in
Turkey. International Journal of Mobile Communications, Vol. 14 No. 4, pp. 411–430.
Hair, J. F.; Black, W. C.; Babin, B. J. & Anderson, R. E. (2010). Multivariate data analysis: a global
perspective, Pearson Prentice Hall, New Jersey.
Ho, T. H. & Wrigelt, K. (2005). Trust building among strangers. Management Science, Vol. 51 No. 4,
pp. 519-678.
Hussain, M. & Wong, C. (2015). The online banking behaviour of Generation Y in South Africa. 14th
International Business and Economy Conference. Thailand: Bangkok.
Ismail, A. (2017). Why SA banks are truly world class. Available at:
(accessed: 23 February 2020).
Ismail, T. & Masinge, K. (2012). Mobile banking: innovation for the poor. African Journal of
Science, Technology, Innovation and Development, Vol. 4 No. 3, pp. 98-127.
Kabir, M.R. (2013). Factors influencing the usage of mobile banking: incident from a developing
country. World Review of Business Research, Vol. 3 No. 3, pp. 96-114.
Kim, G.; Shin, B. & Lee, H. G. (2009). Understanding dynamics between initial trust and usage
intentions of mobile banking. Information Systems Journal, Vol. 19 No. 3, pp. 283-311.
Knoll, D. & Pollari, I. (2016). The Gen Y demands that banks must meet. Available at:
https://home.kpmg/au/en/home/insights/2016/11/gen-y-banking.html (accessed: 23 February 2020).
KPMG South Africa. (2014). SA banking is top notch. Available at:
http://www.sablog.kpmg.co.za/2014/09/sa-banking-top-notch/ (accessed 20 February 2020).
Kumar, M.; Sareen, M. & Barquissau, E. (2012). Relationship between types of trust and level of
adoption of Internet banking. Problems and Perspective in Management, Vol. 10 No. 1, pp. 82-92.
Lee, K. C. & Chung, N. (2009). Understanding factors affecting trust in and satisfaction with mobile
banking in Korea: a modified DeLone and McLean’s model perspective. Interacting with Computers,
Vol. 21 No. 5-6, pp. 385-392.
Lin, H. F. (2011). An empirical investigation of mobile banking adoption: the effect of innovation
attributes and knowledge-based trust. International Journal of Information Management, Vol. 31 No.
3, pp. 252-260.
Lin, J.; Lu, Y.; Wang, B. & Wei, K.K. (2011). The role of inter-channel trust transfer in establishing
mobile commerce trust. Electronic Commerce Research and Applications, Vol. 10 No. 6, pp. 615-
Luo, X.; Li, H.; Zhang, J. & Shim, J. P. (2010). Examining multi-dimensional trust and multi-faceted
risk in initial acceptance of emerging technologies: an empirical study of mobile banking services.
Decision Support Systems, Vol. 49 No. 2, pp. 222-234.
Malaquias, F. F. O. & Hwang, Y. (2016). Trust in mobile banking under conditions of information
asymmetry: empirical evidence from Brazil. Information Development, Vol. 32 No. 5, pp. 1600-1612.
Maduku, D. K. (2016). The effect of institutional trust on internet banking acceptance: perspectives of
South African banking retail customers. South African Journal of Economic and Management
Sciences, Vol. 19 No. 4, pp. 533-548.
Maduku, D. K. & Mpinganjira, M. (2012). An empirical investigation into customers’ attitude
towards usage of cell phone banking in Gauteng, South Africa. Journal of Contemporary
Management, Vol. 9, pp. 172-189.
Markert, J. (2004). Demographics of age: generational and cohort confusion. Journal of Current
Issues and Research in Advertising, Vol. 26 No. 2, pp. 11-25.
Maroofi, F.; Kahrarian, F. & Dehghani, M. (2013). An investigation of initial trust in mobile banking.
International Journal of Academic Research in Business and Social Sciences, Vol. 3 No. 9, pp. 394-
Masrek, M. N.; Uzir, N. A. & Khairuddin, I. I. (2012). Trust in mobile banking adoption in Malaysia:
a conceptual framework. Journal of Mobile Technologies, Knowledge & Society, Vol. 2012, pp. 1-12.
Mayer, R.; Davis, J. & Schoorman, F. (1995). An integrative model of organizational trust. The
Academy of Management Review, Vol. 20 No. 3, pp. 709-734.
McKnight, D. H., Chervany, N. L. & Kacmar, C. (2002). Developing and validating trust measures
for e-commerce. Information Systems Research, Vol. 13 No. 3, pp. 344-359.
Midha, V. (2012). Impact of consumer empowerment on online trust: an examination across genders.
Decision Support Systems, Vol. 54 No. 1, pp.198–205.
Moser, F. (2015). Mobile banking: a fashionable concept or an institutionalized channel in future
retail banking? Analysing patterns in the practical and academic mobile literature. International
Journal of Banking Marketing, Vol. 33, pp. 167-177.
Muda, M.; Mohd, R. & Hassan, S. (2016). Online purchase behavior of Generation Y in Malaysia.
Procedia Economics & Finance, Vol. 37, pp. 292-298.
Nel, J. & Raleting, T. (2012). Gender difference in low-income non-users’ attitude towards Wireless
Internet Gateway cellphone banking. South African Journal of Business Management, Vol. 43 No. 3,
pp. 51-63.
Nel, J.; Boshoff, C. & Raleting, T. (2012). Exploiting the technology cluster effect to enhance the
adoption of WIG mobile banking among low-income earners. Management Dynamics, Vol. 21 No. 1,
pp. 30-44.
Njenga, K. and Ndlovu, S. (2013), “On rational choice, risk and utility in mobile banking”, The
African Journal of Information and Communication, Vol. 13, pp. 42-61.
Nor, K. M. & Pearson, J. M. (2008). An exploratory study into the adoption of Internet banking in a
developing country: Malaysia. Journal of Internet Commerce, Vol. 7 No. 1, pp. 29-73.
Pamungkas, S. & Kusuma, H. (2017). Initial trust of customers and adoption of mobile banking: an
empirical study from Indonesia. Annals of the University of Pertrosani, Economics, Vol. 17 No. 1, pp.
Poromatikul, C.; De Maeyer, P.; Leelapanyalert, K. & Zaby, S. (2019). Drivers of continuance
intention with mobile banking apps. International Journal of Bank Marketing, Vol. 38 No. 1, pp. 242-
PwC (PricewaterhouseCoopers). (2014). Retail banking 2020 – evolution or revolution? Available
pdf (accessed 13 January 2020).
Robert, I. & Rupert, W. (2017). Towards a comprehensive framework for measuring technology trust:
the case of mobile banking adoption in Nigeria. International Journal of Computer and Information
Technology, Vol. 6 No. 1, pp. 41-48.
Shapiro, S. P. (1987). The social control of impersonal trust. American Journal of Sociology, pp. 623–
Sharif, K. J.; Kalafatis, S. P. & Samouel, P. (2005). Cognitive and behavioral determinants of trust in
small and medium-sized enterprises. Journal of Small Business & Enterprise Development, Vol. 12
No. 3, pp. 409-421.
Skvarciany, V. & Jureviciene, D. (2017). Factors affecting personal customers’ trust in traditional
banking: case of the Baltics. Journal of Business Economics and Management, Vol. 18 No. 4, pp. 1-
Standard Bank. (2015). Future of banking in Africa is mobile. Available at:
(accessed at 8 January 2020).
Statistics South Africa. (2019). Statistical release P0302: 2019 mid-year population estimates.
Available at: http://www.statssa.gov.za/publications/P0302/P03022019.pdf (accessed 20 December
Zhang, X.; Wu, Y. & Li, Y. (2019). The tendency of trust in a distrustful environment: the mediation
role of contextual perceptions in eWOM. Journal of Marketing Development and Competitiveness,
Vol. 13 No.5, pp. 46-64.
Zhou, T. (2011). An empirical examination of initial trust in mobile banking. Internet Research, Vol.
21 No. 5, pp. 527-540.
Zhou, T. (2012a). Understanding users’ initial trust in mobile banking: an elaboration likelihood
perspective. Computers in Human Behavior, Vol. 28, pp. 1518-1525.
Zhou, T. (2012b). Examining mobile banking user adoption from the perspectives of trust and flow
experience. Information Technology and Management, Vol.13 No. 1, pp. 27-37.
Zhou, T. (2013). An empirical examination of continuance intention of mobile payment services.
Decision Support Services, Vol. 54 No. 2, pp. 1085-1091.






Business Administration and Business Economics