Do Generation Y Consumers Differ in their Mobile Banking Utility? Evidence from South Africa
Keywords:
Usefulness; ease of use; Generation Y; mobile banking; South AfricaAbstract
Mobile banking utility such as convenience, usefulness and ease of use as well the time and money saving properties associated with using mobile banking, is important to banking consumers. As such, it is important that retail banks invest the necessary time and resources into their mobile banking channels, not only to ensure adequate mobile banking utility, but also to differentiate its mobile channels from other mobile banking channels in the highly competitive mobile banking market. To this end, the purpose of this study was to investigate mobile banking utility differences amongst Generation Y consumers of the major South African retail banks. A descriptive and single cross-sectional research design informed the methodology followed in this study. Self-administered survey questionnaires were used to collect data from a convenience sample of 334 Generation Y mobile banking consumers. Descriptive statistics, reliability and validity measures, Pearson’s product-moment correlation analysis, collinearity diagnostics as well as one-way analysis of variance (ANOVA) were used to analyse the data. The results suggest that there are differences between Generation Y consumers of the major South African retail banks and attitudes towards mobile banking, perceived usefulness, ease of use, compatibility and perceived mobile banking self-efficacy. Retail banks can use the findings of this study to improve its mobile banking utility and in doing so, gain greater market share and improved customer satisfaction and loyalty.
References
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Changchit, C., Klaus, T., Lonkani, R. & Sampet, J. (2020). A Cultural Study of Mobile Banking Adoption Factors. Journal of Computer Information Systems, Vol. 60 No. 5, pp. 484-494.
Chigori, D., Viljoen, K., Ford, M. & Cilliers, L. (2020). Mobile phone banking: A comparative analysis of e-service quality and customer loyalty of banking applications and Unstructured Supplementary Service Data services. Journal of Economic and Financial Sciences, Vol. 13 No. 1, pp. 1-11.
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Foroughi, B., Iranmanesh, M. & Hyun, S. (2019). Understanding the determinants of mobile banking continuance usage intention. Journal of Enterprise Information Management, Vol. 32 No. 6, pp. 1015-1033.
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.
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Koksal, M.H. (2016). The intentions of Lebanese consumers to adopt mobile banking. International Journal of Bank Marketing, Vol. 34 No. 3, pp. 328-346.
Komulainen, H. & Saraniemi, S. (2019). Customer centricity in mobile banking: a customer experience perspective. International Journal of Bank Marketing, Vol. 37 No. 5, pp. 1082-1102.
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Lee, Y.K., Park, J.H. & Chung, N. (2009). An exploratory study on factors affecting usage intention toward mobile banking: A unified perspective using structural equation modelling. Society for Marketing Advances Proceedings, pp. 347-369.
Luarn, P. & Lin, H.H. (2005). Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior, Vol. 21 No. 6, pp. 873-891.
Malaquias, R.F. & Silva, A.F. (2020). Understanding the use of mobile banking in rural areas of Brazil. Technology in Society, Vol. 62, pp. 1-9.
Malhotra, N.K. (2010). Marketing research: an applied orientation, New Jersey: Pearson Prentice Hall.
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.
Moreno, F.M., Lafuente, J.G., Carreon, F.A. & Moreno, S.M. (2017). The characterization of the millennials and their buying behavior. International Journal of Marketing Studies, Vol. 9 No. 5, pp. 135–144.
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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. and 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.
Nyoka, C. (2018). An examination of the factors that determine consumers’ adoption of mobile banking services in South Africa. Euro Economica, Vol. 37 No. 6, pp. 116-129.
Owusu, G.M.Y., Bekoe, R.A., Addo-Yobb, A.A. & Otieku, J. (2020). Mobile Banking Adoption among Ghanaian Youth. Journal of African Business, pp. 1-22.
Purani, K., Kumar, D.S. & Sahdev, S. (2019). E-loyalty among millennials: Personal characteristics and social influences. Journal of Retailing and Consumer Services, Vol. 48, pp. 215-223.
Püschel, J., & Mazzon, J.A. (2010). Mobile banking: proposition of an integrated adoption intention framework. International Journal of Bank Marketing, Vol. 28 No. 5, pp. 389-409.
Rehman, Z.U. & Shaikh, F.A. (2020). Critical Factors Influencing the Behavioral Intention of Consumers towards Mobile Banking in Malaysia. Engineering, Technology & Applied Science Research, Vol. 10 No. 1, pp. 5265-5269.
Safeena, R., Date, H., Kammani, A. & Hundewale, N. (2012). Technology adoption and Indian consumers: Study on mobile banking. International Journal of Computer Theory and Engineering, Vol. 4 No. 6, pp. 1020-1024..
Saibaba, S., & Murthy, T.N. (2013). Factors influencing the behavioral intention to adopt Internet banking: an empirical study in India. Journal of Arts, Science & Commerce, Vol. 4 No. 1, pp. 77-91.
Schiffman, L. G., Kanuk, L. L., and Wisenblit, J. (2010). Consumer behavior, Pearson Prentice Hall.
Shanmugam, A., Savarimuthu, M.T. & Wen, T.C. (2014). Factors affecting Malaysian behavioral intention to use mobile banking with mediating effects of attitude. Academic Research International, Vol. 5 No. 2, pp. 236-253.
Singh, S. & Srivastava, R. (2018). Predicting the intention to use mobile banking in India. International Journal of Bank Marketing, Vol. 36, pp.357-378.
Siyal, A.W., Ding, D. & Siyal, S. (2019). M-banking barriers in Pakistan: a customer perspective of adoption and continuum intention. Data Technologies and Applications, Vol. 53 No. 1, pp. 58-84.
Souiden, N., Ladhari, R. & Chaouali, W. (2020). Mobile banking adoption: a systematic review. International Journal of Bank Marketing, Vol. ahead-of-print No. ahead-of-print.
Statistics South Africa. (2020). Statistical release P0302: 2020 mid-year population estimates. Available at: http://www.statssa.gov.za/publications/P0302/P03022020.pdf (accessed: 13 January 2020).
Surendran, P. (2012). Technology acceptance model: a survey of literature. International Journal of Business and Social Research, Vol. 2, pp. 175-178.
Thusi, P. & Maduku, D.k. (2020). South African millennials’ acceptance and use of retail mobile banking apps: An integrated perspective. Computers in Human Behavior, Vol. 111, pp. 1-10.
Van Deventer, M., De Klerk, N. and Bevan-Dye, A.L. (2014). Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students. Banks and Bank Systems, Vol. 12 No. 2, pp. 78-90.
Venkatesh, V., Morris, M.G., Davis, G.B. & Davis, F.D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, Vol. 27 No. 3, pp. 425-478.
Venkatesh, V., Thong, J.Y. & Xu, X. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, Vol. 36 No. 1, pp. 157-178.
Wessels, L. & Drennan, J. (2010). An investigation of consumer acceptance of m-banking. International Journal of Bank Marketing, Vol. 28 No. 7, pp. 547-568.
Al-Jabri, I.M. & Sohail, M.S. (2012). Mobile banking adoption: Application of diffusion of innovation theory. Journal of Electronic Commerce Research, Vol. 13 No. 4, pp. 379-391.
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 self-efficacy. Journal of Enterprise Information Management, Vol. 29 No. 1, pp. 118-139.
Au-Yong-Oliveira, M., Goncalves, R., Martins, J. & Branco, F. (2018). The social impact of technology on millennials and consequences for higher education and leadership. Telematics and Informatics, Vol. 35 No. 4, pp. 954-963.
Bloomberg. (2018). Gen Z is set to outnumber millennials within a year. Available at: https://www.bloomberg.com/news/articles/2018-08-20/gen-z-to-outnumber-millennials-within-a-year-demographic-trends (accessed: 22 November 2020).
BusinessTech. (2018). The best online and mobile banks in South Africa. Available at: https://businesstech.co.za/news/banking/280341/the-best-online-and-mobile-banks-in-south-africa/ (accessed: 18 January 2021).
BusinessTech. (2019). Battle of the banks: South Africa’s big 5 banks compared. Available at: https://businesstech.co.za/news/banking/339319/battle-of-the-banks-south-africas-big-5-bankscompared/ (accessed: 18 January 2021).
BusinessTech. (2020). South Africa’s 5 biggest banks compared: earnings vs customers vs market cap vs reach. Available at: https://businesstech.co.za/news/banking/431754/south-africas-5-biggest-banks-compared-earnings-vs-customers-vs-market-cap-vs-reach/ (accessed: 5 February 2020).
Carlin, S. (2019). How banks can turn millennials into lifelong customers. Available at: https://www.forbes.com/sites/stevecarlin/2019/01/16/how-banks-can-turn-millennials-into-lifelongcustomers/#3df122916097 (accessed: 17 January 2021).
Changchit, C., Klaus, T., Lonkani, R. & Sampet, J. (2020). A Cultural Study of Mobile Banking Adoption Factors. Journal of Computer Information Systems, Vol. 60 No. 5, pp. 484-494.
Chigori, D., Viljoen, K., Ford, M. & Cilliers, L. (2020). Mobile phone banking: A comparative analysis of e-service quality and customer loyalty of banking applications and Unstructured Supplementary Service Data services. Journal of Economic and Financial Sciences, Vol. 13 No. 1, pp. 1-11.
Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, Vol. 13 No. 3, pp. 319-340.
Foroughi, B., Iranmanesh, M. & Hyun, S. (2019). Understanding the determinants of mobile banking continuance usage intention. Journal of Enterprise Information Management, Vol. 32 No. 6, pp. 1015-1033.
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., Kaya, A. & Ozlu, E. (2018). Determinants of Mobile Banking Use: An Extended TAM with Perceived Risk, Mobility Access, Compatibility, Perceived Self-efficacy and Subjective Norms. In: Calisir F., Camgoz Akdag H. (eds), Industrial Engineering in the Industry 40 Era. Lecture Notes in Management and Industrial Engineering, Springer, Cham.
Hair, J.F., Black, W.C., Babin, B.J. & Anderson, R.E. (2010). Multivariate data analysis: a global perspective, Pearson Prentice Hall, New Jersey.
Koenig-Lewis, N., Palmer, A. & Moll, A. (2010). Predicting young consumers’ take up of mobile banking services. International Journal of Bank Marketing, Vol. 28 No. 5, pp. 410-432.
Koksal, M.H. (2016). The intentions of Lebanese consumers to adopt mobile banking. International Journal of Bank Marketing, Vol. 34 No. 3, pp. 328-346.
Komulainen, H. & Saraniemi, S. (2019). Customer centricity in mobile banking: a customer experience perspective. International Journal of Bank Marketing, Vol. 37 No. 5, pp. 1082-1102.
Kumar, A., Dhingra, S., Batra, V. & Purohit, H. (2020). A framework of Mobile Banking Adoption in India. Journal of Open Innovation: Technology, Market, and Complexity. Vol. 6 No. 40, pp. 1-17.
Kwateng, O.M., Atiemo, K. & Appiah, C. (2018). Acceptance and use of mobile banking: An application of UTAUT2. Journal of Enterprise Information Management, Vol. 32 No. 1, pp. 118–151.
Lee, Y.K., Park, J.H. & Chung, N. (2009). An exploratory study on factors affecting usage intention toward mobile banking: A unified perspective using structural equation modelling. Society for Marketing Advances Proceedings, pp. 347-369.
Luarn, P. & Lin, H.H. (2005). Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior, Vol. 21 No. 6, pp. 873-891.
Malaquias, R.F. & Silva, A.F. (2020). Understanding the use of mobile banking in rural areas of Brazil. Technology in Society, Vol. 62, pp. 1-9.
Malhotra, N.K. (2010). Marketing research: an applied orientation, New Jersey: Pearson Prentice Hall.
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.
Moreno, F.M., Lafuente, J.G., Carreon, F.A. & Moreno, S.M. (2017). The characterization of the millennials and their buying behavior. International Journal of Marketing Studies, Vol. 9 No. 5, pp. 135–144.
Morgan, J.P. (2018). The future of payments is mobile. Available at: https://www.jpmorgan.com/europe/merchant-services/future-of-payments-is-mobile (accessed: 4 June 2020).
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. and 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.
Nyoka, C. (2018). An examination of the factors that determine consumers’ adoption of mobile banking services in South Africa. Euro Economica, Vol. 37 No. 6, pp. 116-129.
Owusu, G.M.Y., Bekoe, R.A., Addo-Yobb, A.A. & Otieku, J. (2020). Mobile Banking Adoption among Ghanaian Youth. Journal of African Business, pp. 1-22.
Purani, K., Kumar, D.S. & Sahdev, S. (2019). E-loyalty among millennials: Personal characteristics and social influences. Journal of Retailing and Consumer Services, Vol. 48, pp. 215-223.
Püschel, J., & Mazzon, J.A. (2010). Mobile banking: proposition of an integrated adoption intention framework. International Journal of Bank Marketing, Vol. 28 No. 5, pp. 389-409.
Rehman, Z.U. & Shaikh, F.A. (2020). Critical Factors Influencing the Behavioral Intention of Consumers towards Mobile Banking in Malaysia. Engineering, Technology & Applied Science Research, Vol. 10 No. 1, pp. 5265-5269.
Safeena, R., Date, H., Kammani, A. & Hundewale, N. (2012). Technology adoption and Indian consumers: Study on mobile banking. International Journal of Computer Theory and Engineering, Vol. 4 No. 6, pp. 1020-1024..
Saibaba, S., & Murthy, T.N. (2013). Factors influencing the behavioral intention to adopt Internet banking: an empirical study in India. Journal of Arts, Science & Commerce, Vol. 4 No. 1, pp. 77-91.
Schiffman, L. G., Kanuk, L. L., and Wisenblit, J. (2010). Consumer behavior, Pearson Prentice Hall.
Shanmugam, A., Savarimuthu, M.T. & Wen, T.C. (2014). Factors affecting Malaysian behavioral intention to use mobile banking with mediating effects of attitude. Academic Research International, Vol. 5 No. 2, pp. 236-253.
Singh, S. & Srivastava, R. (2018). Predicting the intention to use mobile banking in India. International Journal of Bank Marketing, Vol. 36, pp.357-378.
Siyal, A.W., Ding, D. & Siyal, S. (2019). M-banking barriers in Pakistan: a customer perspective of adoption and continuum intention. Data Technologies and Applications, Vol. 53 No. 1, pp. 58-84.
Souiden, N., Ladhari, R. & Chaouali, W. (2020). Mobile banking adoption: a systematic review. International Journal of Bank Marketing, Vol. ahead-of-print No. ahead-of-print.
Statistics South Africa. (2020). Statistical release P0302: 2020 mid-year population estimates. Available at: http://www.statssa.gov.za/publications/P0302/P03022020.pdf (accessed: 13 January 2020).
Surendran, P. (2012). Technology acceptance model: a survey of literature. International Journal of Business and Social Research, Vol. 2, pp. 175-178.
Thusi, P. & Maduku, D.k. (2020). South African millennials’ acceptance and use of retail mobile banking apps: An integrated perspective. Computers in Human Behavior, Vol. 111, pp. 1-10.
Van Deventer, M., De Klerk, N. and Bevan-Dye, A.L. (2014). Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students. Banks and Bank Systems, Vol. 12 No. 2, pp. 78-90.
Venkatesh, V., Morris, M.G., Davis, G.B. & Davis, F.D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, Vol. 27 No. 3, pp. 425-478.
Venkatesh, V., Thong, J.Y. & Xu, X. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, Vol. 36 No. 1, pp. 157-178.
Wessels, L. & Drennan, J. (2010). An investigation of consumer acceptance of m-banking. International Journal of Bank Marketing, Vol. 28 No. 7, pp. 547-568.
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2021-05-10
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Van Deventer, M. (2021). Do Generation Y Consumers Differ in their Mobile Banking Utility? Evidence from South Africa: Array. Acta Universitatis Danubius. Œconomica, 17(3). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/843
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