Generation Y students' perceived utility and trust in mobile banking
Van Deventer, Marko
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Rapid advances in mobile technologies and the increase in mobile device usage and ownership, specifically mobile phones, have contributed to the introduction and development of mobile technology as a banking services delivery channel by retail banks. As such, mobile banking has emerged as the focal point of growth strategies for the retail banking industry. In comparison to traditional in-branch banking, mobile banking offers various utility advantages for both retail banks and consumers. However, the slow adoption rate of mobile banking as an emerging banking service remains a dilemma for strategists, analysts and banking- and marketing managers in emerging economies, such as South Africa. Owing to perceptions of high risk and uncertainty, building consumers‘ trust in digital banking channels, including that of mobile banking is essential for retail banks. This highlights the importance of understanding the extent to which perceived utility and trust in mobile banking influence consumers‘ attitudes towards and usage behaviour of mobile banking, including those of the youth. The Generation Y cohort, born between 1986 and 2005, is the most technologically astute generation to date. Owing to its sheer size, the Generation Y cohort presents as an attractive and lucrative market segment, especially those who hold a tertiary education. Individuals who pursue a higher education are linked to higher future earning potential. The primary objective of this study was to propose and empirically test an extended TAM that measures the extent to which Generation Y students‘ perceived utility and trust in mobile banking influences their attitudes towards and usage behaviour of mobile banking within the South African context. The proposed model suggests that subjective norms, perceived behavioural control and perceived relative advantage have a direct positive influence on attitudes towards mobile banking. Furthermore, the model infers that perceived ease of use, perceived integrity and perceived system quality have a direct positive influence on mobile banking usage behaviour. In addition, the model advocates that attitudes towards mobile banking have a direct positive influence on mobile banking usage behaviour. The sampling frame for the study comprised the 26 public registered HEIs situated in South Africa. From this initial list of 26 registered institutions, a non-probability judgement sample of three institutions in the Gauteng province was chosen. Of the three HEIs, one was a traditional university, one a university of technology and one a comprehensive university. Lecturers at each of the three HEI campuses were contacted telephonically and asked whether they would allow the questionnaire to be distributed to their students during class time. The questionnaires were hand-delivered to the participating academic staff members to be distributed to the students for voluntary completion during class time. A convenience sample of 450 full-time Generation Y students across these three campuses was taken in 2015. Of the questionnaires completed, 334 were usable. The statistical analysis of the collected data included exploratory principle components analysis, descriptive statistical analysis, correlation analysis, multicollinearity analysis, structural equation modelling, two independent-samples t-test, and one-way analysis of variance. The findings of this study indicate that South African Generation Y students have a positive attitude towards mobile banking, perceive mobile banking as easy to use and take into consideration the opinions of their significant others regarding mobile banking usage. Furthermore, Generation Y students believe that they are in control of mobile banking in terms of their capability and resources needed to use mobile banking, and trust that their retail banks are likely to be honest, keep promises, and act ethically in providing mobile banking services. Moreover, these students report behaving actively in terms of their mobile banking usage and recognise the perceived utility in mobile banking concerning convenience and timesaving advantages. Furthermore, they trust that the mobile banking system likely has adequate structural assurances, can provide quality and relevant information and that the system is likely to be user-friendly in terms of navigation and loading of texts and graphics. This study will contribute to filling the gaps that exist in understanding the extent to which Generation Y students‘ perceived utility and trust in mobile banking influences attitudes towards and usage behaviour of mobile banking; that is, the antecedents of attitudes towards and usage behaviour of mobile banking in South Africa by developing and empirically testing a conceptual model. An understanding of these antecedents will enable retail banks to tailor their mobile banking business- and marketing efforts towards the Generation Y cohort in South Africa. From a strategic perspective, marketers, policy makers, and strategists could use the results of this study as a guide for deploying strategies to promote increased consumer acceptance of mobile banking, influence consumer behaviour as well as transform and integrate the retail banking distribution mix, thereby delivering substantial returns on investment in providing these services. In addition, the findings of this study will contribute to existing studies of mobile banking in South Africa, a subject matter that is largely under-researched, as well as the information systems knowledge base. Furthermore, the findings of this study will contribute to the literature on, and the development of, a profile of South African Generation Y students‘ consumer behaviour.