Analysing the perception and the engagement of baby boomers towards digital banking in Mafikeng

Abstract

The generation of baby boomers comprises a significant and profitable market for the financial institutions in South Africa. Therefore, banking institutions must understand the banking behaviour of this generation. There is an insignificant amount of literature dedicated to the banking behaviour of baby boomers. This study aimed to outline perceptions which influence baby boomers’ intention to use digital banking platforms and to understand the engagement behaviour as well as the significant reasons for opting to walk into a branch or bank digitally. The data was collected from 254 baby boomers residing in Mafikeng. The results revealed that the baby boomers regard the perceived benefits of digital banking positively, and that they are engaging with it. However, a significant number of them is limited in their engagement because they are concerned about security, do not trust digital banking, and some have a low level of awareness of digital banking products. Recommendations for the financial institutions in South Africa are made based on these findings, while the study also makes suggestions on possible future research initiatives.