Abstract:

Mobile banking offers several advantages to both retail banks and their customers. However, in emerging economies such as South Africa, low mobile banking penetration remains a managerial dilemma that requires urgent attention. As a generational cohort, Generation Y is an important current and future customer segment for retail banks and their digital banking channels. The cost implications of servicing individuals in this cohort are largely dependent on their acceptance of these digital channels, including the mobile banking channel. As such, this article reports on a study undertaken to propose and empirically test a technology acceptance model (TAM) that considers the influence of perceived ease of use and perceived relative advantage on Generation Y university students’ attitudes towards and usage of mobile banking in South Africa. A self-administered questionnaire was used to survey a non-probability convenience sample of 334 students registered at three public South African university campuses. Descriptive statistics, reliability measures, correlation analysis and structural equation modelling were used to analyse the collected data. The findings infer that South African Generation Y students’ perceived ease of use and perceived relative advantage of mobile banking have a significant positive influence on their attitudes towards mobile banking, which, in turn, has a significant positive influence on their mobile banking usage behaviour. Understanding the factors that positively influence the Generation Y cohort’s attitudes towards and usage behaviour of mobile banking will help retail banks in their efforts to influence mobile banking consumer behaviour and promote greater acceptance of their mobile channels amongst this important market segment.

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