Influence of perceived integrity and perceived system quality on Generation Y students’ perceived trust in mobile banking in South Africa

Abstract

Mobile banking represents an important addition to retail banks’ digital banking channels and a salient tool for servicing both current and future customers. However, given the cybernetic nature of mobile banking, there is a certain degree of uncertainty and perceived risk associated with the use thereof. This uncertainty and perceived risk elevate the importance of trust in fostering mobile banking adoption. The Generation Y cohort, which encompasses today’s youth, represents an important current and future banking segment and their adoption of mobile banking channels could have a significant effect on the cost of servicing members of this cohort. Understanding the factors that positively contribute to the Generation Y cohort’s trust in mobile banking will help retail banks to better market their mobile banking channels to members of this cohort and thereby foster greater adoption of such channels. The study reported in this article considers the influence of the perceived integrity of the bank and the perceived system quality of mobile banking on Generation Y students’ perceived trust in mobile banking in the South African context. Data were gathered from a convenience sample of 334 students registered at three public South African university campuses using a self-administered questionnaire. The gathered data were analyzed using descriptive statistics, correlation analysis and bivariate regression analysis. The results of the study suggest that Generation Y students’ perceived integrity of a bank, together with the perceived system quality of mobile banking, has a significant positive influence on their perceived trust in mobile banking.

Determining Factors of Digital Wallet Usage

“…In the research, the indicators applied to measure trust are based on research by (Sekhon et al, 2014) namely capability, stability and integrity, moral values, and care. Furthermore, (van Deventer et al, 2017) explain trust as an individual's willingness to be open to the behavior of other individuals. Meanwhile, (Matemba and Li, 2018) argue that trust is a person's psychological condition in receiving consequences, as a result of positive expectations on the behavior and intention of the service provider.…”

Challenges, Benefits, and Adoption Dynamics of Mobile Banking at the Base of the Pyramid (BOP) in Africa: A Systematic Review

“…Nine of the studies provide findings to suggest that convenient and accessible banking services, for both low-and high-income people, are the major benefit of embracing mobile banking (Baptista & Oliveira, 2015;Mago & Chitokwindo, 2014;Mlitwa & Tshetsha, 2012;Mtambalika et al, 2016;Shrivastava, 2010;Van der Wansem, 2013;Van Deventer et al, 2017). Three of those nine studies focus on the fact that mobile banking reduces time and access barriers (Chukwumah, 2017;Shrivastava, 2010;Van der Wansem, 2013).…”

Untitled

“…Four studies cite lack of trust in mobile banking as a barrier to utilisation mobile banking services (Chukwumah, 2017;Mlitwa & Tshetsha, 2012;Tchouassi, 2012;van Deventer, de Klerk, & Bevan-Dye, 2017). A key reason for this lack of trust is the perception of risks associated with mobile banking, e.g., fear of security threats, such as fraud, that can occur during mobile banking.…”

“…Convenience and accessibility Nine of the studies provide findings to suggest that convenient and accessible banking services, for both low-and high-income people, are the major benefit of embracing mobile banking (Baptista & Oliveira, 2015;Mago & Chitokwindo, 2014;Mlitwa & Tshetsha, 2012;Mtambalika et al, 2016;Shrivastava, 2010;Van der Wansem, 2013;Van Deventer et al, 2017). Three of those nine studies focus on the fact that mobile banking reduces time and access barriers (Chukwumah, 2017;Shrivastava, 2010; Van der Wansem, 2013).…”

“…Three of those nine studies focus on the fact that mobile banking reduces time and access barriers (Chukwumah, 2017;Shrivastava, 2010; Van der Wansem, 2013). The Zimbabwe study provides the finding that 79% of the surveyed people indicated that mobile banking provides accessibility benefits (Mago & Chitokwindo, 2014;Tchouassi, 2012;van Deventer et al).…”