The propensity to adopt mobile banking among the unbanked at the base of the pyramid in South Africa

Abstract

The increasing mobile penetration rates in Africa provide an interesting opportunity to mitigate financial exclusion on the continent. Through mobile phone applications that provide an electronic store of value that sits on the mobile phone, the unbanked poor can now access accounts and initiate financial transactions on their mobile phone. The mobile phone presents a more affordable and accessible channel for transacting. The aim of the research was to determine the inclination for the unbanked at the base of the pyramid in South Africa to adopt mobile banking. In total, 100 individuals were interviewed to determine their propensity to adopt mobile banking if it were made available to them. The criteria for selection were residence in an informal settlement in Gauteng, being unbanked and having access to or ownership of a mobile phone. Graphical representations of the findings were analysed to determine the proportion of the sample that would adopt mobile banking under the various constructs. It was concluded that mobile banking had a high likelihood of being adopted by individuals at the base of the pyramid on the basis of its low cost, the convenience and security it offered, and the ease of its use. Additional factors in favour of adoption included observability and trialability. Copyright