Mobile banking and the financial services needs of the poor : an adoption framework

Abstract

“Over the past ten years, ITCs have become an important element in sustaining economic growth and poverty reduction through increasing efficiencies, enabling the delivery of social services, or creating new sources of income and employment” (Fourati, 2009, p. 37) . m-banking is one such technological development that has a potential to increase economic participation by low-income consumers. This research examines the factors influencing the adoption of mobile banking by low-income consumers in South Africa, with a special focus on the banking needs of the poor. The research framework was adapted from Tan and Teo (2000) and assessed the impact of these nine variables on the intention to adopt m-banking: relative advantage, compatibility with values, compatibility with banking needs, compatibility with cell phone use experience, complexity, “trialibility”, risk, self-efficacy and support. Data for this study was collected through a physical hardcopy survey in Soweto, in Gauteng.The research found that low-income consumers will consider adopting m-banking as long as it is offers them an improved way over the current mechanisms of managing their money, it is compatible with their financial services needs and they consider themselves as having the necessary skills to use it.