Cell Phone Banking Adoption in South Africa – Limitations and future research

Cell Phone Banking Adoption in South Africa - Limitations and future researchWhile cell phones are important devices, these consumers’ lives do not revolve around the device. It is assumed that adults tend to view cell phones as practical devices for communication and also cell phone banking. In contrast, Hooper & Zhou demonstrates that cell phones are more highly regarded by teenagers and students. The latter group of consumers view cell phones as status symbols and necessary appendages to life. Accordingly, their usage is highest among teenagers. As such, the compatibility construct might be more prevalent among youths and difficult to detect among for adult consumers.
Like many studies, this present study has some limitations. Firstly, the factors identified as possible influences on cell phone banking adoption are not exhaustive. Secondly, the sample included mostly respondents from three South African provinces, who also happen to be adult consumers. Future studies could also consider other factors such as familiarity and cost of cell phone banking, possibly to a sample of younger consumers such as students. Comparative studies that examine differences in adoption processes between different forms of banking channels, such as between Internet, telephone, and cell phone may also be conducted to better understand the adoption of self-service banking channels.
Given that South African banking institutions have invested significantly in developing cell phone banking channels, it is important for these institutions to get return on investment. Therefore, understanding factors influencing CB adoption goes beyond just a mere interest or academic interest. It is likely to provide important strategic intelligence to financial institutions. This should also be considered given that cell phone banking offers a greater opportunity for spreading banking services to reach a critical mass of consumers compared to other self-service channels such as Internet banking, telephone banking, or ATMs (Brown et al, 2003). Overall, results show a great improvement in adoption of cell phone banking compared to past years. Perceptions of risk and security concerns appear to slow the adoption rate. While banking institutions have done a lot in launching cell phone banking, focussing attention on in-house promotion and customer demonstrations of cell phone banking may further improve adoption rate.