User acceptance of cellphone banking

Abstract

The development and growth of most economies are severely influenced by the health and ever-unfolding potential of its financial sector. For an economy to grow, people must become (increasingly) economically active. The successful delivery of the Financial Services Charter (FSC), in providing greater accessibility to financial services, will have a positive influence in the economical development and upliftment of a substantial portion of the South African market, i.e. the un- and underbanked. Hence, it also has obvious benefits for the country as a whole. The aim of the FSC is to greatly encourage the effective access available. to LSM1-5. The yardstick is set at 80% for transaction accounts (''first order retail financial services products") by 2008 (Financial Services Charter, 2003). FinScope reports the actual usage as 32% in 2003. Truly successful delivery of greater accessibility to financial services will require creative business thinking, ensuring that all role role-players, (i.e. the state; banks as well as individual clients), agree on the effectiveness of the provided delivery. This order of success is only possible through innovation. Innovation - more specifically technology driven innovations - is a wellacknowledged catalyst in the cost reduction of services. In South Africa the telecommunication sector is a prime example of how innovation (presented in a manner that speaks directly to the target markets unmet needs) can disrupt an industry. There is also a strong market opinion that cellphones, together with the Dedicated Banks Bill (DBB), will play a fundamental role in providing access on the financial sector. By applying relevant theories and models (obtained from literary reviews), this research aims to investigate Wizzit, a new market entrant to the financial sector, offering a mobile transaction channel bundled with a Maestro branded debit card.

The focus evaluated Wizzit's market offering (as a mobile transaction channel by means of a cellphone} compared to existing traditional offerings to the same target market. The focus of this study is to investigate if the target market deems cellphone banking as an acceptable method of conducting personal banking. It is not the intention to compare various cellphone-based offerings with another. Rather, the emphasis is to undertake field research to determine the target's market perception of a mobile access channel per se. Wizzit Bank serves as the reference base - representative of the target market, from which the sample is taken. Focus is given to understanding the subtle interplay between learning, marketing and developing an insight into structuring the appropriate value proposition, which incentivises the desired change in customer behaviour. Thus, in closing, this explorative study is founded on qualitative field research, investigating the target market's perceptions on the appropriateness of the marketing and business approach of Wizzit (as a cellphone banking service provider}, promoting an alternative approach of transaction banking to the poorer people in South Africa.