Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Mobile Banking in An Emerging Economy: Facilitating Factors and Challenges

Author(s): Akwesi Assensoh-Kodua, Steven Kayambazinthu Msosa

In recent times, there has been a global surge in mobile-banking (m-banking). Surprisingly, emerging economies have taken a competitive and leading role in this new wave of banking. The continent of Africa, especially sub-Saharan Africa is a leading region when it comes to this phenomenon, given the number of mobile device holders that accept to perform m-banking relative to other parts of the world. However, there is a gap between the numbers that initially accept m-banking and those who really use the concept. This paper highlights the factors that are encouraging this practice, and challenges confronting m-banking in an emerging economy (Durban Metro -South Africa), where the study was carried out. A cross-sectional, descriptive, and quantitative approach was adopted to collect data from 150 online m-banking respondents in Durban through the help of an online data agent. WarpPLS 5.0 structural equation modelling software for regression analysis was used to analyse data. The findings of this study showed that perceived quality of m-banking service delivery (β=0.439), followed by perceived trust (β=0.334) and then, social norm (β=0.038) have a positive and significant influence on m-banking generally. Recommendations towards addressing m-banking challenges and ways of improving m-banking applications are provided for practitioners. These could also be adopted in other emerging economies as these countries have common socioeconomic issues. This study was motivated by the number of mobile users who accept to use their devices for m-banking vis-à-vis those who are really using it. Thus, it addresses the questions of (1) What motivate initial m-banking adoption, and (2) what factors contribute towards its continuance usage and discontinuation? Hopefully, this will help banking practitioners to be aware of the facilitating factors and challenges of m-banking.

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