Internet Banking Adoption in South Africa : An Exploratory Study

Internet banking (IB) is a typical banking innovation that potentially can transform the financial services landscape in developing nations such as South Africa. However, due to the associated low adoption rate, its full potential in deepening and extending banking services is yet to be realised, as a critical mass of consumers is yet to be accessed. Thus, a better understanding of why some banking customers adopt IB and others do not, alongside an identification of the factors influencing this decision is likely to be of considerable practical as well as academic value. For this reason, the purpose of this study was to investigate the factors influencing the adoption and usage patterns of IB among South African consumers. Using Rogers' IDT framework, data was collected using a self-completion questionnaire, in which some 249 banking customers participated. Results suggest perceptions of risk, lack of adequate support and training from banking institutions are some of the causes of non-usage. The implications of these findings are that banks could focus more attention on cross-selling IB together with other financial products, as IB is rarely used in isolation. Installing personal computers inside branches in conjunction with campaigns and demonstrations may also improve rates of adoption