Theories are critical in research as they guide in describing, explaining and predicting the behaviour of the phenomenon under study. Hence the researcher deemed necessary to discuss and incorporate theories that guide this study. Theories create better understanding and acceptance of new technology by consumers. The theoretical input by Delone and McLean model founded in 1992 where information quality, system quality and service quality was noted to lead to the intention to use and user satisfaction is beneficial to the user (Delone & MacLean, 1992).
This interrelatedness is one of the crucial elements of influencing users to use mobile banking and alternative finance. This theory still contribute in today as human beings use information that benefits and satisfy the integral need within them (Sirsat & Sirsat, 2016). If the data provided by
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the service provider is current, easy to appreciate and thorough, it encourage the users to improve their goal to use and the of fulfilment mobile banking.
Five theories that the researcher used as the basis for this study are Innovation Diffusion Theory (IDT), Technology Acceptance Model (TAM), the Unified Theory of Acceptance and Use of Technology (UTAUT), Theory of Planned Behaviour (TPB) and Theory of Planned Behaviour (TPB). The banking environment has changed drastically from manual to innovative banking, hence it is practical to use technology-aligned models. Mobile banking and alternative finance use online platforms which are built on current technology.
2.2.1 Innovation Diffusion Theory (IDT)
The innovation diffusion theory is a classical theory which gives a background to revolutionary innovation on research. It was developed by Rogers (1983:213), where three core characteristics of innovation were pinpointed as: relative advantage, compatibility, and complexity. According to Rogers, IDT originates from economic, social and communication theories which combine technology acceptance and circulation literature in different study areas (Rogers, 1995).
Assensohh-Kodua et al. (2016) note five dynamics that influence the acceptance of innovation such as mobile banking in South Africa and its application. These dynamics include relative advantage, compatibility, complexity, trialability and observability. A study by Yousafzai (2012) suggests that these five dynamics are consistently related to internet banking. Other academic researchers also substituted complexity with perceived ease of use from the technology acceptance model using the Innovation Diffusion Theory (Puschel, Mazzon & Hernandez, 2010).
Shambare (2011) used IDT for his study in three South African provinces, namely, Gauteng, Limpopo and Mpumalanga, where 124 mobile phone users were monitored. The results showed that perceived risk and security fears contributed to the slow adoption rate. Assensohh-Kodua et al. (2016) note that studies which were conducted using IDT only focused on adoption, and nothing has been mentioned on the continuous use of mobile banking. Basically, the use of technology is no longer a luxury but a necessity as long as it adds value, easily usable and favorable to the user. Hence the researcher incorporated this theory as the study entails technology use by customers to access online financial services.
2.2.2 Technology Acceptance Model (TAM)
Davis (1989) founded the Technology Acceptance Model. The model is used to determine the intentions of the users to accept the new technology. This theory guides and assist the researcher
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to determine the attitude and belief of users in predicting the acceptance on technology.
Venkatesh & Davis (2000) extended TAM and added variables of risk, trust and cost to produce TAM2. Wentzel, Diatha & Yadavalli (2013) adopted TAM in their study using a house-to-house agent. A complement of 341 respondents were surveyed, and it was discovered that attitude was the most important factor in the model, followed by perceived ease of use, while social factors and technology self-efficacy were not that important. The findings of the study contradicted those of a study by Borg & Persson (2010) where the diffusion framework on 21 semi-structured interviews in South Africa was used, and it was found that the main contributing factors were innovation factors, social factors, consumer perception and appropriate setting for the user. The TAM has been broadly verified, endorsed and recognised as it explains the adoption of technology by users clearly (Kweyu & Ngare, 2013; Omwansa, Waema & Lules, 2012; Masinge, 2010). Although TAM has been acknowledged as influential to study technology acceptance and usage behaviour, there has been slight work to study certain promoting factors that can assist with the improvement of customers’ attitudes towards technology acceptance and sustained usage behaviour (Okiro & Ndungu, 2013). If users are satisfied with the system that is success and that lead to acceptance.
2.2.3 Unified Theory of Acceptance and Use of Technology (UTAUT)
Venkatesh, Morris, Davis & Davis (2003) synthesised TAM and TPB into UTAUT. Unified Theory of Acceptance and Use of Technology was designed with four main factors of intention and usage and also four moderators of significant connections. The testing of UTAUT utilised novel data from organisations and was noted to exceed performance of the eight individual models that were already in existence. UTAUT is a useful instrument that affords managers to test and assess the success rate of presenting new technologies to users. Furthermore UTAUT, guides managers with understanding of factors that lead to acceptance in order to proactively design interventions directed to a group of users who are not eager to embrace and use new systems.
According to Assensohh-Kodua et al. (2016), the Unified Theory of Acceptance and Use of Technology was originally designed for use on the personal computer but was also used to test the acceptance of mobile banking without checking the superior qualities to neutralise its features.
The study by Bankole & Cloete (2011) used UTAUT to compare mobile banking between South Africa and Nigeria, and found that SMS notification for account transactions was a shared service for mobile banking used in both countries. Awareness, convenience and literacy level factors were found to contribute to the acceptance of mobile banking in both countries. Furthermore they did not say anything about the controlling factors in order to highlight the conclusion that would help with future research. Martins, Oliveira & Popovic (2014) assert that UTAUT is the best model
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that could be used to predict the use of information technology, where 70% of variance in usage was noted.
Goodhue & Thompson (1995) proposed The Task Technology Fit Model, which states that an individuals’ performance is affected by the user use and attitude to technology. If the user has a positive mindset towards using the newly introduced technology or system, they are highly likely to do well in adapting into using and mastering it. Zhou, Lu & Wang (2010) combined the Task Technology Fit Model and the UTAUT to clarify mobile banking acceptance. Their findings were centred on an investigation of survey statistics which displayed the significance of task technology fit. UTAUT theory is key to this study as it is a combination of all theories developed and has been compatible for use in studying mobile banking use.
2.2.4 Theory of Perceived Risk (TPR)
The TPR was discovered by Bauer (1960). The theory suggests that consumer behavior involves risks which produce unexpected results. Furthermore, TPR is not only concerning consumers’
pre-exposure to data acquisition and handling but to post-decision practices. In other- words the individual has to be cautious at all stages of using information obtained from before the information was presented to presentation then after presentation. TPR using a mobile device to transact online comes with its own risks for the consumers. The user have to apply precautions at all times when using these online systems as they comes with their own risk. Njenga & Ndlovu (2013) conducted a study in South Africa, and found that perceived benefits of mobile banking had a clear effect on South African customers with bank accounts than perceived risks. The alleged ease of use of technology outweighs the apparent risks. This assertion is supported by Wentzel et al. (2013) who posit that after attitude and alleged benefits, what matters is the trust which consumers have in technology.
2.2.5 Theory of Planned Behaviour (TPB)
Ajzen (1985) founded the theory of planned behaviour. The decomposed TPB was first introduced by Taylor and Todd (1973), and suggested that it was preferable for use in its pure form. The decomposed model was noted to use constructs of relative advantage and compatibility from innovation literature. The TPB spells out exactly how an individual’s choices and actions have a direct impact on their sense of control over a given situation. In other words, it is like a roadmap for understanding the consequences of our behaviour. The contributing factors of behaviour in TPB are the intentions to take part and the perceived behavioral control over that behaviour
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(Ajzen & Fishbein, 1980). Intentions characterise an individual’s inspiration which is determined by the following three factors: attitude, individual standards, and the level to which the person recognises that conduct is under their own control. Supporting TPB, people are likely to take part in mobile banking or alternative finance if they have faith in that their conduct will lead to certain results which they value, and if they have the required resources and opportunities to carry out the behaviour. Studies by various scholars have established that attitude has a significant outcome in behavioural intention to use a specific application (George, 2002; Puschel at al., 2010;
Sharma, 2019).
Original models are constantly being enhanced to fit the requirements of the phenomenon under study. According to Assensohh-Kodua et al. (2016), most studies which applied these theories did not take into account the fact that trust and service value are key elements when selling these technologies to customers. Trust is important when using technology to conduct business.
Furthermore, the theories do not outline how behaviour can be affected mentally, functionally and emotionally. Researchers in South Africa did not specify the kind of device that is compatible for transacting using mobile banking, therefore, future studies need to explore this area. Another important fact to note is that most of the research done in South Africa in this area has not been peer-appraised. The kind of the device is not clarified because it originates from practitioners but it helps to provide an understanding on and the background information on mobile banking.
Emphasis on influential issues contributing to the persistent behaviour will help banks and other financial institutions, not excluding governments, to put relevant strategies in place. To date, no studies were found that have investigated mobile banking continuance as mobile banking acceptance in South Africa is not the same as mobile banking continuance.