Standard Bank launched the service in 2001 and so far only 28,000 customers have registered for the mobile banking service. This study will evaluate Standard Bank's mobile banking offering.
Introduction
Research background
For the purpose of this study, the acceptance rate of mobile phones in Standard Bank will be evaluated. Standard Bank's mobile banking usage is very low as the bank only implemented the mobile banking service in 2001 and as of January 2004 only 48,000 customers had registered for the service.
Company background
Standard Bank has established itself as a leader in banking technology for both the personal and business markets in South Africa. Mobile phone service provides opportunities for Standard Bank to compete with other banks.
Motivation for undertaking this study
A proper service focus is required, such as system infrastructure design, executive management buy-in, and service marketing. Standard Bank must capitalize on its strengths in order to succeed with its M-commerce offering.
Value of the study to the organisation
Problem statement
Research objectives
Research design and methodology
H3: The greater the Trialability associated with mobile commerce, the more likely it is to be adopted. H4: The greater the diversity of eel/phone experience, the more likely mobile commerce will be adopted.
Together with other major Scandinavian countries, Sweden is considered a leader in the development of mobile banking services. The popularity of mobile stock brokerage services will drive the development of mobile banking services in Switzerland.
M-COMMERCE LITERATURE REVIEW 13
M-Commerce Overview
The mobile phone industry is an increasingly legislative environment, in the form of the Electronic Communications and Transactions Act. These environments are important, as they influence the utilization of the M-commerce technology and the offerings of the M-commerce services in South Africa and worldwide.
The South African Market Place M-Commerce Offerings
Cell phone Banking Service
Yet the number of internet users is small compared to the 15 million mobile phone users. Goldstuck (2002) also reports that in South Africa, access to the Internet via mobile phones has been a non-starter, implying that mobile banking has also not yet been widely adopted.
Is Cell phone Banking The Way Forward?
However, as soon as making a banking transaction via mobile phone becomes as easy as making a call (and when WAP costs become more acceptable), mobile banking can spread rapidly to the mass market. According to Zitzke (2002), mobile phone banking seems to be the way to go in South Africa.
Mobile Banking In Europe
Considering the early development of mobile banking services in France, the rapidly growing mobile penetration rate, strong alliances between network operators,. German mobile network operators such as Mannesmann and DeTeMobil are driving the development of mobile banking services. The main factor driving Swedish banks' leadership in the development of mobile banking services is the advanced development of their Internet banking services.
Sweden will continue to be a leader in the development of mobile banking, setting the standard for other European countries to follow. UBS and Credit Suisse are currently driving the development of mobile banking in Switzerland, where they have both launched Wap-based mobile banking services. Similar to the development of mobile banking in Germany, Swiss banks initially offer stock brokerage services, rather than simple retail banking.
Mobile Banking Participants
The Czech Republic's online bank, Expandia Banka, was one of the first banks in Europe to offer a mobile banking service to its customers (this excludes banks that offer services purely based on text messages). One of the factors that makes Expandia 8anka an interesting and innovative player in the mobile banking market is its forward-looking approach and strategy. The qualitative research sought to determine the reasons behind the introduction of mobile banking by Standard Bank and the banks future plans for this service.
76% of the respondents are concerned about the security of the mobile banking service and 54% believe that someone else can tamper with their banking when they use the mobile banking services. These variables accounted for 66% of the variance in intentions to use mobile banking in the future. The majority of respondents state that mobile banking services have not met their expectations.
Factors that may influence the adoption of the mobile phone banking service are relative advantages, trial and diversity in banking needs. Factors likely to influence non-use of the mobile banking service are high perceived risk and the security of the technology.
Perception Of Mobile Financial Services In Europe
Who's Banking On Cellular Phone?
Wireless Retail Banking Adoption In The United States
Factors Influencing Non-Adoption Of M-Commerce
Bridging Strategies Revive Wireless Finance
The respondents were thus those who had an idea of the concept of mobile phone banking, even if they had never used the service before. 75% of the responses were from Gauteng province because only Gauteng Standard Bank branches were visited. The purpose of this section was to collect information regarding the respondents' mobile phone use, as well as to measure the respondents' understanding of
The preparation of a descriptive statistical summary is the preliminary step leading to the understanding of the collected data. These techniques were used to test the six hypotheses formulated in chapter 1 of the study. The magnitude of the relationship refers to the degree to which the variables move in unison or opposition.
Technology Adoption Life Cycle
M-Commerce Adoption Framework
Conclusion
Europe is generally believed to be a leader in the development of M-commerce solutions and is setting a trend for other countries. In South Africa, M-commerce is believed to be growing as new solutions are introduced. Four major banks in South Africa offer mobile banking with Standard Bank leading the way in customer adoption rate.
Introduction
Cl Identify factors that contribute to customers not adopting mobile banking. The results show that the majority of respondents believe that mobile banking is risky and that security can be compromised. A large percentage were not sure whether they would use mobile banking or not (20.
The more diverse the banking services, the more likely mobile banking will be used. It's still only tech geeks who use it --- we need to market mobile banking to mobile users.” Standard Bank needs to consider certain factors in terms of promoting the mobile banking service offering to the market.
Quantity Research Methodology
- Sampling
- Data Collection Method
- Research Questionnaire Design
- Pilot Study
Statistical Methods
- Descriptive Statistics
- Inferential Statistics
- Constructs Reliability
- Constructs Validity
Qualitative Research Methodology
Standard Bank's M-commerce management team was interviewed using semi-structured questions to ascertain answers to various questions.
Conclusion
The data collection method involved visiting Standard Bank branches where customers were asked to complete a research questionnaire.
REPORTING AND DISCUSSION OF RESULTS 71
Quantitative Research Methodology
- Descriptive Statistical Results
- Inferential Statistical Results
- Frequency Analysis
- Correlation Analysis
ATM is the most popular method of banking, while phone banking, internet banking and mobile banking are not widely used. Phone banking Mobile phone banking Mobile banking is affordable, efficient and allows faster than other forms of convenient management of other forms. The graph shows the percentages of respondents who believe that the relative advantage of mobile banking is a positive factor likely to increase mobile banking adoption.
It is clear from the survey results that mobile banking has not yet been widely adopted, despite the rapid spread of mobile phones in South Africa and the popularity of mobile phone functionality such as SMS. At present, there appears to be uncertainty within Standard Bank as to whether customers will adopt the existing mobile banking service and adapt the service to the greater bandwidth offered by GPRS and UMTS. In the future, it could also be possible to store information with mobile phone service providers, mimicking the storage facility of a smart card, which will add even more e-value to the mobile banking service.
Qualitative Research Methodology
Conclusion
Numerous efforts have been made at Standard Bank to promote the service to customers, such as offering the service for free. These areas should therefore be the focus of Standard Bank's efforts to promote the use of mobile banking. Those who foresee using a wide range of services through mobile banking are also more likely to adopt it. Therefore, the services offered should be widely advertised, with such people being the initial target group.
Once mobile banking gains a sizeable market, the major challenge facing Standard Bank will be to offer services that allow the company to differentiate itself in the market. To perform mass customization, Standard Bank must use business intelligence technologies based on historical and predictive analytics. Therefore, Standard Bank should use this opportunity to extend banking services to the masses in South Africa.
CONCLUSIONS AND RECCOMMENDATIONS 83
Outcomes of the Research
Customers should be made more aware of the advantages that mobile phone service offers over other electronic banking channels, such as internet banking, telephone banking and ATMs. It should also be possible for customers to try and test mobile banking, and even see demonstrations of how this service works. Activation of the service should also be done very easily and quickly for customers, without any inconvenience to them.
It is also essential that a customer value proposition is also mapped so that the benefit to the customer is made clear. This may be due to the fact that very few people have actually used the service, and are therefore unable to develop unequivocal perceptions of whether this technology is compatible with their lifestyle, or whether facilitated support for its use would be necessary, whether they would have the confidence to use it, or whether it would be difficult to use it. The short-term priority for Standard Bank will undoubtedly be to adapt their services efficiently to the higher bandwidth and better adapted mobile phones that will become available over time.
Recommendations
This understanding can be used to personalize interactions with customers in order to target a message specific to them. The key to success is not how often the bank communicates with customers, but how deeply it understands them and how meaningful the message is. Mass customization, combined with mobile banking, will result in a win-win situation for Standard Banks and its customers.
Mobile phones and PDAs have moved closer together, but only a very small percentage of the South African population will go the PDA route, as PDA manufacturers will still tend to target the more affluent market.
Summary
GMCF - Global Mobile Commerce Forum GPRS - General Pocket Radio Switch M -commerce - Mobile Commerce PDA - Personal Digital Assistance S.A.
