Template-type: ReDIF-Paper 1.0
Author-Name: Ismail, Tashmia
Author-Email: ismailt@gibs.co.za
Author-Workplace-Name: Gordon School of Business Science, University of Pretoria,
	 and UNU-MERIT
Author-Name: Masinge, Khumbula
Author-Email: masingek@gibs.co.za
Author-Workplace-Name: Gordon School of Business Science, University of Pretoria
Title: Mobile banking: Innovation for the poor 
Abstract: Access to, and the cost of, mainstream financial services act as a 
	 barrier to financial inclusion for many in the developing world. The 
	 convergence of banking services with mobile technologies means however 
	 that users are able to conduct banking services at any place and at any 
	 time through mobile banking thus overcoming the challenges to the 
	 distribution and use of banking services. This research examines the 
	 factors influencing the adoption of mobile banking by people at the Base 
	 of the Pyramid (BOP) in South Africa, with a special focus on trust, 
	 cost and risk.  
	 Data for this study was collected through paper questionnaires in 
	 townships around Gauteng. This research has found that customers in the 
	 BOP will consider adopting mobile banking as long as it is perceived to 
	 be useful and to be easy to use. But the most critical factor for the 
	 customer is cost; the service should be affordable. Furthermore, the 
	 mobile banking service providers, both the banks and mobile network 
	 providers, should be trusted. Trust was found to be significantly 
	 negatively correlated to perceived risk. Trust therefore plays a role in 
	 risk mitigation and in enhancing customer loyalty.
Classification-JEL: O31, O32, O33
Keywords: Bottom of the pyramid, financial services, mobile technologies
Series: UNU-MERIT Working Papers
Creation-Date: 2011
Number: 074
File-URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-074.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2011074