Abstract
M.Com. (Business Management)
This research study is about financial inclusion and use of mobile banking by people
the Bottom of the Pyramid (BOP) in South Africa. The study was conducted in a rural
village, Dennillton, in Mpumalanga province. Financial inclusion is important for the
economic development of South Africa. Both financial inclusion and economic
development are important for poverty alleviation in developing countries. The study
is relevant because rural villages in South Africa are impacted by socio-economic
issues. Approximately eight and a half million of the adult population in South Africa
are financially excluded. The aim of this study is to explore the attitudes and
perceptions of residents of Dennilton about mobile banking as a means to financial
inclusion. The research employed the Technology Acceptance Model (TAM) to
understand factors that affect the usage and adoption of mobile banking at the BOP.
The study used a qualitative methodology and the sample was selected by means of
a snowballing technique. The data was collected by means of face-to-face interviews
and analysed by means of a content analysis where eight themes were identified to
organise the research results in a meaningful way. The themes identified were: a
snapshot of financial inclusion, participants conceptualisation of mobile banking,
mobile banking uptake, and types of mobile banking transactions used, usefulness,
ease of use of mobile banking, perceived risk of using mobile banking services and
customers’ trust. The themes were found to align to the TAM because they focused
on factors that influence people’s attitudes and perceptions about adopting mobile
banking.
The data showed that 70 percent of participants had a transactional account;
ownership of a transactional account is a first step to financial inclusion. The study
found that awareness and usage of mobile banking were low amongst participants.
Users of mobile banking had a positive experience of mobile banking, while nonusers
were uncertain and anxious about mobile banking. The study made the
following recommendations to institutions about ways of extending financial
inclusion: introducing financial literacy programmes, using signs and symbols instead
of wordy texts in the mobile banking interface, offer some mobile banking services
free or at low data usage, and develop marketing campaigns about mobile banking.