Abstract
Digital banking is gradually taking over some functions of traditional banking, and its rise is becoming key in achieving new growth opportunities within the banking industry. The shift is forcing banks to prioritize digital transformation as customer behavior and needs change, creating a more competitive business environment. South Africa has seen changes in retail banking functions, ones that reduce the need for customers to visit physical branches due to the availability of services on digital channels.
This research investigated the factors that influence the use of digital banking platforms in the banking sector and determined the extent of their influence. The study considered both inhibiting and enabling factors that can help determine the likelihood of customers adopting digital banking platforms at a higher rate than at present. Using a quantitative research approach, data was gathered via a survey of a varied group of digital banking users. A sample size of 300 participants was selected using snowball and convenience sampling methods, and a total of 272 responses were received. Partial Least Squares Structural Equation Modeling (PLS-SEM) and SPSS were utilized to analyze the connections between different factors and user acceptance. The outcomes indicate that technological aspects such as system quality, ease of use, and security, significantly impact the use of digital banking platforms. Furthermore, non-technological elements like trust, customer support, and perceived usefulness also hold considerable significance. The research shows how the perceptions of banking customers, and their awareness of digital banking platforms, can have an effect on the use of digital banking service offerings. The results showed that the effect of perception was slight (β = 0.082), while awareness exerted a significantly positive effect (β = 0.765). Then, the independent variables explained 2.25% of the variance in digital banking usage in South Africa, with an SRMR value of 0.086.
The key finding of the research was that the use of digital banking platforms is significantly influenced by language barriers, compatibility of devices, and the level of discomfort with adapting to new technologies. The study found that raising awareness about digital banking platforms is crucial for increasing their adoption and usage. Improved perceptions of digital banking have a modest positive effect on its usage. Additionally, the study confirmed that the SRMR model used was a good fit, with a value slightly above the accepted threshold. The study found that banks can
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enhance user awareness and trust in digital banking by implementing targeted education initiatives, customizing solutions for accessibility, emphasizing advanced security features, and adopting change management strategies sensitive to socioeconomic backgrounds, while also collaborating with policymakers to improve financial inclusion in underserved areas. A conceptual model was developed to illustrate the constructs that were found to have an effect on the acceptance of digital banking platforms.