On privacy calculus and underlying consumer concerns influencing mobile banking subscriptions

Kennedy Njenga, Sifiso Ndlovu

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

8 Citations (Scopus)

Abstract

The advancement of technology in mobile devices places South African (SA) banking institutions in unique positions to leverage these advancements into innovative value added services. Mobile banking is one such innovation that has afforded banking clients the ability to, amongst other services, view bank statements, pay bills, and transfer money. Despite a growing trend in mobile banking service offerings by SA banks, privacy and security issues are still considered a concern. The paper conceptualizes the underlying concerns by bank clients regarding the adoption of mobile banking services. Privacy Calculus Theory (PCT) has been used as a theoretical lens to explain the cognitive process involved when a potential mobile banking subscriber is presented with mobile banking technology solutions. The paper extends PCT by abstracting the risk/benefit trade-off psyche held by SA bank clients. The paper attempts to explain, using PCT, the bank clients' cognitive process and willingness to subscribe to mobile banking services. Quantitative research method has been used for this purpose. Purposeful sampling that targeted SA bank-account holders was applied. Empirical results show that the South African banked consumers' psyche is largely influenced by the utility of a technology (mobile banking service) and interestingly, privacy and security play a lesser role in this trade-off.

Original languageEnglish
Title of host publication2012 Information Security for South Africa - Proceedings of the ISSA 2012 Conference
DOIs
Publication statusPublished - 2012
Event2012 Conference on Information Security for South Africa, ISSA 2012 - Johannesburg, South Africa
Duration: 15 Aug 201217 Aug 2012

Publication series

Name2012 Information Security for South Africa - Proceedings of the ISSA 2012 Conference

Conference

Conference2012 Conference on Information Security for South Africa, ISSA 2012
Country/TerritorySouth Africa
CityJohannesburg
Period15/08/1217/08/12

Keywords

  • Information Privacy
  • Mobile banking
  • Privacy Calculus Theory
  • Security

ASJC Scopus subject areas

  • Information Systems

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