Internet Banking Adoption in South Africa: The Mediating Role of Consumer Readiness
The recent rapid development of Internet banking (IB) around the world is not without certain challenges. For
instance while a majority of banking SSTs (Self Service Technologies, e.g. ATMs and debit cards) have been well received by
the South African market, consumers seem sceptical towards Internet banking. This paper seeks to test various conceptual
frameworks of consumer adoption patterns of IB with the view of a framework with the greatest explanatory power for the
South African market. To achieve the stated objective of a framework for Internet banking adoption in South Africa, this paper
suggests an approach not yet undertaken, according to the literature review conducted, within the South African retail banking
industry – investigating a comparison of the predictive efficacy of two common groupings of variables most cited in the
consumer behaviour literature as important determinants of adoptive behaviour in SSTs. These are: perceptions of innovation
characteristics and consumer readiness (CR) variables. Therefore, the primary objective of this article is the consideration of
this gap within the body of knowledge around South African consumers’ IB adoption behaviour. Through a descriptive
quantitative analysis of 1516 large sample size, innovation characteristics as consumer’s perceptions (complexity, perceived
risk notably) or views (endogenous variables) were found with greatest predictive power over IB adoption, in the South
African consumer market context. This finding is therefore for marketers (particularly in South Africa) a set of useful tools
that can be relevant to promote the adoption of IB.
Index Terms - Consumer choice behaviour, Consumer readiness, Innovation characteristics, Internet banking, South Africa.