Analysis of the Key Success Factors of the Adoption of Digital Banking

Case of Mauritius

Master's Thesis , 2015 , 104 Pages , Grade: Distinction

Business economics - Banking, Stock Exchanges, Insurance, Accounting

Data Innovation is gradually changing the banking industry around the world. Digital banking offers banks new opportunities and challenges. This paper gives a comprehension of how demographic characteristics, social components and consumer perception and attitudes towards digital banking influence its adoption. Digital banking has been developed in order to enable consumers to gain a greater share in the banking market. In Mauritius, there is little awareness about the emergence of digital banking despite the fact that this service is presently representing an important share in the banking market. This is because digital banking is a new industry here, and therefore, consumer acceptance and use of digital banking is still limited. To date, very little research has been conducted into factors which influence consumer adoption of digital banking in Mauritius, and so, therefore, there is a need for a study such as this.

A research framework in light of the diffusion of innovation theory was utilized to identify elements that would impact the adoption of digital banking. This report has evaluated current literature and conclusions about this innovation banking technology. It has likewise reviewed the elements, including consumer demographic characteristic, consumer perceptions towards digital banking and social impacts that influence consumer adoption of this mode of banking.

This study additionally clarifies the strategy utilized as a part of conducting a survey of 25 questions with 185 respondents to acquire primary data for this study. Analysis of these outcomes was made with charts and figures to determine to what extent the factors studied, influence consumer adoption of digital banking. The hypotheses of this research were tested with chi-square tests.

Inhaltsverzeichnis (Table of Contents)

• CHAPTER 1 - INTRODUCTION
• 1.1 BACKGROUND OF THE STUDY
• 1.2 DEFINITION OF DIGITAL BANKING
• 1.3 THE EVOLUTION OF BANKING SECTOR IN MAURITIUS.
• 1.4 PROBLEM DEFINITION.
• 1.5 RATIONAL OF STUDY
• 1.6 AIMS, OBJECTIVES, RESEARCH QUESTIONS AND HYPOTHESIS
• 1.6.1 RESEARCH OBJECTIVES
• 1.6.2 RESEARCH QUESTIONS
• 1.6.3 RESEARCH HYPOTHESES.
• 1.7 STRUCTURE OF DISSERTATION.
• CHAPTER 2 – LITERATURE REVIEW
• 2.1 THE DIGITAL BANKING ECOSYSTEM.
• 2.2 DIGITAL BANKING IN MAURITIUS
• 2.3 DIGITAL BANKING FROM THE CUSTOMER PERSPECTIVE.
• 2.4 KEY SUCCESS FACTORS
• 2.5 ADOPTION MODEL
• 2.5.1 TECHNOLOGY ADOPTION MODEL (TAM).
• 2.5.2 EXTENSION OF TAM TOWARDS E-TAM
• 2.5.3 DIFFUSION OF INNOVATIONS THEORY (DIT) ..
• 2.5.3.1 CONVENIENCE, ACCESSIBILITY AND QUICK ONLINE SERVICE DELIVERY.
• 2.5.3.2 E-SECURITY, PRIVACY AND TRUST.
• 2.5.3.3 CONTENT, DESIGN AND SIMPLICITY OF THE BANKING WEB SITE.
• 2.5.3.4 ANXIETY AND RELIABILITY.
• 2.5.3.5 FEES AND CHARGES
• 2.5.3.6 DEMOGRAPHIC CHARACTERISTICS
• 2.5.3.7 BEHAVIORAL INTENTION
• 2.5.3.8 ACTUAL USAGE
• 2.6 CHAPTER SUMMARY
• CHAPTER 3 - METHODOLOGY
• 3.1 INTRODUCTION
• 3.2 RESEARCH METHODS
• 3.2.1 EXPLANATORY RESEARCH
• 3.2.2 DESCRIPTIVE RESEARCH
• 3.3 DATA COLLECTION INSTRUMENTS..
• 3.3.1 SECONDARY DATA COLLECTION.
• 3.3.2 PRIMARY DATA COLLECTION.
• 3.4 THE POPULATION AND SAMPLE SIZE
• 3.4.1 SAMPLE SIZE
• 3.5 PILOT TESTING
• 3.6 LIMITATIONS AND DIFFICULTIES.
• 3.7 RESPONSE RATE
• 3.8 DATA PREPARATION AND CODING..
• 3.9 ANALYSIS OF DATA.
• CHAPTER 4 – PRESENTATION AND ANALYSIS OF FINDINGS
• 4.1 PRESENTATION OF FINDINGS
• 4.1.1 SECTION 1- BANKING INFORMATION
• 4.1.2 SECTION 2- BANKING SERVICES.
• 4.1.3 SECTION 3- PERCEPTIONS OF DIGITAL BANKING
• 4.1.3.1 THE RELATIVE ADVANTAGES OF DIGITAL BANKING.
• 4.1.3.2 THE COMPLEXITY OF INTERNET BANKING......
• 4.1.3.3 THE COMPATIBILITY OF DIGITAL BANKING
• 4.1.3.4 THE PERCEIVED COST OF DIGITAL BANKING
• 4.1.3.5 THE PERCEIVED RISK OF DIGITAL BANKING
• 4.1.3.6 INFLUENCES ON DIGITAL BANKING
• 4.1.4 SECTION 4- DEMOGRAPHIC FACTORS.

Frequently Asked Questions

What factors influence the adoption of digital banking?

Key factors include demographic characteristics, social influences, perceived ease of use, security, trust, and consumer attitudes towards technology.

What is the status of digital banking in Mauritius?

While digital banking represents a growing share of the market in Mauritius, awareness and consumer acceptance are still limited as it is considered a relatively new industry there.

What theories are used to study digital banking adoption?

Common frameworks include the Technology Adoption Model (TAM) and the Diffusion of Innovations Theory (DIT).

How does perceived risk affect digital banking?

Perceived risks regarding e-security, privacy, and trust are significant barriers that can prevent consumers from using online banking services.

Why is convenience a major success factor for digital banking?

Digital banking offers 24/7 accessibility and quick service delivery, which are primary drivers for customers looking to save time and manage finances efficiently.

• Course: Commonwealth Executive Master of Business Administration.
• Grade: Distinction
• Author: Tishta Bachoo (Author)
• Publication Year: 2015
• Pages: 104
• Catalog Number: V370934
• ISBN (eBook): 9783668488281
• ISBN (Book): 9783668488298
• Language: English
• Tags: analysis, success, factors, adoption, digital, banking, case, mauritius