Perceptions of electronic banking among Congolese clients of South African banks in the greater Durban area

Abstract

Online banking in the financial sector has revolutionised the banking industry. This study aims to determine the perception of electronic banking, from the consumer`s perspective among Congolese consumers using South African banks in the Greater Durban area. Banks are competing on the basis of technology and service offering to win a sizeable share of the online market. Congolese consumer is a good target market, however, very little is known about the factors influencing Congolese consumer behaviour in the online banking sector in Durban. An understanding of the demographic profile, factors prompting the use of electronic banking and motivators influence the adoption of electronic banking. Analyses of Congolese customers adopting electronic banking will facilitate the formulation of marketing strategies to foreign nationals in South Africa. The empirical section of the study involved data collection through the use of self-completion questionnaires administrated by the researcher. A survey was conducted in the greater Durban area using convenience sampling methodology and 288 completed questionnaires were collected by the researcher. The key findings revealed that the demographic profile (gender, area of residence, marital status, and income categories) influences the adoption of electronic banking as a segmentation basis. It was interesting to note that most of respondents were married and reside in Central Durban and South Durban. Furthermore, psychological factors (motivators, attitudes, perceptions and perceived risk) were found to influence the adoption of electronic banking to a large extend. Interestingly, cultural factors (social class, age and education level)play a significant role in the adoption of electronic banking by Congolese customers of South African banks. The findings also revealed that the driving force for the adoption of electronic banking was that respondents have a job which requires them to have a bank account. Most of the banks in South Africa offer free internet banking to their clients. Since convenience sampling method was used, the findings of this study may not be generalised. Based on the findings of this study it is apparent that the customer analysis of banking clients should be examined on a regular basis. A customised strategy for foreign national customers residing in South Africa should be developed on a regular basis.