Mobile banking applications security factors model for aged users in South Africa

Abstract

Technology continues to evolve at a rapid rate, resulting in financial institutions adopting technological developments across multiple products and services, including mobile banking applications. The design of these banking technology products and services is such that services previously offered through physical media or channels can be offered via mobile banking applications that are made available to users for 24 hours per day. While convenient, this also requires a secure experience. Financial institutions need to adapt and incorporate security into the mobile banking application design for the aged. While it is true that the physical difficulties and limitations brought on by ageing may affect how the aged utilize mobile banking applications, these are not the only factors that may have an impact. There are also security factors that need to be considered. The literature review conducted as part of this research identified that minimal research has been conducted on the factors that influence the security of mobile banking applications for aged users in South Africa. This quantitative study sought to investigate the factors that have a significant influence on the perception of security for the use of mobile banking applications by aged users in South Africa. The study proposes an Aged Users’ Mobile Banking Application Security Factors Model of the factors that influence the perception of security of mobile banking applications for aged users, based on a review of existing literature and informed by the Extended Unified Theory of Acceptance and Use of Technology (UTAUT2). A questionnaire with 53 statements was developed from the conceptual model, and a quantitative approach was applied using a survey to collect data from (n=286) aged users in South Africa from different social and economic backgrounds. Statistical analysis of the respondents’ data was performed using descriptive and inferential statistical analysis. Exploratory Factor Analysis was applied to validate the questionnaire, and Cronbach's Alpha coefficients were used to assess reliability. The Exploratory Factor Analysis that was conducted on the study questionnaire yielded eight factors. The reliability of the questionnaire was assessed as good, based on Cronbach’s Alpha. Structured Equation Modelling (SEM) and multiple regression analysis conducted on the dataset suggested that privacy and risk are the strongest predictors of technological security perception, which in turn influences the intention to use and the actual use of mobile banking applications by aged users in South Africa. The Aged Users’ Mobile Banking Application Security Factors Model could inform the design of secure mobile banking applications for aged users.