Journal articles on the topic 'Banking in Africa'
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1
Ozili, Peterson K. "Banking stability determinants in Africa." International Journal of Managerial Finance 14, no. 4 (August 6, 2018): 462–83. http://dx.doi.org/10.1108/ijmf-01-2018-0007.
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Purpose The purpose of this paper is to investigate the determinants of banking stability in Africa. Design/methodology/approach The authors present four measures of banking stability embedding banks’ loan loss coverage ratio, insolvency risk, asset quality ratio, and level of financial development, thereby allowing analysis of banking stability determinants from four complementary perspectives: protection for downside credit losses, distress arising from insolvency risk, non-performing loans, and financial development. The authors use the regression methodology to estimate the impact of financial structure, institutional, bank-level factors on bank stability. Findings The findings indicate that banking efficiency, foreign bank presence, banking concentration, size of banking sector, government effectiveness, political stability, regulatory quality, investor protection, corruption control and unemployment levels are significant determinant of banking stability in Africa and the significance of each determinant depends on the banking stability proxy employed and depends on the period of analysis: pre-crisis, during-crisis or post-crisis. Practical implications Banking supervisors in African countries should consider the role of financial structure and institutional quality for banking stability in the African region. Originality/value This study is the first to examine banking stability determinants in Africa that takes into account institutional quality and financial structure.
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Dzomira, Shewangu. "Internet banking fraud alertness in the banking sector: South Africa." Banks and Bank Systems 12, no. 1 (April 26, 2017): 143–51. http://dx.doi.org/10.21511/bbs.12(1-1).2017.07.
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This paper analyzes internet banking fraud alertness to the general public by the South African banking institutions. The study is centered on routine activity theory, which is a criminology theory. A qualitative content analysis was used as the research technique for the interpretation of the text data from each bank’s website through the systematic classification process of coding and identifying themes or patterns to provide an in-depth understanding of internet banking fraud alertness in the banking sector. A sample size of 13 out of 16 locally and foreign controlled retail banks in South Africa was used. The findings report that banks are not adequately providing internet fraud alertness information to the general public on their websites notwithstanding that most banks they do provide such information to log-in users and the use of that information is doubtful. This study suggests a need to augment internet banking fraud alertness information and passably inform internet banking users of the types of internet banking fraud perpetrated by internet fraudsters before they log-in for transacting. Considering the current and widespread quandary of internet banking fraud, the information of this paper is important for internet banking users to improve their aptitude in identifying fraudulent schemes and circumvent them, and for the banking institutions to invest more in the provision of internet banking fraud information to the general public.
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Bongazana Dondolo, Hilda, and Nkosivile Welcome Madinga. "Ease of use, security concerns and attitudes as antecedents of customer satisfaction in ATM banking." Banks and Bank Systems 11, no. 4 (December 22, 2016): 122–26. http://dx.doi.org/10.21511/bbs.11(4-1).2016.02.
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This study examines the influence of ease of use, security concerns and attitudes on South African consumers’ satisfaction with ATM banking services. Participants of the study were solicited through electronic mailing list of ATM users in South Africa. These participants were provided with a website link that directed them to an online survey hosted by Qualtrics. A total of 224 participants from the various provinces of South Africa responded. This study confirms that customer satisfaction is linked to security concerns, attitudes and ease of use. Overall, the results indicate that the respondents were satisfied with ATM banking services. Since there is a shortage of research on customer satisfaction with ATM banking services in South Africa, an area often neglected by South African researchers, this study contributes to knowledge available in the existing literature. Keywords: ATM banking, customer satisfaction, ease of use, security, attitudes. JEL Classification: G21, M31
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Kholvadia, Faatima. "Islamic banking in South Africa – form over substance?" Meditari Accountancy Research 25, no. 1 (April 10, 2017): 65–81. http://dx.doi.org/10.1108/medar-02-2016-0030.
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Purpose The purpose of this study is to understand the economic substance of Islamic banking transactions in South Africa and to analyse whether the economic substance is closely related to the legal form. Additionally, this study highlights the similarities and differences in the execution of Islamic banking transactions across different South African banks. The transactions analysed are deposit products of qard and Mudarabah and financing products of Murabaha, Ijarah and diminishing Musharaka. Design/methodology/approach The study was conducted through interviews with representatives from each of the four South African banks that offers Islamic banking products. Interviews were semi-structured and allowed interviewees to voice their perspectives, increasing the validity of the interviews. Findings The study found that specific Shariah requirements of Islamic banking transactions are considered and included in the legal structure of the contracts by all four banks offering Islamic banking products. However, the economic reality of these transactions was often significantly different from its legal form and was found to, economically, replicate conventional banking transactions. The study also found that all four banks offer Islamic banking products under the same Shariah principles, but in some instances (e.g. diminishing Musharaka), execute these transactions in different ways. This study is the first of its kind in South Africa. Research limitations/implications While safeguards have been used to ensure the reliability and validity of the research, there remain a few inherent limitations which should be noted: interviewees, while chosen for their expertise and level of knowledge, may provide highly technical insight which may be difficult to interpret. Detailed technicalities were therefore excluded from this research. The regulatory environment of banks in South Africa, for example, regulation imposed by the Financial Service Board on all financial institutions in South Africa, has not been explored. However, the regulatory environment was brought to the readers’ attention to help illustrate certain themes. This research uses only Shariah requirements as detailed in Section 2.2 to analyse transactions. Fatwas (rulings) issued by the Shariah Boards of South African Islamic banks have not been included in this study and may be an area of future research. Originality/value This study is the first of its kind in South Africa. The study adds to the Islamic banking literature by analysing the real execution of Islamic banking transactions rather than the theoretical compliance with Shariah law.
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Bick, G., R. Abratt, and D. Möller. "Customer service expectations in retail banking in Africa." South African Journal of Business Management 41, no. 2 (June 30, 2010): 13–28. http://dx.doi.org/10.4102/sajbm.v41i2.515.
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There has been very little research on customer service in the African continent. This paper determines and analyses customer service expectations of 4035 clients in retail banking across 10 African countries. In addition country differences in customer service expectations are identified. A quantitative research design was followed. Bank customers in banking halls were intercepted and interviewed about their service expectations at their bank. The survey instrument used was a questionnaire developed from the SERVQUAL model. A comparative scaling technique applying a partial rank order scale was used. The results show customer service expectations differ significantly between countries in Africa. Overall in Africa the dimension ‘responsiveness’ was the most important service requirement for retailing bank customers, followed by ‘reliability of service’. However, when analysing results by country clear differences and similarities emerge. It is important for Banks to take cross-national differences into consideration when designing and implementing a global marketing strategy, or even a Pan-African marketing strategy. Relational issues surrounding assurance and empathy are of less importance in an African context.
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Koenaite, Moshele, Eugine Maziriri, and Tinashe Chuchu. "Attitudes Towards Utilising Mobile Banking Applications Among Generation Z Consumers in South Africa." Journal of Business and Management Review 2, no. 6 (June 29, 2021): 417–38. http://dx.doi.org/10.47153/jbmr26.1452021.
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In today’s post-modern era, the banking industry is becoming a digital rather than a physical system. Digital banking has been synonymous with the fourth industrial revolution making a notable impact on the African continent. Therefore, the purpose of this research is to empirically investigate consumer attitudes towards mobile banking applications in South Africa. A positivist paradigm underpinned the study, and a descriptive design was employed. To test the proposed hypotheses a unique conceptual model was developed. Non-probability sampling was adopted in selecting appropriate participants. A total of data was collected from 325 willing participants through an survey. In terms of analysis, SPSS n and AMOS were utilised to generate descriptive statistics and hypotheses testing. The results established that attitudes towards mobile banking applications and actual use of mobile banking applications was the strongest relationship. The empirical evidence presented in this study adds value to the existing research on mobile-banking within the 4th industrial revolution, particularly in South Africa, a largely under-researched area.
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Nartey, Sarah Beatson, Kofi A. Osei, and Emmanuel Sarpong-Kumankoma. "Bank productivity in Africa." International Journal of Productivity and Performance Management 69, no. 9 (May 23, 2019): 1973–97. http://dx.doi.org/10.1108/ijppm-09-2018-0328.
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Purpose The purpose of this paper is to provide a total factor productivity index for the African banking industry. It also investigates the impact of some internal and external determinants affecting bank productivity. Design/methodology/approach The biennial Malmquist productivity index and various regression models (ordinary least squares, Tobit and truncated bootstrapped regression) are employed in analyzing data from 120 banks in 24 African countries from 2007 to 2012. Findings The results indicate a general decline in productivity of banks in Africa, largely due to inadequate technological progress. State banks are found to be more productive than foreign and private banks. The regression analyses showed that non-executive directors, leverage, management quality, credit risk, competition and exchange rate have significant impact on bank productivity, but ownership and CEO-duality do not. Practical implications The results have implications for management of banks, governments and regulators. It shows the need for policy and investments that improve state-of-the art technology. The findings also seem to suggest poor management practices in input usage, especially in operational management, as well as costs emanating from non-interest sources. Bank managers need to address these deficiencies to improve productivity in African banking markets. Originality/value A major contribution of this paper is the productivity index provided for the African banking industry. This study is also the first to apply the biennial Malmquist to analyze productivity in the African banking industry.
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Mathieu, Paul, Marco Pani, Shiyuan Chen, and Rodolfo Maino. "Drivers of Cross-Border Banking in Sub-Saharan Africa." IMF Working Papers 19, no. 146 (July 11, 2019): 1. http://dx.doi.org/10.5089/9781498321549.001.
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Using data collected from pan-African banks’ (PABs), balance sheets and other sources (Orbis, Fitch), this study identifies some key patterns of cross-border investment in bank subsidiaries by key banking groups in sub-Saharan Africa (SSA) and discusses some of the determinants of this investment. Using a gravity model relating the annual value of a banking group’s investment in the net equity of its subsidiaries to a set of explanatory variables, the analysis finds that cross-border banking is in part driven by a search for yield, diversification, and expansion for strategic reasons.
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Assensoh-Kodua, Akwesi, Stephen Migiro, and Emmanuel Mutambara. "Mobile banking in South Africa: a systematic review of the literature." Banks and Bank Systems 11, no. 1 (April 25, 2016): 34–41. http://dx.doi.org/10.21511/bbs.11(1).2016.04.
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Mobile banking in South Africa recently has undergone rapid growth, and research on it is on the increase. This paper seeks to improve authors’ understanding of the current state of knowledge of mobile banking in South Africa by providing a systematic review of the existing literature on the phenomenon. The literature review shows that research to date has centred on small academic models with a high level of practitioner involvement, consequently, narrowing research issues of greater concern. Thus, issues of assessing mobile banking needs, factors imparting continuance usage, and the measurement of impact have been comparatively neglected. A future direction for research and practice within the mainstream of mobile banking and financial services is suggested to remedy this imbalance and to contribute to mobile banking applications in South Africa
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Ajibade, Patrick, and Stephen M. Mutula. "Big data, 4IR and electronic banking and banking systems applications in South Africa and Nigeria." Banks and Bank Systems 15, no. 2 (June 24, 2020): 187–99. http://dx.doi.org/10.21511/bbs.15(2).2020.17.
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Efficient banking solutions are an integral part of the business integration of South African and Nigerian economies as the two largest economies in the continent. Security, effectiveness, and integration of banking systems are critical to the sustainable development of the African continent. Therefore, an empirical analysis of the production of research on banking services and systems was conducted. The aim of the study was to examine the robustness of the research findings on banking systems in terms of their importance for the economic sustainability of the continent in the era of the fourth industrial revolution. The study adopted a bibliometric analysis using software clusters to visualize the results. Due to higher visibility of outputs and likely citations, the results showed that the key terms from Google Scholar are ranked higher than outputs from Scopus. Main research interests were related to internet banking (f = 70), e-payment systems (f = 57), telephone banking (f = 56), automated teller machines (f = 54), and mobile banking (f = 40). The results also showed a very low research interest in the technical aspect of online banking services such as security (f = 19, TLS = 40), authentication (f = 17, TLS =33), network security (f =13, TLS = 33), computer crime (f = 16, TLS = 42), and online banking (f = 11, TLS =32). The study found there were insufficient outputs in the area of the fourth industrial revolution (4IR) and banking services in Africa. Future research trends should examine the impact of the 4IR and big data on the banking system, regional economic integration, and sustainable growth in the continent.
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Choga, Ireen, Arthur Mapanga, and Elias Munapo. "Factors impeding the use of banking services in rural Southern African states." Banks and Bank Systems 12, no. 3 (October 24, 2017): 228–36. http://dx.doi.org/10.21511/bbs.12(3-1).2017.07.
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The paper presents factors why people are reluctant to bank money in rural Southern African countries. Six countries namely Botswana, Namibia, Mozambique, Tanzania, Zambia and Zimbabwe were used in the study. A focus group of 10 people from each of the stated Southern African countries was composed and used to obtain perceptions, views, reactions, attitudes, experiences among others on why people are reluctant to bank their money. People are unwilling to bank their money in rural Southern Africa and the reasons behind this seem to be many. If no correctional measures are put in place, rural Southern Africa will continue to be unbanked for the next five decades.
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C, Aguidissou O., Richard Shambare, and Rugimbana R. "Internet Banking Adoption in South Africa: The Mediating Role of Consumer Readiness." Journal of Economics and Behavioral Studies 9, no. 5(J) (October 20, 2017): 6–17. http://dx.doi.org/10.22610/jebs.v9i5(j).1905.
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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 IB 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.
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C, Aguidissou O., Richard Shambare, and Rugimbana R. "Internet Banking Adoption in South Africa: The Mediating Role of Consumer Readiness." Journal of Economics and Behavioral Studies 9, no. 5 (October 20, 2017): 6. http://dx.doi.org/10.22610/jebs.v9i5.1905.
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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 IB 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.
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Michael, Okoche. "Political Dimension in Pan-African Cross-border Banking: An Inhibitor or Catalyst?" Business and Management Studies 5, no. 1 (January 22, 2019): 1. http://dx.doi.org/10.11114/bms.v5i1.3984.
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The emergence and the dominance of African banks in Africa have been touted as one of the popular mechanisms for financial development leading to a concept termed as Pan-African cross-border banking. African Banks have become dominant in the African market as opposed to European colonial banks substantially increasing their geographic footprints on the continent. African banks have become economically significant beyond their home countries and of systematic importance in a number of jurisdictions. This systematically examined the influence of the political environment on Pan-African cross-border banking using Kenya Commercial bank as a case study.Interpretive research paradigm guided the study seeking using qualitative data by interviewing employees, managers, and policymakers from the three subsidiaries of Kenya Commercial Bank; Uganda, Rwanda, and Burundi. This was further supported by secondary data collected from journal articles and reports from the Kenya Commercial Bank.The study established that political environment plays an important role in influencing Pan-African cross-border banking either through catalysing or inhibiting. Despite effort integration by African Union, regional unions like East African Community there still areas for improvement. In order to enhance Pan-African cross-border banking, there has to be systematically management of political environment which was distorted by history, ideologies, different political systems, different regulatory frameworks between the subsidiaries and home countries. This will further enhance the significance of Pan-African banks African cross-border banks enhancing economic development within Africa.
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Dzomira, Shewangu. "Financial consumer protection: internet banking fraud awareness by the banking sector." Banks and Bank Systems 11, no. 4 (December 22, 2016): 127–34. http://dx.doi.org/10.21511/bbs.11(4-1).2016.03.
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This paper examines internet banking fraud awareness by the banking sector in Southern Africa as financial consumers’ protection. The study is grounded on routine activity theory and criminology theory. A qualitative content analysis research technique was used for examination of the text content data through the consistent nomenclature process of coding and classifying themes or patterns to proffer a meticulous considerate of internet banking fraud awareness in the banking sector. The findings suggest that internet fraud awareness to the general public through website is very low by many Southern Africa banks. Most of the banks disclose less than half of the identified internet banking fraud awareness to the general public on their websites. Although some banks have internet fraud information on internet banking applications, however, the authentic efficacy of this information is tentative. This proposes that most of the financial customers engage internet banking transactions without sufficient awareness on potential internet threats and attacks. There is, consequently, high likelihood of financial consumers being internet banking fraud victims. Keywords: internet fraud, internet banking, fraud awareness, financial consumer. JEL Classification: G21, D18
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Ozili, Peterson K. "Basel III in Africa: making it work." African Journal of Economic and Management Studies 10, no. 4 (December 2, 2019): 401–7. http://dx.doi.org/10.1108/ajems-05-2019-0206.
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Purpose Basel III is a framework to protect the global banking system. The purpose of this paper is to provide a policy discussion on Basel III in Africa. Design/methodology/approach The significance of Basel III is discussed, and some ideas to consider when implementing Basel III to make it work in Africa, are provided. Findings Under Basel III, the African banking industry should expect better capital quality, higher capital levels, minimum liquidity requirement for banks, reduced systemic risk and differences in Basel III transitional arrangements. This paper also emphasizes that there should be enough time for the transition to Basel III in Africa; a combination of micro and macro-prudential regulations is needed; and the need to repair the balance sheets of banks, in preparation for Basel III. Originality/value The discussions in this paper will benefit policymakers, academics and other stakeholders interested in financial regulation in Africa such as the World bank and the International Monetary Fund.
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Moloi, Tankiso. "Understanding banking regulatory and market framework in South Africa including the perceived strength, weaknesses, opportunities and threats." Journal of Governance and Regulation 3, no. 3 (2014): 34–43. http://dx.doi.org/10.22495/jgr_v3_i3_p4.
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Following the global financial crisis of 2007, the manner in which banks conduct their business became the subject of interest to authorities. In South Africa, most analysts argued that the financial system was insulated by the prudent regulatory system. This paper reviewed the banking regulation and market framework applicable in the South African context. In reviewing regulation and banking market framework, it was found that the principal legal instrument which seeks to achieve credibility, stability and economic growth, is the Banks Act, No. 94 of 1990 (the Banks Act). Considering the applicable regulation, the paper concluded that South Africa has a developed and well regulated banking system which compares favourably with regulatory environment applied by the developed countries. It was, however; cautioned that further regulation such as the recently announced ‘Twin Peaks’ approach to financial regulation could result in unintended consequences, such as driving a larger share of activity into the shadow banking sector.
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Alford, B. W. E., and Stuart Jones. "Banking and Business in South Africa." Economic History Review 42, no. 3 (August 1989): 435. http://dx.doi.org/10.2307/2596473.
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Cobbe, James, and Stuart Jones. "Banking and Business in South Africa." African Studies Review 34, no. 1 (April 1991): 131. http://dx.doi.org/10.2307/524268.
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Govender, Jeevarathnam P. "The Adoption of Internet Banking in a Developing Economy." Journal of Economics and Behavioral Studies 5, no. 8 (August 30, 2013): 496–504. http://dx.doi.org/10.22610/jebs.v5i8.423.
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The international world has witnessed significant developments in internet banking. This has presented opportunities to both banks and customers in the world of e-commerce. The adoption rate for internet banking in South Africa has been low, compared to other developing countries. With a reasonably well developed infrastructure, South Africa presents itself with great market potential for internet banking. Given this scenario, this paper examines the factors influencing the adoption of internet banking in South Africa. A survey was conducted using a sample of 400 consumers using a quantitative and descriptive design. The results indicate a relationship between the selected biographical variables and the adoption of internet banking. Perceived usefulness, an indicator of relative advantage was associated with the adoption of internet banking. Users considered internet banking to be less complex and less costly than non-users. It emerged that both users and non-users did not consider social influences as being a factor in the adoption of internet banking.
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Simatele, Munacinga, Syden Mishi, and Nomasomi Ngonyama. "Structure and profitability in the banking sector." Banks and Bank Systems 13, no. 1 (February 13, 2018): 49–59. http://dx.doi.org/10.21511/bbs.13(1).2018.05.
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The relationship between profit and bank market structure continues to raise questions amongst both policy makers and researchers. While some evidence supports a positive relationship between market structure, competition and profitability, other evidence seems to support the fact that profitability and related market share result from efficiency. Moreover, extant literature on South Africa is conflicting and seems to contradict anecdotal evidence. While some studies point to a competitive environment despite concentration, others suggest that concentration in the banking sector is harmful. Prosecution of banks for uncompetitive behavior also casts doubt on the conclusion that the South African banking sector is competitive. This paper examines the relationship between structure and conduct in the South African banking sector. Using the Berger (1995) discriminating tests, the effect of industry concentration, market share and efficiency on three measures of profitability is estimated on a panel of 11 South African banks for data between 1994 and 2016. The results show that concentration affects conduct. The profit-structure relationship is dominantly explained by the structure conduct hypothesis and partly by the efficient scale hypothesis. These results suggest that policy which discourages concentration and promotes competition in the banking sector is socially beneficial.
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K Ozili, Peterson. "BANK PROFITABILITY DETERMINANTS: COMPARING THE UNITED STATES, NIGERIA AND SOUTH AFRICA." Vol. 16, Number 1, 2021 16, Number 1 (January 30, 2021): 55–78. http://dx.doi.org/10.32890/ijbf2021.16.1.4.
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This study investigates the determinants of banking sector profitability in South Africa, Nigeria and the United States. The findings reveal that cost efficiency, the size of non-performing loans and overhead cost to total asset ratio are significant determinants of the banking sector profitability. In the comparative analysis, the findings from South Africa show that the cost efficiency ratio, overhead cost to total asset ratio and non-performing loans are significant determinants of the banking sector profitability. In the United States, capital adequacy ratio and the size of non-performing loans are significant determinants of its banking sector profitability. In Nigeria, the overhead cost to total asset ratio and cost efficiency ratio are significant determinants of the banking sector profitability. The descriptive analysis reveal that bank net interest margin and return on asset are higher in Nigeria and lowest in the United States which suggests that the Nigerian banking sector is more profitable than the US banking sector. Return on equity is higher in South Africa and lowest in the United States.
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de Wet, J. H. v. H. "Capital structure and regulation implications for South African banks." Corporate Ownership and Control 11, no. 4 (2013): 765–76. http://dx.doi.org/10.22495/cocv11i1c9art1.
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Past research on capital structure was spearheaded by the ground-breaking models of Nobel Prize laureates Modigliani and Miller. However, little research has been done on the application of their and other theories to banking institutions located in Southern Africa. This study analyses the determinants of the capital structure of banks in South Africa based on secondary financial data and by performing this analysis attempts to establish trends in capital structure policy and regulatory compliance. The study also identifies best practices that contribute to the overall value and performance of the banking institution. Conclusions drawn from the results and literature create greater understanding of the dynamics of capital structure and its implications for South African Banks.
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Moss, Gavin, and Peta Thomas. "Evaluating the adoption of e-banking services by SMEs in the common monetary area." International Journal of Research in Business and Social Science (2147- 4478) 11, no. 8 (November 13, 2022): 202–12. http://dx.doi.org/10.20525/ijrbs.v11i8.2003.
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There has been limited study from a southern-African perspective investigating factors that affect the adoption of e-banking specific to small and medium enterprises (SMEs) in developing African economies. To date, little is known about SME uptake of e-banking in the southern African common monetary area (CMA), comprising South Africa, Lesotho, Namibia, and Eswatini. This knowledge gap is problematic for banks in providing SME support for the transition to e-banking, given the current move by banks toward embracing digital strategies. This study focused on a single bank with a large footprint in the CMA, intending to add to the body of academic knowledge regarding the adoption of e-banking services by SMEs. It employed a qualitative methodology involving one-on-one, semi-structured, open-ended interviews with purposefully selected Bank X staff in each country of the CMA, using the literature reviewed to identify themes relevant to the proposed conceptual model. The conclusions of this research have led to a framework for e-banking adoption. A framework such as this may positively impact the profitability and sustainability of an SME by ensuring the adoption of e-banking services and utilization of available financial products to improve business opportunities via the e-banking channels of Bank X.
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Maduku, Daniel. "The effect of institutional trust on internet banking acceptance: Perspectives of South African banking retail customers." South African Journal of Economic and Management Sciences 19, no. 4 (November 25, 2016): 533–48. http://dx.doi.org/10.4102/sajems.v19i4.1558.
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Transactions carried out in the uncertain and impersonal conditions of the Internet require substantial levels of trust. Obtaining customers’ trust is therefore imperative to cultivating and nurturing long-lasting and profitable customer-firm relationships in online environments. Surprisingly however, there is currently a dearth of research on the effects of trust on customers’ acceptance of e-commerce in Africa. This paper investigates the effects of the components of institutional trust on perceptions of ease of use and usefulness, as well as attitudes towards use on customers’ intentions to use Internet banking services. An integrated research model based on the Technology Acceptance Model (TAM) was built and empirically tested using data obtained from 390 retail banking customers in South Africa. The results show that the proposed model possesses high explanatory capabilities as it could explain 61 per cent of the variance in Internet banking use intentions. The study results further show that situational normality is neither a salient determinant of customers’ attitudes towards use of internet banking nor their use intention, whereas structural assurance is. By examining the effects of institutional trust on the TAM’s variables, especially in a developing African country, this study does not only provide insights for managers in their efforts to achieve rapid adoption of Internet banking, but also contributes to the literature on the topic.
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Slazus, Barbara Jeanne, and Geoffrey Bick. "Factors that Influence FinTech Adoption in South Africa: A Study of Consumer Behaviour towards Branchless Mobile Banking." Athens Journal of Business & Economics 8, no. 1 (September 20, 2022): 429–50. http://dx.doi.org/10.30958/ajbe.8-1-3.
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The widespread use of mobile phones and growth in internet penetration has created a unique opportunity to increase access to financial services. Financial Technology (FinTech) companies and mobile banking (m-banking) empower customers to use digital platforms to utilise financial services without the physical access requirements of traditional banking. This has led to the rise of FinTech firms that are disrupting traditional industry standards by servicing consumers through a range of digital channels and mobile devices. A new completely branchless bank, Bank Zero, is set to launch in South Africa in 2020 to exploit these opportunities. This consumer behavioural study focuses on analysing FinTech adoption in the South African market. An adapted mixed-method approach was used to identify the enabling and inhibiting factors that motivate consumers to adopt or reject m-banking. Qualitative research was initially conducted via in-depth interviews with 7 respondents. The most salient factors identified in the literature review were tested, and the results were used to develop a quantitative, online questionnaire. A convenience sample of 217 valid responses was collected, and the data was analysed using exploratory factor analysis (EFA). The EFA identified 6 influencing factors: four enabling and two inhibiting factors. The enabling factors that positively influenced FinTech adoption were: Utility, Socio-Economic Influencers, Mobile Device Trust and Youth. The two inhibiting factors were: Perceived Risks and Associated Costs. Interestingly, 74% of the 217 respondents indicated that they would join a completely branchless bank, using only their mobile phones and the internet to access banking services, showing a high propensity to branchless, m-banking. Finally, the Enhancement Criteria Model based on insights gained from the research findings, is proposed. This model provides recommendation criteria for existing and new FinTech providers who are looking to improve their business models. JEL Codes: D18, G40 Keywords: FinTech, mobile banking, m-banking, branchless banking, consumer behaviour, South Africa
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Akande, Joseph Olorunfemi, and Farai Kwenda. "Competitive Condition of Sub-Saharan Africa Commercial Banks." Studia Universitatis Babes-Bolyai Oeconomica 62, no. 2 (August 1, 2017): 55–76. http://dx.doi.org/10.1515/subboec-2017-0009.
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Abstract This study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is generally acknowledged as the best at estimating the bank level competition and the Generalised Method of Moments (GMM) to study 440 commercial banks for the period 2006 to 2015. We found a monopolistic competitive banking market. We also observed that competition is driven by the level of bank capital including some bank specific variables. Hence, we concluded that the banking market of the SSA region is contestable and competitive. As such, we recommend, among other things, that policy makers should device measures to ensure an ongoing competitive banking environment while stimulating other economic variables to complement this feat.
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He, Jianan, and Dirk Schiereck. "Sovereign rating announcements and the integration of African banking markets." Journal of Risk Finance 20, no. 5 (November 18, 2019): 484–500. http://dx.doi.org/10.1108/jrf-11-2018-0176.
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Purpose The purpose of this paper is to examine the information spillover of sovereign rating changes on the market valuation of bank stocks in Africa. Design methodology First, the authors apply event study methodology to evaluate the stock market reaction of African bank stocks on the announcement of sovereign rating changes. Second, the cross sections of the abnormal returns are examined by multivariate regression analyses. Third, the findings are proved for robustness. Findings The authors investigate how 37 African banks react to 203 African sovereign rating announcements from the three leading credit rating agencies over the period 2010-2016 and find that negative announcements trigger the significant positive stock reactions of African banks, especially contributed by banks in the non-reviewed African countries. These unusual reactions can be explained by the low integration and the severe information asymmetry of African capital markets. The authors further locate the influencing factors of banks’ reactions and show that rating downgrades magnify the abnormal effects while the membership of the African Free Trade Zone mildens the stock market reactions. Research limitations/implications Limitations are given by the limited sample size. There are only limited numbers of publicly listed African banks with sufficient trading data. Practical implications The paper argues for a critical dependency of African bank equity valuation in the case of sovereign debt rating changes in neighbor countries. This observation is important for the risk assessment of African banking assets. Originality/value The paper is the first to examine stock market reactions on sovereign rating announcements for the evaluation of capital market integration in Africa. It thereby underlines the usefulness of this simply to apply approach as an instrument for ongoing examining the progress in capital market development in emerging countries.
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Vahed, Ismail, and Muhammad Ehsanul Hoque. "The perception of Islamic banking by the first national bank sales staff in the Kwazulu-Natal region of South Africa." Banks and Bank Systems 11, no. 4 (December 9, 2016): 50–60. http://dx.doi.org/10.21511/bbs.11(4).2016.05.
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The objective of this study is to determine the perception and awareness of Islamic banking by a conventional banks sales force. This was a cross-sectional study conducted among 100 sales staff randomly selected to take part in the study. A self-administered anonymous questionnaire was used to collect the data using online system called QuestionPro. Results revealed that whilst the respondents did feel there was a need for Islamic banking, they also did feel that Islamic banking was more complicated than conventional banking. The study also revealed that there was an overall negative perception of Islamic banking which was primarily based on a lack of knowledge, awareness, and understanding. It is recommended that banks provide sufficient and effective training to their staff on all products and services so that any negative perception can be eliminated. This study can benefit organizations that are in the Islamic banking industry or looking at getting into the Islamic banking industry. Keywords: Islamic banking, conventional banking, knowledge, perception, training. JEL Classification: G21, D83
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Maduane, Refilwe Tryphina, and Kunofiwa Tsaurai. "The link between capital structure and banking sector performance in an emerging economy." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 291–97. http://dx.doi.org/10.22495/rgcv6i4c2art6.
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South African banks are small compared to the international standards and this necessitates them to remain efficient and competitive at both national and international levels. Such competitiveness shelter them from global competitors wishing to enter into the South African market. Putting in mind the critical role played by banks in the economic development of every country, managers in the banking industry should ensure they make sound financial decisions in order to remain profitable and competitive amidst challenges of the debt-equity choice. This study seeks to determine the influence of capital structure on profitability of banks listed at the Johannesburg stock exchange (JSE) using the random effect regression model. Empirical studies that studies the impact of capital structure on profitability of the banking sector in emerging markets and Africa are very scant. The few empirical studies that focused on the banking sector are yet to focus on African and to agree on the relationship between capital structure and profitability. It is against these reasons that the current study chose to investigate how profitability of South African banks is affected by their capital structure. The study found out that capital structure is a key determinant of profitability of banks in South Africa. As such, the study recommends that optimal capital policies need to be pursued if banks are to not only to increase profitability but ensure long term stability and sound performance.
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van Deventer, Marko, Natasha de Klerk, and Ayesha Bevan-Dye. "Influence of perceived integrity and perceived system quality on Generation Y students’ perceived trust in mobile banking in South Africa." Banks and Bank Systems 12, no. 1 (April 26, 2017): 128–34. http://dx.doi.org/10.21511/bbs.12(1-1).2017.05.
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Mobile banking represents an important addition to retail banks’ digital banking channels and a salient tool for servicing both current and future customers. However, given the cybernetic nature of mobile banking, there is a certain degree of uncertainty and perceived risk associated with the use thereof. This uncertainty and perceived risk elevate the importance of trust in fostering mobile banking adoption. The Generation Y cohort, which encompasses today’s youth, represents an important current and future banking segment and their adoption of mobile banking channels could have a significant effect on the cost of servicing members of this cohort. Understanding the factors that positively contribute to the Generation Y cohort’s trust in mobile banking will help retail banks to better market their mobile banking channels to members of this cohort and thereby foster greater adoption of such channels. The study reported in this article considers the influence of the perceived integrity of the bank and the perceived system quality of mobile banking on Generation Y students’ perceived trust in mobile banking in the South African context. Data were gathered from a convenience sample of 334 students registered at three public South African university campuses using a self-administered questionnaire. The gathered data were analyzed using descriptive statistics, correlation analysis and bivariate regression analysis. The results of the study suggest that Generation Y students’ perceived integrity of a bank, together with the perceived system quality of mobile banking, has a significant positive influence on their perceived trust in mobile banking.
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Pak, Susanna. "Banking on collaboration between India and Africa." International Trade Forum 2014, no. 2 (April 30, 2014): 34–35. http://dx.doi.org/10.18356/02bd65bf-en.
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Dwumfour, Richard Adjei. "Explaining banking stability in Sub-Saharan Africa." Research in International Business and Finance 41 (October 2017): 260–79. http://dx.doi.org/10.1016/j.ribaf.2017.04.027.
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Fosu, Samuel. "Banking competition in Africa: Subregional comparative studies." Emerging Markets Review 15 (June 2013): 233–54. http://dx.doi.org/10.1016/j.ememar.2013.02.001.
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Boutin-Dufresne, F., O. Williams, and T. A. Zawisza. "Banking Sector Efficiency in Sub-Saharan Africa." Journal of African Economies 24, no. 3 (October 27, 2014): 325–51. http://dx.doi.org/10.1093/jae/eju019.
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Mafukata, Mavhungu Abel, Grace Kancheya, and Willie Dhlandhlara. "Adoption And Non-Adoption Of Mainstream Formal Banking Systems Amongst Low Income Earners In South Africa, Zambia And Zimbabwe." International Journal of Finance & Banking Studies (2147-4486) 4, no. 1 (January 21, 2015): 37–50. http://dx.doi.org/10.20525/ijfbs.v4i1.203.
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The majority of income earners of small-scale informal economic sectors in most developing regions abstain from mainstream formal banking systems. These income earners rather “bank” informally. Mainstream formal banking institutions also argue that low income earners are “unbankable” and posed business risk. However, emerging literature posits that low income earners would instead provide a profitable formal niche market. Trends with regard adoption and non-adoption of mainstream formal banking systems amongst small income groups were mixed. This paper investigates such patterns in South Africa, Zambia and Zimbabwe. The results of this paper revealed that the informal cross-border traders who trade between Zambia and South Africa were good adopters of mainstream formal banking. The results however found a sharp contrast in Zambia. In Nyanga, Zimbabwe, the results of this paper revealed that there were a few respondents who had adopted mainstream formal banking while 47.2% of communal cattle farmers in South Africa had adopted mainstream formal banking systems through savings against 52.8% who were left out. Adoption or non-adoption of mainstream formal banking systems patterns vary from region to region, and sector to sector even where income earners were almost equals in terms of household income earnings. Mobile banking and low transaction costs might provide motivation for small-scale income earners to adopt mainstream formal banking.
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Yahaya, Adamu, Jibrin Nuhu Shagari, and Ahmed Mohammed. "BANK SIZE AND FINANCIAL PERFORMANCE IN SUB-SAHARAN AFRICA." Malaysian Management Journal 26 (July 31, 2022): 1–30. http://dx.doi.org/10.32890/mmj2022.26.1.
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Bank size is one of the vital internal determinants of banking performance, although scholars hold contradictory views on bank size and its influence on performance. The aim is to examine the effect of bank size on quoted deposit money banks (DMBs) in the region of sub-Saharan Africa (SSA). The sample, collected over a period of nine years (2011-2019) included fifty listed commercial banks drawn from across the six sub-Saharan African countries, namely Nigeria, Ghana, South Africa, Zambia, Kenya, and Tanzania. The data were analyzed using a two-step system generalized method of moment (GMM). The finding revealed a significant and negative association between bank size and its financial performance. However, the smaller banks performed better when compared to their larger counterparts in the region. These findings seem to suggest that banks keep their capital level on the high side and minimize the rate of their non-performing loans in order to achieve more excellent banking performance within the region.
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Michael, Oyewo Babajide. "Performance Measurement Systems and Firms' Characteristics." International Journal of Business Analytics 2, no. 3 (July 2015): 67–83. http://dx.doi.org/10.4018/ijban.2015070105.
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The Nigerian banking industry, being the second largest in sub-Saharan Africa after the South-African banking industry, has evolved and undergone remarkable transformation over the years. As such, the evaluation of the Performance Measurement Systems (PMS) of banks in Nigeriabecomes highly desirable. In response, this research was undertaken to: identify the elements of PMS; investigate the appropriateness and effectiveness of PMS; and assess the interrelationship between the PMS and strategy in the Nigerian banking industry. Statistics such as charts, percentage analysis, Wilcoxon, Chi – square, Kruskal Wallis, and Mann- Whitney U tests were employed for data analyses. Following research findings that traditional financial measures were commonly used in the Nigerian banking industry, the study recommends the adoption of more innovative PMS to improve performance. Also, the inclusion of performance measures like innovation, continuous improvement, and risk management should be enshrined in the PMS of the Nigerian banking industry to strengthen monitoring.
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Nyeadi, Joseph Dery, Abdulai Adams, and Mohammed Musah. "Remittances and domestic investment in Africa: do banking sector development and quality governance matter?" Ghana Journal of Development Studies 19, no. 2 (October 19, 2022): 135–60. http://dx.doi.org/10.4314/gjds.v19i2.6.
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Migrant remittances to home countries have seen a significant increase over the years, especially in developing countries where due to a lack of jobs or unfavourable working conditions, citizens move to advanced countries to better their economic conditions and their dependents in home countries. This has been facilitated by globalisation in modern times. Whereas most previous studies have delved more into remittances and their impact on economic growth, less studies have examined the link between remittances and domestic investment. This study examined the impact of remittances on domestic investment in Africa using a system GMM econometric estimator. Our study departs from the few studies that examined this link by further investigating the moderating role of banking sector development and quality governance on the link between remittances and domestic investment. Using data from 41 African countries from 2004 to 2018, the study discovered that migrant remittances have a direct negative impact on domestic investment in home countries. The study, however, found that both banking sector development and quality governance significantly positively impact domestic investment in Africa. Thus, when we interacted banking sector development and good governance separately with remittances, each interactive term had a significant positive impact on domestic investment. This means that for remittances to influence domestic investment, banking sector and good governance will need to be improved.
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Nkwede, Friday E., Joseph O. Nkwede, and Louis C. Nkwagu. "Dilemma of financial exclusion and inlusion in Africa: Can Nigeria, South Africa and Ghana be compared?" African Journal of Social Issues 4, no. 1 (April 20, 2022): 105–22. http://dx.doi.org/10.4314/ajosi.v4i1.6.
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This paper investigates the level of financial inclusion and exclusion in selected African countries with special attention to Nigeria, South Africa and Ghana in a comparative approach. The study utilized global survey data on financial inclusion index published by Global Findex. From the researcher‟s comparative analysis using the basic variables of financial inclusion, it was discovered that: in terms of financial service accessibility, bankable adult Nigerians have less access to financial services than South Africa while the degree of financial services availability and financial service usage are all higher in South Africa than Nigeria and Ghana. The implication of these findings is that South Africa is more financially inclusive than Nigeria and Ghana; indicating that greater percentage of Nigerian and Ghanaian bankable adult citizens are financially excluded from their economy irrespective of the various banking reforms in the two countries. It was recommended among other suggestions that an all-embracing financial inclusion strategy that is rural based be developed for Nigeria and Ghana as well as reduction in the cost of banking and financial services (especially lending and deposit rates in Africa). The implication of these recommendations is that in Africa (and even other continents) the higher the deposit rate, the more people are willing to save and the lower the lending rate the more people are willing to get loans. The study submitted that by hierarchy of financial inclusion in Africa, Nigeria and Ghana with their present high level of financial exclusion cannot be compared to South Africa in all the key indicators of financial inclusion.
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Lappeman, James, Robyn Clark, Jordan Evans, and Lara Sierra-Rubia. "The effect of nWOM firestorms on South African retail banking." International Journal of Bank Marketing 39, no. 3 (January 8, 2021): 455–77. http://dx.doi.org/10.1108/ijbm-07-2020-0403.
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PurposeThis study analysed the effect of online negative word-of-mouth (nWOM) firestorms in the retail banking sector. By understanding negative sentiment and sentiment recovery across an entire retail banking sector, the research exposed a unique view of banking in South Africa.Design/methodology/approachThe study made use of both a sentiment and topic analysis of over 1.7 million social media posts in South Africa. The methodology made use of both NLP and human validation techniques to measure changes in social media sentiment during online firestorms. This measurement included each of South Africa's major retail banks over a twelve month period.FindingsFrom the analysis, key trigger characteristics for these firestorms (product failures, service failures, social failures and communication failures) were categorised. In addition, the average duration of a firestorm was calculated and factors that impact sentiment recovery were explored.Originality/valueThe study was located in South Africa and, unlike firm level studies, researched nWOM for the whole retail banking sector. A theoretical footprint depicting the typical anatomy of a firestorm was derived in order to aid stakeholders to be more vigilant and better equipped to provide correct intervention in such times of crisis.
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van Deventer, Marko, Natasha de Klerk, and Ayesha Bevan-Dye. "Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students." Banks and Bank Systems 12, no. 2 (June 23, 2017): 78–90. http://dx.doi.org/10.21511/bbs.12(2).2017.08.
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Despite the benefits that mobile banking has to offer, coupled with positive mobile penetration rates, the use of mobile devices to perform banking transactions and access financial information is not as widespread as expected. The significantly sized Generation Y cohort is a rewarding market segment for retail banks. In South Africa, however, this cohort’s mobile banking adoption is largely under-researched. Understanding the antecedents that positively influence Generation Y students’ attitudes towards and usage behavior of mobile banking will assist retail banks in their efforts to tailor their business and marketing strategies effectively towards this cohort, and in doing so, foster increased acceptance of their mobile channels. As such, the purpose of this study was to extend the technology acceptance model (TAM) and determine the influence of perceived ease of use, relative advantage, subjective norms, perceived behavioral control, perceived integrity and the perceived system quality of mobile banking on South African Generation Y students’ attitudes towards and usage behavior of mobile banking. Following a descriptive research design, self-administered questionnaires were completed by a non-probability convenience sample of 334 students registered at the campuses of three registered public South African universities located in the Gauteng province. Data analysis included correlation analysis and structural equation modeling. The findings suggest that while perceived ease of use, perceived integrity and the perceived system quality predict Generation Y students’ mobile banking usage behavior, subjective norms, perceived behavioral control and the perceived relative advantage of mobile banking predict attitudes towards mobile banking, which, in turn, predict their mobile banking usage behavior.
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Crafford, Wessel Lourens, Frederik J. Mostert, and Jan Hendrik Mostert. "Liquidity management by South African banks." Corporate Ownership and Control 9, no. 3 (2012): 52–58. http://dx.doi.org/10.22495/cocv9i3art4.
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The management of liquidity is of prime importance to banks. This management process should be carefully planned and continuously managed to master a global and/or national financial crisis. The objective of this research paper embodies the improvement of financial decision-making by banks regarding the management of their liquidity. To achieve this objective, a literature study was initially done. An empirical survey followed thereafter, focusing on the 10 biggest banks in South Africa. They are the leaders of the South African banking industry, and as South Africa is a developing country with an emerging market economy, the conclusions of the study may also be valuable to banking industries of similar countries. The importance of the liquidity management factors, the problem areas surrounding this topic, as well as how often the requirements are adjusted to ensure proper and effective liquidity management are addressed.
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Ho, Sin-Yu. "Macroeconomic determinants of stock market development in South Africa." International Journal of Emerging Markets 14, no. 2 (April 1, 2019): 322–42. http://dx.doi.org/10.1108/ijoem-09-2017-0341.
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Purpose The purpose of this paper is to examine the macroeconomic determinants of stock market development in South Africa during the period 1975–2015. Specifically, it examines the impact of banking sector development, economic growth, inflation rate, real interest rate and trade openness on the development of the South African stock market. Design/methodology/approach The author employs autoregressive distributed lag bounds testing procedure that allows the author to empirically investigate both the short- and long-run relationships between the stock market development and its determinants in the context of South Africa. In addition, the author also conducts a sensitivity analysis by accounting for the presence of structural breaks in the underlying series to check for the robustness of the estimation. Findings This paper confirms the findings by other studies that banking sector development and economic growth promote stock market development, while inflation rate and real interest rate inhibit stock market development. In addition, this paper finds an interesting result in the fact that trade openness has a negative impact on stock market development, which is different from the findings of many other studies. Originality/value Currently, while the theoretical and empirical literature presents diverse views on the relationship between each determinant and stock market development, no study has focussed on the South African stock market. Given the significant role that the South African stock market plays in Africa as measured by its market capitalisation and market capitalisation ratio, there is a need for a better understanding of the macroeconomic factors influencing its development.
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van Deventer, Marko. "Validating brand identification and personality scale within the South African retail-banking context." Banks and Bank Systems 16, no. 4 (October 4, 2021): 1–10. http://dx.doi.org/10.21511/bbs.16(4).2021.01.
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While marketing experts agree that brand personality is important for brand identification, there is no evidence of a validated brand-identification-and-personality scale in the context of retail banking in South Africa. To address this literature gap, this study’s purpose was to explain the process used to validate brand identification and personality within the retail-banking context of South Africa. A convenience sample of Generation Y banking consumers was selected, and a descriptive and single cross-sectional research design was followed. Self-administered questionnaires were used as a data collection tool and a sample size was chosen (N = 235). Data analysis entailed descriptive and confirmatory factor analysis. The confirmatory factor analysis results validated brand identification and brand personality in retail banking as a five-factor structure that includes bank identification and brand personality dimensions such as successfulness, sophistication, sincerity and ruggedness. Furthermore, the results of the study indicate the internal consistency and composite reliability of the measurement model, as well as construct, convergent, discriminant and nomological validity. In addition, the measurement model revealed no signs of multicollinearity between the factors, and the model fit index values of IFI, TLI, CFI, SRMR and RMSEA showed a good fitting model. This study concluded that this five-factor model is a reliable and valid instrument of brand identification and personality in retail banking and is the first validated brand-identification-and-personality scale within the retail-banking context of South Africa.
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Idowu, Akinyele Akinwumi, Bosede Comfort Olopade, Yemisi Akinkuotu Adeleke, and Nureni Adekunle Lawal. "Effectiveness of financial market as Economic Development Agents in Africa (2008-2017)." Advances in Social Sciences Research Journal 6, no. 10 (October 29, 2019): 307–20. http://dx.doi.org/10.14738/assrj.610.6995.
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The development in Africa’s financial sector in recent years has been remarkable. Though relatively underexplored and underinvested sector a mere decade ago, today, this sector is considered to be one of the continent’s brightest prospects. This is due to the fact that for some time now, financial sector development has been on front burners in the economic agenda of most African countries. This sector has the potential to transform the lives of millions of people across the continent. Low rate of economic development has created a lot of social stress in Africa, which is responsible for incidence and prevalence of poverty, and consequent social uprisings on a number of occasions. Various studies have examined the role of African financial market development on economic growth, but none have strictly generated a combined focus on the three major African groupings – the Southern, the Western and the Eastern African regions. This paper specifically address this void and it examines the determinant and impact of banking sector and stock market development on Africa’s economic growth and development. Various econometric techniques that include descriptive statistics, unit root tests and OLS were used to analyse data. The study finds out that local financial markets play crucial roles in economic development of Africa, albeit in varying magnitude. The study also observes that banking sector development and economic growth promote stock market development. In addition, this paper finds an interesting result in the fact that trade openness has a negative impact on stock market development, which is different from the findings of many other studies. Financial market size is also strongly related to the size of the economy. This paper has some policy implications. In order to promote banking and stock market development in the region, it is important to encourage savings by appropriate incentives, consider the possibility of one single currency for African countries in order to improve stock market liquidity and develop financial intermediaries. This paper shows an in‐depth analysis of Africa financial markets in order to assess how they can improve and benefit the global investor. In addition, it is found that financial intermediaries and stock markets are complements rather than substitutes in the growth process.
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Omar, Mahomed Shoaib, and Jeremiah Madzimure. "Exploring the performance of shared-value banking at discovery bank: a leadership perspective." EUREKA: Social and Humanities, no. 2 (March 31, 2022): 36–45. http://dx.doi.org/10.21303/2504-5571.2022.002330.
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The concept of shared value was born out of a determined effort to find methods for the corporate sector and society to grow while being sustainable. Often, banks are criticised for focusing on maximising shareholder value and not addressing societal issues or creating value for society. However, corporate shared value in banking is beginning to be embraced in the financial banking sector. Discovery Bank is a new-to-market entrant in the South African banking sector that has implemented shared-value banking to distinguish itself from competitors and create value for society. There are limited studies that explore the performance of shared-value banking in South Africa and whether implementation is viable or provides a competitive advantage. This study aimed to explore the performance of shared-value banking based on the perceptions of Discovery Bank leaders using a qualitative study methodology. The population in this study comprised 300 employees of Discovery Bank that was involved in the implementation of Discovery Bank since 2019. The target population of this research inquiry was 30 leaders of Discovery Bank. From the target population, 8 participants were chosen as the appropriate sample size to obtain the necessary data to address research objectives through interviews. Computer-assisted qualitative data analysis software, NVivo version 1.5.2 (946), was used to analyse data. Study findings were used to draw up recommendations to Discovery Bank South Africa management regarding improvement areas to meet performance objectives. The findings of the study revealed the following: Discovery Bank has created its shared-value banking model that deviates from the academic framework, it has created a new market of highly desirable clients who exhibit healthy financial behaviours and enhancing client engagement through client communication may yield greater success. Limitations and areas of future research was addressed in this study.
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Assensoh-Kodua, Akwesi. "Marketing potentials of the social media tools in the banking market of an emerging country." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 257–67. http://dx.doi.org/10.22495/rgcv6i4c2art2.
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There are many facts that attest to the pervasiveness of social media applications in the current world of business. This communication medium is replacing the well-known emails and complimenting the likes of short message service (SMS) and instant messaging and chatting. As part of technology, which is revolutionising the way we do business and live, organizations worldwide are gearing up efforts to take advantage of this phenomenon. In South Africa, the story is the same. However, the Banks in South Africa seems to have problems selling this form of communication to their clientele to augment their service delivery. In view of this, the current study aimed to research into social media concept in South Africa, to highlight its trajectory pros and cons, and investigate why it is not being adopted by these clients, in addition to measuring the continuance intention of those who have accepted banking through social media. It was discovered that, social norm (β=0.579), perceived trust (β=0.510) and user satisfaction (β=0.332), in that order, stood out as the most influencing factors impacting on user acceptance and continuance intention (β=0.384) of social media usage for banking. Perceived behavioural control made no significant impact on users to adopt social media for financial services. As the banking industry keeps investing in the marketing potentials of social media tools for banking, in order to gain competitive advantage in customer service delivery, this social media usage could make a lot of difference when well researched into and managed. In some countries, banking customers are able to do their banking through social media sites, but little is known in South Africa (according to research), regarding the usage of this tool for banking purposes.
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de Jager, Johan W., Nuri Wulandari, and Elizma Wannenburg. "CROSS COUNTRY ANALYSIS OF ONLINE BANKING SERVICE QUALITY IN SOUTH AFRICA AND INDONESIA." Eurasian Journal of Economics and Finance 8, no. 4 (2020): 194–203. http://dx.doi.org/10.15604/ejef.2020.08.04.001.
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Since the introduction of automatic teller machines, the online banking industry have evolved rapidly in order to stay abreast of today’s digital savvy customers. By keeping up to date with changes in the external environment as well as consumer needs can elevate the competitive advantage of banks. With that in mind, banks need to ensure that the service quality of the online banking services meets the expectations of its customers. The objective of the study is to evaluate and investigate the online banking customers’ perceptions of the service quality of banks in South Africa (SA) and Indonesia (INA). A survey was conducted among more than 300 respondents from both countries. The results revealed that within the eight dimensions of online banking service quality, each of the countries have different experiences when it comes to “high tech” versus “high touch”. The study has also found significant differences between the perceptions of both SA and INA’s banking customers. By understanding the perceptions of online banking customers in two developing countries can assist financial institutions with the development of new services or technologies that will enhance the online banking experience.
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Le Gall, Françoise, Roland Daumont, and François Leroux. "Banking in Sub-Saharan Africa: What Went Wrong?" IMF Working Papers 04, no. 55 (2004): 1. http://dx.doi.org/10.5089/9781451847659.001.
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