M.Com. (Business Management) / The current competitive climate within the South African banking industry has put pressure on banks to either find new revenue streams mainly through innovation, or to achieve existing cost efficiencies. South African banks have increasingly looked to advancements in new technology, innovation and service distribution channels as a solution for attaining sustainable competitive advantage. The primary objective of this study was to investigate and assess the independent variables (perceived usefulness, perceived ease of use, perceived cost, perceived privacy/ security and knowledgeability/ awareness) that influence the adoption of electronic banking channels in order to inform banks’ channel migration strategy decisions. The study attempts to close the gap in electronic banking adoption theory that exists within a South African context. The significance of the study is that due to a majority of electronic banking adoption research and models being conducted internationally, an attempt is made to investigate and apply these models within a South African context. Based on a survey conducted among 211 respondents, the above mentioned independent and dependent variables under study were examined. The analyses revealed significant demographic and behavioural findings between the independent variables that influence consumer adoption of electronic banking channels. The perceived privacy/security variable was found to be responsible for the highest frequency of branch visits by clients mainly due to the perception that electronic banking channels are not safe to use. The independent variable, perceived usefulness, was found to have the strongest positive correlation with the adoption of electronic banking channels. These results imply that in addition to the importance of addressing privacy and security concerns associated with electronic banking, banks need to focus on improving consumer usefulness and value perceptions in their electronic banking offerings.

Submitted in fulfilment of the requirements of the Degree of Master of Technology: Marketing, Durban University of Technology, 2012. / 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.