Domestication of ICTs in community savings and credit associations (Stokvels) in the western cape, South Africa

Abstract

The stokvel economy is estimated to be worth R49 billion in South Africa, with more than 810 000 groups consisting of about 11.5 million members. This study aimed to discover how stokvel members domesticate information communication technologies (ICTs). Domestication theory was used as a theoretical lens for this study. The study used semi-structured interviews to collect data from a sample of 20 stokvel members from 20 different groups of stokvels in Cape Town. The qualitative data was analysed using thematic analysis. The findings revealed that stokvel members use ICTs such as mobile phones, spreadsheet applications (Excel), mobile banking, social media communications (mostly WhatsApp) and e-mail (for those who are employed) in the running of their operations. The members indicated that the use of WhatsApp enables them to reduce the amount of times they have to meet on a face-to-face basis as they did before. They also use technology to send money through mobile money transfer services and banks. Age influenced the adoption of ICTs among stokvel members – i.e. older members seem resistant to the use of technology. This study makes a contribution to the discourse on digital financial inclusion, as well as a contribution to practice by providing empirically grounded insights regarding ICT use behaviour patterns among members of informal savings and credit associations.