factors influencing adoption-behavior of mobile phone banking

8/3/2019 Factors Influencing Adoption-Behavior of Mobile Phone Banking

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Introduction:

Mobile banking (also known as M-Banking, mobile banking, SMS Banking) is a term used for

performing balance checks, account transactions, payments, credit applications and other

banking transactions through a mobile device such as a mobile phone or Personal Digital

Assistant (PDA). The earliest mobile banking services were offered over SMS. With the

introduction of the first primitive smart phones with WAP support enabling the use of the mobile

web in 1999, the first European banks started to offer mobile banking on this platform to their

customers. Mobile banking has until recently (2010) most often been performed via SMS or the

Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on

Google'sAndroid (operating system) have led to increasing use of special client programs, called

apps, downloaded to the mobile device.

Mobile Banking is a Banking process without bank branch which provides financial services to

unbanked communities efficiently and at affordable cost. To provide banking and financial

services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement,

foreign remittance, government allowance disbursement, ATM money withdrawal through

mobile technology devices, i.e. Mobile Phone, is called Mobile Banking.

Present Situation of Mobile phone Banking in Bangladesh:

In Bangladesh now most of the Banks want to adopt this services. Because it is so much flexible

than traditional banking activity. There have some Bank now in Bangladesh follow this think and

other bank are try to adopt this think. Bangladeshs banking sector has formally introduced

mobile-banking service aiming to bring more people under the banking network.

Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking

service expanding the banking service from cities to remote areas. Bangladesh Bank has already

allowed 10 banks to initiate mobile banking. Of them DBBL kicked off first." Mobile banking is

an alternative to the traditional banking through which banking service can be reached at the

doorsteps of the deprived section of the society. By going to the DBBL-approved Citycell and

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http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Android_(operating_system)


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Banglalink agents throughout the country the subscribers on showing necessary papers and

payment of a fee of Tk. 10 can open an account.

According to Brac Bank, bKash mobile wallet allows people to enjoy services such as

remittance distribution, utility bill payment, salary payment, retail purchasing, receiving

allowances and fund transfer along with instant balance recharge of mobile phones. bKash is

ready to provide mobile financial services to both banked and unbanked. bKash mobile wallet is

a VISA technology platform, which is fully encrypted to ensure most secure transactions. Mobile

operator Robi is the telecommunication network provider of this initiative.

Trust Bank has introduced Trust Mobile Banking service. Trust Mobile Money is a deposit

prepaid account facilities for the Banked and un-Banked citizen of Bangladesh where bank has

its branches and accredited Pay-points to open/registration prepaid account.

Mercantile Bank Limited will introduce branchless mobile banking in 50 union information

service centers as pilot program to provide banking facilities to the grassroots level in the

country. The remaining UISCs will be brought under the programme in phases. All banking

facilities including opening of bank account, cash withdrawal and depositing of money and

receiving remittances will be available through the mobile banking.

Customer will be able to fund Transfer; Deposit and Withdraw money from the accredited Pay-

points by using Mobile/Card. Customers also will be able

to send remittance faster to the remote place of Bangladesh

by availing this product.

In the early days of mobile payments, I found the mobile

payment application for parking in Estonia interesting.

Paying for parking the way that I am used to, was always

location-dependent... and still is where I live. You could

only pay for your parking when you were actually,

physically present at the parking space. Now, with mobile payments, location is taken out of the

equation. The payer could be different to the parker and could be anywhere in the world!

Another implication of taking location-dependency out of the payment process, is that the role of

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payer and buyer can now be separated. It is

not necessary now to send money (or a

cheque) with the buyer as one could

authorize a payment without having to be

present.

So Google announced their wallet solution

recently and it was a big event. Even people

that does not know anything about payments asked me about it. The marketing budget and the

ripples created by this announcement won't be replicated easily. Lots have been written about it

and many opinions exist about the wallet.

Many analysts talk about the relevance and how important this move is for the industry. Others

predict that it "might" work or that it could have some impact in payments going forward, but

nobody seems to be able to bring themselves to saying the obvious: "this will never work". It will

be an expensive exercise by a corporation that can afford it. It will make many claims and rock

the industry in many ways, but it will not be used by consumers en mass.

The ability of Nokia to offer mobile banking as a primitive feature on all of their handsets will be

critical to the success of these initiatives. According to some media reports, it is the intention of

Nokia to offer the mobile banking application

on all of their handsets (from the basic sets to

smart phones). It is going to be their ability to

do this in a seamless way, integrating into

multiple different back-office systems,

ensuring compliance with different regulatory

dispensations and doing so in different

languages, that is going to be the proof point

of the strategy.

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In modern science and technology computer as well as cellular phone played an important role.

But unfortunately we cannot take highest advantages of these two inventions. We now use these

inventions only entertainment. In a current inquiry, we see that only 5% of total computer users

use this machine for programming, 10% uses for office purpose and other 85% uses it for

entertainment, chatting, multiple internet group browsing and games. Similarly cellular phone

used for gossiping for nothing and provided company offers some fool offer which make us

more fool. We know, past governmental body refuse to join in optical fiber cable for a silly

purpose that our important document may be supplied to our enemy. We see later that this

refusing proposal took us in back where our neighbored country India lifted to a peak of software

market. So, we realize that we make a fault and then join this network after such times when

there is nothing to achieve only to give.

Hypothesis Development:

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H4 : There is association between Normative Structure and Subjective Norms

: 0.01

H1 & H2: There is an association between Trust Beliefs, Unauthorized Use Beliefs and

AttitudeTowards Behavior.

: 0.01

H6 : There is an association between Efficacy Perceived and Behavioral Control.

: 0.01

H3 ,H5 & H7 :There is an association between Subjective Norms, Attitude Towards Behavior and

Perceived Behavioral Control over the Internet Banking.

: 0.05

Objective of the Study:

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Research Model along with the specification of hypotheses.

In this figure: this model show the research method of testing the hypotheses. Here have some

construct they are Subjective norms, Attitude Towards Behavior, Perceived Behavioral Control

and another one is Internet Banking. Where subjective norms measure but the Normative

Structure, Attitude Towards Behavior measured by two variables are Trust Belief and

Unauthorized Use Beliefs, Perceived Behavior Control measure by Efficacy. The final construct

Internet Banking which is measure by Subjective Norms, Attitude Towards Behavior and

Perceived Behavior Control.

Methodology:

6

Internet

Banking

Attitude

Towards

Behavior

Subjective

Norms

Perceived

Behavioral

Control

Normative

Structure

Trust Beliefs

Unauthorized

Use Beliefs

Efficacy

H2

H1

H4

H6

H5

H3

H7


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The target population: It means the collection of elements or objects that possess the

information sought by the researcher and about which inferences are to be made.

In our research we have targeted those people who are over 18 ages and use the mobile phone.

Basically we selected teachers of university, students of university.

Sampling in procedures: In our research perspective we go for direct interview method. We

select the target population and base one this provide the question and collect the data from the

respondent. As we analyzed on the basis of sampling. So we used non-probability sampling

procedure for research. Non-probability means by choice sampling, broadly we can say this a

sampling procedure in which each element of the population has been selected by choice. And

we selected our responded by choice.

Sample size:Our sample size was 50 for this research. Out of this fifty respondent seventeen are

female and the remaining thirty three are male. In maximum respondent are students, beside that

some are Service holders, some are Businessman, some are House Wife. So thats why in

maximum result are find out from the non graduate peoples. So as few are graduate and very few

are post graduate.

Questionnaires design: We repaired based on the model, we identified 8 constructs for 4

hypothesis. And several variables under this construct. We used seven point like-art scale and

semantics differential scale for collecting information about those variables. We also collected

some demographic information. Most of the questionnaires was close ended, only age was open

ended. By measuring attitude there have use four variables, Unauthorized Use Beliefs measured

by four variables but Trust is measured by six variables. Subjective Norms measured by two

variables, Normative Structure measured by five variables, Perceived Behavioral Control

measured by three variables, Efficacy is measured by six variables.

Analysis and Finding:

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H 1,2

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .687(a) .471 .449 1.118

a Predictors: (Constant), Unauthorized Use Beliefs, Trust Beliefs

ANOVA (b)

ModelSum of

Squaresdf Mean Square F Sig.

1

Regression 52.378 2 26.189 20.954 .000(a)

Residual 58.742 47 1.250

Total 111.120 49

a Predictors: (Constant), Unauthorized Use Beliefs, Trust Beliefs

b Dependent Variable: Attitude toward behavior

In ANOVA test is significant because P value is smaller than the given level of significant. Sothat there have linear relationship exist between Trust Beliefs, Unauthorized Use Beliefs and

Attitude Towards Behavior.

Here Unauthorized Use Beliefs, Trust Beliefs are 44.9% reasoning for changing Attitude

Towards Behavior.

Coefficients (a)

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

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B Std. Error Beta

1

(Constant) .019 .850 .022 .983

Trust Beliefs .583 .137 .480 4.246 .000

Unauthorized

Use Beliefs.566 .182 .352 3.110 .003

a Dependent Variable: Attitude toward behavior

Here Trust Beliefs is significant because p value is smaller than the given level of significant.

That's why that there has linear relationship exist between Trust Beliefs and Attitude Towards

Behavior. Unauthorized Use Beliefs also significant in one percent level . there have linear

relationship exist between Unauthorized Use Beliefs and Attitude Towards Behavior.

Equation is -

(Att) = .019 + .583(Trust) + .566(USB)

In this situation if Trust Beliefs change in one unit than Attitude change in .583 and if

Unauthorized Use Beliefs change in one unit than change Attitude in .566. Changing attitude is

liable for 44.9% change in Trust Beliefs and Unauthorized Use Beliefs and other factor are liablefor 55.1% for changing attitude.

Relationship among Trust Beliefs and Unauthorized Use Beliefs to Attitude Toward

Behavior

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Attitude

Towards

Trust BeliefsH1


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TB & UUB ATB

1% level of significant

H 4

Model Summary

Model R R Square Adjusted R SquareStd. Error of the

Estimate

1 .622(a) .387 .374 1.049

a. Predictors: (Constant), Normative structure

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Unauthorized

Use Beliefs

H


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ANOVA (b)

ModelSum of


1

Regression 33.329 1 33.329 30.269 .000(a)

Residual 52.851 48 1.101

Total 86.180 49

a. Predictors: (Constant), Normative structure

b. Dependent Variable: Subjective Norm

In ANOVA test is significant because P value is less smaller than the given level of significant

So, that there have linear relationship exist between Normative Structure and Subjective Norms.

Here Normative Structure is 37.4% reasoning for changing Subjective Norms.

Coefficients (a)

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

1

(Constant) 1.826 .494 3.693 .001

Normative

structure.657 .119 .622 5.502 .000

a. Dependent Variable: Subjective Norm

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Here the test is significant in because p value is smaller than the given level of significant. That's

why there have linear relationships exist between Normative Structure and Subjective Norms.

Equation is -

(SN) = 1.826 + .657(NS)

In this situation if Normative Structure change in one unit than Subjective Norms change in .657

and Changing Subjective Norms is liable for 37.4% change in Normative Structure and other

factor are liable for 62.6%.

Relationship among Normative Structure and Subjective Norm

NS SN


H 6

Model Summary

Model R R Square Adjusted R SquareStd. Error of the

Estimate

1 .574(a) .330 .316 1.336

a. Predictors: (Constant), Efficacy

ANOVA (b)

12

Subjective

Norm

Normative

structure

H


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ModelSum of


1

Regression 42.138 1 42.138 23.596 .000(a)

Residual 85.719 48 1.786

Total 127.858 49

a. Predictors: (Constant), Efficacy

b. Dependent Variable: Perceived Behavioral Control

In ANOVA test is significant in one percent level. Because P value is smaller than the given

level of significant. So, that there have linear relationship exist between Efficacy and Perceived

Behavioral Control.

Here Efficacy is 31.6% reasoning for changing Perceived Behavioral Control.

Coefficients (a)

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.025 .851 1.205 .234

Efficacy .807 .166 .574 4.858 .000

a. Dependent Variable: Perceived Behavioral Control

Here test is significant in one percent level because p value is smaller than the given level of

significant. That's why that there have linear relationship exist between Efficacy and Perceived

Behavioral Control.

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Equation is -

(Eff) = 1.025 + .807(PBC)

In this situation if Efficacy change in one unit than Perceived Behavioral Control change in .807

and Changing Perceived Behavioral Control is liable for 31.6% change in Efficacy and other

factor are liable for 68.4%.

Relationship between Efficacy and Perceived Behavior Control

Eff PBC


H 5,3,7

Model Summary

a. Predictors: (Constant), Perceived Behavioral Control, Subjective Norm, Attitude toward

behavior

ANOVA (b)

ModelSum of


1 Regression 7.517 3 2.506 1.304 .285(a)

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Model R R Square Adjusted R Square Std. Error of the Estimate

1 .280(a) .078 .018 1.386

Perceived

BehavioralEfficacy

H


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Residual 88.403 46 1.922

Total 95.920 49

a. Predictors: (Constant), Perceived Behavioral Control, Subjective Norm, Attitude toward

behavior

b. Dependent Variable: Behavior

Here the test is insignificant because p value is greater than the given level of significant. That's

why there is no association exist between Perceived Behavioral Control, Subjective Norm,

Attitude toward behavior and Internet Banking.

Coefficients (a)

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

1

(Constant) 1.707 .879 1.942 .058

Subjective

Norm.290 .167 .275 1.734 .090

Attitude toward

behavior-.051 .156 -.054 -.324 .748

Perceived

Behavioral

Control

.062 .136 .072 .457 .650

a. Dependent Variable: Behavior

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Since the model test is insignificant that means all variable are insignificant as contract wend its

tested individually. So the equation is

(Behavior) = 1.707

Relationship between Subjective Norms, Attitude, Behavior Control to Internet Banking

.275

1.8%

- .054

.072

16

Internet

Banking

Attitude

Towards

Subjective

Norms

Normative

Structure

Trust Beliefs

UnauthorizedUse Beliefs

.566

.583

.65737.4%

44.9%

31.6%


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Research Model along with the specification after the hypotheses test.

Recommendation:

By accomplishing the entire task that Internet Banking is the not so much effective. Because

Subjective norms, attitude and perceived behavior control is not provide favorable result, for this

that cannot emphasize of Internet Banking, because this test is insignificant. So, that there have

non linear relationship exist. But if we see the first hypothesis test than the findings result is

significant, means Normative, Trust Beliefs, Unauthorized use beliefs and Efficacy to Subjective

norms, attitude and perceived behavior control. There have linear relationship exist between

them. To introduce the Internet Banking widely give more emphasize on Subjective norms,

attitude and perceived behavior control. Because for this the whole morel test result should be

found insignificant. To increase this level of significant create dependency among the respondent

and their nearest one because a man can influence to other. Another thing is that attitude towards

of Internet Banking. To enhance this thing create public image about that. If do then peoples are

get more information and realize the benefits of using Mobile Banking. Most of the respondent is

not is not want so much time by doing online transaction. Provide more facility for doing online

transaction more, that think increase respondent using Internet Banking more. To see the model,

for the H5, H3 and H7 insignificant the whole morel was insignificant.

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Perceived

Behavioral

ControlEfficacy

.807


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Conclusion:

Now a day Internet banking is so much popular of all over the world. But in Bangladesh it's don't

get so much popularity. Because most of the people are not aware about mobile banking. At a

same sequence most of the people are live in poverty line and illiterates, so they cant familiar

the terms of Internet Banking. They think this think cannot provide security to their money.

Another important thing is in Bangladesh every home don't have any Computed or Internet.

Without computer Internet Banking is not run widely. Try to increase the technological support.

After considering all this thinks, few Bank like DBBL, Brac Bank. HSBC, SCB, Prime Bank and

so on, provide mobile banking in Bangladesh. They provide their service to the small segmented

peoples. When the peoples are fully aware about the benefits of this then they can interested to

use or adopt Internet Banking.

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Questionnaire on Adoption - Behavior of Mobile Banking

Profession:

Address:

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Please rate the following statements based on your opinion by using the followingscales. One scale contains seven different values the meaning of which is as follows.

1 = Strongly Disagree, 2 = Disagree, 3 = Somewhat Disagree, 4 = Neutral, 5 =Somewhat Agree, 6 = Agree, 7 = Strongly Agree

Another scale contains two opposite adjectives with seven (7) different responseoptions regarding various statements.


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20

SL Items Opinion

Att

a) Doing banking transaction via mobile phone is

a good idea1 2 3 4 5 6 7

b) I like to adopt mobile banking 1 2 3 4 5 6 7

c) It is an wise idea to do banking transaction via

mobile phone1 2 3 4 5 6 7

d) It would be pleasant for me to do banking

transaction via mobile phone 1 2 3 4 5 6 7

USU

a) Mobile operators as well as banks should not

use personal information for any purpose other

than the one authorized

1 2 3 4 5 6 7

b) Using personal information by my bank and mobile operator for any purpose other than

the one authorized is -

Bad: --1-- : --2-- : --3-- : --4-- : --5-- : --6-- : --7-- : Good

c) My bank and operator should not share

personal information about me without my

permission

1 2 3 4 5 6 7

d) My bank as well as operator sharing personal information about me without my

permission is - Bad: --1-- : --2-- : --3-- : --4-- : --5-- : --6-- : --7-- : Good

Trust

a) The mobile phone is a reliable way for me to

take care of my personal financial affairs1 2 3 4 5 6 7

b) Taking care of personal financial services over the mobile phone is a

Bad idea : --1-- : --2-- : --3-- : --4-- : --5-- : --6-- : --7-- : Good idea

c) Mobile phone is trustworthy as a medium of

doing banking transaction1 2 3 4 5 6 7

d) Doing banking transaction while putting trust in the mobile phone operator is a

Bad idea : --1-- : --2-- : --3-- : --4-- : --5-- : --6-- : --7-- : Good idea

e) I can use mobile phone to achieve my goals

related to my personal financial services. 1 2 3 4 5 6 7

f) I believe in the honesty of the phone operator

for conducting banking transaction1 2 3 4 5 6 7

SN

a) People who influence my behavior would think

that I should do banking through the mobile

1 2 3 4 5 6 7

b) People who are important to me would think

that I should do banking through the mobile 1 2 3 4 5 6 7

a) Generally speaking, I want to do what my


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Demographic Information

(9) Age: ...........

(10) Gender: (a) Male (b) Female

(11) Education: (a) Non graduate (b) Graduate (c) Post graduate

Reference:

http://mbanking.blogspot.com/

http://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Dutch_Bangla_Bank

http://www.hawker.com.bd/news_details.php?news_id=149950&news_category_id=5&val_lan=1

http://www.idgbgroup.com/?cat=4

http://bankinfobd.com/blog/dbbl-kick-starts-mobile-banking

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http://mbanking.blogspot.com/http://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Dutch_Bangla_Bankhttp://www.hawker.com.bd/news_details.php?news_id=149950&news_category_id=5&val_lan=1http://www.hawker.com.bd/news_details.php?news_id=149950&news_category_id=5&val_lan=1http://www.idgbgroup.com/?cat=4http://bankinfobd.com/blog/dbbl-kick-starts-mobile-bankinghttp://mbanking.blogspot.com/http://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Dutch_Bangla_Bankhttp://www.hawker.com.bd/news_details.php?news_id=149950&news_category_id=5&val_lan=1http://www.hawker.com.bd/news_details.php?news_id=149950&news_category_id=5&val_lan=1http://www.idgbgroup.com/?cat=4http://bankinfobd.com/blog/dbbl-kick-starts-mobile-banking

factors influencing adoption-behavior of mobile phone banking

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