gr 15 market research report final
TRANSCRIPT
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UNDERSTANDING FACTORS AFFECTING TRUST IN AND
SATISFACTION WITH MOBILE BANKING AND ITS FUTURE
PROSPECT IN BANGLADESH
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UNDERSTANDING FACTORS AFFECTING TRUST IN AND
SATISFACTION WITH MOBILE BANKING AND ITS FUTURE
PROSPECT IN BANGLADESHPrepared for:
Mr. Md. Iftekharul Amin
Lecturer
Prepared by:
Ummul Ara Sayeda, Roll: 73, 45D
Md. Mominur Rahman Mondol, Roll: 95, 45D
Md. Farhan Imtiaz, Roll: 112, 45D
Nowreen Rahman, Roll: 21, 44E
Group: 15
Course Title: Market Research (M609)
Institute of Business Administration
University of Dhaka
January 03, 2013
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Letter of Transmittal
January 03, 2013
Md. Iftekharul Amin
Lecturer,
Institute of Business Administration,
University of Dhaka.
Subject: Submission of research report titled Understanding Factors Affecting Trust in and
Satisfaction with Mobile Banking and its Future Prospect in Bangladesh
Dear Sir,
We are submitting our research paper for the topic Understanding Factors Affecting Trust in
and Satisfaction with Mobile Banking and its Future Prospect in Bangladesh as a part offulfilling your instruction for acquiring the learning objectives of Market Research course.
We thank you for assigning us this research project as it has provided us with a valuable
opportunity of improving our knowledge on this new technology as well as our research skills.
Sincerely Yours,
________________ _______________
Ummul Ara Sayeda, Roll: 73, 45D Md. Farhan Imtiaz, Roll: 112, 45D
________________ _______________
Md. Mominur Rahman Mondol, Roll: 95, 45D Nowreen Rahman, Roll: 21, 44
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iv
Table of ContentsExecutive Summary ....................................................................................................................................... v
1. Introduction ............................................................................................................................................ 1
1.1 Overview of bKash and DBBL Mobile Banking .................................................................................. 7
1.2 Limitations of bKash .......................................................................................................................... 8
1.3 Limitations of DBBL Mobile Banking ................................................................................................. 9
1.4 Problem statement ......................................................................................................................... 10
2. Objective of the Report ......................................................................................................................... 10
2.1 Broad Objective ............................................................................................................................... 11
2.2 Specific Objectives........................................................................................................................... 11
2.3 Scope ............................................................................................................................................... 12
3. Research Design and Methodology ...................................................................................................... 12
3.1 Qualitative Research ....................................................................................................................... 12
3.1.1 Secondary Literature Review ................................................................................................... 12
3.1.2 In-depth Interview.................................................................................................................... 13
3.2 Quantitative Research ..................................................................................................................... 13
3.3 Sampling Method, Unit, and Size .................................................................................................... 13
3.3.1 Sampling Technique ................................................................................................................. 13
3.3.2 Sampling Unit ........................................................................................................................... 14
3.3.3 Sampling Size ............................................................................................................................ 14
4. Analyses and Findings ........................................................................................................................... 15
4.1 Findings from Frequency analysis ................................................................................................... 15
4.2 Finding from Factor Analysis ........................................................................................................... 18
4.3 Finding from Multiple Regression ................................................................................................... 18
5. Conclusion ............................................................................................................................................. 20Bibliography ................................................................................................................................................ 21
Appendix A: qualitative research description ............................................................................................. 22
Appendix B: Survey Questionnaire ............................................................................................................. 24
Appendix C: Statistical Analysis................................................................................................................... 30
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v
Executive Summary
Mobile banking is a relatively new concept in Bangladesh. Since its inception few years back, it
has obtained widespread acceptance and a strong user base. Several factors like ease of use,
security, fast transaction, low cost, better system, ample availab ility, etc. affects peoples
adoption of this service. The research studies the main factors that are affecting trust in and
satisfaction with mobile banking provided by bKash and DBBL Mobile Banking and its future
prospect in our country. It attempts to find out whether trust in and satisfaction or adoption of
mobile banking is influenced by factors like perceived usefulness, perceived ease of use,
relative advantage, and perceived risk. The study shows that, mobile banking is most commonly
adopted by male consumers aged between 25 to 34 years. More than half of the respondents
have educational qualification above SSC, most of them are working, and 55.5 % of respondents
have income below Tk. 6000. Almost all the respondents use this service for only sending or
receiving money, only a few pay electricity bills through it. Users agree that it is easy to use
mobile banking to accomplish their task. Majority of the users are satisfied regarding its
security issues and believe that they can accomplish their tasks quickly using mobile banking.
They also trust in the proper maintenance of their accounts by respective banks and not aware
of the relative fees charged by other service providers. However 42% of respondents do not
know whether registration fee is higher than the other operators and one third of them are
unaware of the relative transaction fees. Users think ease of use, low cost, fast transaction,
wide availability, security, and better system quality are the features that has made this service
useful and satisfactory. Nonetheless transaction speed, cost, ease of use, and security used to
affect the level of satisfaction about the service. But users are satisfied with mobile banking
mainly because of fast transaction and its security. In addition Bangladesh has seen a staggering
growth in the number of mobile banking subscribers in 2012. Besides, an overwhelming
amount of money is being transacted each day through this service and the transaction volume
is increasing day by day. So, from its substantial growth and strong and potential customer
base, it can be forecasted that mobile banking has a bright future in Bangladesh.
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1. Introduction
As technology advances, we get more and more amenities to make our lives comfortable.
Mobile banking is one of those amenities which have made our daily lives easier and effortless.
Mobile 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 cellular
phone or Personal Digital Assistant (PDA). Mobile banking has until recently (2010) most often
been performed via SMS (short messaging service) or the mobile web. It has shifted the banking
concept in a dramatic way. Globally mobile banking has become very popular as it also permits
mobile commerce. Mobile banking has proven extremely successful in the countries that have
huge population base, agro based economy, and a great level of disparity in the distribution ofwealth in the society. All these criteria match with Bangladesh. Moreover a huge cellular
customer base has promised the success of mobile banking in our country.
A latest statistics issued by BTRC (Bangladesh Telecommunication Regulatory Commission)
states that there were 85.455 million mobile subscribers at the end of December 2011
(www.btrc.gov.bd). This fact shows the huge potential for mobile banking in Bangladesh where
enormous number of un-banked people can be brought under mobile banking and government
can trail each and every financial transaction happening in the country. There are around 160
million people in Bangladesh, of which, only 13% have bank accounts whereas 51.53% of the
total population is using mobile phones. Providing financial services using this mean can make
the service even more accessible and cost effective for the vast population of the country. Also,
providing traditional banking services to the remote areas in this country may not be possible
for all the commercial banks whereas they can easily provide the people of those areas with a
better mobile banking service due to the availability of mobile phones and mobile networks.
Assuming these huge potentials for mobile banking service in Bangladesh, Bangladesh Bank has
allowed 10 banks to initiate mobile banking. So far Dutch Bangla Bank Ltd. (DBBL) and BRAC
Bank Ltd. have launched this service. DBBL has launched the service and after that BRAC Bank
Ltd. has launched the same service named bKash. Both of these banks are using Bank Led
http://www.btrc.gov.bd/http://www.btrc.gov.bd/ -
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Model of mobile banking. These two providers made the largest contribution to the nearly
500,000 new mobile accounts and more than 9,000 new agents. (www.cgap.org)
With a whopping 275 percent rise, a total of 1.5 million subscribers came under mobile banking
service till November 30, 2012 against 0.4 million of March last, according to Bangladesh Bank
(BB) statistics. "Mobile banking service is more suitable for the huge working people against the
traditional banking services," Khondkar Morshed Millat, Deputy General Manager of
Bangladesh Bank (BB) told the FE recently. Around Tk. 330 million transactions per day is being
settled under the mobile banking services. Each month, the transaction volume through mobile
banking is increasing by 15 per cent. The BB sources said through this service, transaction worth
around Tk. 10 billion (1000 crore) takes place in each month.
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Services provided by mobile banking:
Customer registration
Disbursement of inward foreign remittances,
Cash deposit or withdrawal using mobile account through agents / bank branches / ATM
/ mobile operators outlets.
Person to business payments, for example: a. utility bill payments, b. merchant
payments
Business to person payments, for example: salary disbursement, dividend and refund
warrant payments, vendor payments, etc.
Salary disbursement
Air-time top-up
Fund transfer
Bangladeshi people are less tech-savvy than others and they used to adopt a new technology
slowly. Therefore it is a very big challenge for mobile banking to be successful since it is totally a
new concept in this country. Our focus is to understand users satisfaction with mobile
applications by assessing the following three quality factors associated with mobile banking,
and how they affect consumers trust and satisfaction:
System quality
Information quality
Interface design quality
Our proposed research model, based on DeLone and McLeans model, assesses how these
three external quality factors can impact satisfaction and trust. Moreover, the aim of this
research is also to investigate the factors influencing the adoption and effectiveness,
challenges, and prospects of mobile banking in retail banking.
This model (DeLone and McLean, 2003) explains the impact of IS (Information System) at the
individual and organizational levels. The research model builds on the individual level
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constructs of system quality, information quality and interface design quality, and their
subsequent impact on trust and customer satisfaction.
System quality
The concept of system quality, first introduced by DeLone and McLean (1992), was defined as
quality manifested in a systems overall performance and measured by individuals perceptions
(De- Lone and McLean, 2003; Liu and Arnett, 2000; Schacklett, 2000).
Vendors are faceless on the mobile banking, so their systems quality becomes the online
storefront by which first impressions are formed. It stands to reason that if a consumer
perceives a vendors system to be of high quality, that consumer will be likely to have high
levels of trust in the vendors competence, integrity and benevolence, and will be willing to
spend money with that vendor.
Information quality
The quality of information, as assessed the by customers, usually influences their level of
satisfaction.
Interface design quality
Interface design quality is an area of research that examines how information is displayed. In
mobile banking, an interface is often the first point of contact. It is therefore important that a
good image is presented, as users will form their impressions based on this initial information.
Numerous studies have assessed such factors as display formats, colors, and graphs versus
tables and how these factors affect customer satisfaction. Particularly in the case of mobile
banking, improperly designed screens and interfaces can cause customers unnecessary work
and can negatively influence their utilization (DeLone and McLeans, 2003).
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Fig: DeLone and McLeans (2003) updated IS success model
Determining factors affecting customer perception and attitude towards and satisfaction with
mobile banking is an essential part of a bank's strategy formulation process in an emerging
economy. A framework developed inSingapore identifying factors influencing the adoption of
Internet banking was used as a basis, and amended to assess cell phone banking. Factors
identified as influences included relative advantage, trial ability, and consumer banking needs,
with perceived risk having a major negative influence (Brown et al. 2003). According toReeti et
al. customers are influenced in their usage of mobile banking services by the kind of account
they hold, their age and profession, attach highest degree of usefulness to balance enquiry
service among mobile banking services, consider security & trust most important in affecting
their satisfaction level and find slow transaction speed the most frequently faced problem while
using mobile-banking (Reeti et al. 2009).
A study in Malaysia done by Black et al. (2001) and Lockett and Littler (1997), this study also
found that males are more willing to adopt new technology than females. The results could be
attributed to the male masculine personality which is often willing to take risks, and to
females personality which is anxious to try out new technological products. Besides this, men
also read more technological magazines and have a greater involvement with technological
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products. This study found that mobile banking is most commonly adopted by consumers aged
between 21 to 30 years. The high educational background of mobile banking users is explained
by the need to master the complexity of conducting financial transactions via mobile channels
(Black et al., 2001).
According to (Zhaohua Deng, Yaobin Lu, Zhiyu Chen), Perceived ease of use and perceived
service cost are found to have no significant effect on users behavioural attitude toward
mobile banking. And SMS usage has no effect with either perceived ease of use and behavioural
attitude. First, the result indicates that perceived ease of use have no significant effect on user
adoption of mobile banking. Second, the higher service costs do not definitely decrease
attitudes to use mobile banking. Perceived usefulness and perceived credibility are more
important than other factors for mobile banking adoption. At the same time, perceived ease of
use influences these two factors. Therefore, the development and marketing of mobile banking
service in China should take importance of these factors (Deng et al., 2008).
According to another study in Oman, it was found that, factors influencing the acceptance of
mobile banking usability and perceived quality are deemed key drivers. This is probably not
unexpected, however, what is interesting is that the market profile is skewed to middle aged
users, with social standing and herd mentality does not affect the adoption of the technology.
This, combined with emerging mobile savvy younger generation, poses an interesting challenge
for the future of the banking sector in Oman and implies a need for the sector to rethink the
strategic use of, and approach to, implementation of on-line mobile banking in a way that is
complementary to the cultural and ethological dimension of the market. (Riffai et al. 2011).
As a third world developing country, Bangladesh is far behind to reach the expected level in
global banking system (Hasan et al. 2010). So it is our urgent need to upgrade its banking
system. This research aims at determining the present scenario of mobile banking to
understand the factors influencing users satisfaction and at the same time it would
demonstrate the scope of development and benefits of mobile banking compared with the
existing system.
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1.1 Overview of bKash and DBBL Mobile Banking
bKash (Powered by BRAC Bank)
bKash Limited, a BRAC Bank subsidiary, has launched its mobile banking operation on July 21,
2011. bKash is designed to provide financial services via mobile phones to both the unbanked
and the banked people of Bangladesh. The overall bKash value proposition is simple: a safe,
convenient place to store money; a safe, easy way to make payments and money transfers.
The bKash mobile wallet, a VISA technology platform which is fully encrypted to ensure most
secure transactions, will be the customer account into which money can be deposited and out
of which money can be withdrawn or used for various services. Customers will be able to
receive electronic money at any of the hundreds of cash out agents which bKash assign.
In February 2011, mobile operator Robi Axiata Limited signed a partnership agreement with
bKash to provide access to its services for Robi subscribers and extend the distribution of the
service. bKashs other distribution partner is BRAC which provides a local presence to offer the
bKash service at the vicinity of the beneficiaries. bKash has already selected over 500 agents
and is adding hundreds of new agents to its network every month. In addition, bKash has signed
an MOU with LGD and A2I to use their 4501 Union Information & Service Centers to make
financial services accessible to people who currently do not have access to banks into their
bKash accounts through salary, loan, domestic remittance, and other disbursements and
eventually will cash out the electronic money at any of the hundreds of cash out agents which
bKash assign.
Dutch-Bangla Bank Limited (DBBL) Mobile Banking
DBBL has launched the very first mobile banking service in Bangladesh on March 31, 2011. This
service has been launched with Agent and Network support from mobile operators
Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution
for the service. Under the mobile banking services, bank-nominated Agents perform banking
activities on behalf of the banks, like opening mobile banking account, providing cash services
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(receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account
can also be done from an ATM validating each transaction by mobile phone & PIN instead of
card & PIN. Other services that are being delivered through DBBL mobile banking system are:
person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill
payment), business-to-person (e.g. salary/commission disbursement), and government-to-
person (disbursement of government allowance) transactions. Although Banglalink and CityCell
are the only partner operators right now, DBBL authority has said that it will eventually
embrace all other mobile phone operators to provide maximum number of mobile phone
subscribers with Mobile Banking services.
Services provided by DBBL mobile Banking are as follows:
Customer Registration
Cash-in (cash deposit)
Cash-out (cash withdrawal)
Merchant Payment
Utility Payment
Salary Disbursement
Foreign Remittance
Air-time Top-up
Fund Transfer
1.2 Limitations of bKash
Procedure Requirements: customer needs be a Robi or Grameen subscriber. Moreover,
there are multiple steps of KYC procedures that seem redundant. (One to get a Robi or
Grameen SIM, another to open a bKash account).
Cash out Hazards: Sometimes agents do not have enough money to cash out.
Additionally, cash out charge for small amount (BDT 100-2500) is high which is around 2-
7 % of total amount. One user cannot cash out more than twice in a day.
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Multitasking Agents: bKash agents usually have other businesses. Most often, they
remain busy with other activities. Mobile money transfer requires a lot of hand-holding
(initially). Therefore, the time constraint for the agent is a big challenge.
Agents Expertise: the agents have inadequate training and low educational level. Not
all the agents are familiar with some bKash facilities.
Poor Infrastructure: Agent locations are mostly a part of some other shops, ex: VCD
shop, Laundry etc. Transaction of money occurs at open places so it is difficult to ensure
secrecy and privacy.
Security Issues: The secret code of the token must not be disclosed to the agent but
there is a high possibility to be so at rural areas. Token sender has been given a receipt
against the created token. While en-cashing the token the receiver has to put his
signature in the ledger book and yet there is no way to verify the signature since neither
the receiver nor the sender is a registered user. Therefore, once the secret code is
disclosed anyone can encash the token.
1.3 Limitations of DBBL Mobile Banking
Prolonged Procedure:DBBL mobile banking account takes minimum 3 working days to
be activated. DBBL representative collect the filled up forms from agents and then
submit them to the head office. After entering the required information to the database
the account gets fully activated. Before this procedure gets completed no other service
except Cash In (not even the balance checking) can be executed.
Higher Charges: Overall transaction charge of DBBL mobile banking is higher than of
bKash. For any amount more than 10,000 BDT bKash charges 1% where as DBBL charges
3%. Unlike bKash, DBBL charges for cash-in.
No Option for Fund Transfer Yet: Still DBBL mobile banking is not providing any fund
transfer service though it has been enlisted in their service list. Fund transfer charges
are also to be fixed.
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Limited Transaction: Maximum number of transaction per month is 20 and per day is 5.
So after four busy days, an a/c may become inactive for the rest of the month.
Multitasking Agent: Like bKash agents, DBBL agents are handling other businesses at
the same time. Therefore, the time constraint for the agent has been a major challenge.
Savings: Most of the users of bKash are from BOP segments and are using mobile wallet
for saving money. Since they want to save a little amount everyday the minimum cash in
amount needs be lowered. bKash allows wallet with zero balance and does not provide
any interest on savings. It is not a good option for saving indeed (especially for small
amounts) unless the saved money needs to travel some distance to reach the receiver.
Foreign Remittance: remittance can be sent from any nominated Exchange Houses of
Dutch-Bangla Bank located all over the world. This service is not offered by bKash.
Inadequate Funds Trap: Assume a person want to send Tk. 200 in two shots. Minimum
transfer amount for bKash is Tk. 100. Minimum cash-in amount for bKash is also Tk.
100. The first time, he cashes in Tk. 200 and sends Tk. 100, plus pays a Tk. 5 service
charge. His new balance: Tk. 95. He cant send that. Needs to cash in Tk. 100 at least. So
theres almost always an unusable amount left in the account.
1.4 Problem statement
Based on the secondary literature review we have defined the problem statement of our
research as To find out whether the trust in and satisfaction or adoption of mobile banking is
influenced by factors like perceived usefulness, perceived ease of use, relative advantage,
perceived risk.
2. Objective of the Report
The main objective of the report is to discuss in general about the recent developments and
factors that can affect future prospects of mobile banking in Bangladesh. In the process we will
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make observations about the industry and suggestions for a better future. The broad and
specific objectives are as follows:
2.1 Broad Objective
To develop an understanding of the factors affecting the trust in and satisfaction with
mobile banking in Bangladesh.
2.2 Specific Objectives
To analyze the services of Dutch Bangla Banks DBBL Mobile Banking and BRAC Banks
bKash.
To understand the kind of account users hold, age, education, and profession and
income level.
To identify the age groups more inclined to use mobile banking in Bangladesh.
To identify the services users mostly take through mobile banking.
To identify the factors those affect satisfaction of mobile banking service in Bangladesh.
To identify factors those can establish trust in mobile banking in Bangladesh.
To find out perceived risk associated with mobile banking.
To analyze the perceived ease and cost on the use of mobile banking in our country.
To analyze the relative advantages of using mobile banking and bank account holding
status of mobile banking customers.
To investigate the factors influencing the future prospects of mobile-banking in
retail banking.
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2.3 Scope
We have collected response only from the mobile banking users of DBBL and BRAC
Bank.
We have only covered Dhaka city as our research area.
We have focused on mobile banking users of DBBL and bKash due to shortage of time
and budget.
3. Research Design and Methodology
We have conducted a descriptive research to find out the current customer attitude toward
mobile banking, the factors associated with the satisfaction of using this service and futureprospects of mobile banking in Bangladesh. Also we have applied statistical techniques to see
the relationship among the factors influencing the adoption behavior of the customers. Both
qualitative and quantitative data have been used.
To achieve the objectives of this study, the research has followed a quantitative research
methodology. Quantitative research has been used to provide numerical measurement and
analysis of the adoption dynamic. Survey questionnaires have been used for standardization
purposes to allow for aggregation of the results. The investigation has done to identify whether
the independent variables are statistically significant factors in the adoption of mobile banking.
The research established the effect of independent variables, which included perceived risk,
trust, perceived cost, perceived usefulness, and perceived ease of use on dependent variables,
i.e. the adoption of mobile banking.
3.1 Qualitative Research
3.1.1 Secondary Literature Review
We have conducted a secondary literature review to identify the different factors that affect
the adoption of mobile banking and how they might be linked to the trust in and satisfaction of
users.
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Source of Data
The sources of secondary data are as follows:
National and international journals and articles.
Daily newspapers.
Websites of BRAC Bank, DBBL, and BTRC.
3.1.2 In-depth Interview
We have conducted in-depth interviews with Assistant Vice President of DBBL mobile banking
division, BRAC Bank mobile banking officials, and agents of mobile banking.
3.2 Quantitative Research
Based on the findings of the qualitative research, we have developed some hypothesis by
identifying the key variables and the relationship between them. We have developed
questionnaire based on the hypothesis.
Data Collection Methods
The data collection method for the questionnaire is personal survey.
3.3 Sampling Method, Unit, and Size
3.3.1 Sampling Technique
The sampling methods for this research were:
Non-probabilistic
Convenience sampling
Due to shortage of time we could not choose probabilistic technique. We have chosen
convenience sampling because it was easier for us to conduct personal survey on selected areas
of Dhaka city.
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3.3.2 Sampling Unit
For our survey, we have chosen primary respondents or sample units:
People currently living in Dhaka city.
Mobile phone owner with monthly income less than 12000 BDT.
People from the age group of 18 64.
3.3.3 Sampling Size
We have collected response from mobile banking users from 6 different mobile banking agents
located in Uttara, Motijheel, Dhanmondi, Shamoli, Mirpur, and Farmgate. We have chosen
those areas based on the convenience of survey. Our sample size was 45.
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4. Analyses and Findings
We have conducted frequency analysis, factor analysis, and multiple regression analysis to test
whether trust in and satisfaction with or adoption of mobile banking is influenced by factors
such as perceived usefulness, perceived ease of use, relative advantage, perceived risk, etc. The
results of the tests are described here:
4.1 Findings from Frequency analysis
Analysis of frequency illustrates how many times a variable is appearing when the respondents
have answered a question. For this research frequency analysis has been carried out for ten of
the items from the questionnaire. They are described in details in the following section:
Males are more willing to use mobile banking
Males are usually inclined to adopt new technologies which may contribute to the increasedpercentage of male mobile banking users.
Young people are more interested in using mobile banking
Our study found that mobile banking is
most commonly adopted by consumers
aged between 25 to 34 years.
15.6% of the respondents belong to 18-24years of age group. The majority of the
respondents, i.e. 68.9%, age are between 25-34 years. This can be explained by the fact
that young people are less tech savvy than theelder ones.
Male
58%
Female
42%
According to our study 58 percent
are male users and 42 percent are
female mobile banking users
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Most of the users have a bank account
According to the study, 86.67% of the
respondents have a bank account.
The prevailing notion is that mobile bankingusers are the unbanked ones and DBBL wants
to provide banking to the 87 percentunbanked persons. But according to our
survey most of them are not unbankedpersons.
More than half of the respondents have educational qualification above
SSC, most of them are working
Our study found that, most of the
people surveyed have studied in
college / university, most of the
respondents are engaged in any sort of
service, i.e. they are working.
24.44% of the respondents said they havesome high school education or passed S.S.C.
Next, 60% of the people surveyed have
studied in college / university. There were nosuch respondents who does not have any
formal education or who is from polytechnic
or is an apprentice. This can be explained bythe need to master the complexity of
conducting financial transactions via mobile
phone. Working group consists of 77.8% of
the people surveyed. Only 6.7% of therespondents are housewives. Finally students
make up 15.6% of the respondents.
Low income group people mostly use mobile banking service, it takes them
less than 20 minutes to reach adjacent agent
55.5% of respondents have income
below Tk. 6,000; it takes less than 20minutes for 66.67% of the respondents
to reach the nearest agent or bank.
22.22% of the respondents have no income.
Only 2.22% of the people surveyed have
income below 3000 Tk. Another 31.1% of the
respondents income is between 3000
5999 Tk. Students fall into the no income
group. They usually use the service to receive
money from their parents. 6.67% of the
respondents said it takes more than 1 hour
for them to reach the nearest bank or agent.
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Most of the users transfer or receive money by this service, other services
are rarely taken
Over 95% of respondents use this service for only sending or receiving money, only 5% payelectricity bill though it.
Customers are satisfied with mobile banking because it is easy to use, more
secured, transaction occurs fast and convenient
84.4% of users agree that it is easy to use mobile banking to accomplish their task, 62%
believe that When transferring money through mobile banking, they are not afraid of losing
money due to careless mistakes such as wrong input of account number and wrong input ofthe amount of money, all of the respondents agree that transactions reach on time.17%
users use this service because it is closer to their house, 69% believe that they can
accomplish their task more quickly using mobile banking.
Customers trust in the proper maintenance of their accounts by respective
banks
73.3% respondents believe that banks are trustworthy in maintaining their mobile bank
account. The skills and expertise are also important component to build trust among the
users.
Customers are not aware of the relative fees charged by other service
providers
42% of respondents dont knowwhether the registration fee is higher
than other operators and 36% of them
are unaware of the relative transaction
fees.
This can be explained by the fact that,
previously many of them sent or received
money by known persons. So they could notcompare the fees.
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4.2 Finding from Factor Analysis
Factor analysis is mainly used for data reduction and summarization. It is used to identify a
smaller set of salient variables from a larger set for use in subsequent multivariate analysis. For
this research factor analysis was conducted on six independent variables, namely easy to use,
more secured, low cost, fast transaction, better system quality, and close to my house. The
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is used to determine the
appropriateness of factor analysis. Values between 0.6 and 1.0 indicate the factor analysis is
correct. Here the result shows this value as 0.615. It means the analysis is proper.
The major contributing factors affecting satisfaction with mobile banking are
transaction speed and perceived security
Among the factors
under consideration
these two factors are
predominant, i.e.
transaction speed and
perceived security
Factor analysis is done to determine is a smaller set of
underlying factors grouped together that are affecting
the satisfaction regarding mobile banking to a great
extent. So, respondents believe that they are satisfied
most with transaction speed and security level provided
by the service.
These results are given in tabular format in appendix.
4.3 Finding from Multiple Regression
Regression analysis involves explaining the relationship between one dependent variable and
few independent variables, or how the independent variables are affecting the dependent one.
The model summary shows the fitness of the model. R square value is stated as 0.776 or 77.6%.
It means that 77.6% of the change in dependent variable (adoption of mobile banking) can be
explained by the changes in six independent variables.
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There is a positive correlation of the factors like ease of using, security,
transaction speed, cost with the satisfaction level among users
The individual model variables indicate that learning time, security perception, comparative
registration fee, transaction fee, and fast transaction are positively and significantly affect
the satisfaction of mobile banking. On the other hand bank account maintenance has no
significant relationship with dependent variable.
Result details are provided in the appendix section.
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5. Conclusion
Mobile banking is an emerging concept in Bangladesh. It is not a very old practice in our country
but it has already gained huge popularity and mass usage within a short time. This study was
conducted to see whether people have trust and satisfaction regarding mobile banking. From
the analyses it can be understood that users feel secured while carrying out mobile banking
transaction. This indicates they have trust in the service. Again, they feel that they can easily
fulfill money transaction related tasks through mobile banking and it has made their life easier.
Plus they think using the service is useful because of its ease of use, low cost, fast transaction,
security, wide availability around their homes, and better system quality. Therefore they are
satisfied with it. Among the factors mentioned above, transaction speed, cost, security, and
ease of use are affecting their level of satisfaction with mobile banking. Yet, fast transaction
and security of the service is affecting satisfaction level the most. Moreover there has been a
massive rise of mobile banking subscribers in the year 2012 which has led to Tk. 330 million
worth of transaction per day via this mean. Fortunately the transaction volume is steadily
increasing by 15% each month. Therefore it can be concluded that mobile banking has a bright
prospect in Bangladesh. The companies should capitalize more on this it and make different
aspects of the system better so that more users get interested in enjoying the benefits of
mobile banking.
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Bibliography
1. (n.d.). Retrieved from www.cgap.org: http://www.cgap.org
2. (2011, December). Retrieved from www.btrc.gov.bd: http://www.btrc.gov.bd
3. al., H. e. (2010, October 4).African Journal of Business Management Vol. 4(13), pp. 2718-2727.
4. al., R. e. (2009). Singapore.
5. Black, N. L. (2001). The adoption of internet financial services: a qualitative study. International
Journal of Retail and Distribution Management, Vol. 29 , pp. 390-398.
6. Littler, L. a. (1997). Malaysia.
7. Liu and Arnett, 2., & Schacklett, 2. (2000). System Quality.
8. M.M.M.A. Riffai, K. G. (2011, December 19). Corrected Proof. International Journal of
Information Management, In Press, .
9. McLean, D. a. (2003). DeLone and McLeans model.
10.Reeti Agarwal, S. R. (2009, September 05). Journal of Retailing and Consumer Services,Volume
16. pp. 340-351.
11.Zaheeda Cajee, D. D. (2003). International Journal of Information Management, Volume 23,
Issue 5, October, Pages 381-394.
12.Zhaohua Deng, Y. L. (2008). China.
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Appendix A: qualitative research description
For the qualitative research part depth interview method was selected. Md. Mezbahul Alam,
Assistant Vice President, mobile banking division of DBBL was interviewed.
We had started our interviewing process that made a ladder for our next question and by this
way we get our desired answer what we have used in quantitative analysis. The question and
answer part was as follows:
Question 1: What are the services you are providing currently?
Answer: The services we are currently providing start from customer registration to cash
deposit, cash withdrawal, foreign remittance, person to person transfer (p2p), and mobile top-
up which we have launched recently.
Question 2: How many users do you have at present?
Answer: We have spent around Tk. 2 lac.
Question 3: Tell us something about the relation between customers and agents.
Answer: Our agents are expert at their service and we provide them with adequate training. So,
they are very skillful and cooperative and have good relation with customers.
Question 4: Which Telco's Mobile can be registered?
Answer: Customer having any mobile from any Mobile Operator can be registered for DBBL
Mobile Banking at any nominated agent point of the bank.
Question 5: How much initial deposit is required?
Answer: Customer can open a DBBL Mobile Account with an initial deposit of Tk. 100 only.
Question 6: How is DBBL Mobile Banking secured?
Answer: Customer's money is safe as none can withdraw his / her money without taking
possession of mobile set, PIN and Check digit together. None will be able to deposit unwanted
money into a Mobile Account without knowing the check digit.
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Question 7: Can you please elaborate onperson to person (P2P) transfer?
Answer: The money transfer from one mobile account to another mobile account is called P2P
transfer. At present, Citycell, Banglalink, Airtel mobile account user can transfer maximum Tk.
10,000/- per day and Tk.25,000/- per month from own account to any mobile account any time.
Question 8: What is transaction limit for customers?
Answer: If the customer goes to the agent daily cash in and cash out limit is 5 times and
monthly limit is 20 times, daily P2P limit is Tk. 10000/- and monthly is Tk. 25000/-
Question 9: Tell us about the fees and service charges of the service.
Answer: Registration, remittance disbursement, salary disbursement, P2P fund transfer, mobile
top-up is free, cash in charge is 1% of the transaction amount or Tk. 5/-, whichever is higher and
cash out charge is 2% of the transaction amount or Tk. 10/-, whichever is higher.
Question10: What is the current satisfaction level of this service?
Answer: Our customers are highly satisfied and we have a strong subscriber base with rapid
growth rate. This indicates that customers are interested in the service.
Question 11: What are the factors you think are affecting customer satisfaction level?
Answer: First of all, mobile banking service provides convenience. We provide service at a
cheaper rate, transaction happens instantly; it is safe and user friendly.
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Appendix B: Survey Questionnaire
(DBBL) (bKash)
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Page | 25
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Page | 26
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Appendix C: Statistical Analysis
Detailed results obtained by Frequency Analysis
1. Frequency of respondents gender:
Gender of respondents
Frequency Percent Valid Percent Cumulative Percent
Valid
Male 26 57.8 57.8 57.8
Female 19 42.2 42.2 100.0
Total 45 100.0 100.0
2. Frequency for Respondents Age
What is your age?
Frequency Percent Valid Percent Cumulative Percent
Valid
18 - 24 7 15.6 15.6 15.6
25 - 34 31 68.9 68.9 84.4
35 - 44 4 8.9 8.9 93.3
45 - 54 3 6.7 6.7 100.0
Total 45 100.0 100.0
3. Frequency for Having a Bank Account
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Do you have a bank account?
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 39 86.7 86.7 86.7
No 6 13.3 13.3 100.0
Total 45 100.0 100.0
4. Frequency for Education Level
Education Level
Frequency Percent Valid Percent Cumulative Percent
Valid
Primary school completed 7 15.6 15.6 15.6
Some high school or
Matriculated11 24.4 24.4 40.0
College / University/ Post
matric27 60.0 60.0 100.0
Total 45 100.0 100.0
5. Frequency for Work Status
Work Status
Frequency Percent Valid Percent Cumulative Percent
Valid
Working 35 77.8 77.8 77.8
Housewife 3 6.7 6.7 84.4
Student 7 15.6 15.6 100.0
Total 45 100.0 100.0
6. Frequency for Income Level
Income Level
Frequency Percent Valid Percent Cumulative Percent
ValidNo income 10 22.2 22.2 22.2
below 3000 taka 1 2.2 2.2 24.4
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Between: 30005999 taka 14 31.1 31.1 46.7
Between: 60008999 taka 4 8.9 8.9 55.6
Between: 900011999 taka 6 13.3 13.3 68.9
12000 taka or above 10 22.2 22.2 100.0
Total 45 100.0 100.0
7. Frequency for Time it takes to reach the Nearest Bank or Agent
Time to go to the nearest bank or agent from your home
Frequency Percent Valid Percent Cumulative Percent
Valid
Less than 20 Minutes 30 66.7 66.7 66.7
Less than 45 Minutes 12 26.7 26.7 93.3
More than 1 hour 3 6.7 6.7 100.0
Total 45 100.0 100.0
8. Frequency for Previously Used Services for Money Transfer (other than mobile banking)
Which service did you use before using mobile banking?
Frequency Percent Valid Percent Cumulative Percent
ValidShundorban 3 6.7 6.7 6.7
SA paribahan 27 60.0 60.0 66.7
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9. Reasons for using mobile banking
Using mobile banking to transfer money
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 38 84.4 84.4 84.4
No 7 15.6 15.6 100.0
Total 45 100.0 100.0
Using mobile banking to receive money
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 14 31.1 31.1 31.1
No 31 68.9 68.9 100.0
Total 45 100.0 100.0
10. Reasons for satisfaction with using mobile banking
I think that it is easy to use mobile banking to accomplish my tasks.
Frequency Percent Valid Percent Cumulative
Percent
Continental 2 4.4 4.4 71.1
by close person 13 28.9 28.9 100.0
Total 45 100.0 100.0
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Valid
Agree 38 84.4 84.4 84.4
Strongly agree 7 15.6 15.6 100.0
Total 45 100.0 100.0
When transferring money through mobile banking, I am afraid that I will lose money
due to careless mistakes such as wrong input of account number and wrong input ofthe amount of money
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly disagree 8 17.8 17.8 17.8
Disagree 10 22.2 22.2 40.0
Not sure 10 22.2 22.2 62.2
Agree 17 37.8 37.8 100.0
Total 45 100.0 100.0
Transactions reach on time (instantly)
Frequency Percent Valid Percent Cumulative
Percent
Valid
Agree 25 55.6 55.6 55.6
Strongly agree 20 44.4 44.4 100.0
Total 45 100.0 100.0
I think that using mobile banking would enable me to accomplish my tasks more
quickly.
Frequency Percent Valid Percent Cumulative
Percent
Valid
Agree 31 68.9 68.9 68.9
Strongly agree 14 31.1 31.1 100.0
Total 45 100.0 100.0
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I believe banks are trustworthy in maintaining mobile banking accounts
Frequency Percent Valid Percent Cumulative
Percent
Valid
Not sure 12 26.7 26.7 26.7
Agree 24 53.3 53.3 80.0
Strongly agree 9 20.0 20.0 100.0
Total 45 100.0 100.0
I think the registration fee is higher than other operators
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly disagree 3 6.7 6.7 6.7
Disagree 10 22.2 22.2 28.9
Not sure 19 42.2 42.2 71.1
Agree 13 28.9 28.9 100.0
Total 45 100.0 100.0
Detail results of Factor Analysis are as follows:
Correlation Matrix
Is the transaction fee more than more than any other operators?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Disagree 16 35.6 35.6 35.6
Not sure 16 35.6 35.6 71.1
Agree 13 28.9 28.9 100.0
Total 45 100.0 100.0
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Easy to use More secured Low costFast
transaction
Better system
quality
Close to my
house
Correlation
Easy to use 1.000 .321 .033 .205 -.128 .047
More secured .321 1.000 .101 .374 -.176 -.088
Low cost .033 .101 1.000 .065 -.086 -.033
Fast transaction .205 .374 .065 1.000 -.327 .093
Better system quality -.128 -.176 -.086 -.327 1.000 -.123
Close to my house .047 -.088 -.033 .093 -.123 1.000
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .615
Bartlett's Test of Sphericity
Approx. Chi-Square 18.368
df 15
Sig. .244
Communalities
Initial Extraction
Easy to use 1.000 .355
More secured 1.000 .644
Low cost 1.000 .133
Fast transaction 1.000 .569
Better system quality 1.000 .476
Close to my house 1.000 .741
Extraction Method: Principal Component Analysis.
Total Variance Explained
ComponentInitial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 1.812 30.198 30.198 1.812 30.198 30.198
2 1.106 18.439 48.636 1.106 18.439 48.636
3 .988 16.464 65.101
4 .855 14.252 79.353
5 .695 11.580 90.933
6 .544 9.067 100.000
Extraction Method: Principal Component Analysis.
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Component Matrixa
Component
1 2
Fast transaction .744
More secured .715 .365
Better system quality -.588 .361
Easy to use .579
Close to my house -.852
Low cost
Extraction Method: Principal Component Analysis.
a. 2 components extracted.
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Detail results obtained by Multiple Regression
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .881a
.776 .741 .187
a. Predictors: (Constant), I believe banks are trustworthy in maintaining mobile banking accounts, Transactions
reach on time (instantly), Is the transaction fee more than more than any other operators?, It took me lots of time
to learn how to use mobile banking services., When transferring money through mobile banking, I am afraid that I
will lose money due to careless mistakes such as wrong input of account number and wrong input of the amount of
money, I think the registration fee is higher than other operators
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4.588 6 .765 21.953 .000b
Residual 1.324 38 .035
Total 5.911 44
a. Dependent Variable: I think that it is easy to use mobile banking to accomplish my tasks.
b. Predictors: (Constant), I believe banks are trustworthy in maintaining mobile banking accounts, Transactions reach on
time (instantly), Is the transaction fee more than more than any other operators?, It took me lots of time to learn how to
use mobile banking services., When transferring money through mobile banking, I am afraid that I will lose money due to
careless mistakes such as wrong input of account number and wrong input of the amount of money, I think the
registration fee is higher than other operators
Coefficientsa
ModelUnstandardized Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
1
(Constant) 7.541 .815 9.253 .000
It took me lots of time to
learn how to use mobile
banking services.
.103 .041 .274 2.530 .016
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When transferring money
through mobile banking, I am
afraid that I will lose money
due to careless mistakes
such as wrong input ofaccount number and wrong
input of the amount of money
-.401 .064 -1.247 -6.224 .000
I think the registration fee is
higher than other operators-.507 .193 -1.230 -2.621 .013
Is the transaction fee more
than more than any other
operators?
.411 .178 .908 2.313 .026
Transactions reach on time
(instantly)-.424 .075 -.581 -5.646 .000
I believe banks are
trustworthy in maintaining
mobile banking accounts
-.086 .095 -.161 -.908 .370
a. Dependent Variable: I think that it is easy to use mobile banking to accomplish my tasks.