IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
The IUP Journal of Bank Management
Factors Influencing the Usage of Mobile Banking Among Customers
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

This paper investigates the factors that influence the usage of mobile banking for availing banking products and services. A self-administered questionnaire had been developed and distributed among the customers of a major public sector bank of India. The response rate was 60% and the results were subsequently analyzed using multiple regression. The influencing factors were analyzed under five major factors: perceived risk, compatibility of software, customer profile, external threat and relative advantage, under which several other factors have been explored. Factors like rural customers’ aversion to adopting mobile banking services and external threats like phishing and hacking were found to be negatively related to the usage of mobile banking as threats make the users confused about their transaction security in using mobile banking. While factors like education, transaction risk, perceived risk and compatibility of software were significantly and positively related with the intention to use mobile banking services, financial risk was the only factor found insignificant.

 
 
 

Mobile banking is an application which enables customers to access bank accounts through mobile devices to conduct and complete bank-related transactions such as checking account status, transferring money and selling stocks (Kim et al., 2009). Luo et al. (2010) defined mobile banking as an innovative method for accessing banking services via a channel whereby the customer interacts with a bank using a mobile device. The use of mobile banking can make basic financial services more accessible to low-income people, minimizing the time and distance to the nearest retail bank branches (CGAP, 2006). The outstanding growth of mobile sector worldwide has created a unique opportunity to provide social and financial services over the mobile network. With over 4 billion mobile cellular subscriptions worldwide, mobile network has the ability to immediately offer mobile banking to 61% of the world population (Sultana, 2009). Earlier studies in this regard have provided different results as Wu and Wang (2005), in a study on middle-class population, found that cost had minimal significant impact on the adoption of mobile banking while perceived risk, compatibility and perceived usefulness have significant influences. On the other hand, Karnani (2009) argued that cost plays an important role in choosing mobile banking. Mattila (2010) as cited in Kabir (2013) identified that the most important attribute in encouraging the use of mobile banking was related to the costs of conducting banking (mean 4.38, standard deviation 2.15).

 
 
 
Bank Management Journal, Factors Influencing, Usage of Mobile Banking