Exploring adoption difficulties in mobile banking services

Factors associated with adopting and resisting mobile banking technologies were investigated among university students in Taiwan. Adoption factors included the belief that mobile banking helps fulfill personal banking needs, provides location-free conveniences, and is cost effective. The primary factors associated with resistance included concerns over system configuration security and basic fees for mobile banking web connections. The theoretical and applied implications of these findings are discussed. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.     

Exploring mobile banking services for user behavior in intention adoption: using new hybrid MADM model

Service Business - Mobile banking services are one of the most promising recent technological innovations. In this study, we developed a conceptual model to explore mobile banking services for user...     

Multi-dimensional role of trust in Internet banking adoption

Trust has been identified as the key to e-commerce because it is crucial wherever uncertainty and interdependence exist. The strong association between a high level of trust and the banking sector has not yet been fully translated in the electronic world. The aim of this article is to develop and validate a multi-dimensional model of trust for Internet banking. The data are collected through 441 Internet banking users of Halifax Bank of Scotland. Findings suggest that trust and perceived risk are direct antecedents of intention, and trust is a multi-dimensional construct with three antecedents: perceived trustworthiness, perceived security, and perceived privacy.     

Mobile banking: Exploring determinants of its adoption

As accessibility of technology, availability of information, and ability to interact through the Internet increase and evolve, more people are gravitating toward increasing their use of the Internet. Although the number of Internet banking users has grown rapidly in recent years, not all customers are ready to accept mobile banking services. It remains a challenge for banks to explore how to attract more customers to adopt the use of banking services via a mobile channel. This study examines the factors that impact acceptance of the use of mobile banking. A total of 309 subjects participated in this study. Data were collected via a survey instrument. A multiple regression analysis was used to analyze the data. Findings suggest factors that banks should consider when implementing mobile banking services, thus allowing them to design services that meet the needs of their customers.     

Consumer guilt and green banking services

Banks offer loans to support many projects; however, some of these projects may not give adequate consideration to the environment. Little is known regarding the extent to which banking customers experience guilt when discovering that their bank supports projects that disregard the environment. An experiment with 313 participants was conducted, and the results showed that customers do experience guilt when discovering that their bank supports projects that do not give adequate consideration to the environment. This study found that guilt drives perceived consumer effectiveness and negative word‐of‐mouth regarding banking projects that neglect environmental considerations but not attitudes towards green banking. Negative word of mouth, but not the attitude towards green banking, mediates the effect of perceived consumer effectiveness on the intention to use green banking services. Negative word‐of‐mouth, rather than attitudes towards green banking and its perceived consumer effectiveness, drives the intention to use green banking services. These findings imply that banks need to encourage their customers to perceive that they are eco‐friendly to avoid a significant loss of customers.     

Key influencers and inhibitors on adoption of the Internet for banking

The focus on new technologies in service situations is growing and is of particular importance in financial services contexts. It is argued that there is mutuality of benefit for both bank and customer through the adoption of self-service technologies (SSTs), of which e-banking is but one example. While the economic imperative for banks’ adoption of e-banking solutions is clear, the value proposition for the customer can be less evident. It is proposed that the value proposition on offer through e-banking could be better conveyed to customers were banks to have a greater understanding of the appropriateness of the on-line medium for products as they varied according to complexity level. This paper reports on a study which examined customer-stated propensity to purchase financial products on-line at varying levels of complexity. Findings underline the importance for banks to achieve a customer-oriented balance between face-to-face relationship-managed activity and online enablement and to understand now this balance varies according to customer and complexity of product. Strategic marketing implications for the case bank are discussed.     

Pricing of card payment services in Scandinavian banking

Pricing of card payment services includes many considerations of cost and revenue in an environment of changing payment technology, network effects in two-sided markets and price bundling. This paper describes the consumer pricing methods for card payment services by Scandinavian banks and evaluates their explicit pricing methods. The main findings suggest that Scandinavian banks in general are more interested in earning revenue from implicit prices than in encouraging the use of more cost efficient technology by charging explicit transaction fees. However, the pricing methods applied may vary, depending on the country and a bank's service supply.     

Predicting Internet banking adoption in India: a perceived risk perspective

The emergence of Internet banking has transformed the banking systems across the globe. As a channel to market, Internet banking allows geographical constraints to be overcome by offering various products and services at lower customer costs. An understanding of the factors influencing customer adoption of Internet banking is both relevant and timely. This study integrates technology acceptance model and perceived risk theory in understanding Internet banking acceptance among Indian bank account holders. Specifically, this study categorizes perceived risk as external risk and internal risk, and examines its influence on customer beliefs and adoption of Internet banking. Using two-step predictive analytics of structural equation modeling and artificial neural network analysis, the 270 responses reveal that both external risk and internal risk inhibit customer acceptance of Internet banking. More importantly, neural network analysis reveals that perceived ease of use and external risk are two important factors determining how well Internet banking is accepted by customers. The implications of the study findings and future research directions are presented.     

Consumers’ perspectives on online banking services

The forces of economic change, coupled with advancements in technology, prompt banks to rethink their use of traditional branches and begin forming new partnerships to deliver financial services. The Internet seems to be the new delivery channel in the banking sector. Factors such as the security of personal data or the reliability of a financial institution have been identified by previous studies as the determinants of electronic‐banking adoption. In this paper, a series of new factors, such as the difficulties of using the Internet, are shown to play a crucial role in the consumer’s attitude – adoption or rejection – of this new alternative channel. We examine consumer behaviour by modelling multivariate categorical response data using a generalized linear model. Our choice model is based on the assumption that an individual’s decision to use electronic services depends on a number of explanatory variables, and we try to estimate the factors that affect an individual’s decision to use online services.     

Towards a model of adoption in internet banking: Strategic communication challenges

It has been established that increasing the role of technology in a service organisation can serve to reduce costs and often improve service reliability. It remains the case however that there is an important role for personalised relationships in the delivery of any service proposition. Throughout this paper both of these perspectives will be discussed. The key managerial challenge exists in establishing an appropriate balance between remote and personal interactions where both customer and provider needs are met. Quantitative findings derived from over 2,000 retail bank customers categorised as high net worth and low net worth indicate that while all see Internet banking as important irrespective of their relationship status, neither group surveyed shows a desire to replace face-to-face interaction with e-banking solutions. The strategic communications challenges in managing this paradox are discussed.     

Impact of online convenience on mobile banking adoption intention: A moderated mediation approach

The purpose of this study to investigate the effect of online convenience dimensions on mobile banking (m-banking) adoption intention using a comprehensive moderated mediation framework. A total of 446 responses from Indian banking users were received using systematic sampling. The covariance-based structural equation modelling and PROCESS macro were used to examine the hypotheses. The results indicated that access convenience, transaction convenience, benefit convenience, and post-benefit convenience have a crucial impact on m-banking adoption intention. The perceived hedonic values and perceived utilitarian values mediate the effects of convenience dimensions on m-banking adoption intention. The study's findings will help banks to identify which dimension/s of online convenience they should focus on over m-banking platforms to enhance adoption intention. As, “Convenience” plays a crucial role in mobile commerce adoption intention. This study attempts to examine how convenience dimensions affect m-banking adoption intention.     

Driving factors of post adoption behavior in mobile data services

Although research interest in post adoption behavior of ICT (Information and Communication Technology) users increases from year to year, few studies examine how motivational factors and service type influence post adoption behavior. This study investigates the antecedents of post adoption behavior in the Mobile Data Services (MDS) domain. The study conducted a nationwide online survey in Korea to verify the proposed research model that includes motivational factors and service type. Two extrinsic motivation factors (post usefulness and post monetary value) and two intrinsic motivation factors (post ease of use and post enjoyment) are the main components of the motivational factors. The results of the study reveal that the motivational factors and service type influence the post adopter type in the MDS context. The findings of this study help provide guidelines for MDS providers to select a target market and to devise a strategy that meets the stated objectives of the selected market.     

Pricing of card payment services in Scandinavian banking: a comment

Willesson [(2009). Pricing of card payment services in Scandinavian banking. The Service Industries Journal, 29(3), 387–399] purports to demonstrate that when it comes to pricing of card payment services, Scandinavian banks with foreign operations will typically align themselves with the ‘pricing tradition’ in their foreign market(s). Unfortunately, a problem with Willesson's approach is that for several banks in his sample the foreign pricing tradition happens to coincide with the pricing strategy that the bank uses in its home market. As a result, it is impossible to determine whether these banks have really opted for a strategy of national responsiveness.     

A cross‐national investigation of trait antecedents of mobile‐banking adoption

Although there is a near agreement in the literature on the main predictors of consumers' attitudes toward technological innovation, the potential ways through which personal traits and national environmental differences contribute to significant variations in mobile‐banking adoption have received limited attention. Based on insights from innovation adoption and personality research, this study tested a model of mobile‐banking adoption using data from a developed and a developing country. Survey data came from a sample of 1,340 participants from the United Kingdom and Ghana. The results indicate that intrinsic traits are stronger in explaining consumers' attitude toward mobile banking in Ghana than in the United Kingdom. However, no significant variance between the two countries was observed with regard to the mediation effect of consumers' attitude on the intention to use mobile banking. The practical and theoretical implications of this study are discussed.     

Customer behavioural intentions towards mobile money services adoption in Ghana

This study examined the determinants of mobile money service usage intentions and assessed the effect of social influence (SI) on mobile money services adoption and behavioural intentions (BIs). The sample of the study comprised 300 mobile money service users in Ghana. Guided by the conceptual framework and two theories identified to have an effect on technology adoption and consumer behaviour, eight hypotheses were developed and tested using Structural Equation Modelling Techniques. It is discovered that perceived ease of use, perceived usefulness, perceived trust and perceived cost of use have a strong influence on mobile money service usage. The study found SI to have a significant effect on the adoption and BI. Providers ensure that their mobile application services are simple to operate, fulfil specific consumers’ needs, protect consumers’ accounts to ensure trust and are affordable, hence positively influencing consumers’ adoption of services.     

Explaining adoption of mobile banking with the theory of trying,general self-confidence,and cynicism

Drawing upon the theory of trying, the present study goes a step further by including two important, but rarely addressed factors in the context of new technology adoption: general self-confidence and cynicism. Both of these variables are considered significant precursors of attitudes, particularly in the context of emerging and developing countries. The data were collected from 557 bank customers and then analyzed using Smart PLS. The findings reveal that intention of adopting mobile banking is determined by attitude toward mobile banking, which in turn is determined by attitude toward success, attitude toward failure, and attitude toward learning to use mobile banking. The last three attitudes are significantly influenced by general self-confidence and cynicism.     

Gender differences in the impact of banking services: evidence from Mexico

This paper examines the effects of providing financial services to low-income individuals on entrepreneurial activity, employment, and the income levels of men and women. We exploit cross-time and cross-municipality variation in the opening of Banco Azteca in Mexico to measure these effects with a difference-in-difference strategy. This bank opened over 800 branches simultaneously in 2002, focusing on low-income clients. Our results show that this led to an increase in the number of informal business owners among men and to an increase in wage-earning opportunities for women. Average income levels also increased, with this increase being twofold higher for women than for men.     

Predicting direct marketing response in banking: comparison of class imbalance methods

Customers’ response is an important topic in direct marketing. This study proposes a data mining response model supported by random forests to support the definition of target customers for banking campaigns. Class imbalance is a typical problem in telemarketing that can affect the performance of the data mining techniques. This study also contributes to the literature by exploring the use of class imbalance methods in the banking context. The performance of an undersampling method (the EasyEnsemble algorithm) is compared with that of an oversampling method (the Synthetic Minority Oversampling Technique) in order to determine the most appropriate specification. The importance of the attribute features included in the response model is also explored. In particular, discriminative performance was enhanced by the inclusion of demographic information, contact details and socio-economic features. Random forests, supported by an undersampling algorithm, presented very high prediction performance, outperforming the other techniques explored.