Review of Literature - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33785/2/...Laukkanen.T &Kiviniemi. V (2010)6 in their empirical study focus on adoption barriers of M-Banking,

Review of Literature

Please purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

30

CHAPTER II

REVIEW OF LITERATURE

2.1 Introduction

This chapter is relevant to refer briefly to the previous studies and research in the

related areas of the subject because it helps to find out and to fill up the research gaps, if

any.The collection of reviews has been made from various studies undertaken by the

academicians, practitioners, researchers from time to time. These reviews will enlighten

the existing knowledge of the researcher. Besides, the reviews of empirical studies

explore the avenues for present and future research related to the subject matter. In order

to understand the research problem the earlier attempts made by the various authors are

needed to be studied. The past studies guide the researcher for getting a better understanding

about the need of research, methodology, identification of variables, sampling group, and

instrument on collection of data, lucid interpretation and reconciliation of the conflicting

results. In case of conflicting and unexpected results, the researcher can take the

advantage and he is given the medium of their published works.

Different authors had analyzed M-Banking in different perspectives and the

detailed analysis of the related literature promotes a greater understanding of the problem

at hand and design of the study. It also provides a theoretical base for the research and

helps the researcher to conceptualize the problem and to choose the design of the present

study. Therefore, this chapter discusses the available studies of M-Banking (including a

few numbers of other electronic channel/Information Technology) during the period from

1987-2010 in various countries like India, Singapore, Indonesia, Thailand, Nigeria,

Oman, Kenya, Brazil, German, Ghana, Philippines, South Africa, Taiwan, Korea, China,

Bangladesh, Finland, Saudi Arabia, Australia and others.

2.2 Related Reviews

Akinyele S.T &Olorunleke. K (2010)1 carried out an empirical research for the

purpose of establishing the relationship of technology and service quality as well as

factors that lead to customer preference of electronic channels among the Nigerian

1 Akinyele S.T &Olorunleke. K (2010): ―Technology and Service Quality in the Banking Industry: An

Empirical Study of Various Factors in Electronic Banking Services‖, International Business Management,

Vol. 4, No. 4, pp. 209-221


31

customers using cross-sectional survey design. This study says that fewer customers

adopted mobile technology-enabled banking services than the ATMs and Internet

banking. In addition twelve out of eighteen service qualities are negatively related with

M-Banking (216-217). Moreover, this study reported that customers seek their satisfaction

areas through E-Banking like security, efficiency, accurate records, convenience and

accurate transactions.

Cruz. P &Laukkanen. T(2010)2in their article explain the obstacles or inhibiting

drivers to the adoption of M-Banking among the various group of Brazilian Internet users

and search for patterns according to personal profile. This study made to each attribute of

the reasons for non-usage of M-Banking is statistically tested with gender, age, income

and education (357). This study found that perception of cost, risk, low perceived relative

advantage and complexity were revealed to be the main reasons behind the reluctance to

use the M-Banking service.

Hernan E. Riquelme and Rosa E. Rios (2010)3 have done a research for the aim

of finding out to factors influencing the adoption of M-Banking between the male and

female users of internet banking services in Singapore. The responses collected from the

681 users about intense to use, relative advantage of mobile device, ease of use, risk,

social norms and usefulness. This study found that perception risk is negatively

associated with intention to adopt mobile phone for banking services. Further, usefulness

and social norms are the factors that influence the intention to adopt mobile banking

services. Relative advantage of mobile device and ease of use indirectly influence the

perception of usefulness. The survey reveals female users electronic banking perceive

that ease of use leads to the more usefulness of the mobile device to conduct banking

services. Based on the gender variable, ease of use has a stronger influence on female

respondents than male, whereas relative advantage has a stronger effect on the perception

of usefulness on male respondents.

2 Pedro Cruz &TommiLaukkanen (2010): ―Mobile banking rollout in emerging markets: evidence from

Brazil‖, International Journal of Bank Marketing, Vol. 28 No. 5, pp. 342-371 3 Hernan E. Riquelme and Rosa E. Rios (2010): ―The moderating effect of gender in the adoption of mobile

banking‖, International Journal of Marketing, Vol.28, No.5,pp 328-341.


32

Kirui, O.K, Okello, J.J, and Nyikal, R.A (2010)4 carried out an empirical

research with the aim of assessing the awareness of M-Banking services of the small

farmers (191 Male &188 Female) and their use of M-Banking services in three Districts

of Kenya. This study found that 96.3% of the farmers were aware of mobile phone–based

money transfer services (M-Banking). In addition, this study reported that awareness of

the mobile-based money transfer service differs among the three districts of Kenya (9).

There is radio plays a dominant role in creating an awareness among the smallholder

farmers because more than half of the farmers learned about the mobile phone –based

money transfer service through this media. Furthermore, only 52% of the farmers have

used the M-Banking services. Finally, it is concluded that awareness level of M-Banking

is high among the farmers and their usage level is much lower.

Koo. C &Wati. Y (2010)5in their empirical study used 100 respondents (faculties,

staff and students) having experience under M-Banking in Indonesia. This study reveals

that highest percent of mobile banking user concerns security (1810) and importance of

trust in M-Banking environment, because it is the effects of information quality to

perceived usefulness and end-user satisfaction.

Laukkanen.T &Kiviniemi. V (2010)6 in their empirical study focus on adoption

barriers of M-Banking, Finland in terms of five different barriers (373). This study

collected data from 1551 internet banking customers. The authors are conclude that

information and guidance offered by the bank through M-Banking is reduced to usage,

value, image and risk barriers. This is followed by less relation of image barrier but not

the tradition barrier towards adoption of M-Banking (380-383).

4 Kirui, O.K, Okello, J.J, and Nyikal, R.A (2010): ―Awareness and use of m-banking services in

agriculture: The case of smallholder farmers in Kenya‖, Paper prepared for presentation at the 3rd

African Association of Agricultural Economics, AAEA/ AEASA Conference, Cape Town, South Africa,

19-23 September. 5 Chulmo Koo &YuliaWati (2010): ―Toward an Understanding of the Mediating Role of ―Trust‖ in Mobile

Banking Service: An Empirical Test of Indonesia Case‖, Journal of Universal Computer Science, vol. 16,

no. 13,pp. 1801-1824 6 TommiLaukkanen &Vesa Kiviniemi (2010): ―The role of information in mobile banking resistance‖,

International Journal of Bank Marketing, Vol. 28 No. 5, pp. 372-388


33

Lewis N.K, Palmer. A &et.al (2010)7 investigated the adoption of M-Banking

services using a sample of German young consumers through online survey and for

which convenience sampling method was adopted. This study reveals that more number

of male consumers are more likely to use M-Banking than women consumers. The authors

statistically reported that there is a difference of usage of M-Banking between male and

female customers. Users of smart phones are more possible to use M-Banking than others

and it was statistically proved.

The authors focused on Technology Acceptance Model (TAM) regarding M-Banking

adoption. TAM concludes that perceived usefulness and compatibility have positive

effect on intention to adopt M-Banking (420-421).

Li Ying. L & Can. Z (2010)8 studied consumer decision regarding adoption of

M-Banking financial services with the sample of 132 Chinese respondents and those

respondents were selected through non-random sampling technique. This study focuses

on five different factors like, perceived usefulness, perceived ease of use, attitude,

behavioural intention, perceived usability, consumption concept and consumer experience

regarding adoption of M-Banking. The authors conclude that development of M-Banking

technology-enabled financial services is easier, when banks provide more stable and

secured of financial products, enhancing the consumer perception of ease of use, perceived

usability, forcing the usage behaviour of intention of financial services. In addition,

M-Banking is to reduce human wastage and financial strength of the bank branches.

Mohammad Saifullah Sadi A.H & Azad. I (2010)9 empirically assesses the

user‘s perception of M-Banking in Sultanate of Oman. For this purpose 196 questionnaires

were collected from businessmen, bank academics and students. This study concludes

that a small percentage (41.8%) of respondents intends to use mobile phone for their

banking activities and nearly half of them are aware of Short Message Service banking (9).

7 Nicole Koenig-Lewis, Adrian Palmer and Alexander Moll (2010): ―Predicting young consumers‘ take up

of mobile banking services‖, International Journal of Bank Marketing, Vol. 28 No. 5, pp. 410-432 8 Li Ying & Zhang Can (2010): ―Customer‘s Adoption Decision Analysis of MobileBanking Service‖,

International Conference Proceedings on Management and Service Science (MASS), (IEEE Conference) pp. 1-4 9 Ali Haider Mohammad SaifullahSadi& Imran Azad (2010): ―The Prospects and User Perceptions of

M-Banking in the Sultanate of Oman‖, Journal of Internet Banking and Commerce, Vol. 15, no.2, pp. 1-11


34

Moreover, most of the respondents stated that the security (60.2%) and expenses (44.9%)

under M-Banking is a major problem of using this facilities but not for difficult to

perform functions through mobile device under M-Banking (16.3%).

Puschel. J, Mazzon J.A & et.al (2010)10

in their study determine the influencing

factors of M-Banking adoption in the Brazilian context through the distribution of equal

samples between user and non-user of M-Banking using convenience sampling method

(395). It says that a number of M-Banking users of young male customers than female

customers. Furthermore, users‘ perception regarding M-Banking and it helps to check the

account balance (52%), bill payment (24%) buying mobile pre-paid credits (16%) and

transferring amounts (10%) (397).

In addition, attitude, technology facilitation condition, perceived behavioral

control, self-efficacy and relative advantage have larger effect on the adoption of M-

Banking among the non-users of M-Banking. On the other hand, medium effect on the

perceived ease of use and less effect on the relative advantage influenced the adoption of

M-Banking (398-404).

Termsnguanwong. S (2010)11

in his empirical research explains the customers‘

discernment of M-Banking in Thailand through their level of satisfaction. The study

focuses on three different parameters like trust in using M-Banking, reasons for non-

usage of M-Banking and importance of diverse of M-Banking service. This study reveals

that 2/3rd

of the M-Banking users and most of them agreed that M-Banking service is

more convenient to branch banking because it gives faster transactions and ease of use.

Further, this study says that most of the customers in Thailand prefer branch banking

rather than mobile banking (9). Checking account balance is primary financial information

by the customers under M-Banking.

10

Julio Puschel, Jose AfonsoMazzon and Jose´ Mauro C. Hernandez (2010): ―Mobile banking: proposition

of an integrated adoption intention framework‖, International Journal of Bank Marketing,Vol. 28 No. 5,

pp. 389-409 11

SupathanishTermsnguanwong (2010): ―Customers' Discernment of Mobile BankingBusiness : Northern

Region of Thailand‖,International Trade & Academic Research Conference (ITARC), - London, pp. 1-12


35

Thomas Ogoro Ombati, Peterson Obara Magutu and et.al (2010)12

carried out

a research through the cross-sectional survey design which questioned respondents on

E-Banking (ATM, Mobile and Internet Banking) services. The respondents of the study

were customers of banks who are using E-Banking services and it can be revealed that more

than 7/10th of the customers in Nairobi do not use M-Banking facilities. In addition, most of the

service quality dimensions (immediate financial transaction, secure services etc.,)

are negatively related (159) with M-Banking.

Uppal (2010)13

discussed M-Banking services of various bank groups in India

with the purpose of investigating the extent of M-Banking among the various e-channels

through average percent during the period from 2000-2001 to 2006-2007. It reveals that

SBI group of banks, nationalized banks and old private sector banks have less percent of

branches providing the services of M-Banking. On the other hand, nearly 2/3rd

of the new

private sector bank branches and nearly half of the branches of foreign sector banks

provide M-Banking based financial service to their customers.

Moreover, nearly 15% of the SBI and its associate bank branches provide

M-Banking facility. But, the number of bank branches of providing M-Banking services

was increased except in the year of 2005 – 2006. This is followed by nationalized banks,

8.55% of branches providing the services of M-Banking. But, nationalized bank

branches‘ providing M-Banking services was moderately increased. Furthermore, only

13.27% of old private sector bank branches provide the facility of M-Banking (031-032).

In addition, this study analyzes the extent of M-Banking usage among the various

groups of the banks through the number of usage customers. It is concluded that new

private sector (49,93,811 Customers) has strong position compared to other groups in the

year of 2006 – 2007. Foreign banks (10, 56,065 Customers) and SBI group of the banks

12

Thomas OgoroOmbati, Peterson ObaraMagutu and et.all (2010): ―Technology and Service Quality in the

Banking Industry- Importance and Performance of Various Factors Considered in the Electronic Banking

Services‖, African Journal of Business & Management, Vol. 1,PP 151-164. 13

Uppal, R.K (2010): ―Emerging issues and strategies to enhance M-banking services‖, African Journal of

Marketing Management, Vol. 2(2) , February, pp. 029-036.


36

(8,666,77 Customers) gained second and third position respectively. On the other hand,

nationalized banks (4, 631, 41 Customers) and old private sector banks (99,431 Customers)

have a few customers using M-Banking.

Wessels . L & Drennan . J (2010)14

assessed through an empirical research using

national web-based survey and the selection of e-mail address of the respondents through

stratified random sampling method (553). This study found that perceived usefulness,

perceived risk, cost and compatibility of M-Banking affect the customer acceptance.

Barati.S & Mohammadi.S (2009)15

empirically explore the affected factors on

acceptance of M-Banking through the Technology Acceptance Model. In this work

considered innovation

resistance will have a

negative effect on

acceptance of M-

Banking. Furthermore,

remaining factors

positively affect the

success of M-Banking

and it is illustrated in the figure 2.1.

Figure – 2.1: Proposed Technology Acceptance Model

Chu.S & Yao-bin. L (2009)16

empirically investigate the impact of trust in online

banking on the initial trust in M-Banking with respect to structural assurance, compatibility

and relative advantage of intention to use M-Banking through the 313 cell-phone users who

have got experience under online banking. This article explains that trust in online banking is

important to trigger customers‘ positive perception about M-Banking (208).

14

Lisa Wessels and Judy Drennan (2010): ―An investigation of consumer acceptance of M-banking‖,

International Journal of Bank Marketing, Vol. 28 No. 7, pp. 547-568 15

Samaneh Barati , Shahriar Mohammadi (2009): ―An Efficient Model to Improve Customer Acceptance

of Mobile Banking‖, Proceedings of the World Congress on Engineering and Computer Science, Vol. II,

WCECS 2009, October 20-22, San Francisco, USA. ISBN:978-988-18210-2-7 16

Shan chu& Lu yao-bin (2009): ―Trust transference in mobile banking: an investigation of the initial

trust‖, IEEE Computer Society, IITA International Conference Proceedings on Services Science,

Management and Engineering, pp. 204-208


37

Crabbe. M, Standing. C &et. al (2009)17

conducted an empirical research for the

purpose of examining the reasons for the adoption and non-adoption of M-Banking in Ghana

among the owners of small and medium enterprises, importer/exporters, retailers/wholesalers,

public servants in banks and other financial institutions using systematic sampling method.

This study reveals that nearly 1/4th

of the respondents are using M-Banking system and the

remaining is using various e-channels except M-Banking. But, most of the users of

E-Banking channels use M-Banking services mainly to make enquiries of account balance.

The various factors like, promote short-term usefulness, ease-of-use, credibility and

facilitating conditions would promote attitude towards M-Banking by the users. Further,

regression model explains thirty percent of the variance of attitude explains two factors viz,

perceived credibility and facilitating conditions by the users of M-Banking. It implies that

M-Banking users give foremost importance to the credibility of banks and organizational

support needed to use the service effectively (530). The non-users of M-Banking give

importance to perceived usefulness, sustained usefulness, facilitating conditions, credibility

and perceived ease of use individually correlated with their non-adoption of M-Banking.

Dewan S.M & Dewan A.M (2009)18

identified choice of banking channels

among the young consumers (between 18-30years) of mobile phone users in urban area,

Bangladesh. For this purpose, five hundred responses were collected through

convenience sampling method. This study found that mobile phone is more a preferred

channel of conduct banking transaction than bank branch, ATM, Internet and Phone

(124). In addition, the highest percent of the youngsters used their preferred channel for

the purpose of enquiring the balance.

Indrani. M, Aishwarya. R &et. All (2009)19

examine adoption and usage of

existing M-Banking services by low-literate, low-income individuals and possible factors

responsible for the same in the developing world like India (26), Kenya (11), Philippines (30)

17

Margaret Crabbe, Craig Standing and Susan Standing (2009): ―An adoption model for mobile banking in

Ghana‖, Int. J. Mobile Communications, Volume 7, No. 5, 2009, pp 515-543. 18

Saifullah M Dewan&Ahsanullah M Dewan (2009): ―Young Consumers‘ M-banking Choice in Urban

Bangladesh: Preliminary Indication‖, Proceedings of 12th

International Conference on Computer and

Information Technology (ICCIT 2009),December, Dhaka, Bangladesh, pp. 121-126. 19

IndraniMedhi, AishwaryaRatan, Kentaro Toyama: ―MobilE-Banking Adoption and Usage by Low-

Literate, Low-Income Users in the Developing World‖, Available from:http://research.microsoft.com/en-

us/people/indranim/hcii2009_medhi_ratan_toyama.pdf


38

and South Africa (23) through ninety interviews. This study found that lack of awareness

level regarding availability and features of M-Banking services affect the adoption of

M-Banking. Especially, in India 22 out of 26 interviews had never heard of M-Banking

channels. Further, based on the perception collected from interviews by awareness groups

and it is felt expensive under M-Banking based financial service.

Laforet. S (2009)20

in his research study raised some of the issues related to

M-Banking among the Chinese consumers. The 128 consumers are randomly selected

between users and non-users of M-Banking. This study reported that a small percent

(14%) of the respondents used M-Banking facilities in China and those users spread

among the salaried employees, senior managers and smaller proportion of small

businessmen in the age group of 25-34 years. None of the students and retired persons used

this facility in China (34). This study concludes that reference group is not influenced on

mobile banking adoption in China. In addition, statistical result suggests that there is no

difference between user and non-user of M-Banking with respect to type of mobile

phone, personal banking experience, prior computer experience, novelty and usefulness.

Lee. K and Chung. N (2009)21

argues that customers‘ trust and satisfaction under

M-Banking with respect to system quality, information quality and interface design quality in

Korea. They reported that trust and satisfaction of customers depends upon the availability of

reliable and appropriate information (system quality and information quality).

Liu . Z, Min. Q &et.all (2009)22

in their empirical study focus on intention to use

of M-Banking through the Technology Acceptance Model (10). For this purpose 438

respondents were used and this study reported that perceived usefulness and trust have

more influence on the intention to use of M-Banking by the individuals.

20

Sylvie Laforet (2009): ―Chinese Consumers‘ Attitudes and Adoption of Online and Mobile Banking‖, The

China Information Technology Handbook, P.O. de Pablos, M.D. Lytras (eds.), DOI: 10.1007/978-0-387-

77743-6_3, © Springer Science + Business Media, LLC 2009, pp. 23-40

21Kum Chang Lee &Namho Chung (2009): ―Understanding factors affecting trust in and satisfaction with

mobile banking in Korea: A modified DeLone and McLean's model perspective‖, Interacting with

Computers, Volume 21, No, 5&6, pp 385-392.

22Zhenhua Liu, Qingfei Min and ShaoboJi (2009): ―An Empirical Study on Mobile Banking Adoption: The

Role of Trust‖, IEEE Computer Society, Proceedings on Second International Symposium on Electronic

Commerce and Security, pp. 7-13


39

Min. S &Fei. C (2009)23

theoretically study M-Banking in China and its

restriction factors for development of M-Banking like technical problem (security anti-

interference, data integrity, disaster recovery, and convenience), complex and difficult to

understand of mobile phone, inefficient of operation, unavailability of wide range of

users and their needs is the main factor for non-usage. The authors suggest that creating

awareness of M-Banking is a major factor for its successful operation. This study

concludes that the number of M-Banking user size is small because China will have a

wide range of mobile phone based applications with good development.

Nyangosi. R &Arora J.S (2009)24

studied for the purpose of inspecting the adoption of

information technology (including Short Message Service banking) of the Kenyan customers

through electronic mailed survey. This study reveals that SMS (Short Message Service) banking

is less preferred channel than the ATM, Debit/Credit, Internet and Tele-banking (6).

Uppal R.K (2009)25

carried out a research for the purpose of comparing the

customer service among the public, private and foreign sector banks with respect to time

factor about cash withdrawal, en-cash bank draft, cash deposit, get a new cheque book,

purchase bank draft, open fixed deposit account, get local cheques in account and

outstation cheques credit to the account. 768 customers were randomly selected among

the various sector of banks in Amritsar District and selected banks divided into partially

and fully Information Technology (IT) enabled banks. This study concludes that time is

foremost factor, because it affects the quality and reputation of the banks.

Yang A.S (2009)26

in his study aims to adopting and resisting factors of M-Banking

among the university students in Taiwan and its sampling design is systematic. This study

concludes that speed of transactions and special reductions in transaction services are

23

Sheng Min & ChiFei (2009): ―Research of mobile banking service in China—A cross rode of

communication technology and financial innovation‖, International Conference Proceedings on

E-Business and Information System Security(EBISS), IEEE Conference pp. 1- 5

24Richard Nyangosi & Arora J.S (2009): ―Emergence of Information Technology in the Kenyan banking

Sector: An empirical study‖, available from: http://www.gbmf.info/2009/Emergence%20of%20

Information% 20Technology%20_Nyangosi_Arora.pdf

25Uppal R.K (2009): ―Customer Service Indian Commercial Banks‖, Asia-Pacific Journal of Social

Sciences, Vol.1, No.1, Jan-June, pp. 127-141.

26Ann Shawing Yang (2009): ―Exploring Adoption Difficulties in Mobile Banking Services‖, Canadian

Journal of Administrative Sciences, Volume 26, pp 136–149.


40

motivating factors among the students for their adoption of mobile phone based banking

transactions. On the other hand, system configuration (security code) and fees charged by

banks are the inhibiting factors for non-adoption of M-Banking.

Yu.T.K & Fang. K (2009)27

assessed the perception of post-adoption of M-

Banking by the 458 M-Banking users in Taiwan and collected perception through the

twenty three items measures on five-point agreement scaling technique. This research

work observed six factors using explorative factor analysis regarding post-adoption of M-

Banking by the customers. The factors consist security service, interactivity, relative

advantage, ease of use, interface creativity and customer satisfaction. It is argued that

customers post-adoption index about M-Banking is 82.786. This index explained that the

customers are expecting all the six factors under M-Banking services.

Ivautry .G & Mas. I (2008)28

observed involvement of M-Banking regarding

cost reduction by the banks and customers. Further, it helps to branchless banking which

lowers costs of serving poor or low-income customers when the distribution of financial

services made through m-payment/M-Banking. Moreover, there is a reason to believe

that M-Banking will find more than a niche application and become the primary banking

channel for large segments of the population (13).

Jahangir. N & Begum. N (2008)29

in their cross-sectional study focussed on the

role of influencing factors for adaptation of E-Banking among the electronic banking

users of private commercial banks in Bangladesh. They examined the perceived usefulness,

perceived ease of use, security and privacy and customer attitude towards E-Banking

which are positively customer adaptation (036).

27

Tai-Kuei Yu &Kwoting Fang (2009): ―Measuring the Post-Adoption Customer Perception of Mobile

Banking Services‖, CYBERPSYCHOLOGY & BEHAVIOR, Volume 12, No.1, pp 33-35.

28 GautamIvautry&Ignalco Mas (2008): ―The Earlier Experience with Branchless Banking‖, Focus Note,

CGAP, No. 46 available from: http://www.cgap.org/gm/document-1.9.2640/FN46.pdf

29 Nadim Jahangir &Noorjahan Begum (2008): ―The role of perceived usefulness, perceived ease of use,

security and privacy, and customer attitude to engender customer adaptation in the context of electronic

banking‖ African Journal of Business Management, Volume2 , No.1, pp 032-040.


41

Baker E.W, Al-Gahtani S.S & et.al (2007)30

carried out an empirical study with

the purpose of finding out the effects of gender, age and education towards new

technology implementation among the knowledge workers in technologically developing

country (Saudi Arabia) using the Theory of Planned Behavior (TPB). This study reported

that the attitude, subjective norm and perceived behavioural factors influenced the use of

new technology. Moreover, gender category of the respondents influenced the use of new

technology (368) and increasing educational level influenced the behavioural control on

intention to use technology. This is followed by age as a moderating demographic

variable which was expected to be minimum level towards use of technology.

Daghfous.N and Toufaily. E (2007)31

assessed the adoption of E-Banking

innovations (Phone banking, M-Banking, ATM, TV banking, PC banking, Minitel,

Extranet and Internet banking) by Lebanese banks through quantitative method of survey.

The aims of this article consist adoption of various e-channels with respect to organizational,

structural and strategic factors using a sample of e- banking and information technology

managers. This study reveals that there is a low interdependence between adoption of

E-Banking innovation among the various types of banks because the Cramers V

Co-efficient comes out to be less than 0.04. Further, adoption of E-Banking innovations

considerably increase the performance of banks in terms of market share and customer

satisfaction as well as reducing administrative costs of the banks.

Laukkanen. T (2007)32

in his research conducted customers of banks‘ in Finland.

The completed study stated that M-Banking channel helps the customers check their

account balance and latest transactions immediately on 24X7. Further, this study

concludes that five inch of display is sufficient for conducting financial information

through the mobile phone by the users‘ of M-Banking. Whereas, customers expect big

size of display of the mobile phone by the non-user of M-Banking. 30

Elizabeth White Baker, Said S. Al-Gahtani&Geoffrey S. Hubona (2007): ―The effects of gender and age

on new technology implementation in a developing country-Testing the theory of planned behavior

(TPB)‖, Information Technology & People, Vol. 20 No. 4, 2007, pp. 352-375

31NaoufelDaghfous and ElissarToufaily (2002): ―The adoption of ‗E-Banking‘ by Lebanese Banks: Success

and Critical Factors‖, Available from: http://www.esg.uqam.ca/recherche/document/2007/02-2007.pdf

32TommiLaukkanen (2007): ―Bank Customers' Channel Preferences for Requesting Account Balances‖, Proceedings

of the 40th Annual Hawaii International Conference on System Sciences (HICSS'07), IEEE Computer Systems.


42

Laukkanen .T (2007)33

inspects the online customers‘ attribute, preferences in

electronic distribution channels of bill payment services. This empirical finding indicates

that education, profession, household income, long internet banking usage and large number

of internet banking usage frequency determine the potential to usage of M-Banking (403-404).

Tommi Laukkanen (2007)34

carried out a qualitative research with the aim of

exploring the use of internet and mobile fund transfer services (M-Banking). This report

says that M-Banking seeks to be the capability for immediate actions and time-saving is the

major factor for determining adoption of mobile phone based fund transfer service (792).

Laukkanen. T, Sinkkonen. S et.al (2007)35

explores the bank customers' reasons

for resisting M-Banking services in Finland using online survey between the user and

non-user of M-Banking. This study tells that tradition barrier is not an obstacle for

adoption of M-Banking. On the other hand, remaining all barriers (usage, value, risk and

image) is resistant to M-Banking adoption. Among four different barriers, value barrier is

a primary obstacle for M-Banking adoption than the others.

Tommi Laukkanen, Suvi Sinkkonen and et.al (2007),36

in Finland internet

survey focus on barriers for adoption of M-Banking with respect to the usage, value, risk,

tradition and image barriers through the perception collected from the large sample

(>1,000). The barriers related statements come negative and positive in nature and it is

collected through Seven-point Likert scaling form. This study founded that value barrier

is the strong influence to M-Banking adoption. The value barrier includes the three

different statements like the use of M-Banking services is economical, M-Banking does

not offer any advantage compared to handling financial matters and the use of M-Banking

33

TommiLaukkanen (2007): ―Customer preferred channel attributes in multi-channel electronic banking‖,

International Journal of Retail & Distribution Management, Volume 35, No. 5, pp 393-412. 34

TommiLaukkanen (2007): ―Internet vs Mobile Banking: Comparing Customer Value Perceptions‖,

Business Process Management Journal, Vol. 13, No. 6, pp 788-797. 35

TommiLaukkanen, SuviSinkkonen, MarkeKivijärvi, and PekkaLaukkanen (2007): ―Segmenting Bank

Customers by Resistance to Mobile Banking‖, IEEE Computer Society, Sixth International Conference

on the Management of Mobile Business (ICMB).

36TommiLaukkanen, SuviSinkkonenet. all, ―How Personal Values Determine Consumer Resistance to

MobileBanking?‖, Available from:http://ibacnet.org/bai2007/proceedings/Papers/2007bai7647.pdf


43

services increases the ability to control financial matters. On the other hand, traditional

barriers do not affect the M-Banking adoption because it has got lowest mean score

compared to image, risk, value and usage.

Lee C.P, Mattila. M & et.al (2007)37

in their exploratory research attempts to

explore the contributing factors to M-Banking resistance in Korea and Finland using

purposive sampling method, but sample respondents become non-users of M-Banking.

The result concludes that lack of knowledge regarding the M-Banking services is the

inhibition for non-adoption of M-Banking system in Finland. In Korean M-Banking

system, requiring new handset is one of the reasons for non-adoption of this system.

Furthermore, current E-Banking services in both the countries are significant barriers to

M-Banking services because they are having well developed E-Banking system.

In Korea, mobile operator marketing strategies play the important role for development

of M-Banking.

Lee K.S,Lee H.S & et.al (2007)38

in their article empirically identify factors

influencing the adoption of M-Banking service among the users (306 respondents) of

M-Banking through web based survey using Technology Acceptance Model (TAM). T

he authors conclude that consumers trust and perceived usefulness directly influenced to

adoption of M-Banking in South Korea. On the other hand, perceived risk does not

influence M-Banking adoption (8).

Molina. A, Consuegra D.M& et.al (2007)39

conducted their empirical research

using convenience sampling method (259) with the aim of examining the impact of relational

benefits on customer satisfaction in retail banking, in Spain. This study concludes that

confidence benefits (clear and reasonable offering of services, greater confidence and

correct functioning) as one of the retail banking customer satisfaction antecedents.

37

Cheon-Pyo Lee, MinnaMattila& Shim J.P (2007): ―An Exploratory Study of Information Systems

Resistance: The Case of Mobile Banking Systemsin Korea and Finland‖, Proceedings of Americas

Conference on Information Systems (AMCIS). 38

Ki Soon Lee,HyungSeok Lee &Sang Yong Kim (2007): ―Factors Influencing the Adoption Behavior of Mobile

Banking: A South Korean perspective‖, Journal of Internet Banking and Commerce, vol. 12, no.2, pp. 1-9 39

Arturo Molina, David Martın-Consuegra and Agueda Esteban (2007): ―Relational Benefits and Customer

Satisfaction in Retail Banking‖, International Journal of Bank Marketing, Vol. 25 No. 4, pp. 253-271


44

Shereif Mahdi M.O & Dawson .P (2007)40

discussed with dual methodological

approach like quantitative and qualitative technique regarding process of technological

change in the Sudanese commercial banking sector. The authors distributed questionnaire

to general and Information Technology (IT) managers of the banks, IT specialist,

top/senior officials, IT consultants in Sudan banking sector (190). This quantitative study

reported that IT managers have more Knowledge about IT and skill, general managers

have more managerial experience. Further, it is stated that implementation of IT in

Sudanese banks not only provide for better banking services but also to comply with the

directives of the Bank of Sudan.

In addition, qualitative survey explains that IT adoption was implemented at top

managerial level and it helps effective management decision making. But, more than

one-third of the survey respondents informed that IT had started whereas not yet been

fully implemented. Finally, it says that preference of inter on-line services for banking

services and credit card services are the least financial information medium for banking

services (191-193).

Amin. H, Abdul Hamid. M.R, and et.al (2006)41

examine undergraduate

students‘ attitude and expectations for M-Banking adoption for future trend especially

focusing on Islamic banks in Malaysia using convenience sampling method. Opinion

form of response was collected from the students regarding their attitude towards

M-Banking and students gave more importance to mobile phone saying that it was a

convenience device more for contact purpose than for other purposes. Further, students

think M-Banking service is less expensive. In addition, primary expectation of the

students over M-Banking is effectiveness of the services provided by Islamic banks

because most of students strongly agreed for this feature of M-Banking adoption.

40

Mohamed Osman Shereif Mahdi & Patrick Dawson (2007): ―The introduction of information

technology in the commercial banking sector of developing countries: voices from Sudan‖, Information

Technology & People, Vol. 20 No. 2, pp. 184-204 41

Hanudin Amin, Mohamad Rizal Abdul Hamid, Geoffrey Harvey Tanakinjal & SuddinLada (2006):

―Undergraduate Attitudes and Expectations for Mobile Banking‖ Journal of Internet Banking and

Commerce, volume 11, No.3.


45

Chris Lin J.S & Hsieh. P (2006)42

in their empirical research model explore the

relationships among the technology readiness, perceived service quality, satisfaction and

behavioral intentions toward self-service technologies by the customers in Taiwan with

the response rate of 63.4. According to their conclusion, customers have more positive

attitude toward technology, ability to use technology and willingness to adopt technology

more likely to appreciate self-service technologies, because it results in higher service

quality, which in turn enhances customer satisfaction.

Gautam Ivatury and Mark Pickens (2006)43

carried out a research on

M-Banking of the 515 low-income individuals in South Africa between users and non-

users of M-Banking services. It is found that 97% of the user participants preferred to use

new technology to conduct their financial transactions with banks. Followed by, nearly

1/4th

of the users decided against it saying that cell phone banking was difficult or

confusing to use. On the other hand, nearly 1/3rd

of the non-users feel that cell phone

banking is confusing to use irrespective of their having cell phone or not. This study

concludes that M-Banking providers enhance the awareness of their service to the low-

income customers in South Africa.

Tiwari, R., Bure, S &et.al (2006)44

explores the various avenues using the

mobile technology for expanding online banking services, as mobile based applications

gain popularity. 50 banks worldwide have been selected, half of them from Germany

during May/June, 2005. From Indian banks viz, Bank of Punjab, HDFC, ICICI banks

provide mobile phone based financial services to their customers. The authors discuss the

global scenario and technology used in mobile financial services (MFS) and its analysis

of various technologies using case study.

42

Jiun-Sheng Chris Lin & Pei-ling Hsieh (2006): ―The role of technology readiness in customers‘

perception and adoption of self-service technologies‖, International Journal of Service Industry

Management, Volume 17, No. 5, pp 497-517.

43GautamIvatury and Mark Pickens (2006): ―Mobile Phone Banking and Low-Income Customers -

Evidence from South Africa”, Consultative Group to Assist the Poor/The World Bank and United

Nations Foundation, Available from:http://www.globalproblems-globalsolutions-

iles.org/unf_website/PDF/mobile_phone_bank_low_income_customers.pdf

44Tiwari, R., Bure .S and Harstatte. C (2006): ―Mobile Banking: The Concept, Opportunities and

Challenges‖, Contributors, Vol.II, Banknet India, September, pp. 59-71.


46

Tiwari. R, Buse. S, et.al (2006)45

conducted their empirical study regarding

assessment of customer acceptance for various M-Banking services and customer‘s

willingness to pay for them in the German cities. The participant customers were in the

age group of 18 to 65 years and they gave their perceived preferences and willingness to

pay for seventeen different financial services offered in M-Banking. This study reveals

that more than half of the customers are not aware of such offers provided by their banks

and only 12% of the participants have used mobile financial services. Among them 8/10th

of the users of M-Banking facilities were male.

The authors examined the advantages and disadvantages of M-Banking based on

their customer perception. The highest percent of the M-Banking users accepted anywhere

and anytime feature of M-Banking when compared with non-users of M-Banking. On the

other hand, security is the major obstacle among the users of M-Banking compared with

expensive and uncomfortable under M-Banking based financial services.

Furthermore, this study reveals that accounting is the most preferred field and

brokerage services to be least application among the users of M-Banking service. The

authors found that the facility to remit money through mobile devices is highly preferred

financial information among all participants. Further, the following table provides

acceptance level of mobile accounting services.

Service Acceptance level

Card management Goodwill

Issuing standing orders

Scepticism Access administration

Subscribing insurances

Moreover, based on the customer opinion about various mobile financial information

services, acceptance level of M-Banking is goodwill for conducting balance enquiries.

45

RajnishTiwari, Stephen Buse and Cornelius Herstatt (2006): ―Mobile Banking As Business Strategy:

Impact of Mobile Technologies on Customer Behaviour and its Implications for Banks‖, Research paper

presented at Portland International Conference on Management of Engineering and Technology

(PICMET) and Istanbul (Turkey).


47

Tiwari. R, Buse. S, et.al (2006)46

in their bank survey conducted for the purpose

of understanding the factors that might be influencing decisions of banks in Germany

about mobile financial services (MFS) with respect to its scope, mediums to employ,

target customer groups and objectives to pursue the mobile financial services. For this

survey the data was collected from the senior management and decision-making officers

in twenty eight banks including Swiss banks through the six-point scaling technique about

the measure the importance of MFS. But, sixteen banks participated in this study and it is

reported that 3/4th

of the banks offered MFS. Further, one bank planned to launch MFS

during the study period and three banks did not offer M-Banking. The fostering innovative

image is the higher influence of M-Banking objectives compared with motivation of the

workforce, cost reduction, attracting new customers, and increasing turnover etc. Moreover,

the authors discuss against M-Banking and it revealed that lack of customer demand is

the major reason for not offering MFS.

Joseph. M, Sekhon. Y &et.al (2005)47

attempted to discover the underlying areas

of dissatisfaction associated with the banking experience among the customers in the UK,

particularly as it relates to the implementation of new service delivery technology in the

banking industry. This study says that performance of banking institutions is not

perceived as achieving a high standard, because nearly 3/5th

of the customers reported

they were satisfied with their overall electronic banking experience (407). The authors

found four factors regarding the use of technology-enabled financial services like reliable

and accurate banking services, customer service, personalized service and accurate

records. Further, this study demonstrates reliable and accurate banking services that fall

into the ―Keep up the good work‖ quadrant. This implies that location on the quadrant

where a customer believes a specific attribute is very important and they are satisfied

with the performance.

46

RajnishTiwari, Stephen Buse and Cornelius Herstatt (2006): ―Customer on the move: Strategic

Implications of Mobile Banking for Banks and Financial Enterprises‖, Research paper presented at 8th

IEEE International Conference on e-Commerce Technology, February.

47 Mathew Joseph, YasminSekhon, George Stone and Julie Tinson (2005): ―An exploratory study on the

use of banking technology in the UK: A ranking of importance of selected technology on consumer

perception of service delivery performance‖, International Journal of Bank Marketing, Volume 23, No.5,

pp 397-413.


48

Laukkanen. T (2005)48

focuses on consumer value creation in internet and

M-Banking of the E-Banking customers in large Scandinavian bank, Finland. This study

tells that forty-five customers used a fund transfer through mobile phone. Because, it

helps to use the service wherever required to enable immediate action and to save time it

is an efficient and convenient system. Further, this paper says that customer needs and

values have become more important for financial institutions, not only due to the

changing environment but also because of changed customer behavior.

Laukkanen .T and Lauronen .J (2005)49

in their exploratory research conducted

on banking customers by using a qualitative in-depth interview method found that

M-Banking service is needed to control some of the financial related matters. In addition,

this paper discusses the understanding of customer-perceived value and value creation on

the basis of attributes of mobile services and customer-perceived disadvantages of mobile

phones in electronic banking context. Further, bill payment through mobile phone is

perceived as too difficult and time-consuming as the device enables only a limited

amount of information processing and the whole bill is not visible on the display.

Luarn. P & Lin H.H (2005)50

the primary objectives of this research is to extend

the Technology Acceptance Model (TAM) by adding on one trust-based construct

(perceived credibility) and two resource-based constructs (perceived self-efficacy and

perceived financial cost) and the final TAM is given in the figure below. Primary data

were collected from respondents who attended an e-commerce exposition and symposium

held in Taiwan. This study statistically report that significant effects available between

behavioral intention to adoption of M-Banking and perceived usefulness, ease of use,

credibility, self-efficacy, financial costs. But, perceived creditability to have a stronger

influence on behavioral intention to adoption of M-Banking than the perceived usefulness

48

TommiLaukkanen (2005): ―Comparing Consumer Value Creation in Internet and Mobile Banking‖,

Proceedings of the International Conference on Mobile Business (ICMB‘05), IEEE Computer Society. 49

TommiLaukkanen and JariLauronen (2005): ―Consumer Value Creation in Mobile banking Services‖,

International Journal of Mobile Communications, Vol. 3, No. 4, pp 325-338.

50Pin Luarn&Hsin-Hui Lin (2005): ―Toward an understanding of the behavioral intention to use mobile

banking‖, Computers in Human Behavior, Volume 21(6) ,pp 873–891.


49

and perceived ease of use. They also examine security and privacy issues which are

foremost factors among the consumers at the time of using M-Banking. It reflects that

financial cost is also a significant barrier for users of M-Banking (885-886).

Figure – 2.2: Extended Technology Acceptance Model (Luarn. P & Lin H.H)

Sylvie Laforet and Xiaoyan Li (2005)51

in their empirical research paper reported

that lack of awareness among the Chinese people is the major barrier to adoption of

M-Banking services (375) and it is derived from hundred and twenty-eight samples, it is

selected through random sampling technique (371). Furthermore, this study was found

that none of the younger generation (18 – 24 Years) and students used M-Banking

services but the highest percent of the salaried employees used these services compared

with small business owners and senior managers.

51

Sylvie Laforet and Xiaoyan Li (2005): ―Consumers‘ attitudes towards online and Mobile Banking in

China‖, International Journal of Bank Marketing, Vol. 23, No. 5, 2005, pp. 362-380.

Behavioural intention

Perceived Usefulness

Perceived ease of use

Perceived Creditability

Perceived self-efficacy

Perceived finance cost


50

Wan W.N, Luk C.L and et.al (2005)52

investigated the influencing factors on

adoption behavior of banking channels (branch banking, ATM, telephone banking, and

internet banking) among the bank customers in Hong Kong. This study says that level of

adoption of telephone banking is low compared with others (262). This study examines

customers‘ beliefs about four factors for adoption of banking channels (convenience,

informativeness, user-friendliness and assurance) through confirmative factor analysis

whereas the adoption of telephone banking was largely due to a behavioral habit of

customers. Further, they found out that telephone banking was not highly adopted among

the various age groups but was used more frequently by customers in their middle or

mature adulthood (265). In their variance test, they found out that occupational category

was significantly associated with the adoption of banking channels except ATM. Adoption of

telephone banking was higher in laborers, clerks, managers and professionals better than

the students. On the other hand, the self–employed, home workers and retired persons

had a moderate level of adoption of telephone banking.

Elza Thomson and Zanele Dawn Mthethwa (2004)53

in their short-term

exploratory research work done with the aim of assessing the non–adoption of cell phone

banking by the consumers identify the factors that can increase the rate of service adoption

and establish the future plans of m-commerce in the banking industry particularly Standard

Bank, South Africa. The sample customers were selected through the convenience

sampling method (62). For this purpose, they can collect primary data through the questionnaire

in the form of both quantitative and qualitative nature. The questionnaire covers four

parts. Among these the last part covers influencing factors for adoption of cell phone

banking related factors like complexity ( three items), risk (three items) and relative

advantage (four items) measured with strongly disagree to strongly agree (65)

Their report reveals that based on the customers‘ perception cell phone banking

may be risky and the security may be compromised. Further, the cell phone banking

52

Wendy W.N. Wan, Chung-Leung Luk and Cheris W.C. Chow (2005): ―Customers‘ adoption of

bankingchannels in Hong Kong‖, International Journal of Bank Marketing, Volume 23, No.3, pp 255-272.

53Elza Thomson andZanele Dawn Mthethwa (2004): ―M-Commerce: Standard Bank's Cellphone Banking

Adoption by Customers‖ MBA Project Report Submitted toGraduate School of Business, University of

Kwazulu Natal


51

service that will provide some convenience if utilized for banking and also is a quick

service to use compared with the other forms of banking like internet or telephone

banking. 88% of the customers have cell phones and nearly 3/4th

of them have the

intention to use cell phone banking.

Figure: 2.3 Influencing factors on adoption of cell phone banking

Finally, correlation analysis concludes that adoption of cell phone banking is

positively correlated with risk/security, relative advantage and trialability. On the other

hand, inverse relationship factors are complexity and compatibility.

Sivanand.C.N, Geeta. M &et. all (2004)54

conducted descriptive research design

with the aim of determining the perceived barriers among the 218 Malaysian account

holders regarding mobile internet banking services offered by the banking industry and

the customers were selected using cluster of area sampling method. This study says that

nearly 2/10th

of Malaysian customers are aware of mobile internet banking but users of

these facilities are only 9.6% (8), because customers feel their financial transactional

services need not necessarily be done through adopting mobile internet banking services

because they are not satisfied with the level of security of mobile devices for mobile internet

banking (11).

54

Chavidi Naga Sivanand, MulabagulaGeeta&Suleep (2004): ―Barriers to Mobile Internet Banking

Services Adoption: An Empirical Study in Klang Valley of Malaysia‖, The Internet Business Review,

Issue 1, October, pp. 1-17

Adoption of

Cell Phone

Banking

Risk/Security

Relative advantage

Trialability

Compatibility

Complexity


52

Brown. I, CajeE. Z et.al (2003)55

in their explorative research try to determine

the factors that influence the adoption of cell phone banking in South Africa with the

sample population of who uses the cell phone and who are familiar with cell phones, as

well as banking facilities. The sample selection through the convenience sampling

method. They found the factors that influenced the initial adoption of cell phone banking

like perceived relative advantage, the ability to try and experiment with the innovation

first (trialability), and the diversity of banking needs of a potential user. In addition, risk

and complexity is the primary importance for non-adoption of M-Banking (389).

Durkin. M, Howcroft. B &et.al (2003)56

conducted a study among the 2319

(Valid Questionnaire) retail customers regarding their importance and satisfaction collected

through Likert-scale technique. This study reported that customers are given more

importance on remote banking as well as face-to-face contact (184). Further, this study

pointed out dissatisfaction with staff availability which is the chief motivator of the

importance to remote communication among the customers.

Joseph. M & Stone .G (2003)57

in their empirical study used convenience sampling

method for the selection of electronic bank customers and they examined various factors under

excellent telephone banking like ability to provide quick service (24 X7), convenient,

personalized and user-friendly service (194-195). In addition, most of the customers see

foremost dimensions for accuracy and security under information technology-oriented banking.

Karjaluoto. H, Koivumäki. T et.al (2003)58

discussed with the aim of exploring

the heterogeneous private bank customers on their transfer from traditional branch to

online banking in Finland using postal survey among the 1167 responses (valid). They are

55

Irwin Brown, ZaheedaCajee, Douglas Davies and Shaun Stroebel (2003): ―Cell phone banking:

predictors of adoption inSouth Africa—an exploratory study‖, International Journal of Information

Management, Volume 23, No.5, pp 381–394. 56

Mark Durkin, Barry Howcroft, AodheenO‘Donnel& Danielle McCartan-Quinn (2003): ―Retail Bank

Customer Preferences: Personal and Remote Interactions‖, International Journal of Retail &

Distribution Management‖, Vol31, No.4, pp.177-189 57

Mathew Joseph and George Stone (2003): ―An empirical evaluation of US bank customer perceptions of

the impact of technology on service delivery in the banking sector‖, International Journal of Retail &

Distribution Management, Volume 31, No. 4, pp 190-202. 58

HeikkiKarjaluoto, TimoKoivumäki&JariSalo (2003): ―Individual differences in private banking:

Empirical evidence from Finland‖, IEEE Computer Society, Proceedings of the 36th Hawaii

International Conference on System Sciences (HICSS‘03), pp.


53

statistically reported that difference available among the various groups of the gender, age

group, marital status, education, household income and profession with respect to usage level.

Mukherjee, A. and Nath, P. (2003)59

conducted a survey in the city of Calcutta,

India with 510 internet surfers using quota sampling method for the aim of role of trust as

regards technology-oriented banking. They identified shared value, communication and

opportunistic behavior to be the main antecedents to trust (7). Furthermore, this work

concludes that shared value and communication have a significant positive relationship

with trust and that trust had a significant positive influence on commitment. On the other

hand, opportunistic behavior tends to have a negative impact on trust.

Snellman.K &Vihtkari. T (2003)60

investigated and compared complaining

behavior in traditional and technology-based service encounters in Finnish retail banking

and the data were collected from the dissatisfactory customer groups with retail banking

services in Finland, but they had experienced dissatisfaction within both types like self-

service technologies and traditional banks. This study reveals that traditional service

encounters had a slightly lower complaining rate than self-service technology encounters.

Furthermore, the study explains that there is no significant relationship between the type of

service encounter and complaining behavior (223-224). They observed that dissatisfaction in

technology-based encounters was most often related to failures in technology, service

design or in the service process. Interpersonal service encounters, unfriendly or impolite

service and time-related aspects were the most common causes for dissatisfaction.

Suoranta .M (2003)61

in her descriptive research approach tried to determine the

dimensions regarding adoption of M-Banking. The M-Banking technology adoption

model explains that age and education among the several demographic variables have an

influence on the adoption of mobile banking. Further, relative advantage, compatibility,

communication and trialability are influencing factors on the adoption of M-Banking.

But, complexity, security and trust worthiness of m-services are not major obstacles for

adopting M-Banking (62-69).

59

Avinandhan Mukherjee and PrithwirajNath (2003): ―A model of trust in online relationship banking‖,

International Journal of Bank Marketing, Volume 21, No. 1, pp 5-15. 60

KaisaSnellman and TiinaVihtkari (2003): ―Customer complaining behavior in technology-based service

encounters‖, International Journal of Service Industry Management, Volume 14, No. 2, pp 217-231. 61

Mary Suoranto (2003): ―Adoption of Mobile Banking In Finland‖, Doctoral Thesis Submitted to

University of JyvaSkyla.


54

Howcroft .B, Hamilton .R and et.al (2002)62

conducted a research for the

purpose of respondents changing attitudes towards bank delivery channels and determined

the important factors in encouraging and discouraging respondents‘ use of telephone and

internet banking (114). This study reveals that 22.1% of the respondents acquired their

financial services through telephone. ‗Lower fees‘, ‗service quality‘ and ‗save time‘ are

the major factors for encouraging adoption of telephone/Internet banking. In addition,

this report stated that the younger consumers value the convenience or time saving

potential of M-Banking more than older consumers. Younger consumers also regarded

the lack of face-to-face contact as less important than older consumers (118). Furthermore,

the survey found that educational qualification is not an important factor in encouraging

or discouraging the use of telephone or online banking but security and errors are the

important factors for discouraging adoption for telephone/internet banking in UK.

Karjaluoto. H (2002)63

carried out a survey type of research with the purpose of

finding out the mode of bill payment selection criteria among the non-user, new user and

old user of electronic banking services (332-333). The importance of bill payment criteria

measured on seven-point Likert scale and it says that security, trustworthiness and ease of

use is important to making payments of all groups (334-335).

Minna Mattila (2002)64

made a descriptive approach in Finland with 1253

Finnish bank customers using stratified sample method and this study found that security

and trustworthiness of usage of service is the most important factor within every target

customer segments when deciding on banking service delivery channel. Because,

customers agreed positively to the statement of ―using mobile phone in banking is

trustworthy‖. This study also indicated that pay bills cheaper, have faster data

transmission rate, authenticate with mobile phone to internet bank are the major reasons

for usage of mobile device for banking transactions.

62

Barry Howcroft, Robert Hamilton, Paul Hewer, (2002) "Consumer attitude and the usage and adoption of

home-based banking in the United Kingdom", International Journal of Bank Marketing, Vol. 20 Issue: 3,

pp.111 – 121.

63HeikkiKarjaluoto (2002): ―Selection Criteria for a mode of Bill Payment: Empirical Investigation Among Finnish

Bank Customers‖, International Journal of Retail And Distribution Management, Vol.30, No.6, pp. 331-339

64MinnaMattila (2002): ―Factors Affecting The Adoption of Mobile Banking Services‖, Journal of Internet

Banking and Commerce (JIBC), Available from:http://www.arraydev.com/commerce/jibc/0306-04.htm


55

Muligan. P & Gordon S.R (2002)65

identify the current and potential role of

information technology in supporting relationships among customers and suppliers. They

can use a sample of senior technology and strategic managers from the firms of retail

banks, mutual funds, insurance carriers, institutional investment companies and brokerages.

They discuss the use of technology providing opportunities for strengthening relationship

between customers and suppliers of financial transactions, which can improve customers

service levels by providing new forms of service delivery, improving customer intimacy,

responding more rapidly to customer needs, and affording customers the opportunity to

help themselves.

Yong J.J & Gorman G.E (2002)66

in their article found that the level of

M-Banking service use had increased by 400% within fifteen months from December

2000 to March 2002 in Korea (340-341).

Al-Ashban, A & Burney, M.A. (2001)67

in their empirical study attempted to

examine the adoption of telE-Banking in Saudi Arabia. This study revealed that 72% of

the respondents used this service during the past three years because most of them claim

that it is easy to use. Further they conclude that income levels and education play a vital

role for Tele-Banking adoption in Saudi Arabia. Furthermore, customers tend to increase

their usage of Tele-Banking services as a function based on their past experience.

Mallat. N, Dahlberg. T & et.al (2001)68

assess the attitude towards different

banking channels including telephone banking among the Finnish retail banking customers

through mail survey. This empirical study says that the role of mobile services and phone

65

Paul Mulligan & Steven R. Gordon (2002): ―The Impact of Information technology on Customer and

Supplier relationships in the Financial Services‖, International Journal of Service Industry Management,

Volume 13, No. 1, pp 29-46.

66 Yong J. John and Gorman G.E (2002): ―Internet Use in South Korea‖, Journal of Online Information

Review, Volume 26, Number 5, pp 335-344.

67Aref A. Ashban and Mohammed A.Burney (2001): ―Customer Adoption of TelE-Banking Technology:

The case of Saudi Arabia‖, International Journal of Bank Marketing, Volume 19, No. 5, pp 191-200.

68NiinaMallat, Tomi Dahlberg, Timo Saarinen, VirpiKristiinaTuunainen (2001): ―Efficient Service

Production and Consumer Choice of Delivery Channels‖, Paper presented at 14th Bled Electronic

Commerce Conference, Bled, Slovenia, pp 797-814.


56

banking was low because mobile services are inconvenient and expensive to use. But, phone

banking seems to be yielding popular of internet service technology (808).

Thornton. J & White. L (2001)69

conducted an exploratory or empirical study to

investigate attitudinal factors that affect the current usage levels of various e-channels

including telephone banking among the financial customers in Australia. This study

found that important attitudinal behavior revealed that self-service distribution channels

had higher usage rates among the financial customers who had favorable attitudes

towards convenience, change, computers, technology, and who felt more confident using

E-Banking channels about accessing their finance related matters (179).

Parasuraman. A (2000)70

in his qualitative research focused on technology

readiness index among the several services and his results pertaining to the association

between the technology readiness index and actual use of several technology-based

services like, using an ATM, conducting banking transactions over an automated phone

system, buying/selling stock/securities online—that are likely to be intimidating to

customers with a low inherent propensity to embrace new technologies.

Barczak. G, Ellen. P.S &et. all (1997)71

identify the customers‘ motives

regarding usage of technology-oriented banking services (ATMs, telephone banking,

debit cards and automatic drafts) in Southeastern United States. They identified four

motivational clusters for money management through the statistical application like

security consciousness, maximizers, instant gratification and hassle avoiders (134-135).

Further, this study reveals that customers are using telephone banking for their money

management through verifying account balance (33%), deposits (28%), withdrawals

(25%), checks have cleared (27%) and making loan payment (2%). Motivational factors

have different behaviors towards different banking technologies.

69

Jennifer Thornton &Lesley White (2001): ―Customer orientations and usage of financial distribution

channels‖, Journal of Services Marketing, Volume 15, No. 3, pp. 168-185 70

Parasuraman. A (2000): ―Technology Readiness Index (TRI): A Multiple-Item Scale to Measure

Readiness to Embrace New Technologies‖, Journal of Service Research, Volume 2, No.4, pp – 307-320.

71Gloria Barczak, Pam Scholder Ellen and Bruce K. Pilling (1997): ―Developing Typologies of Consumer

Motives for use of Technologically Based Banking Services‖, Journal of Business Research, Volume 38,

pp 131-139


57

Mols N.P, Bukh P.N.D& et. all (1999)72

observe the adoption process in the

distribution channel structure of the retail banking sector as a consequence of the

introduction of electronic channels, such as telephone, PC and Internet banking in Danish

banks, Denmark. For this purpose forty usable answers collected from retail banks

through five-point likert forms. The survey indicates that telephone services are

considered important by most Danish banks because it is less costly than the branch

banking strategy (42). Further, the add-on importance to the Telephone, PC and Internet

banking technologies is significantly correlated but those three banking channels were

negatively correlated with branch banking. Among these correlation, only the negative

relationship available between telephone banks and branch banking. Based on this

recommendation, the current work gives three distribution channel strategies like, branch

strategy, home bank strategy and dual strategy. The authors conclude that when larger

customers move towards electronic based financial transactions and it is expected to

reduction of bank branches and staffs in most of the banks (45).

Davis . D.F(1989)73

in his empirical study assessed the user acceptance of

information technology with respect to perceived usefulness and ease of use. Further,

these factors were decided to generate six items for each construct. This study found that

perceived usefulness was significantly a strong influence on intention to usage of

innovation more than the ease of use (333).

Zeithaml V.A and Gilly M.C (1987)74

in their research found that elderly consumers

were more likely than younger consumers to prefer the customary way of conducting financial

informations and to enjoy the personal interactions with the bank employees (57).

Deng. Z, Lu. Y &et. all75

empirically evaluated the influencing factors of the

adoption of M-Banking among the 209 students in China using Technology Acceptance

72

Niels Peter Mols, Per Nikolaj D. BukhandJornFlohrNielsen (1999): ―Distribution channel strategies in Danish

retail banking‖, International Journal of Retail & Distribution Management, Volume 27, No.1, pp 37–47.

73 Fred D. Davis (1989): ―Perceived Usefulness, perceived Ease of Use, and User Acceptance of

Information Technology‖, MIS Quarterly, Volume 13, No.3, pp 319-340.

74 Valarie A. Zeithaml and Mary C. Gilly (2002): ―Characteristics Affecting the Acceptance of Retailing

Technologies: A Comparison of Elderly and Non-Elderly Consumers‖, Journal of Retailing, Volume 63,

Number 1, pp 49-68.


58

Model. The interesting findings of this study explain that higher service costs do not

reduce the use of M-Banking. There is Short Message Service based M-Banking and its

service cost is acceptable among the Chinese people (180).

2.3 Research Gap

The above reviews agreed that transformation is taking place regarding self-

service technology-enabled financial transaction between bankers and customers in

various countries. M-Banking is playing a vital role in the 21st century throughout the

globe. Based on the above earlier studies the following gaps are found by the researcher

1) No author focused on the growth of M-Banking technology-enabled financial

information system except in Kenya (Yong J.J & Gorman G.E, 2009) but Kenyan

study is not appropriate in India.

2) Large number of previous studies included in the review of literatures focusing on

adoption of mobile banking / Information Technology aspects from customers‘

view except Lebanese Bank (Daghfous .N and Toufaily .E) Sudanese Commercial

Banks (Shereif Mahdi M.O et.al), Germany Banks (Tiwari. R, Buse. S, et. al).

Therefore, this study moves towards adoption of M-Banking by the bankers

(employees) view.

3) Indian author (Uppal R.K, 2009) suggests that future area of research is needed to

the Indian context regarding general or personal factor-wise use of e-channels and

its extent of acceptance. In addition, research gap also finds out earlier works

consisting acceptance level of mobile banking among the bank customers because

acceptance level (High, Medium and Low) is also motivated to usage of

M-Banking.

4) Finally, place of research is the primary gap of the every research work because

people in different countries have different lifestyles in the different aspects. On the

other hand, very few numbers of studies focus on Indian context (Uppal R.K 2009

& 2010, Indrani et.all 2009 and Tiwari, R., Bure, S & et.al 2006). But none of them

75

Zhaohua Deng, Yaobin Lu &Zhiyu Chen: “Exploring Chinese User Adoption of Mobile Banking‖, The

Sixth Wuhan International Conference on E-Business －e-Business Track, pp. 176-182


59

focus on the usage segment of M-Banking among the customers and their reasons

for usage and non-usage of M-Banking/perceived obstacles for non-acceptance of

M-Banking in India.

2.4 Summation

The analysis of previous reviews helps the researcher to identify the problems to

be taken up for the present study. Based on the problems identified, the researcher has

formulated the methodology for the present study. This chapter presents a review of

relevant research studies relating to the present study area. From the above reviews of

both empirical and conceptual work, it is clear that different authors have approached

various self-service technology-enabled financial information mediums including

M-Banking in different ways in varying different levels of analysis. These different

approaches helped in the emergence of more and more literature on the subject over the

time. It gives an idea on extensive and diverse works on M-Banking. The review of

literature has been confined to 49 research reports collected from various journals, 17

from conference proceedings and the remaining reviews are collected from Postgraduate

project report, Doctoral thesis and websites. This section covers 75 review orderly

organized from 2010 to 1987. Among the several studies, 4 studies are focusing India.

Moreover, the review of related studies has helped the researcher to conceptualize the

present study and to design the research methodology. The methodology for the study is

given in the first chapter and the analysis and findings in the subsequent chapters.


Documents

Review of Literature - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/33785/2/...Laukkanen.T &Kiviniemi. V (2010)6 in their empirical study focus on adoption barriers of M-Banking,