Does gender differences play any role in intention to adopt Islamic mobile banking in Pakistan?

Abstract

Purpose Tremendous growth and worldwide expansion of Islamic banking industry has gained widespread attention of economist, bankers, investors and financial experts regardless of economic and political volatility in global banking industry. To compete with conventional banking, Islamic banks are setting up themselves with innovative technologies to gain competitive edge and market share. The establishment of mobile banking has been proven a technological wonder by eliminating time and space boundaries, and one can access financial services anywhere and at any time. For effective market segmentation, recognizing gender differences in factors affecting the adoption patterns of m-banking may provide competitive edge. Therefore, this paper aims to investigate how gender differences impact the intention to adopt Islamic mobile banking in Pakistan. Design/methodology/approach The study uses extended technology acceptance model (TAM) on final 243 participants from Pakistan. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) methodology has been applied for data analysis using SPSS 21 and AMOS 21. Findings Results have identified two interesting and different models for males and females in intention to adopt Islamic mobile banking. It is inferred that males are more task driven and desire for personality, value and status, so their intention is significantly impacted by perceived usefulness and perceived self-expressiveness. Whereas, females have found lack of IT knowledge and trust; therefore, their intention is significantly impacted by perceived credibility. However, the perceived financial cost was found of no concern for both males and females and social norms influenced the adoption, but there existed no significant gender differences. Originality/value The contribution of this study to existing literature is twofold. First, the existing research on mobile banking has mainly applied TAM on conventional banking overlooking the important ethnic group, the Muslims, who prefer Islamic banking. Second, the impact of gender differences is investigated in factors affecting intention to adopt Islamic mobile banking that has not been studied previously. The study fills the gap.

The Effect of Knowledge, Promotion, and Religiosity on Intention to Use Islamic Banking Services

“…Kaakeh et al (2018) showed that men have a greater tendency to use Islamic banks services. Haider et al (2018) stated that there are significant differences in intention to adopt Islamic mobile banking in Pakistan. Men are more likely to use Islamic mobile banking.…”

“…Kaakeh, Hassan, & van Hemmen Almazor (2018) showed that men have a greater tendency to use Islamic banks. Haider, Changchun, Akram, & Hussain (2018) stated that there are significant differences in intention to adopt Islamic mobile banking in Pakistan.…”

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“…Ayyub et al (2019), in their study on 264 users and non-users of Islamic banking in Pakistan, found that perceived behaviour control and usefulness are the most significant predictors of intention to use Islamic banking among users and non-users. Haider, Changchun & Akram (2018) found that perceived usefulness positively affects adopting Islamic mobile banking. Its influence on the male was stronger than females, while the perceived financial cost is negatively related to the adoption of Islamic m-banking.…”

“…While the literature provides many models to study technology acceptance, TAM has been the most widely applied theoretical model (Suhartanto, 2019b). Simplicity and ease of implementation are some of the key reasons for the popularity of TAM over other frameworks (Haider, Changchun & Akram, 2018). However, TAM has many limitations: (i) many significant factors are not included in the model.…”

“…However, little is known about the moderating role of sharia' compliance or religious obligation between technology acceptance factors and behavioral intention (Hoque, Nik Hashim & Azmi, 2018;Suhartanto, 2019). There is a need to investigate the potential contingency (moderating) role of religiosity in changing customers' behavioral intention toward Islamic banking (Haider, Changchun & Akram, 2018;Hoque, Nik Hashim & Azmi, 2018;Suhartanto et al, 2019a). Such investigation can help explain how sharia' compliance affects customers' behavioral intention toward Islamic banking produce a better understanding of intention toward Islamic banking (Hoque, Nik Hashim & Azmi, 2018;Mahadin & Akroush, 2019).…”