Factors affecting adoption of mobile banking in Pakistan

Abstract

In this research paper we investigated the determinants likely to influence the adoption of mobile banking services, with a special focus on under banked/unbanked low-income population of Pakistan. The adoption of mobile banking services has been a strategic goal, both for banks and telcos. For this purpose, Technology Acceptance Model (TAM) was used, with additional determinants of perceived risk and social influence. Data was collected by surveying 372 respondents from the two largest cities (Karachi and Hyderabad) of the province Sindh, in Pakistan using judgement sampling method. This study empirically concluded that consumers’ intention to adopt mobile banking services was significantly influenced by social influence, perceived risk, perceived usefulness, and perceived ease of use. The most significant positive impact was of social influence on consumers’ intention to adopt mobile banking services. The paper concluded with discussion on results, and several business implications for the banking industry of Pakistan.

Banking Access for the Poor: Adoption and Strategies in Rural Areas of Bangladesh

“…They found that household type, services, usage frequency, ease of use and uptake deter the use of mobile banking adoption of the financially excluded group. On the contrary, Kazi and Mannan (2013) identified innovative promotional and pricing strategies should adopt by the service providers to increase the number of acceptance. Findings of the researchers on the mobile banking adoption have been summarized in Table 1.…”

“…Till date, most of the research on mobile banking adoption (Aderonke, 2010;Akturan & Tezcan, 2012;Al-Jabri & Sohail, 2012;AlSoufi & Ali, 2014;Crabbe, Standing, Standing, & Karjaluoto, 2009;DiVanna, 2003;Goi, 2006;Gu, Lee, & Suh, 2009;Haig, 2002;Hanafizadeh, Behboudi, Abedini Koshksaray, & Jalilvand Shirkhani Tabar, 2014;Hassan, Rahman, Afrin, & Rabbany, 2014;Kabir, 2013;Karjaluoto, Koenig-Lewis, Palmer, & Moll, 2010;Karjaluoto, Riquelme, & Rios, 2010;Kazi & Mannan, 2013;Khraim, Al Shoubaki, & Khraim, 2011;Laforet & Li, 2005;Lee, Lee, & Kim, 2015;Luarn & Lin, 2005;Mattila, 2003;Mbiti & Weil, 2011;Medhi, Ratan, & Toyama, 2009;Nayak, Nath, & Goel;Oshunloye, 2009;Suoranta, 2003;Yu, 2012;Zhou, Lu, & Wang, 2010) either focus on developed countries or on developing countries from a narrow or urban scope. Most of the previous research is lagging behind in identifying the factors contributing to the adoption of mobile banking in rural areas.…”

Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa

“…Using the TAM, Kazi and Mannan (2013) have assessed the determinants of mobile banking adoption in the two largest cities of Pakistan (Karachi and Hyderabad) using a survey of 372 respondents, with particular emphasis on banked/unbanked population in the lowincome strata. The significant factors influencing adoption include: social influence, perceived usefulness, perceived risk and perceived ease-of-use, with the first (or social influence) being the significant positive determinant.…”

“…(ii) The mobile banking literature has been based on survey data for the most part and focused on mobile banking adoption intensions (Gu et al, 2009 ;Medhi et al, 2009;Daud et al, 2011;Akturan & Tezcan, 2012 ;Kazi & Mannan, 2013;Alsheikh &Bojei, 2014 ;Cudjoe et al, 2015). We also complement this strand by using macroeconomic determinants classified into six main categories, consisting of 25 variables.…”

Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries

“…mainstream survey-based, country-specific and microeconomic studies (Kazi & Mannan, 2013;Alsheikh & Bojei, 2014;Cudjoe et al, 2015).…”