Abstract
Recent research has investigated the determinant factors of customers’ adoption of digital banking. But, after the spread of Corona 19 virus and world-wide pandemic, the customer behavior, traditional and digital market dynamics have changed. This study focuses on understanding the attitude and intention of customers to use mobile banking applications, digital banking marketing strategies and consumer behavior, especially during Covid-19 lock-down, in a developing country, Turkey. It is argued that service-wise attributes (e.g. usability) of mobile banking applications and personal traits (e.g. innovativeness) of bank customers have a positive impact on attitude towards and intention to use mobile banking applications. Besides, it is claimed that Covid-19 pandemic has accelerated customers’ intention to use mobile technologies including mobile banking apps. The study aims to put forward the generational differences in terms of mobile banking usage, as well. The comprehensive model derived from Technology Acceptance Model (TAM) [18] with some extensions from Unified Theory of Acceptance and Use of Technology model [76], were tested using IBM SPSS and AMOS, through the survey delivered to 702 customers, which were chosen through convenience sampling. An e-mail survey has been shared with Turkish customers, after the first wave of Covid-19 pandemic, in June 2020. The results revealed that, usability, security, enjoyment and performance of mobile banking applications have positive and financial risk has a negative impact on attitude towards mobile banking and attitude has a positive impact on intention to use mobile banking applications (Five of hypothesis of the model are found to be highly significant (0,001). The CFI of the model is 0,898, where R2 is 0.490). Generation Y customers have a more positive attitude and intention to use mobile banking, compared to Generation X, as well as Baby Boomers. Besides, despite the economic recession and shrink in usage of traditional banking channels, Covid-19 pandemic has improved digital customers’ intention to use mobile banking applications. The research contributed to establish an enriched TAM, covering both functional, social and risk aspects of mobile banking. For the practitioners, the research has created value-added findings and recommendations for digital marketing strategies of organizations including investment proposals on functionality and security of their mobile banking services, as well as further penetration in Generation Y customers, during the pandemic.
Highlights
IntroductionA. Growth of Digital Technologies and Mobile Banking
Considering 2019 year-end figures, as %69 of all active retail digital banking customers in Turkey are male, %31 is female; the biggest portion of the group (%37) are the ones at 36-55 ages, while %29 are at ages between 26 and 35, %21,5 are at 18-25 years and %6,5 of are above 56-65, the sample is proportional with the whole population [72]
The research is built on an extended Technology Acceptance Model (TAM) which has been integrated with other social, risk, benefit and consumer based factors from different models, in determining adoption to mobile banking
Summary
A. Growth of Digital Technologies and Mobile Banking. Emerging technologies and digitalization initiatives create many profitable opportunities to companies in various markets. The widespread use of Internet and mobile forced the companies to understand the motives behind the use of digital platforms and correspondingly, changed their marketing models. As stated in the 2020 global Digital Report of We Are Social [79], 5.19 billion out of 7.75 billion (%67 of World population) uses mobile devices, whereas 4.54 billion users (%59) are assumed to be Internet users. The total amount of value of the consumer products globally served through Internet is declared to be 5.955 billion dollar. 58.23 million out of 83.88 million Turkish citizens (%69,4%) have mobile subscription and 62.07 million (74%) are active Internet users.
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