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.
Highlights
The union of telecommunication and banking services has fashioned opportunities for the surfacing of mobile commerce, in particular mobile banking
The present study investigated the relationship between perceived ease of use, perceived usefulness, perceived risk, social influence, and customer intention to adopt mobile banking within the context of low-income population of Pakistan
This research pointed out the importance of social influence as the most significant factor in the intention to adopt mobile banking, service providers should develop special awareness programs for the potential adopters of this technology
Summary
The union of telecommunication and banking services has fashioned opportunities for the surfacing of mobile commerce, in particular mobile banking. Mobile phones became a tool for everyday use, which created an opportunity for the evolution of banking services to reach the previously under banked/ unbanked population (CGAP, 2006). Only 12% of the Pakistani population having access to formal banking (Mahmood, 2011), the prospects of providing mobile banking services to large under banked/unbanked population is high. According to (CGAP 2011), mobile banking market in Pakistan is on rise. The primary objective of this study is to investigate factors likely to promote and thwart the intention to adopt mobile banking services among low-income population segment of Pakistan. A clear understanding of these determinants will enable mobile banking service providers to develop suitable marketing strategies, business models, processes, awareness programs and pilot projects (GSMA, 2009).
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