An Empirical Investigation of Mobile Banking Adoption in Developing Countries

Abstract

Mobile phone has become an integral part of our lives. The penetration rate of mobile phones in the developing countries has increased abruptly and this is a good sign for the banking sector. Mobile banking is the most recently launched innovative feat in the banking sector. The unique ability of mobile banking to perform banking transactions irrespective of place and time has given a competitive edge over traditional banking. Even though, all circumstances are in favour of mobile banking, it has failed to take off in most of the developing countries. Hence, the main objective of the study is to find out the constructs which affect the adoption of mobile banking in India. A model has been proposed with the factors namely perceived usefulness, perceived ease of use, self-efficacy, perceived risk, perceived enjoyment, relative advantage, compatibility, trust, social influence and personal innovativeness. The proposed model has been tested using various statistical analyses and the findings of this study reveal that relative advantage has the strongest relationship with the intention to use mobile banking.