Mobile Banking Adoption in a Developing Country Like India

Mobile banking, or banks providing banking services through mobile phones, has received a positive response since its launch. However, the penetration of Mobile Banking is still low because of several reasons. In this study, the different factors that affect the adoption of Mobile Banking services have been analyzed. Behaviour of 120 customers, who use different mobile banking services, was studied to ascertain, what motivates/discourages them to use mobile banking services. The output of Exploratory Factor Analysis was taken as an input to Hypothesis Testing using Multiple regression. The study revealed that Perceived usefulness, Perceived Relative advantage, Perceived risk, Social impact and Perceived cost impact the adoption of mobile banking in India. From a practical implication point of view, this study can encourage banks and prompt them to take necessary care while implementing mobile banking, because mobile banking adoption parameters has an impact on adoption of the technology. Based on this result, banks will have to make an extra effort to ensure that they design a mobile banking platform that is free from errors and electronic threats and portrays usefulness and relative advantage of using the technology.