Essay: Mobile banking

Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a fast space. Mobile phones have become an essential part in the communication tools for almost every individual. Advent of M commerce has managed to take mobile VAS to next level. Mobile banking is an integral part of the M commerce. It has become popular among mobile users from 2007. It creates a new communication and fast financial transactional channel for mobile user’s .Checking account information, available balance, , cheque , alerts, reminders, locating ATMs, mini statement etc are some of the services offered in mobile banking. The multiple access channels such as SMS, downloadable client, mobile Internet mobile banking is providing mobile users more to explore the service. Simple transactions including querying balances, are common, but there is huge opportunity to bring a vast array of financial services, everything from personal loans to investment products, to remote parts of India with mobile banking.(Mobile banking in India – Perception and Statistics, 2008)

Mobile banking is becoming more and more prevalent in India due to the convenience factor. As per Reserve bank of India data, a total of 3.7 crore mobile transactions took place between Feb and Nov 2012. These transactions saw an increase in value over the same period. Increased use of Smartphone and initiatives such as media promotions and customer education programmes for mobile banking has led to this uptrend. For customers, mobile banking is convenient while banks benefit through a low-cost channel.

With the mobile phone penetration reaching over 80 per cent, India has great potential for mobile banking. But on the global space, mobile payments have to go a long way in India. According to the MasterCard Mobile Payments Readiness Index (MPRI), India is ranked 21st among 34 countries with the score of 31.4 on a scale of 100 by the MasterCard Mobile Payments Readiness index. The index relies on an analysis of 34 countries and their readiness to use three types of mobile payments: person to person, mobile e-commerce and mobile payments at the point of sale .The index shows that consumers in India have not yet fully accepted mobile payments. (business today, 2013)

Recent statistics indicate that m-banking is catching on in India. According to Reserve Bank. Mobile-based banking transactions grew from Rs 190 crores in January 2012 to Rs 624 crores in January 2013. M-banking in India has not reached to its full capability. It’s important to think why in spite of having more than 800 million mobile phone connections and 90 per cent handsets capable of basic financial transactions there are barriers to adopt m-banking in India.. Also, they can now avail of the security of regulated services and avoid the more risky unlicensed operators. This makes m-banking a safe and efficient procedure.(business line, 2013)
Despite continued growth of the mobile money industry in the world, we will see that, however, there remain significant obstacles to its sustained growth and to the value it brings to the poor and unbanked.. This is the kind of new banking system that sought to develop Bank, one of the main microfinance actors in the Philippines in 2012 by inserting itself in the market for retail microfinance using the mobile phone as the primary channel. This initiative has emerged a new bank of microfinance which allowed customers to pay, save, and use credit services and insurance products directly by their mobile phone. Indeed, the m-banking affects the heart business of microfinance institutions and their way of serving customers, as well as new business models emerge gradually.(planet finance group, 2013)
A phenomenon that is picking up speed worldwide, Mobile Banking is now also reaching out to millions of customers across India.
Some recent stats on mobile banking are- 45 million registered mobile banking users,5 million regular mobile banking users,52 banks with mobile banking license,300 Per cent annual growth of mobile banking, Total transaction value to be dollar 245 million by 2014,40 Per cent of India’s mobile users have used a Smartphone for online banking and financial activities.50 Per cent have used a Smartphone to make a purchase., Interbank Mobile Payment Service was used for over 10000 transactions..Mobile banker transfer limit of Rs. 50000 has been recently removed by the RBI, enabling customers to transfer bigger amounts through their mobile phone. (thinkpod turn it)

Customer adoption has been one of the key challenges with most of the mobile banking implementations across the globe. Customer adoption has to a function of the following:
Product, which should be compelling and easy to use, Delivery, which channel and hand set education, through agents and call centre.
The Reserve Bank of India has reported that the number of mobile banking transactions in India has increased by 6.39 Per cent to 47, 20,871 during the month of November 2012. While India’s mobile population is growing at rapid rate. It is estimated to be over 775 million strong; the percentage of these connections using banking services on the mobile is small. The reason is the fact that over 40 per cent of the adult population in India lacks a bank account. By end 2010, only about 1 Per cent of bank account holders were registered as mobile banking customers. (state of indian mobile banking, 2011)
CHAPTER 2
LITERATURE REVIEW

2.1 IMPORTANCE OF LITERATURE REVIEW
Literature review is important due to the following reasons:

1) A literature review gives more knowledge about the area in which the research is conducted
2) It helps to refine the research topic by determining the research gap.
3) It helps to avoid errors of duplication
4) It helps to identify the contribution that one’s research will make and also provides a justification for the study.
5) It will help in understanding how already existing research findings have been presented in that particular area.
2.2 HOW THE REVIEW HAS BEEN DONE
The review has been conducted in the following manner:
1) First, several literature sources in the area of behavioural finance were identified and studied.
2) The topic was then narrowed down upon as there were several discussions on the various factors
3) Therefore, I decided to study all such factors and read more articles on this topic which completed the literature review.
2.3 LITERATURE REVIEW

Dasgupta Siddhartha, Paul, Fuloria &Sanjay (2011).The study was conducted to understand the behavioural intention of mobile banking usage of Indian customers. Research methods like the Factor analysis and a multiple regression analysis were done in order to determine the extent of impact the antecedents have over the behavioural intentions of mobile banking usage. The results of the study showed that other than the traditional variables like Perceived Usefulness and Perceived Ease of Use, factors like Perceived Image, Perceived Value, Self Efficacy, Perceived Credibility and Tradition all significantly affects Behavioural Intentions towards mobile banking usage.
Palani and Yasodha P. (Apr 2012) The research paper is focused on customer’s perceptions on mobile banking offered by Indian Overseas Bank and it also focuses on the various drivers that drive mobile banking consumers.. The results of this study showed that gender, education and income of the consumers play an important role in usage of mobile banking. Most of the researches are focused on the acceptance of the mobile banking technology due to which not much research has been conducted on people. The research reveals that if skills can be upgraded among the consumers there will be greater willingness on the part of consumers toward the use of Mobile banking. Some the factors like security trust, gender, education, religion, and price can have minimal effect on consumer mindset towards Mobile banking compared to the other factors.

Thakur, Rakhi; Srivastava, Mala. (2013)
The paper studies the factors influencing the adoption intention of mobile commerce. Perceived usefulness, perceived ease of use and social influence are found to be significant dimensions of technology adoption readiness to use mobile commerce while facilitating conditions were not found to be significant. The results of the research study also indicate the perceived credibility risk defined by security risk and privacy risk are significantly associated with behavioural intention in negative relation, which indicates that security and privacy concerns are important in deterring customers from using mobile commerce. This research study developed an integrated model for behavioural intention towards financial innovations. Practical implications of this study is one of the few empirical studies which have investigated the adoption of mobile commerce in India, which is considered one of the fastest growing countries in terms of mobile usage. The study relates to inclusion of both utilitarian and credibility aspect of adoption intention. It gives an empirical basis on which mobile and banking companies can base their mobile payments marketing strategy.

Kumar, Reji G; Rejikumar, G; Ravindran, D Sudharani. This research paper examines the factors influencing the continuance decisions of the early adopters of m-banking services in Kerala, India. The study used constructs adopted from Technology Acceptance Model along with constructs of perceived service quality, perceived credibility and perceived risk to empirically establish the influence on satisfaction and continuance usage intentions. The study confirmed that after adoption of the technology, the customer finds satisfaction in the quality parameters of the service. Perceptions about the risks involved in m-banking had adverse impact on service quality and satisfaction.

Kalaiarasi, H & Srividya, V. 3 (Jul-Sep 2012): Mobile banking as a new channel to the existing banking channels provides convenient and cost efficient banking services anytime anywhere. It is observed that, though India has strong potential for mobile banking only 5% of mobile subscribers are registered users of mobile banking. Attracting the new customers may not be easy than retaining the existing mobile banking customers 2009). Hence the current research focuses on the factors influencing actual usage of mobile banking services. The results shows that, Indians mobile banking usage is influenced by ease of mobile banking technology, its suitability to the user’s lifestyle and the benefits like mobility and mobile transactions. However customer’s perception towards security of mobile transactions and privacy fears demotivates actual usage.

Tenkasi Taluk &Devasena, S Valli, (Jan 2012) Banking system is the backbone of the economy and Information Technology (IT) in turn has become the backbone of banking activities. Technology, which was playing a supportive role in banking, has come to the forefront with the ever-increasing challenges and requirements. Technology to start with was a business enabler and now has become a business driver. The Banks cannot think of introducing a financial product without IT support. Be it customer service, transactions, remittances, audit, marketing, pricing or any other activity in the Banks, IT plays an important role not to complete the activity with high efficiency but also has the potential to innovate and meet the future requirements. The Banking Sector was early adopter of technology and in that way set an example to the other industries the need to opt for automation for taking full advantage in operational efficiency.

Laukkanen &Tommie (2007).The aim of the paper is to explore and compare customer value perceptions in internet and mobile banking. The results indicate that customer value perceptions in banking actions differ between internet and mobile channels. The findings suggest that efficiency, convenience and safety are salient in determining the differences in customer value perceptions between internet and mobile banking. By understanding how and what kind of value different service channels provide for customers service providers are better enabled to create actions to enhance internet and mobile banking adoption. The contribution of the paper lies in achieving a more profound understanding on consumer value perceptions to internet and mobile banking.

Goswami, Divakar; Raghavendran, Satish. (2009)The research is conducted to determine the potential that mobile banking provides for both the banks and the mobile carriers. After the secondary research the report gives an insight into the best-practices based on a critical evaluation of partnership models. Banks and mobile carriers have tested these waters timidly, and many of the resulting offerings were expensive to the banks and mobile carriers and less than enticing to their customers. This report weeds out ineffective partnering models that companies stumble into on their way to developing mobile-banking and identifies the keys to successful partnerships.
Dr. Vinod Kumar Gupta Renu Bagoria & Neha Bagoria . This research paper try s to identify and investigate the various factors which influence the customer’s decision to use a specific form of mobile banking and specially focus on the evaluation of SMS-based mobile banking in India. The study also plans to connect the gap of research in the acceptance of mobile banking among the customers. The main challenges involved in the adoption of mobile banking are related to the Positive and Negative factors which influence the adoption of SMS-based mobile banking .Second challenge is Focused on the adoption of mobile banking services by customers and usage of mobile banking in India. Third is related to the different Technologies behind Mobile Banking. The study has its own limitations but the implications and conclusion from the results can provide practical recommendations to the banking areas and banking industries. It can also provide directions for further work
Prerna Sharma Bamoriya(2011) The study was conducted to identify certain issues relating to banks, mobile handsets and telecom operators, mobile handset operability, security/privacy, standardization of services, customization, Downloading & installing application software and Telecom services quality. For this purpose a descriptive design was adopted to empirically explore the selected issues. Study suggested that from consumers ‘perspective mobile handset operability security or privacy and standardization of services are the critical issues. The objective of the research is to study the selected issues in mobile banking form urban customers’ perspective and to explore the perceived utility of mobile banking in comparison to retail banking and online banking among the mobile banking users and non-users. The study is aimed to evaluate perceptions and opinions of urban mobile banking users. For this purpose a cross sectional descriptive design was adopted with ad-hoc quota sampling. Sample for the study comprised of 50 mobile banking users and 50 non-users in Indore city, India.
Achana Sharma (2011) this paper examines consumer adopting mobile banking as a new electronic payment service .It also focuses on the various factors influencing the adoption of mobile banking in India. When it comes to the research methodology used in the study, data collected has been grouped into two main categories – primary and secondary data. The secondary data have been collected from the newspapers, journals, magazines, internet and also various other research papers..In case of questionnaires the has been targeted on user and non user of mobile banking which included the Businessmen, servicemen, professionals, students etc. The primary data for the study is extracted from a survey conducted in Ghaziabad in U.P, India. The research had a total of 100 respondents participating in the data collection for understanding the use of Mobile banking. From the data collected it was possible to make projections in the research.
Ashish Adholiya, Pankaj Dave, Shilpa Adholiya (2012) this paper investigates the determinants influencing the customer satisfaction for mobile banking users. Customer satisfaction is one of the fundamental marketing constrain in the last three decades. This research is focused to those respondents who are using the mobile banking services by their service provider. For the research100 respondents are identified. The respondents belong from both private and public sector banks of Udaipur, Rajasthan. The opinions of the respondents were collected using structured questionnaire. Data collected were analyzed using tools like factor analysis, chi-square and correlation analysis. In factor analysis varimax rotation is used and correlation matrix is used for identifying the relationship between the service quality, perceived value , flexibility, technological innovation, brand perception, strategic endorsement and functional performance of mobile banking service with customer satisfaction.
CHAPTER 3
RESEARCH Methodology
3.1 STATEMENT OF PROBLEM
Mobile banking in a service that provides the individuals with a platform to carry out financial transactions through a mobile. Even though it’s a convenient service for the customers it still has to gain the popularity among the users. There are still bank users who have a mobile but not making use of the mobile banking service.
The usages of the mobile banking services by the customers are dependent on certain factors. As it’s an emerging concept in the field of banking the customers perception and the quality of on the mobile banking services provided bank has a huge impact on the adoption of this service by the customers. The quality of service provided by the banks has a great impact on the extent to which customers adopt this service.
So in order to provide the best possible services to meet the needs and wants of the customers the banks should have an idea of what these factors are and how much the these factors individually contribute towards the usage of mobile banking. It is also important to understand to what extent these factors impact on the customer satisfaction.
The study will help in understanding theses factors that influence Customer’s perception on the use of mobile banking and which of these factors are the major contributors towards the service adoption .It will also help in understanding what kind of positive or negative effect these factors will have on customer satisfaction towards mobile banking service.

3.2 VARIABLES OF THE STUDY
There are two kinds of variables in this study- Dependent variable and the independent variable
3.2.1 DEPENDENT VARIABLE
Dependent variables are those whose value is dependent on the value of the others. In this study the dependent variable is customer satisfaction

3.2.2 INDEPENDENT VARIABLES
Independent variables are any variable whose value determines that of others. The following are the independent variables of the study
1) Time factor
2) Flexibility factor
3) Reliability factor
4) cost factor
5) convenience factor
6) Security factor

3.3 OBJECTIVES OF THE STUDY
1. To Identify the extent to which Gender and profession influence customers in adopting mobile banking services.
2. To understand the customer perception towards adopting mobile banking
3. To identify the factors effecting the adoption of mobile banking by mobile banking customers
4. To analyse the impact of mobile banking on the customer satisfaction

3.4 HYPOTHESIS

Ho1: There is no significant effect of profession on the usage of mobile banking
H11: There is significant effect of profession on the usage of mobile banking

Ho2: There is no significant effect of and gender on the usage of mobile banking
H12: There is significant effect of gender on the usage of mobile banking

H02: There is no significant effect for time saving factor on the use of mobile banking
H12: There is significant effect for time saving factor on customer on the use of mobile banking
H03: There is no significant effect for cost factor on the use of mobile banking
H13: There is significant effect for cost factor on customer on the use of mobile banking

H04: There is no significant effect for convenience factor on the use of mobile banking
H14: There is significant effect for convenience factor on customer on the use of mobile banking
H05: There is no significant effect for security factor on the use of mobile banking
H15: There is significant effect for security factor on customer on the use of mobile banking
H05: There is no significant effect for reliability factor on the use of mobile banking
H15: There is significant effect for reliability factor on customer on the use of mobile banking
H06: There is no significant effect for flexibility factor on the use of mobile banking
H16: There is significant effect for flexibility factor on customer on the use of mobile banking
3.5 DESIGN OF THE STUDY
3.5.1 TYPE OF INVESTIGATION
The research that is being conducted is Descriptive in nature where we are trying to establish a relationship between dependent and independent variable.
3.5.2 DATA COLLECTION METHOD
A questionnaire will be developed where respondents will answer the questions which will help in understanding the extent to which the factors affect the use of mobile banking and how these factors have an end effect on the level of customer satisfaction. The questionnaire will also include the basic personal details of the respondents like their name, address, age, qualification, job profile, income etc. The data collected using these questionnaires will be further analysed using the statistical tools that are covered later on.
3.6 SAMPLING PROCEDURE
3.6.1 SAMPLING METHOD
The sampling will be a judgment sampling as it is necessary to administer the questionnaires only to such people who are actually having mobile connections and who hold a bank account as well.
3.6.2 SAMPLE SIZE
The research will be based on a minimum of 100 respondents. The respondents will be from Bangalore city ranging between the age group of 20 years to 40 years. The sample will include both females and males.

3.7 TOOLS USED IN THE STUDY
The following are tools used in the study to analyse the collected data:
1) Regression analysis: statistical process for estimating the relationships among variables. It includes number of techniques which are used to model and analyze different variables, when we need to focus on the relationship between dependent variable and one or more independent variables. More precisely, regression analysis helps us to understand how the value of the dependent variable changes as and when any one of the independent variables is changed, while the other independent variables are remaining fixed.
2) Percentage analysis: The percentage analysis will help in understanding the percentage contribution of each factors
3) Chi square test: Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a particular hypothesis. The chi-square test is used to find out whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories

3.8 LIMITATIONS OF THE STUDY
1) The sample size consists of data collected from Bangalore city which might not reflect the proper opinion of the entire population
2) The research is conducted in a limited time period
3) The data is collected from a very small portion of the population hence the study cannot be applied on the entire population
4) The interpretation and suggestions are based on the assumption that the information provided by the respondents is genuine.

CHAPTER 4
INDUSTRY OVERVIEW
A bank is a financial institution that provides banking and other financial services. From the word ‘bank’ it is generally understood as an institution that holds a Banking Licenses. Financial supervision authorities grants Banking licenses and provide the rights to conduct fundamental banking services of accepting deposits and making loans. Without meeting the legal definition of a bank, there are some financial institutions that provide certain banking services which are known as the so called ‘non banks’
For the purpose of ensuring that banks are focusing on building that reach irrespective of profitability considerations, the government of India went through two rounds of nationalization of banks.
‘ In 1969, 14 major Indian commercial banks were centralized
‘ Six more banks were nationalized in the year1980
SBI, its subsidiaries, and 20 nationalized banks are generally referred to as public sector banks. As per the reserve bank of India’s supervision other private sector banks were allowed to continue as private entities . These are mostly referred to as the old private sector banks. Foreign banks that were operating in the country were similarly allowed to continue as private entities.
Ownership of the regional rural banks is shared between three stake holders’ viz. Central government, concerned state government and the bank which sponsors the RRB. The sponsoring bank is expected to assist the RRB in operations. Another vehicle for local reach are the co-operative banks, which have an existence for over last century. They were registered under the act co-operative societies Act of 1960 and were supervised under the guidelines of banking regulations Act 1949 and banking laws act, 1956.Several states have their own regulations.
Modern Banking in India originated in the last decades of the 18th century. Bank of Hindustan (1770-1829) and The General Bank of India, were the first banks established in 1786. State bank of India is the oldest bank that exists in the country. State bank originated as Bank of Calcutta in June 1806, which immediately became Bank of Bengal. For many years the presidency banks acted as a quasi-central bank, as done by their successors. The 3 banks merged in 1921 to form the Imperial bank of India which, after independence, became the State bank of India in 1955

The Indian banking industry has shown consistent growth during the last few decades, with banks with their customers accepting the robust systems and the existing process. This industry has marked a consistent rise in the number of reporting offices in last few years. With RBI stressing on its policy of financial inclusion, there is a large emphasis on rural expansion. However, still a large part of Indian village population remains without banks. Further expansions are required from the Indian banks to raise the penetration levels of banking services in rural areas of the country, which is home to more than 65% of Indian population.
The Indian banking industry experienced a slowdown in financial year 2013. Persistent high inflation forced the RBI to maintain the benchmark interest rate at a higher level. This slowed down the credit off take in the country, which led to an industrial slowdown. All other sectors recorded subdued loan growth, except for agricultural loans and personal loans. High inflation led to reduction in domestic savings which resulted in a lower rate of deposit growth. However, when the interest rates are high and volatile conditions in the market attracts more depositors towards high yield and risk free term deposits of scheduled commercial banks.
The prevailing adverse economic conditions deteriorated the asset quality of all commercial banks, especially public sector banks. Higher interest rates during this period triggered to an increase in non-performing assets in public sector banks, this increase brings threat to the profitability of the bank. The government of India has emphasized upon a need-based recapitalization of public sector banks so that they can comply with ‘Basel III norms’. These norms will be fully implemented in by 31/3/ 2018.Recently the Reserve Bank of India finalized the guidelines on licensing of new banks in the private sectors. They also invited applications in regards to licenses from eligible promoters with a cut-off date which was specifies as 1/7/2013. Ever since, the long term outlook of the Indian banking sector is in a stable state because of a large no: of non-banking population, increasing per capita income and a fast developing middle class.
Emergence of new players and technology upgrades will further add to the growth of this sector. One of the most preferred employment destinations in India is the banking sector. Banking sector index has grown at an annual rate of 51% since the year 2001.The industry is recruiting in huge numbers and in the next 5 years, banks will have to recruit almost ‘7.5 lakh people’ Along with the regular banking activities, now, the banks have diversified to new products and services which includes opportunities in credit cards, wealth management, consumer finance, investment banking, mutual funds, life and general insurance, stock brokering, custodian services etc. Further most of the banks are setting up offices in foreign countries as a part of going global.
The expansion and convergence with the other financial sectors such as the NBFCs, insurance and capital markets, retirement of employees and financial inclusion has created more opportunities in the banking sector. Some of the areas which require specialization are infrastructures, Risk managements, banking and financial service, MIS and CRM.

Currently the industry is going through a transition phase. On one hand, the public sector banks are in the process of reducing their excessive manpower, non Performing assets and government equitys. While on the other hand the Private sector banks are consolidating themselves through mergers and Acquisitions. The public sector banks which form 78% of the total banking industry assets are troubled with non performing assets, reduced revenues from the traditional sources, lack of latest technology and excessive workforce. Whereas the private banks are moving ahead of the public sectors banks by changing the traditional banking model with innovation and service.
The private banks however cannot match up to the great reach, size and access to low cost deposits of the public sector banks. Hence one of the means adopted by the private players to combat the public players has been through the mergers and acquisitions route. Over the past two years, the industry has witnessed several such instances. For instance, HDFC Merger with ‘Times Bank.’Private sector Banks have are experts in the field of internet banking, mobile banking, anywhere anytime banking, debit and credit cards, ATMs and combined various other services and collaborated them into the mainstream banking arena, while the public sector banks are still struggling with disgruntled employees in the aftermath of successful VRS schemes. Talks of government diluting their equity from 51% to 33 %in November 2000 have also opened up a new opportunity for the takeover of even the PSBs. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint venture insurance company with risk participation.

CHAPTER 5
Data Analysis and Interpretation
DATA INTERPRETATION

User * Gender Cross tabulation
Gender Total
Male Female
User Yes Count 29 13 42
% within User 69.0% 31.0% 100.0%
No Count 25 33 58
% within User 43.1% 56.9% 100.0%
Total Count 54 46 100
% within User 54.0% 46.0% 100.0%
Comparing between male and females using mobile banking from the above table it can be seen that the percentage of male users are more compared to females. There are more of female non users than male non users.

CHI SQUARE TEST
Chi square test for finding the effect of profession and gender on the usage of mobile banking

User * Profession Cross tabulation
Profession Total
student Employees businessman Teacher Others
User Yes Count 6 7 13 3 13 42
Expected Count 8.8 8.4 12.2 2.1 10.5 42.0
No Count 15 13 16 2 12 58
Expected Count 12.2 11.6 16.8 2.9 14.5 58.0
Total Count 21 20 29 5 25 100
Expected Count 21.0 20.0 29.0 5.0 25.0 100.0

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 3.743a 4 .442
Likelihood Ratio 3.794 4 .435
Linear-by-Linear Association 3.264 1 .071
N of Valid Cases 100

Cases
Valid Missing Total
N Percent N Percent N Percent
User * Gender 100 99.0% 1 1.0% 101 100.0%

User * Gender Crosstabulation
Gender Total
Male Female
User Yes Count 29 13 42
Expected Count 22.7 19.3 42.0
No Count 25 33 58
Expected Count 31.3 26.7 58.0
Total Count 54 46 100
Expected Count 54.0 46.0 100.0

Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square 6.601a 1 .010
Continuity Correctionb 5.598 1 .018
Likelihood Ratio 6.718 1 .010
Fisher’s Exact Test .015 .009
Linear-by-Linear Association 6.535 1 .011
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 19.32.
b. Computed only for a 2×2 table
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .257 .010
Cramer’s V .257 .010
N of Valid Cases 100

INTERPRETATION
From the above results it can be observed that the difference between actual and expected is not so significant in case of profession and usage of mobile banking. Greater the difference between the actual and expected greater will be the chi square value. In this case the difference is not significant and also the significance level is less than .05 hence there is no significant impact of profession on the use of mobile banking. In case of gender we can see that there is reasonably significant difference between the actual and the expected and significance level is less than .005. This implies that gender has significant impact on the use of mobile banking.
Ho1: There is no significant relationship between professions on the usage of mobile banking
H11: There is significant relationship between professions on the usage of mobile banking

Hence Ho1 is accepted proving that profession does not have significant impact on mobile banking usage

Ho2: There is no significant relationship between gender on the usage of mobile banking
H12: There is significant relationship between gender on the usage of mobile banking

Hence Ho1 is rejected proving that gender has significant impact on mobile banking usage

Chi-Square Tests(Time factor)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square 4.433a 1 .035
Continuity Correctionb 3.503 1 .061
Likelihood Ratio 4.395 1 .036
Fisher’s Exact Test .060 .031
Linear-by-Linear Association 4.389 1 .036
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.50.
b. Computed only for a 2×2 table
Chi-Square Tests( cost factor)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square 5.332a 1 .021
Continuity Correctionb 4.434 1 .035
Likelihood Ratio 5.364 1 .021
Fisher’s Exact Test .026 .017
Linear-by-Linear Association 5.278 1 .022
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 19.32.
b. Computed only for a 2×2 table

Chi-Square Tests(flexibility)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square .164a 1 .685
Continuity Correctionb .041 1 .839
Likelihood Ratio .164 1 .685
Fisher’s Exact Test .840 .420
Linear-by-Linear Association .163 1 .687
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 21.00.
b. Computed only for a 2×2 table

Chi-Square Tests(Ease factor)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square .312a 1 .577
Continuity Correctionb .125 1 .724
Likelihood Ratio .311 1 .577
Fisher’s Exact Test .682 .362
Linear-by-Linear Association .309 1 .579
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 17.64.
b. Computed only for a 2×2 table
Chi-Square Tests(security)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square .828a 1 .363
Continuity Correctionb .494 1 .482
Likelihood Ratio .826 1 .363
Fisher’s Exact Test .412 .041
Linear-by-Linear Association .820 1 .365
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 16.80.
b. Computed only for a 2×2 table

Chi-Square Tests(reability)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square 1.175a 1 .278
Continuity Correctionb .772 1 .380
Likelihood Ratio 1.182 1 .277
Fisher’s Exact Test .310 .040
Linear-by-Linear Association 1.163 1 .281
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 17.64.
b. Computed only for a 2×2 table
Chi-Square Tests(others)
Value df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-Square 3.525a 1 .060
Continuity Correctionb 2.604 1 .107
Likelihood Ratio 3.752 1 .053
Fisher’s Exact Test .070 .190
Linear-by-Linear Association 3.490 1 .062
N of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.56.
b. Computed only for a 2×2 table
INTERPRETATION
The chi square test was conducted to find out how much the factors like time, cost, flexibility, ease, reliably, security and other factors influence the usage of mobile banking. It can be seen that for factors like time, reliability, security and cost the significance level is less than .05 hence showing that they have significant impact on the usage of mobile banking. This indicates that the null hypothesis will be rejected .Implying that these following factors have significant level of impact on the mobile banking usage by the customers.
The rest of the factors ease flexibility and others are not having significant impact as the the significance level found through the test is greater than 0.05 which mean accept null hypothesis. That implies that are not having significant impact.
Since the significance level of these factors are less than 0.05 it implies that the null hypothesis is rejected and these factos have strong impact on the usage of mobile banking/

factors that motivated to open account in mobile banking
Frequency Percent Valid Percent Cumulative Percent
Valid self motivation 30 29.7 30.0 30.0
advertisement 16 15.8 16.0 46.0
Friends 31 30.7 31.0 77.0
Internet 19 18.8 19.0 96.0
Others 4 4.0 4.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

INTERPRETATION
From the various factors listed as the motivator for usage of mobile banking services by customers it can be observed that after using frequency test we can say that the highest percent of respondent’s i.e 31% have selected friends as the common motivator. We can also see that self motivation is also having response of closely 30% .Hence it can be concluded that the biggest motivator for using mobile banking services are self-motivation and friends.
REASONS BEHIND YOUR DISSATISFACTION
Frequency Percent Valid Percent Cumulative Percent
Valid service quality 7 6.9 7.0 7.0
low safety 32 31.7 32.0 39.0
reliability 24 23.8 24.0 63.0
difficult to understand 33 32.7 33.0 96.0
Others 4 4.0 4.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

INTERPRETAION
The respondents were given five factors to choose from which has caused dissatisfaction for them during the usage of mobile banking service. From the results of descriptive analysis it is observed that low safety and difficulty in usage are the two main factors chosen. 32% and 33% of the respondents chose low safety and difficulty in use. These are the highest contributor for dissatisfaction in the case of mobile banking usage
Rank the services provided on the basis of the frequency of their usage(Fund transfer)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 21 20.8 21.0 21.0
second rank 27 26.7 27.0 48.0
third rank 30 29.7 30.0 78.0
fourth rank 15 14.9 15.0 93.0
fifth rank 3 3.0 3.0 96.0
sixth rank 4 4.0 4.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

Rank the services provided on the basis of the frequency of their usage
(IMPS)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 6 5.9 6.0 6.0
second rank 15 14.9 15.0 21.0
third rank 22 21.8 22.0 43.0
fourth rank 25 24.8 25.0 68.0
fifth rank 19 18.8 19.0 87.0
sixth rank 8 7.9 8.0 95.0
seventh rank 2 2.0 2.0 97.0
eight rank 3 3.0 3.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Rank the services provided on the basis of the frequency of their usage(enquiry)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 24 23.8 24.0 24.0
second rank 16 15.8 16.0 40.0
third rank 15 14.9 15.0 55.0
fourth rank 18 17.8 18.0 73.0
fifth rank 1 1.0 1.0 74.0
sixth rank 16 15.8 16.0 90.0
seventh rank 10 9.9 10.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Rank the services provided on the basis of the frequency of their usage(demat)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 2 2.0 2.0 2.0
second rank 5 5.0 5.0 7.0
third rank 3 3.0 3.0 10.0
fourth rank 4 4.0 4.0 14.0
fifth rank 15 14.9 15.0 29.0
sixth rank 9 8.9 9.0 38.0
seventh rank 23 22.8 23.0 61.0
eight rank 39 38.6 39.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Rank the services provided on the basis of the frequency of their usage(request)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 26 25.7 26.0 26.0
second rank 20 19.8 20.0 46.0
third rank 9 8.9 9.0 55.0
fourth rank 14 13.9 14.0 69.0
fifth rank 9 8.9 9.0 78.0
sixth rank 10 9.9 10.0 88.0
seventh rank 8 7.9 8.0 96.0
eight rank 4 4.0 4.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Rank the services provided on the basis of the frequency of their usage(bill pay)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 18 17.8 18.0 18.0
second rank 12 11.9 12.0 30.0
third rank 15 14.9 15.0 45.0
fourth rank 10 9.9 10.0 55.0
fifth rank 11 10.9 11.0 66.0
sixth rank 24 23.8 24.0 90.0
seventh rank 5 5.0 5.0 95.0
eight rank 5 5.0 5.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Rank the services provided on the basis of the frequency of their usage(top up)
Frequency Percent Valid Percent Cumulative Percent
Valid first rank 18 17.8 18.0 18.0
second rank 12 11.9 12.0 30.0
third rank 15 14.9 15.0 45.0
fourth rank 10 9.9 10.0 55.0
fifth rank 11 10.9 11.0 66.0
sixth rank 24 23.8 24.0 90.0
seventh rank 5 5.0 5.0 95.0
eight rank 5 5.0 5.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

Enquiry
Request

Fund transfer

INTERPRETATION
Out of the 8 services commonly provided through mobile banking i.e. fund transfer, IMPS, enquiry, Demat , request, bill pay ,Top-up and m commerce it is observed that the customers are most aware of the request services which was raked top by majority of the respondents and demat service was ranked least out of the 8 by majority of the respondents.
The top three services that are the customers are aware of can be concluded as request, fund transfer and enquiry.

TIMEFACTOR
frequency percent valid percent cumulative percent
valid no 25 24.8 25.0 25.0
time 75 74.3 75.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0

COSTFACTOR
frequency percent valid percent cumulative percent
valid no 46 45.5 46.0 46.0
cost 54 53.5 54.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0
FLEXIBILITYFACTOR
frequency percent valid percent cumulative percent
valid no 50 49.5 50.0 50.0
flexibility 50 49.5 50.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0

EASEFACTOR
frequency percent valid percent cumulative percent
valid no 42 41.6 42.0 42.0
ease 58 57.4 58.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0

SECURITYFACTOR
frequency percent valid percent cumulative percent
valid no 40 39.6 40.0 40.0
security 60 59.4 60.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0
RLIABILITYFACTOR
frequency percent valid percent cumulative percent
valid no 42 41.6 42.0 42.0
reliability 58 57.4 58.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0

OTHERFACTOR
frequency percent valid percent cumulative percent
valid no 82 81.2 82.0 82.0
other 18 17.8 18.0 100.0
total 100 99.0 100.0
missing system 1 1.0
total 101 100.0

INTERPRETATION
For a question related to choosing the factors that affect the opening of mobile banking account it was found that time factor were chosen by 75% of the respondents, cost factor was chosen by 54%,flexibility by 50% respondents, ease factor by 58% , security factor by 60%,reliability by 58% and other factors were chosen by 18% respondents.
From the responses it can be inferred that the biggest factor that contributes towards opening a mobile banking account was time saving factor. Ease, security and reliability were also other major contributors.

REGRESSION ANALYSIS

Descriptive Statistics
Mean
Std. Deviation
N

User 1.5800 .49604 100
mobile banking is time saving than conventional banking? 1.7300 .56595 100
mobile banking is cost saving than conventional banking? 2.0600 .70811 100
mobile banking is flexible than conventional banking?
2.2200 .56102 100
mobile banking is easy to than conventional banking?
3.3300 4.12202 100
mobile banking is secure than conventional banking?
2.8800 .81995 100
mobile banking is reliable than conventional banking?
3.0600 .82658 100
mobile banking has better problem handling capacity than conventional banking?
3.0400 .89803 100
mobile banking has full filled my expectations than conventional banking?
2.8600 .95367 100

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate

1 .
058a
.607
-.016
.49988
b. Dependent Variable: User
ANOVAb
Model Sum of Squares df Mean Square F Sig.

1 Regression 1.621 8 .203 .811 .044a
Residual 22.739 91 .250
Total 24.360 99

b. Dependent Variable: User
INTERPRETATION
R=0.58
R square=.607
Anova=.044
The value of R should be closer to 1 in Oder to have a significant impact. Here we can see that the value is closer to 1 therefore it implies that the factors have significant relation to the dependent variable square value should be above 50% and here in the results its 60% .This implies there exists a significant affect of variables on dependent variable .
The anova significance should ideally be less than 0.05 and this results we can see its 0.044 which indicated that factors have strong impact on dependent variables.
Therefore the regression analysis states that the factors are significant and have a significant impact on deciding the usage of mobile banking.

CHAPTER 6
FINDINGS, CONCLUSIONS AND SUGGESTIONS

FINDINGS AND CONCLUSIONS

1. From the sample size it was observed that the usage of mobile banking was more among the male respondents compared to that of female respondents. More than 60% of the male respondents were mobile banking users and more than 50% of females were non users.
2. It is also found from the responses that the most number of users belonged to the businessman category.
3. After conducting the Chi square test it was found that profession does not have significant impact on mobile banking usage
4. The chi square test proved that gender has significant impact on the usage of mobile banking.
5. Out of the six factors time saving, cost, reliability, security, ease , flexibility and others it was found that except for ease factor, flexibility factor and other factors rest of the 3 factors have significant impact on influencing the customers in opening a mobile banking account in their respective bank
6. The chi square test was conducted to find the service which the customers are most aware of in mobile banking service. It was found that the respondents ranked fund transfer, request service and enquiries as the top services that they are aware of. The least ranked service was demat services implying that the customers are not so aware of this particular services provided through mobile banking.
7. Time, cost, reliability, security, ease, flexibility are having significant impact on the decision of becoming a mobile banking user. These factors contribute significantly towards the level of satisfaction a customer has from the usage this mobile banking service.

Source: Essay UK - http://ntechno.pro/essays/finance/essay-mobile-banking/


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