Mobile Banking: A Study on Adoption by Indian Users

Abstract

Mobile Banking is one of the highly discussed topics of the times, with the exponential growth of mobile phones over the years and a teledensity of around 80% Banks are trying their best to enhance adoption of banking though mobile phones. Today with Mobile banking penetration of around 3% there is a huge market to be tapped in the country. With the burgeoning population the brick & mortar model of banking is difficult to pace with and Bankers are harping large on the adoption of mobile banking providing traditional banking to all would be too costly and may not be feasible. The review paper delves into the aspects of low mobile banking penetration and the factors impacting the adoption of Mobile banking in India, despite the high Teledensity & 49% Bank Penetration. Self efficacy, Apps compatibility, 24x7 hours availability have been found to build perception towards “Ease of Use”. Efficient transaction and Transaction cost, as primary factors leading to perception of “Usefulness” Privacy Risk & Transaction Risk have been found to be the primary factors leading to Risk Perception and accordingly influencing the adoption decision. The study proposes a model which is built upon the Technology Acceptance Model TAM. The findings from the study would provide the stakeholders in the Mobile banking domain with a better understanding of customer perceptions of mobile banking services and help them plan their marketing strategies and promotion approaches for mobile banking services in the future.

Keywords: Mobile Banking, TAM, online banking, Smartphone banking, Banking penetration, TAM