A Two-Staged SEM-AHP Technique for Understanding and Prioritizing Mobile Financial Services Perspective Adoption

Abstract

The development of wireless and mobile technologies has offered a remarkable business opportunity for mobile financial services (MFS). This research focuses on predicting and prioritizing MFS perspective adoption through multi-dimensional consumers’ trust and perceived risk factors concurrently, which concepts found scant in the literature. An integrated technique based on survey questionnaire was suggested whereby the theoretical model was tested employing structural equation modeling (SEM), and the SEM output generated were utilized as inputs for analytic hierarchy process (AHP) to rank MFS perspective. Several antecedents of trust and perceived risk were identified and confirmed. However, perceived time risk has no statistically significant influence on aggregate perceived risk. The findings indicated that dispositional trust and perceived privacy risk impact consumers more than do other precursors of trust and perceived risk respectively. Consumers rely on these two factors probably because they are quite related to consumer personality trait and relevant to services provided. Mobile money transfer is the preferable MFS perspective used in Togo followed by mobile payment, and mobile banking correspondingly based on AHP result. The outcomes underscore that MFS managers require adopting and build trust-risk base in strategically crucial information system when formulating strategies to attract the ever-larger consumer. This study as well offered an innovative new approach to comprehend MFS adoption perspective through the benchmark methodology provided.

Keywords: Mobile financial services adoption, SEM (Structural Equation Modeling), AHP (Analytic Hierarchy Process), Multi-analytic approach, Trust, Perceived risk, User behavior