Adaptation of Mobile Financial Services (MFS): Scenario of Regional Bangladesh

Abstract

Financial industry is no exception in need of digitization in changing business eco-system for functioning of various sectors. Adapting sophisticated technological solutions especially Mobile Financial Services (MFS) emerges as a viable option in a country like Bangladesh, where a significant majority lives in regional areas with limited access to traditional banking services. The fact that MFS is less widely adapted in rural areas of Bangladesh than in cities in conjunction with the population concentration. This phenomenon has led to research on the variables influencing MFS adaption among regional communities. Regression analysis was used in this study to examine and determine the factors impacting the situation, drawing attention to the theories on the Technology Acceptance Model, the Theory of Reasoned Action, and the Theory of Planned Behaviour. Perceived usefulness and trust are two of those factors that significantly influence attitude while perceived ease of use, self-efficacy and costs have no significance. Ultimately, this study advances the understandings of MFS adaption in local communities and provides insightful information to financial institutions, service providers, and regulators. It is anticipated that MFS would be crucial in transforming the transaction culture in rural areas of Bangladesh, which are now mostly centred on cash transactions.

Keywords: Mobile Financial Service, Adaptation, Attitude, Cash-less Transaction.

DOI: 10.7176/RJFA/15-2-01

Publication date: January 31^st 2024