Customer Perception Towards Mobile Banking with Special Reference to India

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CUSTOMER PERCEPTION TOWARDS MOBILE BANKING WITH SPECIAL REFERENCE TO INDIA

Purpose: The objective of this paper is to study customer perception towards mobile banking and finding important factors in India.

Design/Methodology/Approach: The research methodology is largely based on extensive literature review and is based on exploratory research followed by descriptive analysis. The data collected thorough questionnaire, which is based on both open ended and closed ended questions. The questionnaire is based on Likert scale. The data is analyzed through Factor analysis.

Findings: The important factors that affect the perception of customers towards mobile banking are convenience, security, faith on traditional banking and awareness.

Research limitation/implications: This study is based on the data collected form major metro cities of India. The study is based on customers availing the mobile banking services. The findings of the paper cannot be generalized, as the sampling technique is non-probability sampling.

Practical implications: The results of this paper will encourage mobile banking service providers to strengthen the security policy and provide augmented services to attract new customers.

Paper Type: Research Paper

Key Words: Mobile Banking; Customer Perception; Factor Analysis; India

INTRODUCTION
In recent years, the technological developments in information technology have lead to the evolution of a new concept in Banking Industry i.e. Mobile banking. Mobile banking is defined as the “type of execution of financial services in the course of which – within an electronic procedure – the customer uses mobile communication techniques in conjunction with mobile devices” (Pousttchi and Schurig 2004). Moreover, it is defined as “a channel whereby the customer interacts with a bank via a mobile device, such as a mobile phone or personal digital assistant” (Barnes and Corbitt 2003, Scornavacca and Barnes 2004). The evolution of Mobile banking has fundamentally transformed the way banks traditionally conduct their businesses and the ways consumers perform their banking

However the success of Mobile banking is not going smoothly, its full of problems. Firstly the adoption of Mobile banking has not kept pace with that of mobile devices like mobile phones, PDA’S etc. This gap is attributed to the lack of trust among bank customers, particularly between Internet and mobile device users in the age group of 45 and greater than 55. Secondly, customers still have faith on face-to-face interaction while concerned with their money due to reasons such as fear of the online environment and lack of trust in the Internet and mobile devices systems. Recent literature on Mobile banking showed that the formation of trust can help reduce the impact of key inhibiting factors such as fears about using the online service among non Mobile banking customers.

The customer perception towards Mobile banking is controlled by variety of factors, few within the firm’s control and few beyond the control of the firm. These days Mobile banking has facilitated the customers to avail any services just by the click of the buttons of mobile phones or PDA’S. But at the same time the customers are concerned about the security of their transactions and other personal information. As more and more customers are making increasing use of Mobile banking services it becomes imperative to examine the factors that affect customer expectation and satisfaction.

LITERATURE REVIEW
Electronic banking is regarded as on of the most successful business to consumer applications in electronic commerce (Pousttchi and Schuring, 2004). The mobile phone is one of the most integral parts of customers’ lives and its use is growing in the world. The mobile banking offers various kind of services like to request the account balance, latest transactions of the account, transfer fund between accounts, to make buy and sell orders for the stock exchange and...
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