Factors influencing the use of Mobile Banking:
The case of SMS-based Mobile Banking offered
Mobile banking is an application of mobile computing which provides customers with the support needed to be able to bank anywhere, anytime using a mobile handheld device and a mobile service such as text messaging (SMS). Mobile banking removes space and time limitations from banking activities such as checking account balances, or transferring money from one account to another. In recent research and studies it was found that while mobile banking and more specifically SMS-based mobile banking applications have become popular in some countries and regions, they were still not widely used. This study identifies and investigates the factors which influence customers’ decision to use a specific form of mobile banking, and specifically focuses on the evaluation of SMS-based mobile banking in the context of Tanzania a case study at CRDB Bank plc. The research model includes the basic concepts of the Technology Acceptance Model (TAM), as well as some constructs derived through a focus group discussion. The model is tested to determine its predictive power with respect to individual’s behaviour when considering the use of SMS-based mobile banking. A survey questionnaire was developed and employed to collect data from 10 SAUT university students in Tanzania. The results of the data analysis contributes to the body of knowledge in the area by demonstrating that context specific factors such as service quality and service awareness are influencing user perceptions about the usefulness of SMS mobile banking which in turn affect intention to use and adoption. Secondly, the study demonstrates, on the example of SMS-based mobile banking, how a hybrid approach involving qualitative data collection and a subsequent quantitative survey can help investigate how user perceptions about usefulness and ease of use are formed. Although the study has its limitations, the implications of the results allow providing practical recommendations to the banking industry, and directions for further work. A number of new information and commercial technologies and applications have been explored in the past and mobile technology is one of them. Mobile applications have been developed and used in different areas. Pervasive and ubiquitous mobile technology has penetrated both the personal and business domains. Mobile services have an impact on consumers because they allow ubiquitous and universal access to information and services, as well as a possibility for a unique and personalized exchange of information (Watson et al., 2002). As a result, using mobile devices is now a part of daily life, and a way to keep in touch with the rest of the world as well as to communicate and network. New technology is said to be inseparable from everyday life (Weiser, 1991). Newbery (2005) found that New Zealand ranks highly among OECD countries in terms of multimedia mobile phone saturation (69% compared to the global average of 53%). A survey done by the Vodafone New Zealand Ltd on November 23, 2008 found that the mobile phone was used to do everything from banking and paying for parking, to downloading music and finding (or dumping) partners (Hudson, 2008). Mobile banking is one developing mobile technique used in the commercial domain. It has combined information technology and commerce applications together. Since mobile banking was introduced, consumers have been able to use it to obtain special services 24/7 i.e 24 hours a day 7 days a week without having to visit the traditional bank branch for personal transactions.
Short message service (SMS) is used to support mobile banking service as the main medium. Reasons for mobile and SMS usage are largely saving time, varying location and convenience (Venkatesh et al, 2003). It is quick and easy for users to become familiar with the mobile banking service. A recent survey done by the Vodafone New...
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