Factors Influencing Adoption and Usage of Mobile Banking: Bangladesh Experience

Abstract

The main objective of the present study is to investigate the factors, demographic variables and users' perception, that influence the adoption of mobile banking in Bangladesh. The study also discusses the status of mobile banking usage using age, gender, and occupation as demographic variables, and the perception of users toward mobile banking in terms of trustworthiness, security, cost and convenience, complexity, and network availability. It includes specific reference to how these demographic variables and users' perception influence mobile banking usage. A self administered questionnaire has been developed to conduct a survey on a sample of 400 mobile banking users for a period of 4 years i.e. 2012 to 2015. Analysis has revealed that majority of the users are male and students of age 20-24 years. They perceive mobile banking to be trustworthy, secured and cost effective, though complex and vulnerable to network problem. Using panel regression analysis the study has revealed that differences in demographic characteristics have no influence over mobile banking adoption. It has also revealed that perception to security, cost and convenience, and complexity in using mobile banking service influences variations in mobile banking adoption. Conversely, perception to trustworthiness and network problem has been found to have no influence; however, it has been found to have influence on mobile banking adoption using score model assessment.