Customer Perspective on Online Mobile Banking in India - An Empirical Study
International Journal of Management, IT and Engineering, Volume 5, Issue 7, July 2015, pp. 77-97, ISSN: 2249-0558
21 Pages Posted: 12 May 2016
Date Written: July 10, 2015
Advancement of technology has brought in radical changes in banking industry. Computerization and networking, core banking, automatic teller machine connecting any customer of any bank in any branch with a customer in any other bank in the country has made banks customer friendly. One of the latest introduction is mobile banking. A country with highest number of mobile users, it has enormous potential in changing the outlook of banking in India and reaching the remote village in any part of the country. It is argued that online mobile banking system has close correspondence with ideal banking system. This paper discuses the objectives, methodology, advantages and benefits of online mobile banking facility offered by the banks to the customers. A detailed review of literature is done on development of online banking in different developed and developing countries including India to analyse the gap of online banking in India. The significance of online mobile banking in India are discussed by considering seven native reasons namely:
(1) Essentiality of mobile device rather than luxurious,
(2) Continuously decreased price of mobile devices,
(3) Low usage cost,
(4) Availability of services in rural areas,
(5) Integration of various service applications within a device,
(6) Improved willingness to use mobile devices, and
(7) Improved economic conditions of the people.
An empirical study on customer acceptance of mobile banking is carried out by developing six hypotheses. Factors affecting the actual use is studies through focus group method as the qualitative data collection instrument. The factors identified in this study include demography of customers, personal banking experience & incentives, technology experience, psychology & culture, and security & trust. The hypotheses are tested using primary data collected through questionnaire method, data are analyzed and the results are discussed.
Keywords: Customer perspective, mobile banking, empirical study
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