The study examined the determinant of mobile banking adoption among bank customers in Ghana, with specific emphasis on Access Bank. In line with literature, the study applies theoretical frameworks which have been developed from existing literatures on innovation and adoption to collect responses from one hundred and fifty (150) sampled customers of Access Bank in order to investigate the determinants of mobile banking adoption in the Ghanaian banking industry. The results from the study revealed that, each factor measured had some level of significant effect on consumer intention to adopt and use mobile banking services provided by Access Bank. Additionally, the study unveiled that, perceived credibility and perceived financial cost were the major setback with regards to customers adoption of mobile banking services provided by Access Bank, and as a result of this, Ghanaians have formed a negative behavioural pattern towards mobile banking. In addition, the findings showed that, perceived credibility and perceived financial cost have a stronger effect on consumer intention to adopt and use mobile banking service than perceived usefulness and perceived ease of use. It was, therefore, recommended that banks in Ghana should create more awareness through personal interaction with customers, develop quality initiatives in order to build customer’s confidence. Equally, banks should also review the cost of their mobile banking service.
The world has become a global village and almost everything is being done through technology. The growth of information technology (IT) in the world is becoming a crucial factor in the future development of businesses and industries around the world. The traditional method of banking is gradually paving way for modern method of banking in the 21st century. Traditional banking has being in existence for many decades now and is the most common method of carrying out bank transactions in different countries, both developed and undeveloped [
Research in the field of mobile banking and the analysis of variables connected, has almost entirely been done in the developed countries. However, in their analysis of innovation in developing countries, the authors in [
The main objective of the study is to examine the determinants of mobile banking adoption as a communication in the banking industry with specific emphasis on the Access Bank Ghana Limited.
Further, the study seeks to:
1) Investigate consumer’s knowledge about mobile banking in Access Bank and its comparison with the current adoption rate;
2) Ascertain the factors influencing consumer behaviour adoption of mobile banking in Access Bank;
3) To examine how customers perceive mobile banking initiative to be functioning in Access Bank.
In the quest to achieve the research objectives, the research team seeks to find answers to the following questions:
1) What is the level of consumer’s knowledge about mobile banking in Access Bank and its comparison with the current adoption rate?
2) What are the factors influencing consumer behaviour adoption of mobile banking in Access Bank?
3) How do customers perceive mobile banking initiative to be functioning at Access Bank?
The findings from this research work are expected to contribute to the adoption literature in the area of mobile banking and in the developing nations. More specifically, to bridge the gap that exists for Ghana by serving as a starting point for further research. The findings from this research study can be used by banks to improve mobile banking facilities and to identify those factors that can either contribute to the failure or success of the mobile banking services and this could be further used for decision making. To academia, the research would serve as a source of academic reference for further studies.
This section seeks to analyze relevant documentation and findings that are essential to improve the research and its capacity to analyze the concerns it seek to accomplish, that is, the theoretical literature and the empirical lite- rature. The theoretical literature presents and attempts to explain theories that relate to the subject matter that is mobile banking adoption. The empirical literature describes what has been practically observed and validated objectively in relation to the subject matter.
Mobile Banking allows consumers to perform banking services (i.e. alerts, banking transactions and balance enquiries) with the use of their mobile devices [
Much research has focus on developed countries and, innovation and adoption have attracted so much attention in various literatures, and this has generated many models and theories which are believed to affect the adoption of an innovation. These theories have been used in many research and is been used in developed countries. Parts of the innovation studied are mobile banking, electronic banking [
1) Theories and Model of Innovation Adoption
Many theories have been developed to study the framework of innovation adoption, however, with regards to present studies theories such as innovation diffusion theory, technology acceptance model (TAM), and theory of reasoned action (TRA) have been widely used.
a) Innovation Diffusion Theory
The author in [
b) Technology Acceptance Model (TAM)
Technology Acceptance Model (TAM) was developed by the author in [
c) Theory of Reasoned Action (TRA)
The Theory of Reasoned Action (TRA) was developed in 1967 and was later revised and expanded in the middle 1970s by Ajzen and Fishbein. The authors in [
The authors in [
A wide range of mobile/branchless banking ideas are currently been established now. Three models have been identified and developed, and they are primarily different from one another based on who established the relationship (Banks or the Non-Bank/Telecommunication Company) of account opening, deposit or withdrawer, borrowing, etc., with the customers. There are differences in the Bank-Led Model, Bank Focused Model and Non- Bank-Led Model [
1) Bank-Led Model
This is when customers perform transaction with the use of their phones, which is different, from the branch- base with the help of a trade partners. This is an alternative to conventional branch-based banking. This method could be created by joint venture between banks and telecommunication companies. This system allows cus- tomers account relationship to be established and managed by the bank.
2) Bank-Focused Model
The bank focus model is when a traditional banks decides to use the low-cost delivery channels, which is a non-traditional banking system to provide banking services to its customers such as the use of M-Banking facilities, automatic teller machine (ATMs), internet banking, etc., The bank-focus model is additive in nature and is an extension of the conventional branch-based banking [
3) Non Bank-Led Model
The non-bank-led does not get involve unless required to do so when the need arises as a safe keeper of surplus funds, and this allows the telecommunication company handle all the functions. However, mobile banking services that are focused on low income earners of the population size which are regularly found in the rural area will need to reply on retail outlets. A lot of telecommunications agents operate through their airtime resellers while banks muses bakeries, pharmacies, etc. which can be found in some countries such as Colombia.
Mobile banking services could be used through more than one channel such short messaging service/messaging and application download (client-based) [
1) SMS-Short Messaging Service
This is where the customers communicate with the bank through their mobile devices by sending an SMS (short messaging service) to the bank. The short messaging service (SMS) works in two ways, and it can be either a pull mode or a push mode. In the push mode, the mobile customer send a text message to the bank which contains a service command with a predefined request code to the bank’s specific number. The bank also reply with SMS containing the specific information requested from the bank while the pull mode is when the banks sends a text message to the subscriber (customer) to inform the customer about certain transaction that have just taken place over the account. The message could be in the form of an MMS (multimedia message service) or SMS (short message service) they both work similarly even though the use of SMS is more popular [
2) Client-Based
This method requires the customers to use software installation, and this will serve as a user interface that can allow customers to use the mobile device while offline to access some basic transactions before going online. Typing details before connecting to the internet could reduce cost. This client based application is particularly useful because it allows customers to stay offline and while preparing transaction such as entry of account details and afterwards the transmission is made by sending out the data, this banking process conducted offline reduces online connection time and cost [
3) Browser-Based
Brower-based customer needs to be connected to the internet to use this service. The interface is generated from the server which is transported to mobile device, and this allows the content to be displayed through the browser. This method is extremely fast depending on the server that the customer is connected to but one its disadvantages is that, it requires the subscriber (customer) to stay online all through the transaction process and could lead to higher cost for the customers [
With regards to existing theories and ideas on the literature examined, it is evidence that there are certain factors responsible for the adoption of mobile banking. Base on the existing theories and ideas in literature, the research team formulated a comprehensive research framework (
1) Awareness
The level of information consumers have on mobile banking is one of the major factors impacting the adoption and usage of online banking according to the author in [
2) Perceived Usefulness
The author in [
3) Perceived Ease of Use
The author in [
According to the authors in the author in [
4) Compatibility
It is believed that the adoption of mobile banking service would be made possible if it’s compatible with the customer’s bank transaction needs [
5) Social Influence
The adoption of mobile banking facilities would be possible if individual behavioural intention of a customer is influenced by what people around believe about it [
6) Perceived Credibility
The customer’s intention to use an innovation or mobile device can be influenced by security and privacy [
7) Perceived Self-Efficacy
Self-efficacy is defined as the judgments of how well one can execute courses of action which is required in dealing with prospective situations. It is believed that there exist positive relationship between technological experience and the effects which it has on computer usage.
8) Perceived Financial Cost
This believes show that the cost of using mobile banking facilities could influence the intention to use mobile banking service [
The author in [
This section looks at the methods used to achieve the objectives of the study. It highlights research design, the sources of data and the methods that were used in the data collection for the research. It also identifies the target population for the study, the sample size and frame, sampling technique and how data obtained from the study were analyzed.
This research is an explanatory and a cross-sectional study that is mainly aimed at examining mobile banking adoption as a communication tool on customer behaviour in the banking industry at Access Bank. Explanatory research seeks to establish relationship that exists between variables, that is, to identify how one variable affects the other; it also seeks to provide an explanation to the causes and/or effects of one or more variables [
The population of interest for the study comprised all customers of Access Bank in Ghana.
The sample frame for the study was:
・ All customers of Access Bank who have been patronizing the services of the bank for at least one year.
The author in [
Purposive sampling technique as a non-probability sampling was used as the technique for the research. This method was selected to enable the researchers to target specific customers of Access Bank who were in position to provide the information needed for the study.
The research team designed questionnaire for customers of the sampled Access Bank branches in the Accra metropolis. Both closed and opened ended questionnaires were used for the study. The close-ended questions were developed on a five point Likert scales ranging from 5 (strongly agree) to 1 (strongly disagree).
Secondary sources of data collection were obtained for additional information. The study relied on both unpublished and published data such as, articles from journals and the internet which is related to the topic. Sources of all secondary data were duly acknowledged at the reference section of the research.
Descriptive statistics such as frequency distribution was used to assess the demographic profile of the respondents to make the analysis more meaningful, clear and easily interpretable. Descriptive statistics allow the researchers to present the data acquired in a structured, accurate and summarized manner. The analysis of data was done with the help of the statistical software of Statistical Package for Social Sciences (Version 20).
To ensure the validity and reliability of the questionnaire used for the collection of primary data, prior to the real administration of the questionnaire, a pre-testing of the questionnaire using thirty (30) respondents from the sample size was undertaken within the study area to find out whether the instrument would meet the needed responses to ascertain it reliability.
The main purpose of this section is to present the analysis and discussion of the findings of the study. The analysis is done in line with the objectives. The first part of the chapter presents the demographic characteristics of the respondents. Secondly, the mobile banking usage of respondents was also discussed. The last part discussed the determinants of mobile banking usage of customers in Access Bank Ghana Limited.
Questionnaires were distributed to bank customers of Access Bank. The demographic details showed the gender, age, occupation and these were shown in the tables.
As reflected in
The occupation distribution of the respondents included in the study deferred from one another. The study revealed that, the highest respondents were office worker with ninety-eight (98) respondents, followed by the students with thirty-two (32) of respondents, the remaining twenty (20) were business persons (
As shown in
Gender | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
Male | 41 | 52 | 93 |
Female | 14 | 43 | 57 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Respondents | Age of Respondents | Total | ||||
---|---|---|---|---|---|---|
Below 20 Years | 21 - 30 Years | 31 - 40 Years | 41 - 50 Years | 51 Years and above | ||
Mobile Banking Users | 1 | 18 | 24 | 10 | 2 | 55 |
Mobile Banking Non-Users | 2 | 46 | 22 | 20 | 5 | 95 |
Total | 3 | 64 | 46 | 30 | 7 | 150 |
Source: Field data, 2015.
Respondents | Occupation of Respondents | Total | |||
---|---|---|---|---|---|
Student | Office Worker | Business Person | Others | ||
Users | 10 | 35 | 10 | 0 | 55 |
Non-Users | 22 | 63 | 10 | 0 | 95 |
Total | 32 | 98 | 20 | 0 | 150 |
Source: Field data, 2015.
Consumers knowledge and usage of mobile banking | Frequency | Percentage |
---|---|---|
Have you heard of mobile banking before? | ||
Yes | 100 | 66.7 |
No | 50 | 33.3 |
Total | 150 | 100.0 |
Do you own a mobile phone? | ||
Yes | 150 | 100 |
No | 0 | 0 |
Total | 150 | 100 |
Do you use mobile banking services? | ||
Yes | 55 | 36.7 |
No | 95 | 63.3 |
Total | 150 | 100.0 |
Source: Field data, 2015.
heard of mobile banking facility as well as the benefits they could derive from using this innovation. Customers indicated that Access Bank has used different means of advertisement such as radio, bill boards, newspapers and even TV in conveying their messages to their customers but it is rather unfortunate that innovation is yet to be well embraced by the banks customers.
The high rate of consumer knowledge about mobile banking indicated that, Access Bank is making possible effort to inform their customers about mobile banking services. Though a lot of people claim to have heard of mobile banking services, when compared to the rate of adoption of current users of the services this was rather very low. And this results obtained by the researchers is similar to the finding of the authors in [
In finding out the level of consumer knowledge about mobile banking services provided by Access Bank, the investigation conducted showed that, the level of consumer knowledge is high (
From the results above (
These respondents were skeptical about the reliability of the usefulness of mobile banking service having considered the issue of security.
This research finding is also consistent with that of the authors in [
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 50 | 75 | 125 |
NO | 5 | 20 | 25 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 49 | 65 | 114 |
NO | 6 | 30 | 36 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
From the descriptive analysis above (
Findings from this study are consistent with that of the authors in [
In measuring the compatibility of customers against mobile banking service usage at Access Bank, the results showed that, majority of the respondents, thus, one hundred and eleven (111) believed that, the services provided through their banks using a mobile device must be compatible with their important transaction needs before they can use the self-service. This is therefore saying that, when an innovation is not compatible with an individual’s need then, there might be no need to use it. Nevertheless, another set of respondents summing up to thirty-nine (39) testified against the issue being discussed (
Results obtained from this finding are similar to the findings of the authors in [
In the quest to find out the impact of social influence on customer adoption of mobile banking services in Access Bank, the responses obtained from the questionnaires revealed that, one hundred and three (103) of the entire respondents included in the study considered the importance of social influence with regards to their adoption of mobile banking services provided by Access Bank. However, forty-seven (47) respondents saw it in the negative direction and took a stand that, social influence could not in any way have an impact on their usage of mobile banking services Access Bank renders. This finding showed that, consumers can be influenced by people they know after finding out the benefits they could derive from using a particular service. Results ob- tained from this research attest to the findings of the authors in [
Analysis with regards to self-efficacy of mobile banking service and its impact on usage revealed that, as many as one hundred and fifteen (115) of respondents indicated that, their previous use of electronic device could make develop interest in using mobile banking facilities (
Negatively, thirty-five (35) of another set of respondents believed that, this would not influence their decision to use mobile banking services. From the results it could be seen clearly that, majority of the respondents strongly affirm to the issue being investigated. The conclusion therefore drawn by the researchers was that, self-efficacy of a mobile banking service could have an influence on customers’ decision towards the adoption of the service. This result is therefore in agreement with the authors in [
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 39 | 80 | 119 |
NO | 16 | 15 | 31 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 43 | 68 | 111 |
NO | 12 | 27 | 39 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 35 | 68 | 103 |
NO | 20 | 27 | 47 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 42 | 73 | 115 |
NO | 13 | 22 | 35 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
perceived self-efficacy has a significant effect on consumer intention to adopt an innovation.
Results from the questionnaires administered revealed that, a total numbers of one hundred and thirty (130) respondents strongly testified that, financial cost of using mobile banking service would have no impact on their decision towards the adoption and use of the service provided by Access Bank. This means that, some customers were willing and would not mind the stress of going for branch-base transaction if the cost is high. On the contrary, another set of twenty (20) respondents were discouraged by the cost of using mobile banking services and to them it was too high, even if it is useful they will still not adopt the innovation. Where the costs are low, this will encourage greater usage of the service [
Finding from the responses gathered from the questionnaires administered to the sampled customers of Access Bank revealed that, as many as one hundred and twenty (120) respondents do consider security and privacy as an issue before applying to use mobile banking service. Surprisingly, thirty of another set of respondents do not consider security and privacy as an issue before applying to use mobile banking service. The result from this research is in support with the findings of the authors in [
This section shows the conclusion of this study and their relationship with relevant theories, and draws a conclusion on the entire findings. The contributions and recommendation given in this research work can be used for future research and enhance further development in the banking sector. The limitations of the study are also discussed within this section.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 52 | 78 | 130 |
NO | 3 | 17 | 20 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
Responses | Respondents | Total | |
---|---|---|---|
Users | Non Users | ||
YES | 50 | 70 | 120 |
NO | 5 | 25 | 30 |
Total | 55 | 95 | 150 |
Source: Field data, 2015.
This research seeks to answer two questions in line with the research objectives. Looking at the research question for this study, which was to assess the level of consumer knowledge about mobile banking in Access Bank in comparison with the present or current adoption rate, it clearly showed that, there was a high level of consumer knowledge about mobile banking in Access Bank but presently, the current rate of mobile adoption in Access Bank was very low when it is compared with the number of bank customers that have heard about mobile banking facilities. This showed that, consumers were yet to embrace this innovation due to many factors which have been described in the research. This also showed that, being informed alone is not enough to per- suade customers to use the self-service but this had to do with their behavioural intention to adopt the service. The awareness created by Access Bank to persuade customers was very important and the level of knowledge gained through various means of advertisement could not be over emphasized in helping to facilitate their decision in the self-service and this has been equally stated in the findings of researchers in the past [
From the study it can be concluded that, mobile banking service adoption rate is very low with customers of Access Bank. However, when it come to all the factors that can influence the adoption and usage of mobile banking services, majority of the respondents included in the study attested to the findings that all the factors as reviewed from the analysis such as awareness, usefulness, simplicity, compatibility, self efficacy and creditabil- ity of mobile banking service can have an influence on their adoption and usage of the service.
This research work has shown that mobile banking adoption in Ghana is low as compared to developed countries of the world despite the high level of consumer knowledge in the country. This study can be used by banks to realize the benefits that could be derived if the innovation is well managed by the banks as well as taken drastic steps to address the issues militating against its growth. Ghanaian banks need to increase and improve the level of awareness, as customers of banks said they had not been persuaded individually by the banks officials. The banks need to build the confidence of their customers which will lead to more patronage. There were evidences that many customers have seen the advert but were still skeptical about its usage. There is a need to change the customer’s perception through a well structured advertisement and staff interaction in order to make them realize that the service is safe to use. The customers wanted to know the advantages and disadvantages associated with the service and as a result of this, they could weigh the costs and the benefits of using the self- service which in turn will reduce unnecessary worries and anxiety. This will also help customers to get clarification over confusing issues. The banks should also ensure that the cost of mobile banking service is reasonable and affordable for students, officer workers, business person, etc in order not to discourage current users and the intending users. It is therefore necessary for banks to improve the level of awareness and build customer confidence as this will help change customers attitude towards the system; this is supported by the author in [
Attention should be given to students in educational institutions as they consist of a larger population of the country due to their favourable attitude towards new innovation and this is also evident that the majority of them are ATM [
The further research of this study’s frame work can be useful to advance knowledge about factors which influence consumers’ behaviour towards mobile banking in Ghana. This research work has two limitations. Firstly, in order to have a wider range of customer’s perspective a larger population size could be considered and be increased in order to have a more generalised view and also the research could be expended to reach more states in Ghana, nevertheless this research is still valid having analysed the available sample size with close-ended questions. Secondly, it would be desirable if this research could have extensively use other statistical model such as linear regression, exponential and polynomial regression model as this will helped to identify the highest degree of change in consumers behaviour within Ghana. Equally, further research could be conducted by looking at the consumers’ demographic characteristics and the adoption of mobile banking in Ghana. This research work has been able to contribute to the existing literature on consumer adoption of mobile banking in Ghana and has also, bridge the gap which exists between developed countries and developing countries with particular reference to Access Bank. Equally, this research has been able to examine the determinants that influence the consumer adoption of mobile banking in Ghana.