Essay on Mobile Banking

11698 Words Jan 19th, 2013 47 Pages
Yu: Factors Affecting Individuals to Adopt Mobile Banking

FACTORS AFFECTING INDIVIDUALS TO ADOPT MOBILE BANKING: EMPIRICAL EVIDENCE FROM THE UTAUT MODEL
Chian-Son Yu Department of Information Technology and Management Shih Chien University # 70, DaZhi Street, Taipei, Taiwan csyu@mail.usc.edu.tw

ABSTRACT Fast advances in the wireless technology and the intensive penetration of cell phones have motivated banks to spend large budget on building mobile banking systems, but the adoption rate of mobile banking is still underused than expected. Therefore, research to enrich current knowledge about what affects individuals to use mobile banking is required. Consequently, this study employs the Unified Theory of Acceptance and Use of Technology
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[2003] surveyed 162 respondents and discovered that perceived advantages, the opportunity to try out cell phone banking, the number of banking services required by respondents and perceived risk significantly influenced people to adopt mobile banking. Lee et al. [2003] performed eight interviews to collect transcripts from participants and concluded that relative advantages and compatibility were positive factors affecting the adoption of mobile banking, perceived risk was negative factor affecting the adoption of mobile banking, and consumer previous experience and self-efficacy generalized their beliefs (a negative or positive attitude) toward the adoption of mobile banking. Suoranta and Mattila [2004] took the Bass model of diffusion to separate 1253 respondents into non-users, occasional users, and regular users according to their mobile banking usage experience and density. The Bass diffusion model assumes that potential adopters of an innovation are influenced by two types of communication channels: mass media and interpersonal word-of-mouth, and the adoption rate can be described by S-shaped diffusion curves. Accordingly, Suoranta and Mattila [2004] empirically identified that interpersonal influence was over mass media in affecting users to adopt mobile banking. Contrasting to the study of Suoranta and Mattila [2004], Laforet and Li [2005] surveyed 128 respondents randomly selected in the city streets and indicated that

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