CONSUMER ACCEPTANCE OF MOBILE BANKING

FINAL YEAR PROJECT

Submitted by:
Laraib Murtaza
(08-0002)

Supervised by:
Mr. Hassan Javid

Program:
Bachelors of Business Administration Program
Spring 2012

National University of Computer & Emerging Science

Management Science Department,
Karachi, Campus

FAST SCHOOL OF BUSINESS, KARACHI

Recommendation for External Examination

The final year project, here to attached, titled, Consumer Acceptance of Mobile
Banking, prepared and submitted by Laraib Murtaza, in partial fulfillment of the
requirements for the degree of Bachelors of Business Administration (BBA), is hereby
forwarded for appropriation action.

_____________________
Mr. Hassan Javid
Advisor

FAST SCHOOL OF BUSINESS, KARACHI

2

Certificate of Completion
The final year project titled, Consumer Acceptance of Mobile Banking, prepared and
submitted by Laraib Murtaza, in partial fulfillment of the requirements for the degree
of Bachelors of Business Administration (BBA), has been accepted and approved.

__________________________
Mr. Hassan Javid
Advisor

___________________________
Dr. Manzoor A. Khalidi
Head of Management Science Department

Acknowledgement
3

First of all thanks to Almighty Allah for providing me the strength, courage and skills to
learn, and acquire the knowledge and the ability to accept and meet the challenges.
Secondly I would like to thank all those who have helped in performing this research
especially my friends and family.
Secondly I would like to express my sincere gratitude to my supervisor Mr. Muhammad
Amir Adam and FYP-coordinator Dr. Manzoor A. Khalidi for their valuable insights they
provided me throughout this project.
I also wish to thank Mr. Babar Ali and Mr. Muhammad Amjad for their guidance and
help. I would like to appreciate all those people who give their precious time to fill
questionnaires. In the end I would like to thank my friends and family who supported and
encouraged me at every step of this project.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................
Chapter 1: Introduction....................................................................................................................
1.1 Background............................................................................................................................
1.2 Research Question.................................................................................................................
1.3 Objectives..............................................................................................................................
1.4 Stakeholders...........................................................................................................................
1.5 Benefits..................................................................................................................................
1.6 Limitation..............................................................................................................................
1.7 Scope......................................................................................................................................
1.8 Key Terms..............................................................................................................................
1.8.1 Perceived ease of use:.....................................................................................................
1.8.2 Perceived cost:................................................................................................................
1.8.3 Perceived risk:................................................................................................................
Chapter 2: Literature Review...........................................................................................................
2.1 Brief History of Banking.......................................................................................................
2.2 Emergence of Banking in Pakistan........................................................................................
2.3 Mobile commerce (m-commerce).......................................................................................
2.4 Evolution of Mobile Banking..............................................................................................
2.4.1 Trends in Mobile Banking............................................................................................
2.4.2 Mobile Banking Business Models................................................................................
2.5 Mobile banking in Pakistan.................................................................................................
2.5.1 Telenor Easypaisa.........................................................................................................
2.5.2 MCB Mobile.................................................................................................................
2.5.3 UBL Omni Branchless Banking...................................................................................
Chapter 4. Research Methodology................................................................................................
4.1 Research Design..................................................................................................................
4.2 Procedure.............................................................................................................................
4.3 Population............................................................................................................................
4.4 Sample and Sampling Method.............................................................................................
4.5 Conceptual Framework........................................................................................................
4.6 Variables...............................................................................................................................
5

4.7 Hypothesis...........................................................................................................................
4.8 Software Emlpoyed.............................................................................................................
Chapter 4 Findings and Data Analysis...........................................................................................
4.1 Demographic Analysis.........................................................................................................
4.2 Descriptive Analysis............................................................................................................
4.3 Correlation & Regression Analysis.....................................................................................
Conclusion.....................................................................................................................................
Recommendations..........................................................................................................................
References......................................................................................................................................
Appendices................................................................................................................................

EXECUTIVE SUMMARY
It has been the very nature of human being from the start to seek as much for
convenience as possible. Humans have revolutionized the world around them and used
the provided resources to create easiness. If we see banking in particular we see hundreds
of changes have been made. From banks in temples to banks in the form of Gold Smiths,
banks being an individual and separate institution, bank being an individual entity,
hundreds of different entities of banks, hundreds of branches of one entity of the bank
and finally to branchless banking. We can see that every single change made in banking
created more expediency than the previous one. Branchless banking i.e. Mobile Banking
is the current invention in the banking industry which lets the customers stay in link with
their banking even if they are not in a bank or around their computers.
This research is carried out to determine the consumer acceptance of Mobile Banking in
the perspective of Karachi. If we sum up this research we can see that people who have
had the experience of using Mobile Bank services would like to experience it again and
there is probability that they may become habitual of Mobile Banking in next few years.
There are still some customers of the M-banking who possess perceived threats in this
service i.e. cost and risk. This factor shows that they still do not completely trust this
invention as yet. They need more motivation and a little bit of time to remove these
perceived threats from their minds.
The research is conducted from the non users of the M-banking as well. Their perceptions
regarding the threats like perceived cost and risks are more negative than those of users
but they have a positive perception regarding the ease of use which M-banking provides.
More than half of the non users seem to use the M-bank services in near future. This
means there is still an unexploited market which will soon become customers of Mbanking services.

Chapter 1: Introduction
Mobile phone has revolutionized our behavioral patterns in more ways than one and still
continues to do so. It took more than two decades to reach the first billion mobile
subscribers, took only three and a half years to bring that number up to two billion and
not surprisingly it has taken less than 24 months to reach the three billion mark. It can
safely be estimated that in the very near future more than 80% of mankind will be able to
communicate at the press of a button.
Today we are not only using the mobile phone to communicate with others in the form of
voice or SMS, we are using it to connect to the world. Todays mobile phone is no less
than yesterdays personal computer. Indeed, computers revolutionized banking in the last
decade or so, eliminating to some extent the need for branch visits.
It has taken over 60 years for the banking industry to get approx 30 million bank
accounts. It took Telcos less than 10 years to reach 90 million customers. Bringing the
next 30 million people into the formal economy by opening a bank account can now
easily be achieved in the next 5 years.
Unlike developed economies, penetration of computers and use of internet in Pakistan
had take-up and user experience limitations. Therefore internet banking in Pakistan was
not able to achieve desirable growth in the early years. It is true that numeric literacy in
Pakistan is higher than our official literacy figure. Even your cook & driver have learned
the skills of device management that are beyond just voice communication from their
mobiles sets. This coupled with internet now available on a mobile phone has opened up
a large resource pool that stands open for mass enrollment in the banking sector that
ultimately will prove to be a harbinger for documenting the national economy.
With millions of mobile users and still growing, it is only natural that the banking sector
will now begin to channel transactional and payments needs through the mobile device

including utility & other bill payments and the freedom to transfer funds instantly (Ikhlas,
2009).

1.1 Background
According to a study conducted by telecommunications analyst firm, Juniper Research,
the number of mobile phone banking users will exceed 150 million globally by 2011.
This is in contrast with trends in M-Banking thus far with consumer uptake around the
world falling below the expectations of both academics and industry specialists. This
supports the notion that technological advances and service availability do not
automatically lead to widespread adoption and use. As such, there have been repeated
calls for the investigation of factors that predict or explain the adoption, acceptance, and
use of mobile services such as M-Banking (Lisa Wessels and, 2009).

1.2 Research Question

What are the factors that influence consumers attitude and intention to use Mobile
banking in the context of Karachi?

1.3 Objectives
The major objectives of this research are following:
To examine the key factors engaged in the motivation of their mobile banking
usage.
To discover the aspects which cause hindrance to use mobile banking
To compare the perception of non-users and users regarding mobile banking.

1.4 Stakeholders
The basic stakeholders of this research would be all the persons that are currently using
mobile phones in their daily routine. Few of the identified stakeholders are as follows:
1) Mobile service users.
10

2) Banks and Telcos involved in M-banking

3) Students and researchers.

1.5 Benefits
This research is going to be beneficial in many ways such as:
1) The end users can convey their point of view regarding the service quality
received by them in Mobile Banking.
2) The mobile bank service providers will be able to know how they can improve
their services in order to satisfy the customers.
3) The hindrances and holdups in consumers mind to use M-banking can be
examined.
4) Services can be improved by eliminating these hindering factors.

1.6 Limitation
The limitations of the research can be following:
Time limitation
Difficulty in the collection of primary data.
The research is employed only on the City of Karachi.

1.7 Scope
The research will be conducted under the following framework:
City: Karachi
Industry: Telecom companies and Banks offering mobile bank services.
Population: People of Karachi who are currently possessing cell-phones.

1.8 Key Terms

11

 Perceived ease of use

Perceived cost
Perceived risk

1.8.1 Perceived ease of use:

Information Technology has helped the society to accomplish maximum number of goals
in minimum time period. By every increasing year an innovation and advancement
occurs in the technology which becomes comparatively more useful and efficient than the
previous one. In early ages banking made it easy for people to handle their money and
cash, as more and more innovative the banking became people found it easier to lever
their monetary requirements. In this research I would be analyzing whether this
combination of mobile technology with banking has increased the ease of use in the
minds of customers or not.

1.8.2 Perceived cost:

Perceived cost can be defined as a customers negative belief that utilizing a particular
good or service will cause extra costs which he is not willing to pay. This belief of
perceived cost in the minds of customers has a significant negative effect on intentions to
use Mobile banking and it is mostly related to technologies. It also negatively affects the
perceived value and thus, consumer intentions of mobile banking. Given that
the charge of accessing mobile and wireless service has traditionally been higher than that
of

accessing

wire-based

Internet,

this recommended

that

economic

debates, surrounding the charge of a web-enabled portable phone, and service and
communication fees, will consequence consumer intentions to exercise M-Banking.

1.8.3 Perceived risk:

Consumer's level of uncertainty regarding the result of purchase decision, principally in
case of high priced detail for instance a motor vehicle, or a complex item like
12

a computer or now a days M-commerce and M-banking. Consumers endeavor to lessen

their anxiety by accumulating more information and by looking for the recommendations
of a peer group or an entity (person or client advocacy group) deliberated an expert on the
subject

matter.

Manufacturers

and marketers try

to lessen

this risk with encouraging guaranties, by receiving the supporting or recognized groups
or opinion leaders, or by leasing a well famous and valued spokesperson.

Chapter 2: Literature Review

2.1 Brief History of Banking

The initial need for banking aroused back in around 2000 BC in Babylon even before the
money was invented. People used to deposit their commodities in churches or palaces.
They were considered to be the sacred and safest places for the security of peoples
precious commodities. At that time merchants used to provide loans to the farmers and
the traders transporting goods into different cities.
Later when different mediums of exchange were invented in ancient Greece and Roman
Empire lenders added two more innovative options into banking i.e. accepting monetary
deposits and changing money. At that period of time some proofs regarding the practices
of lending money were also found in ancient China and India.
In Europe the development in banking sector initially took place and many important
innovations were made in Amsterdam during the Dutch Republic in 16 th century and in
London in 17th century. At the time of 20th century when computing and
telecommunication industry were established it brought major changes to the operations
of banking system and there seemed a radical increase in size and geographic spread.
(banking)

13

2.2 Emergence of Banking in Pakistan

Pakistans financial sector did not progressed as it was evolved in other developed
countries. Pakistan didnt possess any central bank for almost a year after its partition
from India. The state bank which is necessary for every independent country was formed
in 1948, before its set up Habib Bank filled this gap initially. Later 25 different banks
were established with 195 branches all around the country whose role was limited at that
time particularly. The state Bank of Pakistan developed commercial banking channels,
sustained monetary policy to flourish trade and commerce in the newly created country.
The first banks to start operations were Habib Bank, Allied Bank and National Bank
having strong support from the Central Bank.
A favorable growth was witnessed till 1974 under the nationalization policy executed by
Zulfiqar Ali Bhutto. Thirteen banks, which were under the control of government, were
merged into six nationalized banks. To scrutinize the performance of nationalized banks,
role of Pakistans State Bank as a regulatory body, The Pakistan Banking Council was set
up.
In 1990s privatization was executed twenty three new banks were established from which
ten were domestically licensed. By the time of late 1990s there were only four major
government banks were left in Pakistan which now faced very strong competition from
twenty one domestic and twenty seven foreign banks. Consequently, corporate
governance, internal controls and bank supervision was braced significantly.
Sustained by the spirit of liberalization, the sectors setting has changed drastically. By
2010, there were five public commercial banks, 25 domestic private banks, six foreign
banks and four specialized banks. There are now 9,348 bank branches spread throughout
the country, catering to the needs of some 28 million deposit account-holders. (Khalabat,
2011)

2.3 Mobile commerce (m-commerce)

14

Mobile Commerce (m-commerce) is characterized as an business transaction undertook

through

wireless connection

systems or

offer worth to buyers through

convenience

the
and

Internet.

flexibility

commerce

can

by endowing time

and location independence.

Mobile banking is an submission of m-commerce which endows clients to get access
to bank anecdotes throughwireless apparatus to perform and entire bank-related
transactions

such

as

balancing

statuses, moving cash and trading stocks.

Luo,

checks, ascertaining account

Li,

Zhang

and

Shin

(2010), characterized wireless banking as an innovative procedure for accessing banking

services by a conduit where by the clientele interacts with a bank utilizing
awireless apparatus (e.g. wireless telephone or individual digital aide (PDA).
There are trials affiliated with M-commerce and expressly wireless banking. Mobile
devices with a little computer display dimensions, restricted computer display tenacity
and uncooperated keypad may make it tough for the consumer to use wireless banking.
Mobile banking is furthermore susceptible to data and transaction eavesdropping threat,
just like other E-commerce submissions for example Internet Banking. (Masinge, 2010;
Masinge, 2010)

2.4 Evolution of Mobile Banking

Businesses constantly search for solutions which help minimize their costs and improve
customer experience, so does the banking industry. In this continuous exploratory
journey, the banks have seen a number of different technological trends being opted and a
number of innovations delivered.
Innovation in banking delivery channels was introduced back when ATMs were initially
launched. The introduction of ATMs provided a sign of a new era of banking as the idea
of self-service was brought up for the first time. A few years later when the bank
customers got used to the ATM services, the banking industry decided to construct these
15

machines at locations away from banks as well. This development marked the entry of
anytime banking as customers could now access money from their bank accounts at a
time and place of their convenience.
The wave of self-service continued and the dawn of internet banking introduced the idea
of anywhere banking as customers could now access their bank accounts from their
homes or offices. This technology-led delivery left behind the traditional idea of branch
banking and the customer experience from those new delivery channels started to set new
standards.
Banks noticed that the customers mostly visiting ATMs were because of simple balance
inquiry of mini statement transactions. This trend started to increase the cost pressures on
the ATM channel. Thus internet banking was already facing some difficulties about
security issues as such issues come into knowledge. Due to security issues the customers
restricted usage of internet banking to their home and office computers.
The delivery channels started to get obsolete which enabled banks to solve the issues
affecting the existing technology channels. This came in the form of mobile banking as
banks started to hit into the potential of offering banking to the mobile knowledge of new
generation customers.
Over the years, mobile banking has evolved from an easy information providing facility
to a wide ranging banking transaction channels. This journey of technology oriented
banking has been stimulated up by both emerging business needs and advancement in
mobile technology. (Kiran, 2012)

2.4.1 Trends in Mobile Banking

The advent of the Internet has revolutionized the way the commercial services industry
conducts

commerce, empowering

and fresh ways

to

offer

offer commercial transactions

24

organizations

hour availability to
online

has
16

with fresh commerce models

their

customers.

The skill to

also composed fresh players

in

the commercial services industry, such as online banks, online brokers and riches
managers whoever offer personalized services, however such players motionless bill for a
tiny proportion of the industry.
Over the final minority years, the mobile and mobile market has been one of the fastest
growing markets in the world and it is motionless growing at a sudden pace. According to
the GSM Association and Ovum, the figure of mobile subscribers exceeded two billion in
September 2005, and now outperforms 2.5 billion (of which more than two billion are
GSM).
According to a research via commercial consultancy Celent, 35% of online households
banking shall be employing mobile banking via 2010, upward from fewer than 1% today.
Upwards of 70% of bank center call volume is projected to come from mobile phones.
Mobile banking shall finally permit users to produce payments at the physical point of
sale.

"Mobile

contact fewer payments shall produce upward 10%

of

the

contact fewer market via 2010.

Many think that mobile users have just begun to fully utilize the information capacities in
their mobile phones. In Asian continent like India, China, Bangladesh, Indonesia and
Philippines, where mobile infrastructure is comparatively superior than the fixed-line
infrastructure, and in European countries, where mobile telephone penetration is very
high

(at

least

80%

of

is possible to attract even

for commercial institutions

consumers exert a
more.
interested

This
in

mobile

phone),

mobile

banking

opens upward massive markets

offering quality

added

services.

With

mobile engineering, banks can offer a wide range of services to their customers such as
doing funds transfer whereas traveling, receiving online updates of stock price or
even practicing stock importing whereas being stranded in traffic. According to the
German mobile operator Mobilcom, mobile banking shall be the "killer application" for
the following generation of mobile technology.

17

Mobile instruments, notably intelligent phones,

are

the majority pledging way

to arrive the masses and to compose stickiness among prevailing customers, due to
their skill to

provide

services

anytime,

anywhere,

high

rate

of

penetration

and prospective to grow. According to Gartner, shipment of intelligent phones is

growing quick, and must top twenty million cells (of across 800 million sold) in 2006
alone.
In the final 4 years, banks across the globe have invested billions of dollars to build
sophisticated the Web banking capabilities. As the trend is shifting to mobile banking,
there is a contest for CIOs and CTOs of these banks to decide on how
to influence their finance in the Web banking and offer mobile banking, in the shortest
possible time.
The proliferation of the 3G (third generation of wireless) and common implementation
expected for 20072011 shall generate the growth of more sophisticated services such as
multimedia and links to m-commerce services. (MWAURA, 2009)

2.4.2 Mobile Banking Business Models

A broad spectrum of Mobile/branchless banking forms is evolving. However, no matter
what enterprise form, if wireless banking

is

being utilised to appeal low-income

populations in often country positions, the enterprise form will count on banking agents,
i.e. retail or postal outlets that method economic transactions on behalf telecoms or
banks. The banking agency is a significant part of the wireless banking business form
since customer care service value, and money administration will depend on them. Many
telecoms will work through their localized airtime resellers.
However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries,
etc. These forms disagree mainly on the inquiry that who will set up the relationship
(account unfastening, deposit taking, lending etc.) to the end clientele, the Bank or the
18

Non-Bank/Telecommunication

Company

(Telco).

Another distinction lies

in

the environment of bureau affirmation between bank and the Non-Bank. Models of
branchless banking can be classified into three very broad categories - Bank Focused,
Bank-Led and Nonbank-Led.
2.4.2.1 Bank-focused Model
The bank-focused form appears when a customary bank values non-traditional low-cost
consignment passages to supply banking

services

to

its living customers.

Examples variety from use of self-acting bank clerk appliances (ATMs) to internet
banking or wireless telephone banking to supply certain restricted banking services to
banks customers.

This form is

additive

in environment and

may

be glimpsed as

a unassuming extension of accepted branch-based banking.

2.4.2.2 Bank-led Model
The bank-led form boasts a distinct alternate to accepted branch-based banking in that
customer

conducts their transactions

at

a entire variety of

retail

agents

(or

through wireless phone) rather than at bank pats of through bank employees. This form
pledges the promise to considerably boost the financial services outreach by utilizing a
distinct consignment conduit (retailers/ wireless phones), a distinct trade colleague
(teleco/ string of connections store) having know-how and goal market distinct from
customary banks, and may be considerably lower than the bank based alternatives. The
bank-led form may be applied by either utilizing correspondent arrangements or by
conceiving a JV between bank and telco/nonbank. In this form client account connection
rests with the bank.
2.4.2.3 Non-bank-led Model
The non-bank-led form is where a bank does not arrive into the image (except possibly
as a safe-keeper of excess funds) and the non-bank (e.g. telco) presents all the functions.
(MWAURA, 2009)

19

2.5 Mobile banking in Pakistan

It has taken over 60 years for the banking commerce to get approx 30 million bank
accounts. It took Telecom businesses less than 10 years to come to 90 million customers.
Bringing the next 30 million persons into the prescribed finances by unfastening a bank
account can now effortlessly be accomplished in the next 5 years.
Pakistan

has experienced

banking parts the

a very

deregulation

of

good development for

these

industries.

both wireless and

These

days

we

are seeing amalgamations of the goods and services prided by these industries. State bank
of Pakistan has documented a large allowance of development and turnaround in
banking part of our homeland has been amazing and exceptional in latest years.
Classified as Pakistans and regions best accomplishing part, the economic part assets
have increased to over $185 billion, its profitability is outstanding and at an all-time high,
non accomplishing borrowings(NPLs) are at an all-time reduced, borrowing is fairly
diversified and bank broad scheme dangers are well contained. Almost 81% of banking
assets

are in personal hands.

tremendous

development with

Similarly
a

mobile sector in

Pakistan has observed

subscribers groundwork coming

to overhead100

million, increasing at 12 to 15%, which was only 5 Million in 2004-05.

Despite the fast development presently there are only 25 million bank anecdotes in
the homeland producing a 14% of mature individual community with an get access to
prescribed banking services. If the opening connection is mapped between the figures of
bank account i.e. 25 million versus the number of wireless subscribers i.e. 102 million
there live a comprehensible window of facilitation for un-banked community of
the homeland mostly dwelling in country and isolated area. This window of facilitation
could be changed into a realization though wireless banking services.
Five wireless telephone businesses have conveyed the whole homeland under
comprehensive

mistreatment,

with stable development in

number

of wireless telephones subscribers that is currently well overhead century million

with permitted and regulated economic service providers to develop and insert innovative
cost productive entails of inserting new segments of banking.
20

The wireless banking undertakings have currently gone to an increase in the country. The
foremost service providers in the new market of wireless banking in Pakistan are
Easypaisa by Telenor, Muslim Commercial Bank, Omni anecdotes by United Bank and
Mobilink is the new entrant to the market of wireless banking. (Ikhlas, 2009)

2.5.1 Telenor Easypaisa

Telenor Pakistan with the partnership of Tameer Micro Finance Bank initiated for the first
time, in 2009 a branchless banking service. This branchless has helped many people
across the country to provide expedient and safe access to the financial services. (Atta,
2009) Telenor Easypesa is bundled with different banking services which are explained as
follows:

Easypaisa Mobile Account

Easypaisa

Mobile

Accounts task as

a standard bank

account.

This

service

is

available simply for existing and novel Telenor subscribers. Easypaisa Mobile Account
can be opened from any Telenor Sales and Service Centers, Telenor Franchise or Tameer
Bank branch. Using Easypaisa Mobile Account Telenor subscribers will now be able
to compensate bills,

transfer

currency and

exercise

many more

services

from

their have mobile phones, anytime, anywhere.

Money transfer through EasyPaisa Shop

Using Easypaisa Money Transfer, you can now drive and obtain cash to and from family,
associates, etc from any Easypaisa shop in the most effective, protected and befitting
way. You manage not have to own a Telenor attachment, neither manage you require to
have a wireless telephone at all. The best thing about the service is that any individual in
Pakistan can use this merchandise and that no registration is required.
Any individual with a requirement to drive cash from one town to another can use this
service

from

any

Easypaisa

demonstration, house employees, drivers, sentries, etc.

21

shop.
can

all

For

now drive their

monthly wages dwelling to their families from built-up towns to country villages.
Similarly, parents can drive capital to their young children at informative organizations in
other towns for

tuition

charge,

monthly

pouch cash etc.

And persons who journey often, who don't desire to convey money can use this service as
Travelers Checks by dispatching cash to themselves from one town and assembling the
cash in another city.
Bill Payment
The Easypaisa account fee service adds you incite free and protects way to yield your
Electricity, Gas, Telephone, Water and Internet bills. Now you can effortlessly yield your
utility accounts from your closest Easypaisa shop, Telenor franchise, Telenor Sales &
Service Center or Tameer Microfinance Bank branch.

International Home Transfer

Easypaisa

International

Home

Transfer permits you

to obtain cash from

over

80 nations through any of our Sending Partners. A Telenor attachment is not needed for
this

service

and

it

is

wholeheartedly free!

Any individual with

a requirement to drive cash from a foreign homeland can use this service. Expatriate
employee can now drive their monthly wages dwelling to their families.
Easyload
Now with your Easypaisa Mobile Account remain at facilitation, pay for prepaid balance
&

compensate

postpaid account

assertions any

time everywhere from

your

own portable phone! This is an alternate recharge narrow pathway for the paying
clients and its one of its kind in the industry. This service is obtainable to all Telenor
Customers have Easypaisa Mobile Accounts.

Donation through EasyPaisa Shop

Through Easypaisa donation service, you can assist to the society by carrying the origin
you accept as factual in. Easypaisa takes an start in this consider by proposing donation
service

that double

checks the move of

22

your

donation

allowances to distinct associations in a protected and dependable manner. Using this

service, genuine time donation allowances are moved to the respective organizations.
Easy.Pay Solutions for Companies
Easy.Pay solutions cater specifically towards Corporate Organizations that need a mode
of fee bundle from clients that is both convenient and reliable. Organizations shall be
provided with a Corporate Easypaisa Mobile Account number, which they can
communicate towards their

customers.

within curve can otherwise earn fees towards the

Customers

Corporate

from

thousands

of

Easypaisa supermarket everybody again Pakistan or from their own Easypaisa Mobile
Account. (easypaisa)

2.5.2 MCB Mobile

MCB SMS Banking is a blended effort by MOBILINK GSM and MCB Bank
in alignment to

maximize

the

alleviation and

the approval of

their

respective clients by proposing them all banking services from their very own Mobilink
Connection. Now Mobilink GSM & MCB clients will not have to proceed to bank for
their

investigations and

transactional data but

they

can

get

the

needed data by utilizing their SMS from their wireless phones. This time keeping
undertaking is another service being suggested by Mobilink to help their customers.
(world)

Balance inquiry
With the help of MCB mobile banking services the customers can make the inquiry for
their account balances at anytime anywhere.

Mini-Statement
MCB wireless bank clients can outlook the last six transactions on your connected bank

23

account at any time of the day or evening, producing it simpler for you to organize your
money.
Fund Transfers
Customers

can drive cash to any individual utilizing MCB

Mobile,

by supplying the entire 16 digit MCB account number or the 13/16 digit ATM business
card number of the beneficiary. Customers can furthermore drive cash utilizing the
beneficiarys wireless telephone number listed with MCB Mobile.
Purchase Top-ups for Prepaid Connections
Customers can now conveniently buy prepaid airtime and top-up the borrowing in your
or somebody elses wireless telephone for all of the next wireless connections:

Mobilink
UFone
Zong
Warid Zem
Telenor

Pay your Postpaid Mobile bills

Customers can overlook the trouble of compensating their post-pays portable account
assertions through buyer service centers. They can pay their post paid account assertions
through MCB mobile conveniently at any time for any of the subsequent portable
companies:

UFone
Zong
Warid
Telenor

Pay your Utility Bills

MCB Mobile permits you to make payments for an owner of utility businesses, schools
and associations amidst other recurring fee services. Currently sustained businesses are:

KESC Karachi Electricity Supply Company

HESCO Hyderabad Electricity Supply Company
SSGC Sui Southern Gas Company
SNGPL Sui Northern Gas Pipeline
24

 PTCL Pakistan Telecom Communications Limited

IESCO Islamabad Electric Supply Company
Make Your MCB Visa Credit Card Payments
Customers

can

now

difficulty through

make

their

this

MCB Visa

service.

Credit

Card payments without

They

have

the pick of

compensating a least compensation, more than least or the full amount.

Maintain Favorites
Registered MCB Mobile users can organize their very well liked payees i.e. add or
eliminate

utility

businesses

or one-by-one

account

holders

to who payments

and finance moves are made frequently.

Report a Lost ATM card

Registered

MCB

Mobile

users

can

report

their business

card as

lost

or thieved utilizing the service. The ATM business card will mechanically be de-activated
for a time span of 24 hours.

Make Donations:
You can make donations to your very well liked benevolent societies through this service
in an issue of seconds. Donations to the Prime Ministers Fund of Internally Displaced
Persons are being accepted. More benevolent societies will be supplemented in the
near future. (Mobilink world)

2.5.3 UBL Omni Branchless Banking

UBL Omni now adds an owner of banking services to your closest "Dukaan". UBL Omni
Dukaans are established in more than 580 cities and villages over Pakistan. This is
a foremost milestone

in

customary banking form by

the

evolution
proposing

of

banking

basic

that

banking

will

the

services over built-

up and country Pakistan, well after the normal agency systems of banks.
25

reshape

Customers over Pakistan can now open a UBL Omni bank account at any UBL Omni
Dukaan

of

their alternative, if close

to

their dwelling or location of

work,

by utilising their CNIC number and wireless telephone number - their wireless telephone
number will competently become their bank account number irrespective of which
service provider they use.
UBL

Omni

account

holder

will

subsequently

be adept to

deposit

and remove money, make

utility account payments, drive orobtain cash, buy wireless business card vouchers, make
postpaid wireless account fee and much more by utilizing diversified array of befitting
passages which encompasses UBL Net banking/ WAP, SMS, Contact Centre or ATM. No
longer will they have to visit a bank agency to perform their rudimentary banking
transactions neither will they be restricted by benchmark banking hours.
People without a UBL Omni bank account will furthermore be amused at a UBL Omni
Dukaan

where

they

can

make

utilityaccount payments, drive or obtain cash, buy wireless business card vouchers and
make postpaid wireless account payments. (United Bank Limited)

Account Opening
UBL Omni empowers you to open a bank account at a placement of your convenience.
After unclasping an account at any UBL Omni Dukaan, you can run this account from
any

UBL

Omni

Dukaan

or

any

UBL

Branch.

Omni

converts

your surviving portable number into your new bank account number. So whichever
portable binding you have, you can use the matching number as your UBL Omni account
number and put on transactions 7 days a week.

Bills Payment
Why stand

in long rows or anxiety about compensation of utility/mobile

account

assertions when you can compensate your utility/mobile account assertions anytime at
26

conveniently found UBL Omni Dukaan. Just visit any UBL Omni Dukaan to
compensate your

utility/mobile

any supplemental charges.

You

account assertions instantly

can compensate

utility

without
or

mobile

account assertions of Registered Utility/Mobile Companies

Money Transfer
Now any individual can drive cash instantly over Pakistan without the requirement of a
bank account. This can be finished ever so conveniently by utilizing the power and
convenience of UBL Omni. You can visit your close by UBL Omni Dukaan with
the initial and an exact duplicate of your CNIC along with CNIC number of the recipient
and drive cash instantly to your loved ones with entire calm of brain endorsed by
the economic security of UBL.
Purchase Mobile Voucher
You can purchase wireless cards in all foremost denominations for each cellular operator
at any UBL Omni Dukaan. You dont require to concern about buying prepaid business
card from exact shop. Whether you are buying or transient by any UBL Omni Dukaan
you can buy voucher without any provoke and added charges. You can purchase Prepaid
Vouchers of any of the next companies: Company Denomination. (United Bank Limited)

27

Chapter 4. Research Methodology

4.1 Research Design
The type of the study will be Quantitative, since it will measure the relationship
between the variables.

4.2 Procedure
The study will be conducted through the following methods:
1. Keeping in view the factors a questionnaire will be made.
2. Pilot testing of questionnaire will be done.
3. Data would be gathered from different stratum through questionnaires.
4. Data will be then recorded using software like excel etc.
5. Interpretation of the data and results would be analyzed by using different
methodologies.
6. Hypotheses will be then proved or disproved.
7. Conclusion and recommendation would be provided.

4.3 Population
The total population of Karachi is approximately 15,329,545 of which most of the people
are the users of mobile phones. The population of my research would be all those people
in the city of Karachi who possess mobile phones.

4.4 Sample and Sampling Method

28

The sample size of my research would be 384 and there will be a margin of error + 5 with
a confidence level of 95%. The survey would be done in the places where people familiar
to the mobile banking services will likely be available such as:
Parks
Malls
Beaches
Supermarkets

4.5 Conceptual Framework

Ease Of
Use

Perceived
cost

Attitude
toward
MobileBanking

Perceived
Risk

4.6 Variables
Independent:
Perceived ease of use
Perceived Cost
29

Intention
to Use
MobileBanking

 Perceived Risk
Dependant:
Customers intention to use mobile banking
Moderating variable:
Attitude towards mobile banking.

4.7 Hypothesis
H1: A positive attitude toward M-Banking will lead to an intention to utilize MBanking.
H2: Perceived ease of use will have a positive relationship, mediated by attitude
toward M-Banking, with intention to use M-Banking.
H3: The perceived risk of using M-Banking will have a negative relationship,
mediated by attitude toward M-Banking, with intention to use M-Banking.
H4: Perceived cost will have a negative relationship, mediated by attitude toward
M-Banking, with intention to use M-Banking.

4.8 Software Emlpoyed

Statistical tools were required to correctly analyze this research. So I have used spread
sheet and softwares like MS Office and SPSS for the analysis of data.

30

Chapter 4 Findings and Data Analysis

4.1 Demographic Analysis
Table: 4.1.1 Demographic analyses Gender wise
(non users)
Gender

Frequency

Male
Female
Total

Valid Percent

Cumulative Percent

72

72

72

28

28

100

100

100

(users)
Gender

Frequency

Male
Female
Total

Valid Percent

Cumulative Percent

85
15

85
15

100

100

85
100

Gender
100
80

users

60
frequencies

non users

40
20
0

Male

Female

Figure 4.1.1 Demographic analyses Gender wise

31

INTERPRETATION:
The information shown in above tables and graphs demonstrates that the males who are
currently using Mobile Banking services are 85 in number and males who do not use
mobile banking services are 72 in number, similarly females using mobile banking
services are 15 while those females who do not use mobile banking are 28.
Table 4.1.2 Demographic analyses Age wise

Age
18-25
26-33
34-41
42 above
Total

(non users)
Valid
Percent

Frequency
54
36
7
3

54
36
7
3

100

100

Cumulative Percent
54
90
97
100

(users)

Age
18-25
26-33
34-41
42 above
Total

Frequency

Valid Percent
22
32
37
9

22
32
37
9

100

100

32

Cumulative Percent
22
54
91
100

60
50
40
users

30

non users
20
10
0
18-25

26-33

34-41

42 above

Figure 4.1.2 Demographic analyses Age wise

INTERPRETATION:
The data in tables and graph above shows that the people who use Mobile banking
services are 22 in number in age range of 18-25 while people not using the services are
54 in number in the same age range. The larger number of users lies in the age group of
26-33 and 33-41 that are middle aged people. While larger number of those of non users
lies in the age group of 18-25.
Table 4.1.4 Demographic analyses Marital status
(non users)

Frequency
Single

Valid Percent

Cumulative Percent

75

75

75

25

25

100

100

100

Married
Total

(users)
Frequency
single
married
Total

Valid Percent

Cumulative Percent

29

29

29

71

71

100

100

100

33

80
70
60
50
users

40

non users

30
20
10
0
Single

Married

Figure 4.1.3 Demographic analyses Marital status

INTERPRETATION:
In the above given information we can see that the users of the mobile banking service
are married, percentage being 71 while the non users are mostly single people percentage
being 75%.
Table 4.1.4 Demographic analyses M-banking service used

M-banking service used

Frequency

Valid Percent

Cumulative Percent

Telenor Easypaisa
UBL Omni
MCB Mobile Account
None

73

73

73

19
8
100

19
8
100

92
100
200

Total

200

200

34

120
100
80
60

Frequency

40
20
0
Telenor Easypaisa

UBL Omni

MCB Mobile Account

None

Figure 4.1.4 Demographic analyses M-banking service used

INTERPRETATION:
Since this research is divided into users and non users. The
respondents who did not use mobile banking were 100 in number the
remaining 100 were those who are currently using the mobile banking
services. We can see from the above information provided that telenor
easy paisa has a larger market share with 73% while UBL Omni has
19% market and MCB Mobile account has 8% market share.

Table 4.1.5 Demographic analyses Telecom Service

(non users)

Telecom Service
Telenor

Frequency

Valid Percent

Cumulative Percent

23

23

23

Ufone
Zong
Mobilink
Jazz

32
14
15
5

32
14
15
5

55
69
84
89

Warid

11

11

100

35

Total

100

100

Telecom service (users)

Frequency

Valid Percent

Cumulative Percent

40
19
7
16
10

40
19
7
16
10

40
59
66
82
92

100

100

100

Telenor
Ufone
Zong
Mobilink
Jazz
Warid
Total

45
40
35
30
25

users

20

non users

15
10
5
0
Telenor

Ufone

Zong

Mobilink

Jazz

Warid

Figure 4.1.5 Demographic analyses Telecom Service

INTERPRETATION:
In the previous tables we saw that telenor easy paisa has a larger market share, in the
information given above we can see the relationship that those who use mobile banking
services mostly use telenor with the frequency of 40. While those of non users mostly use
Ufone with a frequency of 32%.

Table 4.1.6 Demographic analyses Family income

36

(non users)

Income

Frequency

Valid Percent

Cumulative Percent

5000-15999
7

26

26

33

30

30

63

37

37

100

100

100

16000-25999
26000-50000
More than 50000
Total

(users)

Income

Frequency

Valid Percent

Cumulative Percent

5000-15999
20

20

20

26

26

46

38

38

84

16

16

100

100

100

16000-25999
26000-50000
More than 50000
Total

37

40
35
30
25
users

20

non users
15
10
5
0
5000-15999

16000-25999

26000-50000

More than 50000

Figure 4.1.6 Demographic analyses Family income

INTERPRETATION:
The information provided by the respondents who use mobile banking services mostly
belong to the income level of Rs. 16000-25999 and Rs. 26000-50000 which is the range
of middle class, lower middle class and upper middle class. While most of the
respondents who do not use mobile banking services belong to the income level of more
than Rs. 50000 ehich can be classified as upper class.

38

4.2 Descriptive Analysis

Perceived Ease of Use

Table 4.2.1 Descriptive analyses Learning to use M-banking would be easy

(non users)
Responses

Frequency

Valid Percent

Cumulative Percent

strongly disagree
Disagree

19

19

19

41

41

60

Neutral

10

10

70

Agree

30

30

100

Total

100

100

(users)
Responses

Frequency

Strongly disagree
Disagree

Valid Percent

Cumulative Percent

41

41

47

neutral

54

Agree

37

37

91

100

100

100

Strongly agree
Total

39

Learning to use M-banking would be easy

45
40
35
30
25
users

20
frequencies

non users

15
10
5
ag
re
e

St
ro
ng
ly

Ag
re
e

ne
ut
ra
l

D
is
ag
re
e

St
ro
ng
ly

di
sa
gr
ee

Figure 4.2.1 Descriptive analyses Learning to use M-banking would be easy

INTERPRETATION:
The information given above shows that 41 of the people who use mobile banking
disagree to the statement that learning to use mobile banking would be easy while 37 of
them agree with the statement. While those who do not use mobile banking services with
the frequency of 41 disagree with the statement and only 30 agree with the statement.

40

Table 4.2.2 Descriptive analyses M-banking would be useful for doing my business
(non-users)
Responses

Frequency

Strongly
Disagree
Disagree
neutral
Agree
strongly agree
Total

Valid Percent

Cumulative Percent

9
31
50
10

9
31
50
10

9
40
90
100

100

100

(users)
Responses

Frequency

Strongly Disagree

Valid Percent
0

disagree

Cumulative Percent
0

neutral

10

10

10

Agree

54

54

64

Strongly agree

36

36

100

100

100

Total

41

M-banking would be useful for doing my business

60
50
40

frequencies

non users
users

30
20
10
0

disagree

neutral

Agree

Strongly agree

Figure 4.2.2 Descriptive analyses M-banking would be useful for doing my business

INTERPRETATION:
In the information above we can clearly see that the there is no user who shows any
negative response to the statement that mobile banking would be useful for doing their
business transactions. With a frequency of 54 they agree and 35 strongly agree. While
those of non users lie disagreement category as well. 9 of them disagree with the
statement while 50 agree and 10 strongly agree.

42

Table 4.2.3 Descriptive analyses M-banking would improve the way of my banking

(non-users)
Frequency

Valid Percent

strongly disagree

disagree

Cumulative Percent
1

20

20

28

34

34

62

38

38

100

100

100

neutral
agree
strongly agree
Total

(users)
Frequency

Valid Percent

strongly disagree

Cumulative Percent

Disagree
0

Neutral

Agree

43

43

47

Strongly agree

53

53

100

100

100

Total

43

M-banking would improve the way of my banking

60
50
40
30

users
non users

20

frequesncies

10

ag
re
e

st
ro
ng
ly

ag
re
e

ne
ut
ra
l

di
sa
gr
ee

st
ro
ng
ly

di
sa
gr
ee

Figure 4.2.3 Descriptive analyses M-banking would improve the way of my banking

INTERPRETATION:
The information given by the respondents shows the agreement to the statement that
Mobile Banking would improve the way of their banking. 53 and 43 of the users
responded to strongly agree and agree respectively. While 38 and 34 of the non users
responded to strongly agree and agree respectively. 7 of the non users disagree with the
statement.

44

Table 4.2.4 Descriptive analyses M-banking would do my banking easier

(nonusers)
Frequency
strongly disagree

Valid Percent

Cumulative Percent

Disagree

19

19

20

Neutral

42

42

62

Agree

35

35

97

100

100

100

strongly agree
Total

(users)
Frequency
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Total

45

Valid Percent

Cumulative Percent

0
3
10
59
28

0
3
10
59
28

100

100

0
3
13
72
100

M-banking would do my banking easier

70
60
50
40
users

30
frequencies

non users

20
10

ag
re
e
st
ro
ng
ly

ag
re
e

ne
ut
ra
l

di
sa
gr
ee

st
ro
ng
ly

di
sa
gr
ee

Figure 4.2.4 Descriptive analyses M-banking would do my banking easier

INTERPRETATION:
The table and graph shown above depicts that 28 people are in strong agreement with the
above statement and 59 are in agreement 3 of them disagreeing with the statement. While
35 of the non users are in agreement and 19 of them disagree the statement.

46

Perceived Cost
Table 4.2.5 Descriptive analyses Using M-banking would Cost alot
(non users)
Frequency
strongly disagree
disagree

Valid Percent

Cumulative Percent

neutral

12

12

18

agree

54

54

72

28

28

100

100

100

strongly agree
Total

(users)
Frequency

Valid Percent

Cumulative Percent

Strongly disagree
Disagree

39

39

44

Neutral

23

23

67

23

23

90

10

10

100

100

100

Agree
Strongly agree
Total

47

Using M-banking would cost alot

60
50
40
30
frequencies

users
non users

20
10

ag
re
e
st
ro
ng
ly

ag
re
e

ne
ut
ra
l

di
sa
gr
ee

st
ro
ng
ly

di
sa
gr
ee

Figure 4.2.5 Descriptive analyses Using M-banking would Cost alot

INTERPRETATION:
The information given above shows that 39 of the users disagree with the above
statement while 23 respondents agree and 10 strongly agree, similarly 54 of the non users
agree with the statement and 28 strongly agree while only 4 of them disagree with the
statement.

48

Table 4.2.6 Descriptive analyses Internet Cost of Using M-banking would be high
(non users)
Frequency

Valid Percent

strongly disagree
disagree
neutral
agree
strongly agree

4
17
41
34

Total

Cumulative Percent
4
17
41
34

4
21
62
96

100

100

100

(users)
Frequency

Valid Percent

Strongly disagree

2
22
37
32

2
22
37
32

2
24
61
93

100

100

100

Disagree
Neutral
Agree
Strongly agree
Total

Cumulative Percent

49

Internet access cost of using M-banking would be high

45
40
35
30
25
20
15
10
5
0
ag
re
e
st
ro
ng
ly

ne
ut
ra
l

non users

st
ro
ng
ly

di
sa
gr
ee

frequencies

users

Figure 4.2.6 Descriptive analyses Internet Cost of Using M-banking would be high
INTERPRETATION:
Most of the respondents who use mobile banking services and who do not use are neutral
about this statement i.e. 41% of the non users and 37% of the users. While 32% of the
users and 34 % of the non users agree with the statement that the internet access cost of
using M-banking would be high. This factor depends more on the telecom service they
are using than the mobile bank service.

50

Table 4.2.7 Descriptive analyses there are financial barriers (e.g. internet access cost) to
me using M-banking

(non users)
Frequency
strongly disagree
disagree
neutral
agree
strongly agree

Valid Percent
2
10
12
52

Total

Cumulative Percent
2
10
12
52

2
12
24
76

24

24

100

100

100

(users)
Frequency
Strongly disagree
Disagree
neutral
Agree
Strongly agree

Valid Percent
1
13
28
49

Total

51

Cumulative Percent
1
13
28
49

1
14
42
91

100

100

100

are financial barriers (e.g. internet access cost) to me using M

60
50
40

frequencies

30

users

20

non users

10
ag
re
e

st
ro
ng
ly

ag
re
e

ne
ut
ra
l

di
sa
gr
ee

st
ro
ng
ly

di
sa
gr
ee

Table 4.2.7 Descriptive analyses there are financial barriers (e.g. internet access cost) to
me using M-banking

INTERPRETATION:
The information provided in the above tables and graphs shows a large percentage of
users and non users agree to the above statement i.e. there are financial barriers to use
mobile banking the percentage being 52% of the non users and 49% of the users. While
24 % of the non users strongly agree to the statement and 28% of the users are neutral
about it.

52

Perceived Risk
Table 4.2.8 Descriptive analyses Conducting my banking on Mobile phone would be
secure

(non users)
Frequency
strongly disagree
Disagree
Neutral
Agree
strongly agree

Valid Percent
42
41
7
9

Total

Cumulative Percent
42
41
7
9

42
83
90
99

100

100

100

(users)
Frequency
Strongly disagree
Disagree
Neutral
Agree
Strongly agree

Valid Percent
2
28
13
19

Total

53

Cumulative Percent
2
28
13
19

2
30
43
62

38

38

100

100

100

conducting my banking on Mobile phone would be secur

users

ag
re
e

ag
re
e
st
ro
ng
ly

st
ro
ng
ly

di
sa
gr
ee

ne
ut
ra
l

non users

di
sa
gr
ee

Axis Title

45
40
35
30
25
20
15
10
5
0

Axis Title

Figure 4.2.8 Descriptive analyses Conducting my banking on Mobile phone would be

secure

INTERPRETATION:
The above data taken by respondents a large number of non users disagree and strongly
disagree to the statement that conducting their mobile banking on mobile phones would
be secure percentage being 42% for strongly disagree and 42% for disagree. There are
28% of the users who also disagree with the statement. They might be some unsatisfied
customers. 38% of the users strongly agree and 19% agree to the statement.

54

Table 4.2.9 Descriptive analyses M-banking would handle my business correctly

(non users)
Frequency

strongly disagree
disagree
neutral
agree
strongly agree

Valid Percent

1
24
30
40

Total

Cumulative Percent

1
24
30
40

1
25
55
95

100

100

100

(users)
Frequency
strongly disagree
Disagree
neutral
Agree
Strongly agree
Total

55

Valid Percent

Cumulative Percent

0
7
21
37
35

0
7
21
37
35

100

100

0
7
28
65
100

M-banking would handle my business correctly

users

ag
re
e

ag
re
e

ne
ut
ra
l

st
ro
ng
ly

st
ro
ng
ly

di
sa
gr
ee

non users

di
sa
gr
ee

frequencies

45
40
35
30
25
20
15
10
5
0

Figure 4.2.9 Descriptive analyses M-banking would handle my business correctly

INTERPRETATION:
The above graph and tables depict a positive response of the users to the statement that
M-banking would handle their business correctly percentage being 21, 37, and 35 for
neutral, agree and strongly agree respectively. While the non users divided to the positive
and negative responses to the statement 24% disagree with the statement, 30% are neutral
and 40% agree the this statement.

56

Table 4.2.10 Descriptive analyses There is little danger that anything go wrong using
M-banking

(non users)
Frequency
strongly disagree
disagree
neutral
agree
strongly agree
Total

Valid Percent

Cumulative Percent

23
47
14
14
2

23
47
14
14
2

100

100

23
70
84
98
100

(users)
Frequency

Valid Percent

Cumulative Percent

Strongly disagree
Disagree

30

30

35

neutral

21

21

56

Agree

34

34

90

10

10

100

100

100

Strongly agree
Total

57

There is little danger that anything go wrong using M-bankin

users

ag
re
e

st
ro
ng
ly

ag
re
e

di
sa
gr
ee

ne
ut
ra
l

non users

st
ro
ng
ly

di
sa
gr
ee

frequencies

50
45
40
35
30
25
20
15
10
5
0

Figure 4.2.10 Descriptive analyses There is little danger that anything go wrong using
M-banking

INTERPRETATION:
The information received from the respondents shows that 34% of the users agree with
the statement that there is little danger that anything will go wrong using mobile banking
while 30% disagree with the statement. Non users on the other hand have shown a
negative response to the statement. 47% of the non users disagree with the statement
while 14% are neutral and disagree.

58

Intentions to use Mobile Banking

Table 4.2.11 Descriptive analyses I would take advantage of mobile phone banking for
my banking activities.

(non users)
Frequency
Completely disagree
Mostly disagree
neither agree/disagree
Mostly agree
completely agree
Total

Valid Percent

Cumulative Percent

26
45

26
45

34
79

17

17

96

100

100

100

(users)
Frequency
Completely disagree
neither agree/disagree
Mostly agree
Completely agree
Total

59

Valid Percent

Cumulative Percent

11

11

12

57

57

69

31

31

100

100

100

I would take advantage of mobile phone banking for my banking activities

60
50
40
30
20

users
non users

10

frequencies

ag
re
e
el
y
pl
et
co
m

ag
re
e
ne
ith
er

Co
m

pl
et

el
y

di
sa

/d
is
ag
re
e

gr
ee

Figure 4.2.11 Descriptive analyses I would take advantage of mobile phone banking for
my banking activities.

INTERPRETATION:
The information given in the above graph and tables shows that most of the users are
neutral with the statement that they would take advantage of using mobile phone banking
for their banking activities percentage being 45 of the non users and 57 of the users. 31%
of the users and 17% of the non users agree with the statement.

60

Table 4.2.12 Descriptive analyses Given that I have access to a web-enabled mobile
phone, I predict that I would use m-banking.

(non users)
Frequency
1
21
28
41
9
100

Completely disagree
Mostly disagree
neither agree/disagree
Mostly agree
completely agree
Total

Valid Percent

Cumulative Percent

1
21
28
41
9
100

1
22
50
91
100

(users)
Frequency
completely disagree
Mostly disagree
neither agree/disagree
Mostly agree
Completely agree
Total

61

Valid Percent

Cumulative Percent

4
9
51

4
9
51

4
13
64

36

36

100

100

100

have access to a web-enabled mobile phone, I predict that I wo

60
50
40
30

frequencies

20

users

10

non users

ag
re
e

co
m

pl
et
el
y

ag
re
e
M
os
tly

M
os
tly

di
sa
ne
gr
ith
ee
er
ag
re
e/
di
sa
gr
ee

Co
m

pl
et
el
y

di
sa
gr
ee

Axis Title

Figure 4.2.12 Descriptive analyses Given that I have access to a web-enabled mobile
phone, I predict that I would use m-banking.

INTERPRETATION:
Given the information above we can see that 51% of the users and 41% of the non users
mostly agree that if they have access to web-enabled mobile phones they would use
mobile banking services 36% of the users are completely agreed to the statement while
21% of the non users disagree as well. We can see a small percentage of users disagree
with the statement that is 4% which means these are the consumers who are not very
much satisfied with the services.

62

Table 4.2.13 Descriptive analyses When you have banking to do, how likely are you to
use mobile phone banking?

(non users)
Frequency
very unlikely
Unlikely
Neutral
Likely
very likely
Total

Valid Percent

Cumulative Percent

2
35
16
32
15

2
35
16
32
15

100

100

2
37
53
85
100

(users)
Frequency
very unlikely
Unlikely
Neutral
Likely
Strongly Likely
Total

63

Valid Percent

Cumulative Percent

11
7
38
44

11
7
38
44

100

100

11
18
56
100

you have banking to do, how likely are you to use mobile pho
50
45
40
35
users

30
frequencies

non users

25
20
15
10
5
0

very unlikely

unlikely

neutral

likely

very likely

Figure 4.2.13 Descriptive analyses When you have banking to do, how likely are you to
use mobile phone banking?
INTERPRETATION:
The statement above is related to users intentions to use mobile phone banking. 38 % of
the users are likely and 44% users are strongly likely to use mobile phone banking while
11 % of the users are unlikely to use mobile phone banking. If we see the responses of the
non users we can clearly say that most of the non users are going to be consumers of this
service soon. 32% of the non users are likely and 15% of them are very likely to use the
service in near future. While 35% of the non users are unlikely to use mobile phone
banking services.

64

Attitudes towards Mobile Banking

Table 4.2.14 Descriptive analyses How good or bad do you feel about using mobile
phone banking?

(non users)
Frequency

Valid Percent

Cumulative Percent

very bad

Bad

19

19

19

Neutral

26

26

45

Good

49

49

94

100

100

100

very good
Total

(users)
Frequency
very bad
Bad

Valid Percent

Cumulative Percent

Neutral

10

10

13

Good

48

48

61

Very good

39

39

100

100

100

Total

65

How good or bad do you feel about using mobile phone bank
60
50
40

frequencies

users
non users

30
20
10
0

very bad

bad

neutral

good

very good

Figure 4.2.14 Descriptive analyses How good or bad do you feel about using mobile
phone banking?

INTERPRETATION:
The results of the statement above show their attitudes towards mobile bank services.
48% and 30% of the users seem satisfied with the M-bank services who feel good and
very good respectively. 49% of the users feel good about this technology oriented service
26% are neutral and 19% feel bad about it.

66

Table 4.2.15 Descriptive analyses How pleasant or unpleasant do you think it is to use
mobile phone banking

(non users)
Frequency

Valid Percent

Cumulative Percent

very unpleasant

Unpleasant

13

13

13

Neutral

58

58

71

Pleasant

26

26

97

100

100

100

very pleasant
Total

(Users)
Frequency
very unpleasant
Unpleasant
Neutral
Pleasant
very pleasant
Total

67

Valid Percent

Cumulative Percent

0
2
23
45
30

0
2
23
45
30

100

100

0
2
25
70
100

pleasant or unpleasant do you think it is to use mobile phone b

70
60
50
40
30
frequencies

users

20

non users

10
pl
ea
sa
nt

ve
ry

pl
ea
sa
nt

ne
ut
ra
l

ve
ry

un
pl
ea
sa
nt
un
pl
ea
sa
nt

Axis Title

Table 4.2.15 Descriptive analyses How pleasant or unpleasant do you think it is to use
mobile phone banking

INTERPRETATION:
Attitude of the respondents to the above statement shows that all the users mostly feel
pleasant about M-banking percentage being 45 for pleasant, 30 for very pleasant and 23
for neutral. Non users on the other hand mostly are neutral about the statement since they
havent experienced the service much. 58% of them are neutral, 26% feel pleasant and
13% feel unpleasant about the service.

68

Table 4.2.16 Descriptive analyses How pleasant or unpleasant do you think it is to use
mobile phone banking

(non users) How much would you say you would like or dislike using mobile phone banking?
Frequency
Valid

strongly dislike
dislike
neutral
like
strongly like
Total

Missing

System

Total

Percent

Valid Percent

Cumulative Percent

1
25
12
51

1
24.8
11.9
50.5

1
25
12
51

1
26
38
89

11

10.9

11

100

100

99

100

101

100

How much would you say you would like or dislike using mobile phone banking?
Frequency
strongly dislike
Dislike
neutral
Like
Strongly like
Total
Missing

System

Total

69

Percent

Valid Percent

9
10
42
39

8.8
9.8
41.2
38.2

9
10
42
39

100

98

100

102

100

Cumulative Percent

9
19
61
100

uch would you say you would like or dislike using mobile phon
60
50
40
frequencies

users

30

non users

20
10
0

strongly dislike dislike

neutral

like

strongly like

Axis Title

Figure 4.2.16 Descriptive analyses How pleasant or unpleasant do you think it is to use
mobile phone banking

INTERPRETATION:
The information provided in the above graph and tables clearly show that 42% of the like
the M-banking and 39 % strongly like it. There is a little percentage of the users who
dislike M-banking, they might be the unsatisfied customers. Non users on the other hand
mostly like it 51% of them like the service while 25% of them dislike it.

70

4.3 Correlation & Regression Analysis

Table 4.3.1 Correlation analysis Non Users

Correlations (non users)

Intention to use
.506**

.507**

Sig. (2-tailed)

.000

.000

100

100

.747**

Perceived Ease of Use Pearson Correlation

Intention to use

Attitude towards M-banking

Pearson Correlation
Sig. (2-tailed)

.000

N
Perceived Cost

100

100

-.187

-.094

Sig. (2-tailed)

.063

.351

100

100

.747**

Pearson Correlation

Attitude towards M-

Pearson Correlation

banking

Sig. (2-tailed)

.000

100

100

.446**

.456**

Sig. (2-tailed)

.000

.000

100

100

Perceived Risk

Pearson Correlation

INTERPRETATION:
In the above table we can see that Perceived Ease of Use has a Pearson correlation .506
which shows moderate correlation between perceived ease of use and intentions to use
mobile banking. The significance level is 0 which means there is 0 % probability that the
independent variable does not influence the dependent variable.
Perceived Costs Correlation is negative i.e. -.187 which means there is negative
correlation between perceived cost and intentions to use mobile banking. The
significance level is .063 which means there is 6.3% probability that the independent
variable does not influence the dependent variable.
Perceived Risks Pearson Correlation is .446 which means there is a week correlation. The
significance level is 0 which means there is 0 % probability that the independent variable
does not influence the dependent variable.
71

Table 4.3.2 Regression analysis Non Users

REGRESSION (NON USERS)

Model Summary
Change Statistics

Model

.747a

R Square

Adjusted R

Std. Error of

R Square

Square

the Estimate

Change

.558

.553

.575

.558

F Change
123.528

df1

df2
1

Sig. F Change
98

.000

a. Predictors: (Constant), Attitude towards M-banking

Coefficients
Standardized
Unstandardized Coefficients
Model
1

Std. Error

(Constant)

.149

.275

Attitude towards M-banking

.891

.080

Coefficients
Beta

.747

Sig.
.543

.588

11.114

.000

a. Dependent Variable: Intention to use

INTERPRETATION:
The information in the above table shows that the adjusted R square is .553 which means
55.3% variation in the intention to use mobile banking is due to attitudes towards mobile
banking. The Beta coefficient is .747 which means change of 1 in the attitude towards
mobile banking will change .747 in the intention to use mobile banking. The significance
level is 0 which means there is 0 % probability that the independent variable does not
influence the dependent variable.

72

Table 4.3.3 Correlation analysis Users

Correlations (users)
Intention to use
Perceive Ease of Use

Intention to use

Pearson Correlation

.361**

.409

Sig. (2-tailed)

.000

.00

100

100

.791

Pearson Correlation
Sig. (2-tailed)

.00

N
Perceived Cost

Attitude towards M-banking

Perceived Risk

Attitude toward

100

100

Pearson Correlation

-.178

-.22

Sig. (2-tailed)

.077

.02

100

100

Pearson Correlation

.791**

Sig. (2-tailed)

.000

100

100

Pearson Correlation

.565**

.684

Sig. (2-tailed)

.000

.00

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

INTERPRETATION:
In the above table we can see that Perceived Ease of Use has a Pearson correlation .351
which shows weak correlation between perceived ease of use and intentions to use
mobile banking. The significance level is 0 which means there is 0 % probability that the
independent variable does not influence the dependent variable.
Perceived Costs Correlation is negative i.e. -.178 which means there is negative
correlation between perceived cost and intentions to use mobile banking. The
significance level is .077 which means there is 7.7% probability that the independent
variable does not influence the dependent variable.

73

Perceived Risks Pearson Correlation is .565 which means there is a relatively moderate
correlation. The significance level is 0 which means there is 0 % probability that the
independent variable does not influence the dependent variable.
Table 4.3.4 Regression analysis Users

REGRESSION (USERS)
Model Summary
Change Statistics

Model
1

R
.791a

R Square

Adjusted R

Std. Error of

R Square

Square

the Estimate

Change

.626

.622

.401

F Change

.626

df1

164.112

df2
1

Sig. F Chang
98

a. Predictors: (Constant), Attitude towards M-banking

Coefficients
Standardized
Unstandardized Coefficients
Model
1

B
(Constant)
Attitude towards M-banking

Std. Error
1.250

.231

.708

.055

Coefficients
Beta

.791

Sig.

5.404

.000

12.811

.000

a. Dependent Variable: Intention to use

INTERPRETATION:
The information in the above table shows that the adjusted R square is .622 which means
62.2% variation in the intention to use mobile banking is due to attitudes towards mobile
banking. The Beta coefficient is .791 which means change of 1 in the attitude towards
mobile banking will change .791 in the intention to use mobile banking. The significance
level is 0 which means there is 0 % probability that the independent variable does not
influence the dependent variable.

74

.0

Conclusion
After the complete analysis of research we can conclude that most of the users are very
satisfied with the Mobile banking services and they have accepted it completely and they
are most likely to continue using the services of mobile banking. Another finding which
we can conclude is that most of the users belong to middle aged group and they are
married. Most of them are in the range of lower middle, middle and upper middle class
which is actually the targeted market of mobile banking service providers.
While on the other hand if we compare the acceptance of mobile banking the people who
have not used this service as yet, we can see that there are a number of people who have a
positive attitude towards the mobile banking and they are intended to use mobile banking
services in near future. Since most of the people are not very much change oriented and
they tend to follow the traditional ways it becomes hard for them to adapt to the new
things in the market.
Perceived cost and perceived risk are the factors that hinder a few of consumers and most
of the non users to utilize the mobile banking services while the ease of use which it
provides is the major factor for the consumer acceptance and satisfaction for the mobile
banking services.

Recommendations
People who use mobile banking services seem quite satisfied but they do have a
perceived risk and perceived costs in their minds which may result in negative impact on
their usage continuity. Since the middle class is the regular user and satisfied customer of
this service the mobile banking companies should look forward to target other markets as
well.
Market share of MCB is very low that I probably because of low marketing activity. It
should start attracting customers to gain future profits because there is a large market of
non users to enter and utilize this service.
For non users it is recommended to the mobile banking service providers to motivate
them to utilize their services since there is a large number of a population who is still not
using it and some of them are not aware of it. They should start creating awareness and
provide reinforcement and motivation to the people so they enter the market and make
use of the technology oriented services.
75

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77

Appendices

78