Académique Documents
Professionnel Documents
Culture Documents
Conducted by:
Contents
1. Abstract
2. Background
2.1. Mobile banking
2.2. Mobile banking applications
3. Introduction
4. Research Design
4.1. Development of measurement
4.2. Sample Characteristics
5. Data Analysis
5.1. Preprocessing
5.2. Reliability and Validity
5.3. Cluster analysis on basis of Awareness
5.4. One way Anova
5.4.1. Awareness vs. Gender
5.4.2. Awareness vs. Qualification
5.4.3. Awareness vs. Age
5.4.4. Awareness vs. Region
5.4.5. Awareness (cluster) vs. Total usage
5.4.6. Awareness (cluster) vs. Permission reaction
5.4.7. Awareness vs. Banks
5.5. Future of Mobile Banking
6. Conclusion
7. References
2
1. Abstract
Mobile banking is the most efficient and commonly used platform to deal with
transactions online . It is far better than the traditional methods using ATM or banks.Still
the power of this technology is far from being full used due to several reasons. This
paper deals with the study of awareness of Mobile banking applications and how the
awareness varies with different parameters . It also proposes views of people on the
current scenario in mobile banking and what can be done to improve the effective use of
this technology.
2. Background
Mobile banking is a service provided by a bank that allows its customers to conduct
transactions using mobile devices such as smartphone . The earliest mobile banking
services used SMS, a service known as SMS banking. With the introduction of smart
phones the first European banks started to offer mobile banking on this platform to their
customers.Mobile banking before 2010 was most often performed via SMS. The rapid
growth of phones have led to increasing use of special mobile apps, downloaded to the
mobile device.Mobile banking is used in many parts of the world because it requires
little or no infrastructure. Despite of being so advantageous to human life, according to
the 2017 Oracle J.D. Power India 'Retail Banking Study over 90% Indian customers still
prefer branch over online banking.Among the 48 per cent of customers who have yet to
download a banking app, one-fourth state lack of security is a key reason for non-usage.
3
Unlike internet banking , mobile banking uses the platform of softwares called
applications or apps . There are plenty of mobile apps by various organisations . Even
some banks have their own apps . These apps provide you the features like balance
enquiry , fund transfer , bill payment etc very conveniently .There are many mobile
banking applications , most popular include.
Despite being availability of so many applications, mobile banking is still not used up to
the full extent.
3. Introduction
Mobile banking have many advantages. But how many of us are actually aware of
mobile banking ? The report contain analysis of this question.
Being able to access financial records anytime , anywhere makes mobile banking
appealing. You can check deposits , notice fund transfers and monitor transaction
history .All these options are monitored with a security feature.
“The more you monitor your account , the safer you are ”, says Van Dyke.
1. Transfer of money is very easy , not like the traditional method which take time
for the transaction and ask many details .
4
2. Mobile banking is available almost 24 hour a day . You need not to wait for the
banks to open and wait for hours .
3. Mobile banking is secure . All reputable banks use encryption that safeguard and
protects your privacy , identity and your financial information.
The problem is still major amount of population are not using this method to do their
work. Rather they are choosing the conventional approach.
The study aims at analyzing the user awareness regarding mobile banking applications
and how it varies with factors like age, qualification, gender, region and usage.
What next?
We also intend to find out what people expect from the mobile banking applications and
what are the reason that people are not using these apps in the current scenario.
5
The questionnaire used clear and precise language understandable to respondents with
no prior technical knowledge of mobile banking applications. It was checked for
ambiguities and general feedback from the public was taken regarding the initial
blueprint of the questionnaire.
6
The online responses were collected from college students as well as recently
graduated students across India. Also offline responses were taken from PG/PHD
people in the campus and from random people outside the campus. Initially, the data
had been collected from 113 respondents. During the filtering process 10 entries
(11.3%) were found to be ineligible for the study.
5. Data Analysis
5.1 Preprocessing
7
Basic reliability and validity of measures were tested in two major stages: general
reliability analysis and factor analysis. To test the validity of variables, factor analysis
was performed using principal component extraction method with Varimax rotation
option. As a result, 2 factors were extracted that described the user awareness and
usage. Also internal consistency was assessed by computing Cronbach’s alpha score.
The users were classified in two clusters (K-Means Clustering) on the basis of the
awareness of Mobile banking applications.
This gave us the insight that about distribution of respondents among these clusters.
8
Conclusion of cluster analysis was that each of the input variables has a very significant
role in deduction of awareness, and the data is spread as 59.7% aware and 40.22%
was not aware of mobile banking applications.
Null Hypothesis H0: Awareness and gender are independent of each other.
9
Null Hypothesis H0: Awareness and qualification are independent of each other.
Null Hypothesis H0: Awareness and age are independent of each other.
10
Null Hypothesis H0: Awareness and region are independent of each other.
11
Null Hypothesis H0: Awareness and total usage are independent of each other.
Since significance p-value = .001<.05, thus H0 is rejected and Ha is accepted at 0.05
level of significance.Thus there is a statistically significant difference in awareness
about mobile banking applications between groups having different frequency of usage
of the mobile banking apps.
Null Hypothesis H0: Awareness and usage reaction are independent of each other.
12
Since significance p-value = .027<.05, thus H0 is rejected and Ha is accepted at 0.05
level of significance. Hence, awareness depends on usage to reaction.
Null Hypothesis H0: Awareness and bank are independent of each other.
Cross tables showed that 68% of respondents who have accounts in SBI and 19% of
respondents who have accounts in PNB are more aware of mobile banking applications.
Whereas these numbers were significantly lower in other banks. Also since 0.024<0.05
banks have a direct relationship with awareness.
13
Q16 was put up to get feedback on what all things user feels that can be changed
about, with the following options
1. Cash withdrawal at mobile money agents.
2. Salary deposit.
3. Loans.
The study revealed that 70.8% of total respondents preferred giving cash withdrawal at
mobile money agents over the traditional method. So this can be the new addition to the
mobile banking applications, making it more usable.
6. Discussion
The study reveals that the awareness of Mobile Banking Applications is not significantly
dependent on gender which is what is to be expected in today’s modern world. The
study also reveals that there is no significant relationship between age and awareness.
However the new generation is usually more aware of new technologies as compared to
the age group of 35 or above but the study shows a complete different output. As most
14
of the data samples belong to the same age group, the reason for this relation can be
understood. Next, the study reveals that there is no close relationship between
awareness and qualification. The same reason can be thought for this as well. The
technical exposure significantly determines the awareness as awareness directly
increases with overall usage and frequency of usage. Large proportion of unaware
respondents tends to use cash for all types of transaction or use applications without
knowing the risks involved and the benefits offered while most of the aware respondents
choose to use various applications for different purposes. The awareness depends on
the usage reaction of the applications as well. The awareness also depends on the
Banks. It is observed from the data that clients of some banks are more aware about
Mobile Banking Applications than others which may be because of the promotion
activities of different banks.
Most of the respondents, even the ones who don’t use mobile banking applications on
regular basis, don’t consider it to be a costly alternative. Many respondent don’t feel the
need of using the applications in most of the cases. Thus, a large proportion of people
keep using these applications without being fully aware or concerned about the risks
involved and the features offered by different applications and there are many people
who prefer cash transactions.
7. Conclusion
The study concluded that the awareness of Mobile banking is quite low in some
fragments of population (categorized on basis of age, qualification, knowledge, etc.).
The large sections of people who are ignorant and don’t have much trust in mobile
banking applications to pay and transfer funds. Proper measures need to be taken to
tackle this and make people more aware about mobile banking and make them use
more frequently. Also changes need to be made to meet the demand of the people who
are in fact aware about mobile banking apps but don’t feel that comfortable in using that.
15
8. References
[1] “Mobile banking “ https://en.wikipedia.org/wiki/Mobile_banking
[2] http://www.itavisen.no/237581/verdens-forste-wap-bank-fra-norge
[6] Key Pousttchi, Martin Schurig, "Assessment of Today's Mobile Banking Applications
from the View of Customer Requirements", hicss, vol. 7, pp.70184a, Proceedings of the
37th Annual Hawaii International Conference on System Sciences (HICSS'04) - Track 7,
2004, p. 5-6.
[7] Barnes, S.J. and Corbitt, B. (2003) Mobile banking: Concept and Potential.
International Journal of Mobile Communications. Vol. 1 (3).
16