Perceived risk: One of the major influencing factors around the establishment and use of new technologies for financial transactions is that of security and trust. The need for security of personal details and financial information is therefore critical to the success of cell phone banking. Some of the risks associated with CB and banking, in general, are the possibility of losing money to fraud. As a result, the lower the perception of risk involved in using cell phone banking, the more likely that it will be adopted.
Self-efficacy: refers to the confidence potential adopters have in their ability to use a specific technology. The higher the individuals’ experience and skill of using cell phone, the higher the chances the technology will be adopted.
Facilitating conditions (technology support): This construct may be interpreted to include support from both the cellular service providers as well as from the banks. Cell phone banking is more likely to be adopted if there are better facilitating conditions.
Although Rogers identifies five key predictors of adoption, recent studies confirm that three of these: relative advantage, compatibility, and complexity have consistently proved to be stable predictors across multiple disciplines. For that reason, this study considers these three as key independent variables. As shown in Figure 1, adoption, according to Rogers, is a six-step process from awareness to commitment. Meuter et al illustrates that “getting customers to try a new technology is a key barrier [to adoption]. If overcome, adoption is almost guaranteed. Numerous studies including Meuter et al. and Agarwal and Prasad considered trial as the dependent variable in adoption. For the purposes of this study, ‘CB Trial’ was operationalised to be the focal dependent variable representing adoption. Accordingly, trial was measured using a single-item question assessing whether respondents had tried using CB or not.
Research question and hypotheses
The advantages of CB are well-documented in the literature – convenience, anytime-anywhere banking, privacy, and saving time. In reality though these advantages for both consumers and service providers can only be realised when consumers adopt and use the service, which at this point in time appears to be low. Consequently, the research questions for the study are formulated as follows:
RQ1: Which factors influence cell phone banking?
RQ2: What are most important factors affecting cell phone banking adoption?
In turn, the following hypotheses were formulated, and provided basis for data collection and data analysis.
H1: the greater the perceived complexity of using CB, the less likely that it will be adopted.
H2: the greater the perceived compatibility of using CB, the more likely that it will be adopted.
H3: the greater the perceived relative advantage of using CB, the more likely that it will be adopted.
H4: the greater the perceived trialability of using CB, the more likely that it will be adopted. H5: the greater the perceived self-efficacy of using CB, the more likely that it will be adopted. H6: the greater the facilitating conditions of using CB, the more likely that it will be adopted. H7: the greater the perceived risk of using CB, the more likely that it will be adopted.
Figure 1. CB adoption conceptual model