Factors Influencing the Adoption of Mobile Banking

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Factors influencing the use of Mobile Banking:
The case of SMS-based Mobile Banking offered

Mobile banking is an application of mobile computing which provides customers with the support needed to be able to bank anywhere, anytime using a mobile handheld device and a mobile service such as text messaging (SMS). Mobile banking removes space and time limitations from banking activities such as checking account balances, or transferring money from one account to another. In recent research and studies it was found that while mobile banking and more specifically SMS-based mobile banking applications have become popular in some countries and regions, they were still not widely used.
This study identifies and
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It was found that texting is not only used for general conversation, and greetings in New Zealand, but also for solving embarrassing situations such as firing employees, marriage proposals, asking for a date, and even gathering evidence of cheating. Paul Brislen, of Vodafone NZ said Kiwis were also world leaders when it came to downloading tunes to their handsets (Hudson, 2008).
This implied that New Zealanders are more likely to use texting than many other populations in the world. This might make it quite easy for New Zealanders to use SMS-based mobile banking.
In Korea, in a survey done by Yong and Gorman (2002) it was found that there was a nearly 400 percent increase in the level of mobile banking service use within 15 months, as shown in Figure
Figure 1.1: use of mobile banking in Korea
Source: Journal of Online Information Review, Yong & Gorman (2002)
The functionality of a mobile banking service increases user’s satisfaction.Furthermore, it creates the value for customers’ banking transaction as a wireless service delivery channel. However, it is a still minority of people using mobile banking in the market; a recent research has found that in Ireland approximately 1% of consumers use mobile banking while nearly 90% of the population have mobile phones (Foley,2005). The use of mobile banking only focuses on basic functions provided by the mobile banking service rather than more complex ones. A recent Forrester research survey
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