Academic journal article Journal of Management Information and Decision Sciences

A Conceptual Model for Mobile Banking Adoption

Academic journal article Journal of Management Information and Decision Sciences

A Conceptual Model for Mobile Banking Adoption

Article excerpt


Mobile banking refers to the provision of banking services with the help of mobile telecommunication devices. The scope of offered services may include monitoring account balance, transferring funds between accounts, bill payments, and remote check deposit among other services. For years, driven by the need to improve the cost-effectiveness of operations, financial institutions have been using Web technology to provide mobile and Internet banking services and, substantially, reduce the need for personal interactions in the provision of their services (Elliott, Meng, & Hall, 2008). Today most financial institutions in the western hemisphere are offering Internet banking and mobile banking options to their customers. Despite the steady growth of Internet banking and mobile banking, only half of adults in the U.S. use online banking, with the other half still visiting physical branches for their banking services (Fox, 2013). In the IS field, many studies have been conducted using the technology acceptance model (TAM) to determine the key factors explaining the adoption of online banking (Amin, 2007; McKechnie, Yu, 2012). The TAM by Davis (1989) and the TAM2 by Venkatesh and Davis (2000) arguably do not include factors that are meant to capture key elements such as trust and risk associated with the adoption of e-commerce. Given the privacy concerns and the psychological barriers often associated with conducting transactions in a virtual world, the TAM has proven to be a limited tool (Shen, Huang, Chu, & Hsu, 2010). That is why recent studies are using extended versions of the TAM that include factors such as trust and security concerns. (Chiou & Shen, 2012; Kesharwani & Bisht, 2012; Wang, Hsu, Pelton, & Xi, 2014; Shen, Huang, Chu, & Hsu, 2010; Wang, Hsu, Pelton, & Xi, 2014).

The objective of the present study is to review the IS literature on the adoption of mobile banking along with relevant theories from the areas of marketing and psychology in order to develop a conceptual model that would have a potentially greater explanation power. In the next sections, we will review the relevant literature in order to lay out the theoretical justifications for the concepts to be included in the model. Then, based on the theoretical background, we will discuss the conceptual model along with the research propositions implied. Finally, the paper will discuss the theoretical and potential practical implications of the model.


In the IS field, the technology acceptance model has become a cornerstone for explaining technology adoption and use.

The technology acceptance model

Grounded on the theory of reasoned action or TRA (Fishbein & Ajzen, 1975), the TAM is an implementation of the belief-attitude-intention-behavior relationship. According to the TAM, the actual use of a technology is determined by beliefs a user holds about its perceived usefulness and its perceived ease of use. Perceived usefulness refers to the extent to which people believe that a technology will help them perform their job better, while perceived ease of use refers to the degree to which a person believes that using a particular IT would be free of effort (Davis, 1989). According to the model, potential users' perceptions determine their attitude (favorableness or unfavorableness) toward using a specific technology. The attitude will, then, determine their behavioral intention, that is, their intention to use the technology. Finally, the intention may lead to their actual use of the technology.

Over the years, studies have been conducted using extended versions of the TAM in an attempt to explain the adoption of online banking (i.e. mobile and Internet banking). The study of Vatanasombut, Igbaria, Stylianou, and Rodgers (2008) has found that perceived security has a significant impact on trust in online banking which, in turn, has a significant impact on the continuance intention to use online banking. …

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