Adoption of Mobile Banking for Financial Inclusion in Bangladesh: An Empirical Study Using Extended TAM

Authors

  • Mohammad Rokibul Kabir , Md. Ibrahim , Mohammad Burhan Uddin Khondker

Abstract

Technology innovation and its rapid growth in the number of smartphone users across
Bangladesh have been prompting people to get increasingly interested in mobile financial
transactions.. Financial inclusion is a must for sustainable economic development. Though late,
Bangladesh's banks have started their m-banking services to include large untapped rural people in
banking services along with the urban people. However, it is important to understand the level of
acceptance of m-banking in every part of the country before its full implementation. The purpose of
this study is, therefore, to explain the determinants of mobile banking with extended technology
adoption model (TAM) as the basis. Although a good number of studies have already been conducted
worldwide using TAM, the study is justified in the sense that it would reduce the research gap
considering two country-specific variables such as the cost of mobile banking and the easy availability
of mobile devices and banking in Bangladesh. A survey to identify the determinants of m-banking
adoption has been conducted considering both rural and urban people of Bangladesh. A total of 450
questionnaires were administered using three separate forms called in-person survey, postal mail, and
Google form. Of the 450 questionnaires, 372 fully completed and functional questionnaires were
received with a success rate of 82.67%. Perceived usefulness, perceived ease of use, trust and security,
cost of service, and easy availability are found to be significant in explaining the m-banking adoption
by the users while risk of security is found to be statistically insignificant. One country-specific
variable called service charge has a negative impact on m-banking adoption while the other called easy
availability has found to be the most influencing positive factor in Bangladesh context. Hence, the
study recommends the policymakers of Bangladesh to ensure easy availability of mobile devices and
service providers ensuring a lower and justifiable service charge

Published

2020-10-24

Issue

Section

Articles