1. CHAPTER 1
9
LIST OF ABBREVIATIONS
Following are the abbreviations which have been frequently used throughout the thesis
while discussing, explaining, and analysing and interpretation of data.
Abbreviations Used Full Form
A Attitude towards adopting Mobile Banking
AB Actual Behaviour
AGFI Adjusted Goodness-of-Fit Index
AML Anti Money Laundering
AMOS Analysis of Moment Structures
ATB Attitude toward Behaviour
ATM Automated Teller Machine
AVE Average Variance Extracted
B Perceived Benevolence
BCs Business Correspondents
BI Behavioural Intention towards Adopting Mobile Banking
CB Control Beliefs
CC Perceived Competence
CFA Confirmatory Factor Analysis
CFI Comparative Fit Index
CFT Combating the Financing of Terrorism
COAI Cellular Operators Authority of India
COO Chief Operation Officer
CR Construct Reliability
CT Perceived Compatibility
D-E-M Direct Effect Model
DV Dependent Variable
E-Banking Electronic Banking
E-Commerce Electronic Commerce
2. CHAPTER 1
10
Abbreviations Used Full Form
EFA Exploratory Factor Analysis
EOU Ease of Use
ETF Electronic Transfer Funds
FR Financial Risk
GFI Goodness of Fit Index
GOF Goodness of Fit
I Perceived Integrity
IBM-SPSS International Business Machines- Statistical Package for
the Social Science
ICT Information Communication Technology
IDT Innovation Diffusion Theory
IDV Independent Variable
iMFAST Integra Mobile Financial Applications Secure Terminal
IMG Inter Ministerial Group
IMPS Interbank Mobile Payment Services
ITU International Triathlon Union
KMO Kaiser-Meyer-Olkin
KYC Know Your Customer
M- Banking Mobile Banking
MBIS M-banking Information System
MFIs Micro Financial Institutions
MLE Maximum Likelihood Estimation
M-PIN Mobile- Personal Identification Number
MSV Maximum Shared variance
NCR National Capital Region
NFC Near Field Communication
NFI Normed Fit Index
NGOs Non-government Organizations
NREGS National Rural Employment Guarantee act
NTP National Treatment Policy
3. CHAPTER 1
11
Abbreviations Used Full Form
OBIS Online Banking Information System
OTP One Time Password
PBC Perceived Behavioural Control
PC Personal Computer
PCA Principal Components Analysis
PEOU Perceived Ease of Use
POS Point-of-Sale
PR Privacy Risk
PU Perceived Usefulness
RA Perceived Relative Advantage
RBI Reserve Bank of India
RMSEA Root Mean Square Error of Approximation
SEM Structural Equation Modelling
SIC Squared Interconstruct Correlations
SMS Short Message Service
SN Subjective Norm
TAM Technology Acceptance Model
TPB Theory of Planned Behaviour
TR Time Risk
TRA Theory of Reasoned Action
TRAI Telecom Regulatory Authority of India
UID Unique Identifier
UPI Unified Payment Interface
USSD Unstructured Supplementary Service Data
UTAUT Unified Theory of Acceptance and Use of Technology
Model
VAS Value Added Service
4. CHAPTER 1
12
LIST OF FIGURES
Figure No. Titles Page No.
Figure 1.1 Functional Evolution of Mobile
Banking 10
Figure 1.2 Mobile Banking Over Varied Modes of
Operation 11
Figure 1.3 Growth in Technology of Mobile
Banking 12
Figure 1.4 Mobile Banking Penetration by
Country 25
Figure 1.5 Global Mobile Banking
Users 26
Figure 2.1 Theory of Reasoned
Action 35
5. CHAPTER 1
13
Figure 2.2 Theory of Planned
Behaviour 37
Figure 2.3 Decomposed model of theory of planned
behaviour. 39
Figure 2.4 Technology Acceptance
Model 40
Figure 2.5 Technology Acceptance Model
2(TAM2) 42
Figure 3.1 Proposed Research
Model 55
Figure 3.2 Wireless Subscribers (in
million) 65
Figure 3.3 Structure of the Study 79
6. CHAPTER 1
14
Figure 4.1 Proposed Model –
I 82
Figure 4.2 Proposed Model –
II 82
Figure 4.3 Zero order CFA of Relative Advantage and its measured
Variables 103
Figure 4.4 Zero order CFA of Perceived Compatibility and its measured
Variables 105
Figure 4.5 Zero order CFA of Perceived Competence and its measured
Variables 107
Figure 4.6 Zero order CFA of Perceived Benevolence and its measured
Variables 109
Figure 4.7 Zero order CFA of Perceived Integrity and its measured
Variables 111
Figure 4.8 Zero order CFA of Perceived Time Risk and its measured
Variables 113
Figure No. Titles Page No.
Figure 4.9 Zero order CFA of Perceived Privacy Risk and its measured
Variables 115
Figure 4.10 Zero order CFA of Perceived Financial Risk and its measured
Variables 117
Figure 4.11 Zero order CFA of Attitude and its measured
Variables 119
7. CHAPTER 1
15
Figure 4.12 Zero order CFA of Behavioural intention and its measured
Variables 121
Figure 4.13 Zero order CFA of Perceived Ease of Use and its measured
Variables 123
Figure 4.14 Zero order CFA of Perceived Usefulness and its measured
Variables 125
Figure 4.15 First Order
Model 127
Figure 4.16 Path-Analysis
Model 129
Figure 4.17
Mediation
133
8. CHAPTER 1
16
LIST OF TABLES
Table No. Titles Page No.
Table 1.1 Brief History of Mobile Phones in
India 2
Table 1.2 Growth of Telephones during the Years (In
Million) 3
Table 2.1 M-Banking
Users 30
Table 2.2 Comparison of
Models 43
Table 2.3 Definitions of
Trust 44
9. CHAPTER 1
17
Table 2.4 Definitions of Perceived Risk Dimensions in the
Literature 48
Table 3.1 Overall Subscriber Base and Tele
Density 65
Table 3.2 Sample Size Determination Criteria 67
Table 3.3 Variable and their Corresponding Items in the
Questionnaire 69
Table 3.4 Summary of Individual and Overall Constructs Reliability
Analysis using Cronbach alpha 70
Table 4.1 Name of the Factors and their
Codes 83
Table 4.2 Summary of Reliability Analysis
84
Table 4.3 KMO and Barlett’s
Test 84
Table
4.4 Communalities
85
10. CHAPTER 1
18
Table 4.5 Total Variance
Explained 87
Table 4.6 Rotated Component
Matrix 87
Table 4.7 Summary of Factor loadings, Percentage of Total Variance
Explained and Reliability of Perceived
Compatibility 89
Table 4.8 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Relative
Advantage 90
Table 4.9 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Time
Risk 90
11. CHAPTER 1
19
Table 4.10 Summary of Factor Loadings, Percentage of Total Variance
explained and Reliability of Perceived Ease of
Use 91
Table 4.11 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Perceived
Competence 91
Table No. Titles Page No.
Table 4.12 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Attitude towards adopting
Mobile
Banking 92
Table 4.13 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Perceived
Benevolence 92
Table 4.14 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Behavioural Intention towards
adopting Mobile Banking 93
Table 4.15 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Privacy
Risk 93
12. CHAPTER 1
20
Table 4.16 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Financial Risk 94
Table 4.17 Summary of Factor Loadings, Percentage of Total Variance
Explained and Reliability of Perceived
Integrity 94
Table 4.18 Summary of Factor loadings, Percentage of Total Variance
Explained and Reliability of Perceived
Usefulness 95
Table 4.19 Latent and Observed Variables for the
Study 96
Table 4.20 Indices of Convergent Validity for the
Constructs 100
Table 4.21 Discriminant Validity Indices for the Factors in
Consideration 100
Table 4.22 Goodness of Fit Statistics in
SEM 101
13. CHAPTER 1
21
Table 4.23 Terminology Referred for Relative Advantage 103
Table 4.24 Unstandardized Regression Coefficients of Perceived
Relative Advantage 104
Table 4.25 Standardized Regression Weights: (Group Number 1 -
Default model) and Model Fit Indices of Perceived Relative
Advantage 105
Table 4.26 Terminology Referred for Perceived Compatibility 106
Table 4.27 Unstandardized Regression Coefficients of Perceived
Compatibility 106
Table 4.28 Standardized Regression Weights: (Group Number 1 -
Default model) and Model Fit Indices of Perceived
Compatibility 107
Table 4.29 Terminology Referred for Perceived Competence 108
Table No. Titles Page No.
Table 4.30 Unstandardized Regression Coefficients of Perceived
Competence 108
Table 4.31 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Perceived
Competence 109
Table 4.32 Terminology Referred for Perceived Benevolence 110
Table 4.33 Unstandardized Regression Coefficients of Perceived
Benevolence 110
Table 4.34 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Perceived
Benevolence 111
14. CHAPTER 1
22
Table 4.35 Terminology Referred for Perceived Integrity 112
Table 4.36 Unstandardized Regression Coefficients of Perceived
Integrity 112
Table 4.37 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Perceived
Integrity 113
Table 4.38 Terminology Referred for Perceived Time Risk 114
Table 4.39 Unstandardized Regression Coefficients of Perceived Time
Risk 114
Table 4.40 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Perceived Time Risk
115
Table 4.41 Terminology Referred for Perceived Privacy Risk 116
Table 4.42 Unstandardized Regression Coefficients of Perceived Privacy
Risk 116
Table 4.43 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Perceived Privacy
Risk 117
Table 4.44 Terminology Referred for Perceived Financial Risk 118
Table 4.45 Unstandardized Regression Coefficients of Perceived
Financial Risk 118
Table 4.46 Standardized Regression Weights: (Group Number 1 -
Default model) and Model Fit Indices of Perceived Financial
Risk
119
Table No. Titles Page No.
Table 4.47 Terminology Referred for Attitude 120
Table 4.48 Unstandardized Regression Coefficients of
Attitude 120
15. CHAPTER 1
23
Table 4.49 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of
Attitude 121
Table 4.50 Terminology Referred for Behavioural Intention 122
Table 4.51 Unstandardized Regression Coefficients of Behavioural
Intention 122
Table 4.52 Standardized Regression Weights: (Group Number 1 -
Default Model) and Model Fit Indices of Behavioural
Intention 123
Table 4.53 Terminology Referred for Perceived Ease of Use 124
Table 4.54 Unstandardized Regression Coefficients of Perceived Ease of
Use 124
Table 4.55 Standardized Regression Weights: (Group number 1 - Default
Model) and Model Fit Indices of Perceived Ease of
Use 125
Table 4.56 Terminology Referred for Perceived Usefulness 126
Table 4.57 Unstandardized Regression Coefficients of Perceived
Usefulness 126
Table 4.58 Standardized Regression Weights: (Group Number 1 -
Default model) and Model Fit Indices of Perceived
Usefulness 126
Table 4.59 Model Fit
Indices 127
16. CHAPTER 1
24
Table 4.60 Path-Analysis Model Fit
Indices 129
Table 4.61 Standardised Direct
Effect 130
Table 4.62 Regression Weights: (Group number 1 - Default Model)
(Direct effect) 134
Table 4.63 Standardised Indirect
Effect 134
CONTENTS
Title Page No.
Preface i
Acknowledgement iv
17. CHAPTER 1
25
List of
Abbreviations v
List of
Figures viii
List of Tables
x
CHAPTER 1: INTRODUCTION 1-
27
1.1 Introduction 1
1.2 History of Mobile Phone in
India 3
1.3 The Concept of Mobile Banking 4
1.3.1 Definitions of Mobile
Banking 4
1.3.2 Services Offered by Banks on Mobile
Phones6
1.3.3 Characteristics and Features of Mobile
Banking 6
1.4 Evolution of Mobile Banking and Mobile Banking
Services 8
1.4.1 History and Evolution of M-banking in
India 9
18. CHAPTER 1
26
1.4.2 Growth of Mobile Banking in
India 10
1.4.3 RBI Guidelines for Mobile
Banking 14
1.5 Need for Promoting Mobile Banking in
India 18
1.6 Mobile Banking Products: Initiatives of Indian Banks 19
1.6.1 Mobile Banking Products: Government
Initiatives 21
1.6.2 Mobile Banking: Regulatory Framework and Current Status 23
1.7 Global Mobile Banking
Trend 24
CHAPTER 2: REVIEW OF LITERATURE 28-
50
2.1 Introduction 28
2.2 Mobile
Banking 29
2.2.1 Basics of Electronic
Banking 31
2.2.2 Conception of Internet
Banking 32
2.2.3 Mobile Banking in
India 33
19. CHAPTER 1
27
2.3 Adoption of Mobile
Banking 33
2.4 Theoretical
Framework 34
2.4.1 Social
Psychology 34
2.4.1.1 Theory of Reasoned Action (TRA)
35
2.4.1.2 Theory of Planned Behaviour (TPB)
36
2.4.1.3 Decomposed of Theory of Planned Behaviour
38
2.4.1.4 Technology Acceptance Model
(TAM)40
2.4.1.4.1 Extension of Technology Acceptance
Model
(ETAM) 41
2.4.1.5 Diffusion of
Innovation 41
2.5 Comparison of
Theories 43
2.6 Trust, Important Factor Influencing Consumer
Adoption 44
2.6.1 Multidimensional Nature of
Trust 45
20. CHAPTER 1
28
2.6.2 Importance of
Trust 46
2.6.3 Trust and
TAM 46
2.7
Risk 47
2.7.1 Multidimensional Nature of
Risk 47
2.7.2 Importance of Risk 49
2.8
Conclusion 49
CHAPTER 3: RESEARCH METHODOLOGY 51-
80
3.1 The
Problem 51
3.2 Statement of the
Problem 51
3.3 Objectives and Purpose of the
Study 52
3.4 Significance of the
Study 53
21. CHAPTER 1
29
3.4.1 Theoretical
Concern 53
3.4.2 Practical
Concern 53
3.5 Delimitation of the
Study 54
3.6 Research Model and Development of
Hypotheses 54
3.7 Research Design 63
3.8 The Population and
Sample63
3.8.1 Target
Population 64
3.8.2 The Sample Frame and Sampling Technique 66
3.9 Collection of
Data 67
3.10 The Schedule/Questionnaire 67
3.10.1 Questionnaire
Design 68
3.10.2 Format of
Questionnaire 69
3.10.3 Pre-
testing 69
22. CHAPTER 1
30
3.10.4 Reliability
Analysis 70
3.10.5 Validity of
Instrument 70
3.11 Techniques of Data
Analysis 71
3.11.1 Factor
Analysis 72
3.11.2 Structural Equation
Modelling 73
3.12 Items before and after deletion 73
3.13 Structure of the
Study 77
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 81-
136
4.1 Preliminary Data
Analysis 81
4.2 Methods of Data
Analysis 82
4.2.1
Reliability 83
23. CHAPTER 1
31
4.3 Data
Suitability 84
4.3.1 KMO and Bartlett’s Test of
Sphericity 84
.
4.4 Exploratory Factor
Analysis 85
4.4.1
Communalities 85
4.5 Exploratory Factors Extraction
Model 87
4.5.1 Loadings of Measured Items on Latent
Factors87
4.6 Interpretation of
Factors89
4.6.1 Perceived
Compatibility 89
4.6.2 Perceived Relative
Advantage 89
4.6.3 Perceived Time
Risk 90
24. CHAPTER 1
32
4.6.4 Perceived Ease of
Use 91
4.6.5 Perceived
Competence 91
4.6.6 Attitude towards adopting Mobile
Banking 92
4.6.7 Perceived
Benevolence 92
4.6.8 Behavioural Intention towards adopting Mobile
Banking 93
4.6.9 Perceived Privacy
Risk 93
4.6.10 Perceived Financial
Risk 94
4.6.11 Perceived
Integrity 94
4.6.12 Perceived
Usefulness 95
4.7 Statistical Analysis- Structural Equation
Modelling 95
4.7.1 Measurement
Model 98
4.7.2
Reliability 99
26. CHAPTER 1
34
Perceived Time
Risk 113
Perceived Privacy
Risk 115
Perceived Financial
Risk 117
Attitude towards adopting Mobile
Banking 119
Behavioural Intention towards adopting Mobile
Banking 121
Perceived Ease of
Use 123
Perceived
Usefulness 125
4.9 Structural Model Evaluation and Hypothesis
Testing128
4.9.1 Summary of Hypotheses Testing by doing Path
Analysis 130
CHAPTER 5: INTERPRETATION OF FINDINGS, CONCLUSIONS,
LIMITATIONS AND SUGGESTIONS 137-
156
5.1 Discussion of Findings of Main Variables of
Study 137
5.1.1 Perceived Relative Advantage 138
5.1.2 Perceived Ease of Use 139
5.1.3 Perceived Compatibility 140
5.1.4 Perceived Usefulness 141
27. CHAPTER 1
35
5.1.5 Perceived
Competence 141
5.1.6 Perceived
Benevolence 142
5.1.7 Perceived Integrity 143
5.1.8 Perceived Time
Risk 143
5.1.9 Perceived Privacy
Risk 144
5.1.10 Perceived Financial Risk 145
5.1.11 Attitude towards adopting Mobile Banking 145
5.2 Implications of Research
Findings 146
5.2.1 Theoretical
Implications 146
5.2.2 Managerial
Implications 147
5.3
Limitations 149
5.4 Suggestions and
Recommendations 150
5.5 Future Scope of
Research 152
