Determinants of Mobile Banking Adoption: A Comparative Study Between U.S. and Thailand

Determinants of Mobile Banking Adoption: A Comparative Study Between U.S. and Thailand

Chuleeporn Changchit (Texas A&M University - Corpus Christi, USA), Ravi Lonkani (Chiang Mai University, Chiang Mai, Thailand) and Jomjai Sampet (Chiang Mai University, Chiang Mai, Thailand)
Copyright: © 2018 |Pages: 27
DOI: 10.4018/JGIM.2018100109

Abstract

With a rapid increase in smart phone users, mobile banking is becoming an available banking channel that allows consumers to perform banking transactions at their own convenience. However, not all customers are ready to embrace this new channel of services. It is crucial for banks to fully understand the preferences of their customers, especially which factors play an important role in encouraging or discouraging customers from using this banking channel. It is also important to further investigate whether their customers' perceptions on mobile banking is influenced by culture. This article aims at comparing the mobile banking perceptions between the consumers in the U.S. and in Thailand. The research findings reveal the various factors that influence mobile banking adoption for these two nationalities. The results should help banks gain an understanding of these factors, and thus direct their efforts to develop features that satisfy the needs of their target customers and alter their business model to promote factors that have a positive influence on mobile banking adoption.
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Introduction

The increasing popularity of the Internet has created great challenges for companies to offer products or services via this new distribution channel (Chau & Lai, 2003). This Internet explosion has opened the door to a new electronic world, and with a growing number of households turning towards the world of e-commerce, it is crucial for online businesses to realize the need to run their business to suit the convenience of their customers. Consumers are now able to use the Internet for a variety of purposes such as research, communication, shopping, and online banking. However, while consumers have increasingly exploited online intermediated shopping (OIS) to facilitate Internet shopping through the assistance of online intermediaries, many remain hesitant to do so for various perceptual reasons (Zhang et al., 2015).

As with other types of online businesses, Internet and mobile banking has gained significant importance, and the growth of the field is accelerating (Afshan & Sharif, 2016; Kim et al, 2013). The Internet-based technologies enable banks to provide customized content that can educate and cross-sell while strengthening the long-term relationship between banks and customers (Chau & Lai, 2003).

Recently, the number of consumers owning sophisticated mobile handheld devices, i.e., smart phones, has rapidly increased (Gerpott et al., 2013; Kim et al., 2013). The functionalities of this communication device not only enable consumers to make voice calls but also allow them to perform several transactions via mobile applications (West & Mace, 2010). The mobile devices can be used not only for personal activities, but also for business-related activities, particularly in mobile environments (Zhang & Jasimuddin, 2015). Rapid advances in mobile technologies and devices have made mobile banking increasingly important in mobile commerce and financial services (Lin, 2011). This service provides a more convenient means for customers to meet their banking needs with more complete and timely information (Baptista & Oliveira, 2015; Gerrard & Cunningham, 2003).

Cross cultural effect has been found to be important in many studies (Al-Refaie, 2014; Ao & Liu, 2014; Bin et al., 2003; Greenberg et al., 2008; Yan et al., 2014; Lippert & Volkmar, 2007; Chang et al., 2015). For instance, Chang et al. (2015) gathered survey data from university students in Cambodia, Iran, and South Korea producing results showing that country development index has a significant effect on the levels of the digital divide. A study conducted by Hung et al. (2012) revealed that respondents from different cultures prefer different communication methods. Shin and Choo (2012) use the sample from U.S. and Korea to study the cross-cultural effect on smart phone users and find that different value preferences, intention, and adoption patterns were observed for the two countries.

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