The Role of Trust and Technology Acceptance Model(TAM) on Customer Acceptance of Mobile Banking: An Integrated Model to Improve Mobile Banking in Banking Sector-A Conceptual Paper

1. Introduction

The wireless technology and the large penetration of mobile devices have created tremendous business opportunities. The mobile device enables a customer to do the banking operation at anytime and anywhere. The introduction of smart phones and high speed internet made customer to access various services and information at anywhere. Banks offers a wide variety of services through mobile devices, but only few percentages of people have accepted to use these services. Even though the technology and required services are available, the usage rate of mobile banking is very low. Mobile banking is new to the customer even today in emerging market.Therefore, it is important to attract customers to use these services. The new system should be less complicated and useful for day to day activities. This will help the customers to use mobile banking service. In emerging markets, banking facilities of any type are often in short supply; particularly in remote rural areas where traditional banking services are too expensive to serve low-income customers. One of the most noteworthy examples of a new entrant meeting the unfulfilled banking needs of rural populations is mobile banking. Products should be developed to simplify sales, back-office and information technology (IT) processes. Branch networks can be reshaped to reflect a better mix of multi-channel services and offerings. Direct channels such as mobile banking and mobile payments can be deployed wherever appropriate to reduce the cost to serve.While mobile banking has become an integral part of banking activities, it has also caused systems-related stress and consequent distrust among mobile banking users. This study looks into the phenomenon of technology adoption for mobile banking users and identifies potential factors that nurture positive intentions toward mobile banking usage. It also examines the effects of a customer's mobile experience and technical support on mobile banking acceptance and explains how some variables affect this intention. To understand the customer acceptance, this study aims to focus on the role of trust and the impact of technology to use the mobile banking service. They were selected because as they could be important variables for acceptance of the usage of mobile banking