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The mobile commerce (m-commerce) industry has emerged as an important component of the banking industry as technological innovations related to electronic commerce (e-commerce) have increased. The m-commerce industry is largely dependent on the internet as the internet has changed management practices and enabled consumers and businesses more access to different products and services (Wymbs, 2000). In the banking industry, m-commerce allows an individual to utilize e-commerce such as the internet to do their banking on a mobile device like their cell phone (Ratten & Ratten, 2007). Banks are increasingly using m-commerce as it is a low cost technological development (Holland, 2008). As more global banking services are automated (Takac, 1997), technological innovations like mobile banking are influenced by how quickly an individual adopts the service.
This paper examines the importance of m-commerce in the banking sector by discussing how the youth market adopts mobile banking. Banks continually are refocusing their marketing strategies to take into account new technology developments (Hall et al., 1999), so it is important to understand how the adoption process of technological innovations can be increased. A number of trends have occurred in the banking industry, which have influenced the use of mobile banking (Laukkanen, 2007). Most people in developed countries now have a cell phone and an increasing number of these people also have the internet on their cell phone, which has made it easier for individuals to do mobile banking. There is also an increasing number of bank products and services available through electronic delivery, which has lead to an increased acceptance by consumers and businesses of e-commerce banking activities (Ratten, 2008). Electronic delivery of banking products and services can take a number of different forms (Seitz & Stickel, 1998). Consumers and businesses utilize electronic information communication in the form of emails. Information is also presented electronically to inform and provide information about products and services. Moreover, businesses and banks are interacting together for transaction banking.
One of the most technologically savvy demographic components of society is the youth markets, who have grown up using the internet. This paper discusses how the youth market adopts mobile banking and the factors that influence the adoption behavior. The youth market (also referred to as Generation Y) is an early adopter of new technology such as mobile banking, which is often internalized into a youth’s lifestyle. In this paper, the youth market is defined as individuals between the ages of 18 to 29 years, which is in line with the definition espoused by the OECD (2001). The youth market is innovative and early adopters of banking technology (Ratten & Ratten, 2007). This paper will examine how the youth market adopts mobile banking and what internal and external environmental factors will determine whether a youth will utilize mobile banking. The research question that this paper addresses is: What factors influence a youth’s intention to adopt mobile banking?
This paper will be structured as follows. First, the literature on technology adoption is reviewed and the major theories that have been used by previous research are discussed with social cognitive theory being found to be the most relevant theoretical framework for the purposes of this paper. The conceptual model is then explained and the variables included in the conceptual model are justified and discussed. Next, the quantitative methodology that included a survey given to youths is stated. The findings from the testing of the model are examined and the implications for the banking industry are highlighted. Lastly, suggestions for future research are discussed.