Trust and Technology Acceptance on Mobile Banking

Trust and Technology Acceptance on Mobile Banking

Sindhu Singh (K.J. Somaiya Institute of Management Studies and Research, Mumbai, India) and R.K. Srivastava (Sydenham Institute of Management Studies, Research and Entrepreneurship Education, Mumbai, India)
Copyright: © 2014 |Pages: 10
DOI: 10.4018/978-1-4666-5202-6.ch230
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Background

Mobile Banking

Mobile banking is one of the value- added mobile commerce applications (Lee et al., 2003; Varshney & Veter, 2002). Mobile banking services allow customers to check account balances, transfer funds between accounts and order for electronic bill payments. Mobile banking can be popular due to its always-on functionality and the option to bank virtually any time and anywhere. The mobile phone especially supports the provision of time-critical information, like for trading in stocks or if of the acute need for money transfer or request of account balance. The key players for mobile financial applications include banks and other financial institutions such as credit-card companies, mobile operators and retailers (Mallat et al., 2004) and the customer considers banks as an outstanding trustful service provider compared to other financial institutions (Mallat &Tuunainen, 2008).

Role of Trust in Acceptance of Mobile Banking

Trust is a central construct for the study of the commercial transactions. Existing research (Gefen, 2000; Gefen et al., 2003; Jarvenpaa et al., 2000; Gefen & Straub, 2003; Pavlou, 2003) has identified that trust plays a major role to attract new customers as well as retaining the existing customers to any business. In mobile banking, the primary interface with the bank is an information technology (IT), a small screen provided by the mobile device.

Key Terms in this Chapter

M-commerce: A set of applications carried out using wireless Internet and mobile devices.

Perceived ease of use: The extent to which a consumer believes that a system is easy to learn or to use.

Security: The wireless (mobile) security is categorized as mobile payment enabling application security, network Security and device security.

Mobile Banking: Banking operations carried out using a mobile device.

Perceived usefulness: The extent to which a person believes that using a particular system would enhance the job performance.

Trust: Trustor’s beliefs in the trustee’s ability, benevolence, and integrity.

TAM: Technology Acceptance Model is a predominant model in Information System to study the adoption behaviors.

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