ACCEPTABILITY OF MOBILE BANKING/E-WALLETS TO THE

FINANCIAL MANAGEMENT STUDENTS IN UNIVERSITY OF

NEGROS OCCIDENTAL- RECOLETOS.

A Thesis Presented to the Faculty of the Business and

Accountancy
University Of Negros Occidental- Recoletos

In Partial Fulfillment
of the Requirements for the Course
FINRES030 (Financial Research)

Arradaza, Jazy T.
Gardoce, Georgia C.
Gonzales, Stephanie S.
Laguda, Gypsy Belle Gaea G.
Libre, Kier C.

January 2011
 i

ACCEPTABILITY OF MOBILE BANKING/E-WALLETS TO THE

FINANCIAL MANAGEMENT STUDENTS IN UNIVERSITY OF NEGROS
OCCIDENTAL- RECOLETOS.

Jazy T. Arradaza

Georgia C. Gardoce

Stephanie S. Gonzales

Gypsy Belle Gaea G. Laguda

Kier C. Libre

**

Bachelor of Science in Business Administration Major in Financial Management

University of Negros Occidental- Recoletos

January 2021
 ii

Abstract

Technology is a guiding force in the modern era, and it is sweeping the

globe in every way; smartphone and internet banking are only a few examples of
the ever-evolving technological advances. This study aims to determine the
acceptability of university students to mobile banking and e-wallets. A particular
measuring instrument was used to analyze the data. The instrument used for this
study was a researcher-made questionnaire to gather data needed from the
respondents. The outcomes of the perceived factors on mobile banking adoption
tend to show that consumers/students are concerned about the risk of using mobile
banking through a wireless platform, as measured by overall protection, reliability,
and trustworthiness of the services provided.
 iii

Acknowledgement

This project would not have been feasible without the involvement and assistance

of a large number of individuals, whose names might not all be mentioned. Their efforts

are gratefully remembered and appreciated.

However, the group would like to express their gratitude and indebtedness to the

following individuals:

MR. ELIAND REY SOLIMAN, MBA, SGD. RIZALIE N.E. MIBATO,

Ph.D., and MS. MERALIE MAE B. GUALDRAPA, CPA, MBA, CTT owes us a debt

of gratitude for their encouragement and guide, as well as for providing necessary

information for this study and for their help in completing it.

We'd like to thank our research instructor, MR. BRYAN JENEL L. GAYOSO,

MBA, to our adviser, MRS. MARY MAE F. NAWANAO, MBA, our grammarian,

MRS. IVY ABOY, Ph.D and to our statistician, MS. DIANA RODRIGO, Lpt. for

sharing their experience and insights with us during this research and for their

unwavering support, kindness, and patience.

Thank you to all family, colleagues, and those who helped in some way, whether

it was morally, financially, or physically. And to those who have generously assisted us

with their skills.

Above all, thanks to the Great Almighty, the author of all wisdom and knowledge,

for his unending love.

Thank you so much.

 iv

TABLE OF CONTENTS

Title Page i

Abstract ii

Acknowledgements iii

Table of Contents iv

Table of Tables vi

Table of Figures/ Illustrations vii

Table of Formula/ Equations/ Acronyms viii

CHAPTER 1- INTRODUCTION 1

Statement of the Problem 8

Hypotheses 9
Review of Related Literature 9
Theoretical Background 19
Conceptual Framework 25
Scope and Limitations of the Study 26
Significance of the Study26
Definition of Terms 27

CHAPTER 2- METHODOLOGY 31

Research Design 31
Participants 31
Research Instruments 32
Validity of Instrument 33
Reliability Instrument 34
Data Gathering Procedures 35
Ethical Considerations 37

CHAPTER 3- RESULTS,DISCUSSION,AND IMPLICATIONS 38

 v

Results and Discussion 38

Descriptive Results 38
Implications 45

CHAPTER 4- CONCLUSIONS AND RECOMMENDATIONS 47

Conclusions 47
Recommendations 48

CHAPTER 5- PROPOSED PROGRAM/ OUTPUT 49

REFERENCES 50

APPENDICES 55

A. Letters/Business Correspondence 55
B. Data Gathering Instrument 58
C. Validity Form 61
 vi

List of Tables

Chapter 2

Table 1: Validity Interpretation 34

Table 2: Cronbach’s Alpha Test 35

Chapter 3

Table 1: Demographic Profile of the Respondents 38

Table 2:Level of Accessibility of M-Banking/E-Wallets When Grouped to Demographics

and Factors 39

Table 3: Significance in the Factors When Grouped According to Age 41

Table 4: Significance in the Factors When Grouped According to Sex 42

Table 5:Significance in the Factors When Grouped According to Year Level 43

Table 6:Significance in the Factors When Grouped According to Preferred Bank/E-

Wallet 44
 vii

LIST OF FIGURES/ ILLUSTRATIONS

Figure 1: Diagram of Conceptual Framework 25

 viii

LIST OF FORMULA/ EQUATIONS/ ACRONYMS

PSPs Payment Service Providers 2

EPC European Payments Council 2
USA United States of America 3
UK United Kingdom 3
MFI Mobile Financial Institution 3
ATM Automated Teller Machine 3
SMS Short Message Services 5
GSMA Global System for Mobile Communications 5
BSP Bangko Sentral ng Pilipinas 6
WAP Wireless Application Protocol 6
PDAs Personal Digital Assistants 6
NFC Near Field Communications 10
ACH Automated Clearing House 10
WHO World Health Organization 11
UNCDF United Nations Capital Development Fund 11
PLDT Philippine Long Distance Telephone Company 14
QR Quick Response 16
UN United Nations 16
PC Personal Computer 18
TRA Theory of Reasoned Action 21
TAM Technology Acceptance Model 23
ICT Information and Communications Technology 23
TPB Theory of Planned Behavior 24
FM Financial Management 26
BDO Bangko De Oro 37
BPI Bank of the Philippine Islands 37
SD Standard Deviation 38
 Chapter 1

INTRODUCTION

Online transactions are playing a lively role now in these days in terms of

shopping, pay bills and money transfer and many more. Mobile payment referred to as

mobile money, mobile money transfer, and mobile wallet also it refers on payment

services operated under financial regulation and it is performed via mobile devices.

Instead of paying with cash, cheque, or credit cards, a consumer can make use of any

other mobile devices to pay for a wide range of services and digital or hard goods. In

spite of the fact, that the concept of using non-coin currency systems has a long history.

Indeed, money is the lifeblood of economies around the world. More recently,

technology has enabled an entirely form of payment .Today, digital money is not only

common, its support systems has become widely available without the hassle of

physically moving large sums of cash. Mobile payment is being adopted all over the

world in different ways. The first patent exclusively defined "Mobile Payment System"

was filed in 2000.

In other developing countries mobile payment have been place as a means of

extending financial services to the community known as the "unbanked" or "under

banked", which is estimated to be as much as 50% of the world's adult population,

according to Financial Access' 2009 Report "Half the World is Unbanked". These

payment networks are often used for micropayments. The use of mobile payments in

developing countries has attracted public and private funding by organizations such as
 2

the Bill & Melinda Gates Foundation, United States Agency for International

Development and Mercy Corps. Mobile payments are becoming a key instrument for

Payment Service Providers (PSPs) and other market participants, in order to achieve new

growth opportunities, according to the European Payments Council (EPC). The EPC

states that "new technology results provide a direct improvement to the operations

efficiency, In the long run it results in cost savings and in an increase in business

volume".

Students nowadays use mobile devices for a variety of activities – from posting to

social media to purchasing concert tickets. Using this technology the students are easily

adapted with mobile banking especially those to who wants to secure with their savings

account because it offers a convenient way to keep track of their finances without going

to the bank. The day-to-day life of a student is demanding and short on free time. Long

banking activities like paying bills and transferring funds are build simple for them

through mobile banking. More time can be finished on the many priorities of a student’s

life with the help of this banking apps and mobile sites.

Internet connectivity has led to a renewed interest in Internet banking among

those specific groups of working individuals. In addition, with the rapid development of

mobile and smart phones, Internet banking has become more helpful to many more

individuals, since they can carry out their banking transactions anywhere and anytime via

mobile banking (Lee & Chung, 2009). Mobile-banking (commonly referred to as M-

banking), an extension of Internet banking, it provides convenience, time independence,

rapid response to customers and cost savings. These benefits serve as an opportunity for
 3

banks to increase consumer market through mobile services. Furthermore, mobile

technologies, such as smart phones, PDAs, cell phones, and iPads are perent and trendy

among young adults. This M-banking would serve service providers well to understand

what influences the purpose to use or adopt M-banking innovations especially among

young adults who are likely to be future adopters and users of M-banking – a worthwhile

service to generate revenue from m-banking investments ( Munongo & Chitungo, 2013).

According to Yu (2013) regardless of the numerous perceived benefits for customers the

actual usage of m-banking has not increased at a rate as initially expect. They further

state that one of the main reasons for m-banking not being widely accepted, is the lack of

trust in m-banking services. While there are 5 billion mobile users globally, only 200

million make use of m-banking services (Jeong & Yoon, 2013). Even in developed

countries such as Sweden, USA and the UK, the ratio of mobile banking users and

mobile phone users is weak. Many people who reside in remote rural locations, where

only some computers are connected to the Internet, may welcome the services offered by

mobile banking as opposed to the limitation of Internet banking. The service providers

are building investments into the m-banking infrastructure for effective provision of m-

banking services to the low-income market in developing economies.

Mobile banking is a system that letting customers of mobile financial institution

(MFI) to offering banking services of make deposits, withdraw, and to send or receive

funds from a mobile account through a mobile device such as a mobile phone or personal

digital assistant. Mobile banking provide services like account information; payments,

deposits, withdrawals, and transfers; investments; ATM support; and content services

(Hossain, 2005).
 4

On the other hand, an e-wallet is an electronic wallet where you can digitally keep

your money. It is often called in other terms like “digital wallet” or “virtual wallet”, e-

wallet provides many distinct ways to transact, such as paying bills or buying things

online. An e-wallet often happens in the form of a mobile application or a website. With

your own e-wallet, you can do and make financial transactions from the ease use of your

mobile phone.

In local’s perspective, the Philippines financial system has undertaken a period of

technological innovations, the remodels include a significant increase in the number of

alternative formal channels for delivering financial services. The most recent are the use

of mobile banking. Since the telecommunication industry was liberalized from 65 years

of private monopoly ownership in 1992, there is a rapid growth in cellular mobile

telephone services in the country. By the year 2000, the mobile phone subscriptions

surpassed fixed telephone lines with a ratio of 8.3:3.9 per 100 subscriptions (ITU, 2016).

At the end of 2012, it indicates that every Filipino owned a mobile phone regardless of

economic status with 101.9 million subscribers exceeding the total population of the

country of 97.1 million. The deficiencies of fixed telephone lines in underserved and

unserved areas facilitated the adoption of mobile devices and short message services

(SMS).

By exploiting mobile phones tempt to strike a larger population and cause

financial services to take over banking deals resembling as account balance inquiries,

monitor checking account transactions, pay utility bills, pay loans, fund transfer, receive

and send remittances and payroll services. It is an assumptive disposition channels

 5

through which bank customers can be migrated from brick-and-mortar branches to put

down banks' operating expense (Peevers et al., 2008).

GSMA Intelligence Report (2014) articulates that Philippines is branded as the

texting capital of the world because of the high volume of SMS traffic exchange with

sent messages of over 520 SMS per connection per month over the Smart network in Q2

2014, as opposed to 371 per connection per month for XL Indonesia, and 64 per

connection per month for China Mobile. Based on the global SMS volume, it is estimated

that Philippines has generated around 10 percent. As to the insignificancy of mobile

phone internet users in the Philippines, there are 38.3 million people as of 2018,

depicting a mobile phone internet penetration rate of only 36 percent (Statista, n.d.).

Further, researcher Shane Snow explained that texting grow crowd-pleasing in third

world countries because of the low cost of a mobile phone and SMS plan, and unlimited

messaging proposed assimilate with the cost of a computer and a broadband connection

(Dimacali, 2010). It is shown in 2014 that filipino mobile users are highly SMS literate,

which made the proposition of conducting financial transactions using a smartphone

more intuitive. However, digital banking penetration in the Philippines has been slow

based on the study of Ramanathan, Roland & Romano (2014). While 35 percent are

digital consumers who perform online purchases thru smartphone, only 9 percent of the

consumers accustomed the smartphone to manage banking trades or transactions equate

with 26 factors that impact behavioural purpose to use mobile banking among retail

banking clients percent in developing Asia. With the close statement of the study that the

country has the lowest digital banking penetration across 13 Asian countries. Based on

the 1st Quarter 2018 Bangko Sentral ng Pilipinas (BSP) Financial Inclusion Dashboard,
 6

mobile banking penetration in the country is 28 percent. Hence, to necessitate for

investigation of factors that sway the purpose of Filipino consumers to use mobile

banking. This disquition of Kim, Shin & Lee, in 2009; & Lin in 2011 fills in the gap by

providing a deeper grasp of the antecedents for consumer behavioural aspiration to utilize

mobile banking given there is a dearth of literature that exists concerning third world

countries and is much required presently. (Kim, Shin & Lee, 2009; Lin, 2011).

In Global perspective, according to Zhou, Lu, and Wang in 2010, Mobile banking

appertain being a cell phone banking that with the favour of mobile terminals such as cell

phones and personal digital assistants (PDAs) a gateway for banking networks via the

wireless application protocol (WAP). Bank Negara Malaysia, in 2012 stated that the

comparability of mobile banking to internet banking stipulates a rapid and suitable way

of managing common banking deals. In order to enjoy the benefits of mobile banking, a

user needs a mobile phone that is equipped with the features required by the bank that

provides this service. Mobile banking permits customers to perform three fundamental

transactions: (i) storing money in an account that is accessible by the mobile device (ii)

completing cash-in and cash-out transactions with the stored account, and (iii)

transferring money among different accounts. The Board of Governors of Federal

Reserve Systems, in 2012 declared that the user can access banking transactions

wherever he/she might be by obtaining a registered account for mobile banking and of

course with the permission of the banking institution through by admittance in the bank's

web page through the web browser using mobile phones, via text messaging, or by using

an app that is required to be downloaded on the mobile phone.

 7

Mobile banking allows consumers to be able to access banking services from

anywhere. Businesses and business owners are now able to save time by making use of

mobile applications to process their payments or even receive funds from clients directly

to their phone numbers. Also, it helps students manage their money on their own

schedule. And E-wallets allow you to do different things with your money. Buying load

and shopping online are two of the most popular things most e-wallet users do. You can

also link your other financial accounts, such as your bank accounts or debit cards, to your

e-wallet. In this way, your online financial accounts create an ecosystem, with your e-

wallet as the main source of payments or savings.

According to health recommendations, one of the most effective ways to contain

the current COVID-19 epidemic is to avoid personal contact. This means reducing the

movement of people and increasing the time they spend at home as much as possible. In

line with these indications, most banks in the affected countries have reduced the opening

hours of their branches and they recommend their customers use online banking.

To encourage the use of this channel, many banks have taken the opportunity to

send out positive messages and to remind their users of the benefits of online banking.

Thus, an e-wallet or digital wallet is an electronic service, which can be used online or on

a mobile phone. It securely stores users' payment information and passwords and allows

you to make and receive electronic payments. It can be linked to a bank account. These

benefits include the ease of carrying out any transaction 24/7 and enjoying permanent

access to all financial information in real time. Some banks have also tried to promote
 8

online banking by sharing tutorials and expanding the types of transactions customers can

carry out remotely.

In the 15th of March 2020, US data promulgate that the agitation that cash could

proliferate coronavirus the users was troubled and driven the necessity to manage their

bank transactions online. Analysts concludes that this psychological factor of persons that

is reasonable of a belief that cash as filthy could prompt moreover embrace of payment

methods like Apple Pay and Venmo.

Statement of the Problem

The purpose of this study is to assess the acceptability of mobile banking/e-

wallets to the Financial Management Students in University of Negros Occidental-

Recoletos.

Specifically, the following questions are aimed to be answered in this study:

1. What is the profile of respondents when grouped according to age, sex, year level,

and preferred bank/e-wallet?

2. What is the level of acceptability of mobile banking/e-wallets to Financial

Management students when grouped according to their profile and other factors

such as convenience, accessibility and reliability?

3. Is there a significant difference in the level of acceptability of mobile banking/e-

wallets to Financial Management students when grouped according to their profile

and other factors such as convenience, accessibility and reliability?

 9

Hypotheses

The hypotheses created by the researchers were based on the objectives given in

the study:

1. There is no significant difference with the level of acceptability of mobile

banking/e-wallets to the financial management students when they are grouped

according to age, sex, year level, and preferred bank/e-wallet.

Review of Related Literature

During the year 1997, a company of Coca Cola released a number of vending

machines that let customers in Helsinki purchase a drink in a form a digital payment via

text messages. Though very different from modern day E-wallet transactions, this is

believed as the origin. Soon, mobile devices became the means to buy movie and travel

tickets, hotel bookings, and ordering food. By 2003, around 95 million cell phone users

had used a mobile device to make a purchase. Google became the first major company to

launch a mobile wallet in 2011. With NFC (near field communications) technology,

consumers could pay, earn loyalty points, and redeem coupons. Despite the fact that it

was used on only one phone model and was accepted only by a handful of merchants, it

proved to be very popular. 2012 saw Apple’s Passbook, which, though not for mobile

payments, could be used for boarding passes, tickets, and coupons. Apple Pay came two

years later. Launched in the US, it quickly spread to the UK and China. 2015 brought
 10

Android and Samsung Pay. Popular e-wallets nowadays such as GrabPay, Lazada

Wallet, PayPal, Touch n Go, and vcash have made digital payment/electronic payment

known and many users have considered it quite convenient that in the long run become

famous. A Juniper Research study predicts that globally almost 2.1 billion consumers will

use a mobile wallet to make a payment or send money in 2019. (Sachdev, 2018)

Convenience. One of the most convenient ways to purchase goods and services

are digital payments especially during this pandemic. Whether it's using a digital

banking/wallet (or e-wallet), a card-not-present payment such as how we pay for our

Amazon or Instacart food and goods, a private label debit app on our phone or the use of

ACH, mobile and digital payment consumers can make safe transactions without using

cash. Digital payments, especially done via bank networks, transfers funds electronically

from your customers account directly to your business bank account. When you accept

digital payments, you free up time, money, and energy to grow your business. Your

customers can quickly and easily make payments, while ensuring your cash flow remains

consistent and easy to forecast. (Miller, 2020)

According to the World Health Organization (WHO), using contactless payments

and avoiding use of banknotes cam help prevent the spread of COVID-19 infection all

across the globe. In this way, services and product supply of digital banking systems will

continue help the market continue business during the COVID-19 crisis. A number of

organizations are looking for efficiencies to create entirely new business models, which

will help in impacting all components of performance. As the coronavirus spreads,

businesses and governments, struggling under the weight of the pandemic, are looking to
 11

limit cash exchanges, which the World Health Organization has warned could transmit

the virus.

“Leveraging that channel during times of redress is really a lifeline to those who

are most vulnerable and sadly impacted by the COVID crisis,” said Sabine Mensah, the

regional digital lead for the United Nations Capital Development Fund (UNCDF). The

economic downturn has already hit hard. The International Labor Organization warned

that about 1.6 billion people working in informal economies — or up to half of the

world’s workforce — are at risk of losing their livelihoods as a result of the pandemic.

(Berger, 2020)

The development of contactless payment technology, which allows payments to

be made without any direct or indirect human contact, is being given a big push by the

fear of COVID-19 infection. In particular, digital (or online) payment has gained a lot of

traction since the outbreak. At a broader level, digital technology is redefining how we

work, shop, play, learn, and live in the COVID-19 world. For instance; online shopping is

a necessity during lockdowns and community quarantines when physical stores are shut

down. Even after the restrictions are lifted, e-commerce is likely to grow in popularity as

consumers prioritize health safety and become more aware of the convenience of online

shopping. E-commerce requires e-payment, and the post-COVID-19 growth of e-

commerce will thus translate into the growth of digital payment.

A sample of 28 economies from developing Asia shows they lag the global

average in use of digital payments. While the use of digital payments varies across the

region, it is rapidly increasing, with consumers throughout the region using fine tech
 12

products regularly. Digital banking is also gaining ground in Southeast Asia, with most

banks reducing the number of physical branches and improving the convenience and

efficiency of online banking transactions. The experiences of two of Asia’s largest

economies, India and the People’s Republic of China, provide valuable insights. The use

of digital payments in India increased when the government demonetized its currency in

2016, forcing Indian consumers to shift to phone-based, contactless payment apps. Even

when the availability of bank notes recovered, the use of electronic payments continued

trending upward. The transition to a contactless payment system began much earlier in

the People’s Republic of China. Digital payment and e-commerce took off in the

aftermath of the 2003 Severe Acute Respiratory Syndrome (SARS) epidemic with the

introduction of Alipay and similar payment systems. In fact, in terms of contactless

payment, the country has become a global leader. In particular, QR code payment, a

contactless method where payment is made by scanning a QR code from a mobile app, is

now one of the leading means of payment throughout the People’s Republic of China.

Flores-Roux & Mariscal (2010) identifies the emergence of mobile banking/e-

wallets underscores how, occasionally, innovations emerge from unexpected places and

have the capability of reconfiguring the significance of a technology to its users, offering

a way to lower the costs of moving money from place to place and opening a way to

bring more users into contact with formal financial (Anyasi & Otubu, 2009). There

appears to be no set of clearly identifiable variables that serve as a basis for success and

that those necessary conditions for the replication of m- banking models identified by the

existing literature to other countries around the world do not guarantee results. Despite its

many advantages, the use of mobile phones in banking services is still in its and Internet
 13

banking retains its position as the leading channel in electronic banking (Cruz et al. 2010;

Laukkanen, 2007). Moreover, we find that some of these conditions are not present in

countries where m-banking models have been successful.

Globally, Mobile banking/e-wallets are used in many parts of the world with little

or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is

also popular in countries where most of their population is unbanked. In most of these

places, banks can only be found in big cities, and customers have to travel hundreds of

miles to the nearest bank.

In Iran, banks such as Parsian, Tejarat, Pasargad Bank, Mellat, Saderat, Sepah,

Edbi, and Bankmelli offer the service. Banco Industrial provides the service in

Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and

MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa

Service, which is mainly used to transfer limited amounts of money, but increasingly

used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer

business, known as ZAP, in Kenya and other African countries. Several other players in

Kenya such as Tangerine, MobiKash and Funtrench Limited also have network-

independent mobile money transfer. In Somalia, the many telecom companies provide

mobile banking, the most prominent being Hormuud Telecom and its ZAAD service. In a

year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and

United States with 200 percent, 150 percent, 110 percent and 100 percent respectively.

Locally, in Philippines digital payments are fast gaining currency as consumers

ditch cash to avoid physical contact on worries over catching coronavirus.

 14

Major wireless carrier Globe Telecom's GCash, the nation's largest provider of

mobile money services, said the number of its registered users soared 150% in the month

from mid-March. GCash and its main rival, PLDT's PayMaya, are in spirited marketing

campaigns to position themselves to cash in on the "new normal" in the post-COVID-19

era. The Philippines have been lagging its neighbors in embracing digital payment, but is

now playing catchup. Mid-May said "In a world where digital is the new normal,

financial technology should be considered the bedrock of digital services," Pebbles Sy,

chief technology and operations officer at Globe Fintech Innovations, or Mynt, which

operates the GCash service.

"Aside from the convenience, it is also less risky than cash handling, more

efficient than physical payments, and is also very transparent," he told local media.

GCash said the total amount of payments made on its platform in May soared

eightfold from a year ago. GCash is the largest mobile wallet in the Philippines with 20

million registered users. The service can be used at some 63,000 stores, mainly tenants of

commercial facilities operated by Ayala Corp., the diversified conglomerate that owns

Globe Telecom.

Accessibility. With digital payments, customers can self-service and pay invoices

from anywhere at any time. It is easily traceable because the details of balances and

payments are stored. Using Mobile banking/e-wallet, you can have more option that

makes you process payments extremely fast and accurate. They also offer another option

to pay when shopping online (think PayPal) or at the gas station using a phone (think

Apple Pay). (Lopez, 2020).

 15

The Philippines was a global early-mover in digital payments, with the launch of

mobile money in 2001, but the path to widespread adoption and usage has not been

straightforward. Thailand and Indonesia are now ahead of the Philippines in using digital

money. Yet the pandemic has come as a powerful driver for electronic payment. The

lockdown imposed in mid-March forced most shops to close and made it difficult for

consumers to pay at bank or store counters while the strict quarantine measures were

eased in June, people and businesses are still required to take steps to ensure social

distancing. This situation has triggered a massive shift toward digital money, which is

thought to reduce the spread of germs that could otherwise be passed on in the use of bills

and coins.

Both GCash and PayMaya are focusing on areas where demand for digital

currency is expected to grow fast. The government-supported digital wallets like GCash,

will help provide taxis with scan-to-pay systems using QR codes. It is a payment method

where payment of a user is performed by scanning a QR code from a mobile app. It is

hoped that electronic transactions will power up the efficiency of business by eliminating

problems such as long queues in stores and waiting for change. In addition, Benjamin

Diokno, the governor of the central bank, said that electronic payments will also allow

low-income earners without bank accounts to access financial services. (Jun Endo,

Nikkei staff writer, 2020)

Lin further suggests that, customers who enjoy using wireless networks in their

daily activities even if it is not related to M-banking/digital transactions are more likely to

consider adopting m-banking/digital payment because it suits their technology-driven

 16

lifestyle. In terms of compatibility, M-banking providers must improve the banking

applications with the lifestyle and preferences of their target markets. (Lin, 2011)

Despite the marketing campaigns, consumers have been slow to embrace digital

currency, preferring cash. The country's central bank has set a target of raising the share

of electronic payments to 50% in terms of volume by 2023. However, the figure had only

reached 10% by volume by 2018, according to a report published in December by the

Better Than Cash Alliance, a U.N.-based partnership of governments, companies and

international organizations aimed at accelerating the transition from cash to digital

payments.

They said, customers who use M-banking/e-wallets generally have some form of

education, are among the youth market and perceive mobile applications to be easy to use

as compared to other segments of the population. This claim emphasises the need for

further investigation into the factors that influence university students in considering

adopting and using m-banking as they are more familiar with the use of technology,

particularly mobile phones.

Gross, Hogarth and Schmieser found that only about 5% of people between the

age of 18 and 24 years do not own a mobile phone, making m-banking adoption among

this group potentially the highest. An increase in the use of smart phones will lead to an

increase in the adoption of M-banking by most customers in the next few years.

Therefore researchers believe that tertiary students in general are potential prospective

users of m-banking services. These characteristics are typical of Information Systems

students hence sooner or later they are likely to be customers of M-banking business, that
 17

is if they have not already adopted the technology. Not many studies have focussed on

undergraduate students’ adoption of m-banking.

According to Siyal, Donghong,and Umrani (2019), mobile banking is the

breakthrough technology in banking sector which has significantly improved efficiency

of banks and people’s quality of life. Banks seem particularly interested in such systems

that provide their customers with better services. However, acceptance of and loyalty to

mobile banking depends on how effectively banks motivate their customers to adopt the

technology and retain their continued use.

Reliability. Mobile banking/e-wallets are much more secure and reliable than

traditional ones because they keep your information confidential and most apps and sites

are heavily regulated and protected to keep your money safe. It is also beneficial to

businesses that collect consumer data so they can not only personally target consumers

but they can also understand overall buying habits and even optimize their workforce for

busy times throughout the day.(Miller,2020)

Despite all this activity there’s relatively little going on in terms of actual

consumer adoption of what I refer to as “horizontal” mobile wallets. A new Digital

Wallet Usage Study from Thrive Analytics (based on a survey of more than 2,000 US

adults), found a significant gap between consumer awareness and usage. Nearly 80

percent (78 percent) of survey respondents said they were aware of “digital wallets” (PC

+ mobile). However, only 32 percent had actually ever used one. This includes PayPal on

the PC. People are thus making conscious decisions not to use them for the time being.

(Third Door Media, Inc., 2021)

 18

Today, physical branch banking has been replaced by mobile banking, whereby

customers can obtain service through the Internet from their homes or at work using their

phones rather than physically visiting the branch. This result to develop gaps includes:

Technology, Service Reliability, Technical Knowledge, Security Assurance, and Human

Interaction. Technology Gap involves the gap between customers’ expectations regarding

ease of use of a bank website and the actual functionality and usability of the website

(Yiu, Grant, & Edgar, 2007). Thus, customers’ intention to use mobile banking services

is affected by the level of usefulness. Service Reliability Gap indicates the gap between

customers’ expectations of bank reliability and bank website fulfilment. Customers have

a better perception of service quality if the bank fulfils their needs as promised through

the website interface (Ladhari et al., 2011). Technical Knowledge Gap represents the gap

between customers’ level of technical knowledge and the bank website’s level of design

complexity. Customers’ lack of technical knowledge affects their intention to use online

banking services (Al-Husein and Sadi, (2015), Rahman et al., (2017). Security Assurance

Gap implies the gap between the promised level of security to customers and delivered

privacy and security by the bank website. Security of mobile banking is one of the major

concerns that affect customers when using mobile banking. Customer confidence on

mobile banking depends mainly on the level of security in protecting personal

information and/or deal with preventing unauthorized transactions/access (Chiu et al.,

2016).Human Interaction Gap indicates the gap between customers’ need for human

interaction and the bank website’s responsiveness. In fact, customers consider the

absence of human interface affects the time and speed of processing their online requests
 19

(Toufaily and Pons, 2017). Consequently, this has a significant negative influence on

customers’ loyalty (Aggarwal and Bhardwaj, 2016).

To bridge the gap, there have been several connection points proposed. At this

stage of development, it seems that the way forward is to utilize existing payment rails

coupled with the functionality of a trusted third party to make the connection between the

wireless and the banking worlds.

According to findings from the selected literature review, it can be concluded that

the most important factors influencing the usage of mobile banking/e-wallets services are

convenience, accessibility, and reliability.

Theoretical Background

The theoretical background of this study is Diffusion of innovations theory

(Robinson, 2009; Roger, 2003) Diffusion is the process by which an innovation is

communicated through certain channels over time among the members of a social

system. Diffusion is a special type of communication concerned with the spread of

messages that are perceived as new ideas. An innovation is an idea, practice, or object

that is perceived as new by an individual or other unit of adoption. The characteristics of

an innovation, as perceived by the members of a social system, determine its rate of

adoption.
 20

Diffusion of innovation theory is a theory that deals with change. It is the theory

of new innovations (products, services, etc.) being tested or accepted by individuals to be

of good use in their everyday needs, etc. the theory doesn’t focus on convincing or

persuading people to accept a product or service, rather than changing the products to

satisfy the need of people.

According to Robinson, “diffusion of Innovations takes a radically different

approach to most other theories of change. Instead of focusing on persuading individuals

to change, it sees change as being primarily about the evolution or “reinvention” of

products and behaviors so they become better fits for the needs of individuals and groups.

In Diffusion of Innovations it is not people who change, but the innovations themselves”.

Several theories have been developed to understand the intention of the consumer

to use an IS technology. TAM model have been studied extensively in several literature

(Davis, 1989) and it is in fact the theory of information services that model how users

adopt and use a particular technology (Dauda , et al., 2015). Number of researchers have

extended the TAM model and applied it to many different technologies including e-

learning (Cheung and Vogel, 2013; Al-Maroof and Al-Emran, 2018), m-commerce

(Barry, et al., 2018) and short message service (Muk, et al., 2015). According to

Vijayasarathy (2004), TAM variables are best suited for a decision regarding to accept

new technology. To study the acceptance and usage intention of new technology, TAM is

considered as well-recognized extensions in academic research (Aydin , et al., 2016).

However, the original TAM variables may not sufficiently capture core beliefs that affect

the attitude of consumers towards eshopping. In order to strengthen the model it is further
 21

advised to include few additional variables to examine the appropriateness of the TAM

(Jaradat, 2013). Privacy and security is one of the extended variable that was found to be

positive on behavioral intention to use new technology (Barry, et al., 2018). Based on the

above statements, this study includes privacy and security as one of the extended

variables (Barry, et al., 2018) to examine the behavioral intention to use e-wallet. Other

two variables are perceived usefulness and perceived ease of use.

E-wallet is as an application that allows an individual to make any e-commerce

transactions by storing their credit card information. Payment through e-wallet is

considered as one of the most prominent transaction method at present because an

electronic transaction using a digital wallet has the advantage of ease, flexibility and

protection (Uddin, et al., 2014). Mobile wallet is also recognized for its innovative

benefits such as customization and instant communication (Osakwe, et al., 2016). As the

number of e-payment systems is increasing e-wallet has already gain fame by providing

its vast number of services in riding sector, food delivery and bill payments (Rosnidah et

al., 2019). It is not only advantageous for buyers; traders are accepting e-wallet as a

payment method because of its fastest transaction process, efficient cash management and

less cost of labor (Hayashi , et al., 2014). These types of transactions are commonly being

done in physical stores where customers scan the (QR) code by using their mobile device

to confirm the payment (Lu, 2018). In physical stores, NFC-supported devices (Near

Field Communications) are being placed near to the payment terminal to make the

transaction easier (Taylor, 2016). Based on the above literature, it can be described that

the use of e-wallet among young adults is mainly because of its compatibility, flexibility

and user friendly transactions that is done using smart devices.

 22

Mobile commerce users are not just technology users, they are a part of social

network consisting of friends and family members. Their decision to adopt a particular

technology will be influenced by an individual’s perceptions, opinions and actions in

regard to different objects including service offers. People generally recommend good

services and discourage the unfavourable ones. The adoption research describes and

explains the adoption decision of individual end users applying cognitive and social

theories of decision making.

Most of the adoption studies are based on these three models which are

Theory of Reasoned Action (Ajzen,1980),Theory of Planned Behavior(Ajzen,1991)

and Technology Acceptance Model.(Davis,1989).These models are used to explain

end users’ adoption and acceptance of different kinds of ICT systems and

applications(Venkatesh and Davis,2000).Most of the information systems (IS) usage and

adoption relied on models derived from Theory of Reasoned Action (Ajzen, 1980) and

its extensions. This theory specifies that human behavior is preceded by intentions, which

are formed based on the individual’s attitude towards the behavior and on perceived

subjective norms. In TRA it explains more about behavior rather than about adoption of

technology. Attitude refers to an individual’s positive or a negative evaluative effect

about performing a particular behavior .Attitude reflects the individual’s feelings of

favorableness or un-favorableness towards performing a behavior.

Another model is Theory of planned behavior (Ajzen, 1991), derived from

TRA, which also studies the human behavior. This model has also been used to

study the adoption pattern of mobile commerce services (Khalifa and Shen, 2008).The
 23

Technology Acceptance Model (TAM) model (Davis, 1989) describes the consumer’s

willingness to use technology. The TAM model has five constructs which are perceived

ease of use, perceived usefulness, attitude toward use, intention to use and actual

use. The traditional adoption models can be used to study the adoption of mobile

commerce (Pederson, 2005, Khalifa and Shen, 2008). The factors contributing to the

adoption of mobile services in the context of wireless finance are perceived ease of

use, perceived usefulness, cost, system quality and social influence (Kleijnen at al,

2004). The user intention to adopt wireless technology has different determinants for

different types of tasks like general tasks, gaming tasks and transactional tasks (Fang et

al, 2005). In the study of understanding the acceptance of mobile service by

individuals it is identified that perceived usefulness, ease of use, credibility, self-

efficacy and financial resources have positive influences on behavioral intentions

(Wang et al, 2006).All adoption studies are so far related with technology and service

characteristics and its use. The technological characteristics of mobile devices are

limited memory, limited user interface and low computing power (Misra and

Wickamasinghe, 2004). The service characteristics include limited bandwidth, network

connectivity, transactional cost, privacy etc. (Tarasewich and Nickerson, 2002). Mobile

service users are normally customers of a business and pay fees to receive services, in

order to continue as customers of the business. There is therefore, a continual

interaction between the mobile customer and his/her service provider(s). Such

interaction opens the door to a wide range of adoption causes that might not be as

crucial for traditional technology adoption. Existing studies found the need to extend

the TAM model with behavioral control and it also found the decomposed TPB to be
 24

further modified while explaining the adoption of mobile commerce services (Pederson,

2005).

Mobile banking is considered to be one of the most value-added and important

mobile commerce applications currently available (Lee et al., 2003; Varshney and Veter,

2002). Mobile banking services allow customers to check account balances, transfer

funds. Between accounts and order for electronic bill payments. The mobile phone

especially supports the provision of time-critical information, for example, for

trading in stocks or if of acute need for money transfer or request of account balance.

The device manufacturers for both mobile devices and handheld devices like PDA and

software vendors to enable services are required to create the infrastructure. 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). An e-

wallet or a digital wallet provides the user the convenience of storing one or more

method of payment digitally. Instead of carrying cash or even cards, the user just stores

his/her payment information on a smart device, like a phone, a watch, or a tablet, locked

and protected by a password. Other information such as store loyalty card information

and digital coupons can also be stored.The customer considers banks as outstanding

trustful service providers compare to other financial institutions (Mallat and Tuunainen,

2008).Cost, usability, convenience, security and privacy are the main factors for the

success of mobile banking (Herzberg, 2003). Success will ultimately rely on how

secure the payment transactions are. The end users must be confident in the financial

institution carrying out the transaction, the network operator transmitting the data, the

technology used for transaction, and in the retailer itself (Song, 2001).
 25

Conceptual Framework

Mobile Banking/e-wallets is determinded as the Independent Variable in this

study. It stands alone and isn't changed by the other variables. It is assumed to have a

direct effect on the dependent variable. In where it is manipulated to see if it there are

changes in the dependent variable. Dependent Variable is the acceptability of Financial

Management (FM) students of University of Negros Occidental-Recoletos. It is

considered to be the dependendent variable because it is a measure of the indicative and

responsive abilities that express, in an estimated way, what a person acceptability of the

mobile banking/e-wallets to the FM students that will come up with its own changes.

Demographic profile of the participants are considered to be involved in

negotiation between the dependent and independent variable. It is determined to be the

mediator to connect with all other variables. As well as the level of acceptability of

mobile banking/e-wallets when they are grouped according to their profile and other

factors such as convenience, accessibility, and reliability.

Profile of
Respondents

Acceptability of Mobile
Banking/e-wallets to Acceptability of Mobile
the Financial Banking/e-wallets to the
Management students Financial Management
students
Other Factors
 Convenience
 Accessibility
 Reliability
\
Figure 1. Diagram of the Conceptual Framework
 26

Scope and Limitations of the Study

The study focuses on its main purpose to determine the acceptability of mobile

banking/e-wallets to the Financial Management Students (FM) in University of Negros

Occidental- Recoletos. This study will be conducted among university students who are

familiar with the use of technology. Prospective research on FM students will be of

greater validity, and a wider investigation of the findings should be evaluated.

Due to the pandemic conditions, it was decided to collect data online and the

questionnaires will be sent via e-mails and messenger groups for the Financial

Management students of University of Negros Occidental – Recoletos that will serve as

the respondents of the study.

Significance of the Study

This study aims to identify the Acceptability of Mobile Banking/e-wallets to the

Financial Management Students in University of Negros Occidental- Recoletos.

This study may be beneficial to the following:

Mobile Banking/E-wallets Service Providers. Based on the factors found to be

influencing user decision on mobile banking/e-wallets, the study may provide

recommendations for digital payment system service providers about changes

needed in order to accelerate user adoption of the services offered.

 27

Customers. Customers are the most important people, as they play a major role in

the success of any business. With the focus on mobile banking/e-wallets and

customer satisfaction, this study will benefit all the customers that are using the

mobile banking /e-wallets service with their specific bank.

Financial institutions. This study revealed all the positives and negatives of the

mobile banking/e-wallets service provided by the banks to their clients. The flaws

that have aroused from conducting this research have been an eye opener to the

banks and will motivate them to improve their service. Improving the service will

benefit the banks/e-wallets by creating a larger client base and attracting new

clients as well; it will also help them to engage more in satisfying the needs of

clients and improve client relations.

Future Researchers. The study has discovered positives and negatives of mobile

banking/e-wallets services and will help future researchers understand how

mobile payment system impacted customer satisfaction in this era.

Definition of Terms

For proper understanding of the study, provided are the conceptual and/or

operational definition of the following.

Acceptability. Defines as the quality of being satisfactory and able to be agreed

to or approved of. (Cambridge Advanced Learner's Dictionary & Thesaurus,

2005)
 28

In this study, acceptability refers to determining how well an intervention

will be received by the target population and the extent to which the new

intervention or its might meet the needs of the target population an d

organizational setting.

Banking. Banking is an industry that handles cash, credit, and other financial

transactions. (Amadeo, 2020)

In this study, banking is defined as the business activity of accepting and

safeguarding money owned by other individuals and entities, and then lending out

this money in order to conduct economic activities such as making profit or

simply covering operating expenses.

Convenience. Defines the state of being able to proceed with something with

little effort or difficulty. (Cambridge Advanced Learner's Dictionary & Thesaurus,

2005)

In this study, convenience is any element of customer experience that

saves the customer time and effort.

Digital payment. A transaction that takes place via digital or online modes, with

no physical exchange of money involved. (Razorpay, 2021)

In this study, digital payment defined as a way of paying for a goods or

services electronically, instead of using cash or a check, in person or by mail.

 29

E-wallets. E-wallet is a type of electronic card which is used for transactions

made online through a computer or a smartphone. (Bennett, Coleman & Co. Ltd.,

2021)

In this study, it is a type of pre-paid account in which a user can store

his/her money for any future online transaction.

Financial. Pertaining to monetary receipts and expenditures; pertaining or

relating to money matters; pecuniary: financial operations. (Reginfo, 2010)

In this study, financial is defined as the management of money and

includes activities such as investing, borrowing, lending, budgeting, saving, and

forecasting.

Financial Transaction. Financial transaction is an event that must be measurable

in terms of money and that essentially impacts the financial position of the

business. (Javed, 2012)

In this study, it is an agreement, or communication, carried out between a

buyer and a seller to exchange an asset for payment.

Mobile. Mobile is a digital technology pertaining to or noting a cell phone,

usually one with computing ability, or a portable, wireless computing device used

while held in the hand, as in mobile tablet; mobile PDA; mobile app.( Collins

English Dictionary ,2012)

In this study, it allows consumers to be able to access banking services

from anywhere.
 30

Mobile Banking. Mobile banking is a service provided by a bank or other

financial institution that allows its customers to conduct financial transactions

remotely using a mobile device such as a smartphone or tablet. (Chen, 2020)

In this study, mobile banking is a situation whereby the customer interacts

with a bank via mobile device, such as mobile phone and Personal Digital

Assistant (PDA).
 31

Chapter 2

METHODOLOGY

This chapter includes research methodology information such as research design,

participants, measures, and procedures.

Research Design

The present study aims to determine the Acceptability of Mobile Banking/e-

wallets to the Financial Management Students (FM) of University of Negros Occidental-

Recoletos. The study will be conducted through descriptive-survey methods, using a self-

administered questionnaire as our data collection technique, and a qualitative approach

will be applied for the collection and interpretation of data. For instance, the purpose of a

descriptive study is to provide a picture of a situation, person or event or show how

things are related to each other and as it naturally occurs (Blumberg, Cooper and

Schindler, 2005). Therefore, in situation of abundant descriptive information, alternative

research designs such as explanatory approach is advisable.

Participants

The respondents of this study are the overall Financial Management students

enrolled at the University of Negros Occidental-Recoletos who are experiencing the use

mobile banking/e-wallets as a mode of payment during the school year, 2020 - 2021.
 32

The population of this study consists of one hundred two (102) and the sample

size of the study are ninety two (92), as to 22 respondents were chosen from first year

level (1st year), 39 respondents were chosen from second year level (2 nd year), and lastly

41 respondents were chosen from third year level (3 rd year), using the Convenience

Sampling. This type of technique is much less complicated than others. It is considered a

fair way to select a sample from our larger population since every member of the

population has an equal chance of getting selected. In most cases, this creates a balanced

subset that carries the greatest potential for representing the larger group as a whole.

The researchers used survey questionnaire which participants respond using a

scale ranging from 5 as―Strongly Agree to scale 1, Agree to scale 2, Uncertain to scale

3, Disagree to scale 4 and Strongly Disagree. The students are only allowed to answer

the questions that can be found in the survey questionnaire.

Research Instrument

This study attempts to explore the effects of different key factors

influencing the consumer acceptance of mobile banking/e-wallets, particularly those that

affect the consumer's attitudes towards, and intention to use, this self-service banking/e-

wallets technology to the Financial Management students of University of Negros

Occidental-Recoletos. The nature of measurement, types of measurement levels and

different types of measurement scales are under examination in this chapter. The target

audience is focused towards Financial Management Students of University of Negros

 33

Occidental-Recoletos. The measurement process starts with selecting a subject of

analysis or an observable event, then investigating guidelines which include certain

ratings to indicate certain features about subject of analysis. The instrument used for this

study was a researcher-made questionnaire to gather data needed from the respondents.

The demographics profiles are composed of age, sex, year level and preferred

bank/e-wallet. The study questionnaire comprised 15 closed-ended, and Likert Scale

questions (ranging from “strongly disagree” to “strongly agree”), and focused on five

domains—demographics, convenience, preferences, accessibility, and reliability.

The researchers does not believe that the respondents participated in the study had

given falsified response because they were aware that this was used in a research study.

In addition, The Instrument was validated by a professional advisor before it was laid on

to the study, results were analysed and with the participation of the statistician to validate

the result of the study.

Validity of Instruments

Validity of research in surveys relates to the extent at which the survey measures

right elements that need to be measured. In simple terms, validity refers to how well an

instrument as measures what it is intended to measure. Acvordin to Laura D. Goodwin,

the quality of being well-founded, sound, or right is known as validity. It is a property of

the scores or data that are obtained when one uses a particular instrument with a

particular group of subjects in a particular setting and under certain conditions (Goodwin,
 34

Laura). Validity in this sense is a concept drawn from the positivist scientific tradition

and needs specific interpretation and usage in the context. As a result, the researchers

performed a validity test on the research instrument with the help of three experts to

ensure the device's material and judgmental validity. Due to the pandemic, the validation

of the questionnaire was sent to the respective evaluators through electronic means.

Specifically, Mr. Eliand Rey Soliman, MBA, SGD. Rizalie N.E. Mibato, Ph.D., and Ms.

Meralie Mae Gualdrapa CPA, MBA, CTT the validity test was accurate. The average

value of the outcome is 3.96.This value is interpreted as Excellent, indicating that the

survey has a high level of criterion validity.

Total Average Mean Interpretation

3.96 Very Good
Table 1. Validity Interpretation

Reliability Instruments

The validity and reliability of measuring instruments (questionnaire) are crucial in

research because it ensures the effectiveness of testing hypotheses. Reliability relates to

whether or not you have the same result when using an instrument to measure something

more than once. In other words, research reliability is the degree to which a research

method generates consistent and reliable results. When a measure is applied to the same

object of measurement multiple times and produces the same results, it is considered to

be reliable.
 35

According to Noble, H. and Smith, J. (2015), Reliability is the consistency of the

analytical procedures, including accounting for personal and research method biases that

may have influenced the findings. Researchers must make judgments about the

‘soundness' of the studies in terms of the implementation and appropriateness of the

methodology used, as well as the accuracy of the conclusions when assessing the

reliability of study findings.

Browne (1995) cites a general flat rule that says you can measure a parameter

with at least 30 subjects or more. The researchers followed Browne’s rule in collecting

data for the Reliability test. The survey questionnaires were given to 30 students out of a

total population of 120 who would be subjected to a reliability test. The 30 subjects who

completed the reliability test were not included in the actual survey to prevent biases. .

The result is shown in the table:

Cronbach’s Alpha No. of items Interpretation

0.947 21 Excellent

Table 2.Cronbach’s Alpha Test

The Alpha Cronbach value is equal to 0.947; this indicates that the test items in
the Questionnaire are correlated with an internal consistency, this research and the used
variables are reliable.

Data Gathering Procedures

 36

The first step to start before gathering the data was to form a request letter and be

retrieved by the researchers. Faculty members of the College of Busuness & Accountacy

were chosen in our administration. (were chosen to be our administrators). We manage to

gather information by survey questionnaires. Our fellow student’s responses have given

enough time to answer the questions. After data gathering, the researcher collected it for

tallying the scores and to apply the statistical treatment to be used with the study.

Data Analysis Procedure. Due to the pandemic conditions, the researchers

administered the questionnaire via e-mails and Messenger to the respondents of

the study and requested to answer honestly for the validity and reliability of the

study conducted.

The researchers made sure that the gathered data was accurate. The results

were analysed and interpreted with the participation of the statistician to validate

the result of the study.

Statistical Treatment. For the following problems given in the statement of the

problem, the researchers used different statistical treatments. The amount for

every variable stated in the first topic was calculated using percenteed. To

determine the Acceptability level of mobile-banking/e-wallets when grouped

according to their profile and other factors such as convenience, accessibility, and

reliability, the researchers used a sample mean. Independent sample t-test and

Analysis of Variance (ANOVA) was used to determine the significance in the

level of acceptability in mobile banking according to the factors when grouped

 37

according to age, sex and year level and factors such as convenience, accessibility

and reliability.

Ethical Considerations

The well-being of the respondents was protected at all times as part of the ethical

guidelines. It was informed to them the purpose and conduct of the study and made it

clear that the participation was voluntary. The Data collection and analysis was also

broadly explained so that they knew what they were doing. The consent of the students

was asked after they agreed that they understood everything clearly.

To protect the privacy of the students involved in the study, they were not

asked to put their names on the questionnaire to ensure their anonymity.

 38

Chapter 3

RESULTS, DISCUSSION AND IMPLICATIONS

This chapter discusses the Results, Discussions and Implications that the

researchers have gathered through the process of conducting online survey to every

students that taking up Financial Management course. It is divided into 6 sections the

profile of the respondents, level of Acceptability of Mobile Banking/E-Wallets when

grouped according to their profile and other factors, significance in the factors when

grouped according to Age, significance in the factors when grouped according to sex,

significance in the factors when grouped according to year level.

Descriptive Results

Table 1.Demographic Profile of the Respondents

 39

Variables f %
Age
19-20 Y/O 47 65.3
21 Y/O or Above 25 34.7
Sex
Male 14 19.4
Female 58 80.6
Year Level
First Year 18 25.0
Second Year 31 43.1
Third Year 23 31.9
Preferred Bank/E-Wallet
BDO 25 34.7
BPI 11 15.3
Metrobank 2 2.8
GCash 31 43.1
Paypal 1 1.4
Others 2 2.8
Total 72 100.0
T a b l e 1 s h o w

65.3% of the respondents age 19-20 years old (n=47) and 34.7% age 21 years old or

above (n=25). When grouped according to sex, 19.4% are males (n=14) and 80.6% are

females (n=58). When grouped according to Year level, 25% are first year (n=18), 43.1%

are second year (n=31), and 31.9% are third year (n=23). Finally, when grouped

according to Preferred Bank/ E-wallet, 34.7% through BDO (n=25), 15.3% through BPI

(n=11), 2.8% through Metrobank (n=2), 43.1% through Gcash (n=31), 1.4% through

Paypal (n=1), and 2.8% in others (n=2). In total, this study had utilized 72 respondents.

Table 2. Level of Accessibility of Mobile Banking/E-Wallets when grouped to

Demographics and Factors
Convenience Accessibility Reliability
Variables
M SD Int M SD Int M SD Int
Age
19-20 Y/O 4.35 0.46 Very High 4.11 0.49 High 4.01 0.51 High
21 Y/O or
Above 4.01 0.41 High 3.84 0.42 High 3.85 0.47 High
Sex
Male 4.08 0.37 High 3.91 0.35 High 3.81 0.48 High
Female 4.27 0.49 Very High 4.04 0.51 High 3.99 0.50 High
Year Level
First Year 4.43 0.47 Very High 4.12 0.56 High 3.98 0.53 High
Second Year 4.27 0.43 Very High 4.00 0.47 High 3.95 0.56 High
Third Year 4.02 0.45 High 3.96 0.42 High 3.93 0.40 High
 40

Preferred Bank/E-Wallet
BDO 4.15 0.46 High 3.93 0.36 High 3.88 0.46 High
BPI 4.21 0.45 Very High 3.71 0.59 High 3.94 0.62 High
Very
Metrobank 4.57 0.61 Very High 4.50 0.71 High 4.00 0.00 High
GCash 4.24 0.48 Very High 4.13 0.46 High 4.02 0.51 High
Very
Paypal 4.57 0.00 Very High 4.14 0.00 High 4.57 0.00 High
Very
Others 4.79 0.30 Very High 4.29 0.81 High 3.65 0.50 High
4.2 0.4 Very 4.0 0.4 3.9 0.5
As a Whole 3 7 High 1 8 High 5 0 High

Table 2 shows the Level of acceptability of Mobile Banking/ E-Wallets when

grouped according to their profile and other factors such a convenience, accessibility, and

reliability. Respondents have a very high level of convenience in mobile banking/E-

wallets when they are taken as a whole (M=4.23, SD=0.47), and when grouped according

to age [(19-20 Y/O (M=4.35, SD=0.46), 21 Y/O or above (M=4.01, SD=0.41)], sex

[(Male (M=4.08, SD=0.37, Female (M=4.27, SD=0.49)], when grouped according to

Year level [First Year (M=4.23, SD=0.47), Second Year (M=4.27, SD=0.43), Third Year

(M=4.02, SD=0.45)], Lastly when grouped according to preferred Bank/E-wallet [(BDO

(M=4.15, SD=0.46), BPI (M=4.21, SD=0.45), Metrobank (M=4.57, SD=0.61), Gcash

(M=4.24, SD=0.48), Paypal (M=4.57, SD=0.00), Others (M=4.79, SD=0.30)].

The result shows the outcome of the survey that based on the level of

acceptability of Mobile Banking/E-Wallets when grouped according to their profile and

other factors. The following results are generally exposed and it briefly indicates that the

respective respondents have a consecutive high level of results of using mobile

banking/e-wallets in all types of variables presented in the table. For technical reasons,

regardless of the given differences in their age, sex, year level, and preferred bank/e-

wallets, they have come up and gather the same outcome. The respondents as whole,
 41

displays a signs of high level of convenience, accessibility, and reliability in terms of

using mobile banking/e-wallets. Therefore, mobile banking/e-wallets have made it much

more convenient for the respondents to manage their money, deposit checks or make

payments.

According to Chang, (2003), electronic banking contributes significantly to the

distribution channels of banks such as, Phone –banking, Tele-banking, PC-banking and

now internet banking (Chang, 2003). In addition, transfer of funds, viewing and checking

savings account balances, paying bills and purchasing financial instruments and

certificates of deposits processes have improved significantly as a result of internet

banking (Mohammed et al., 2009). 

Table 3.Significance in the Factors when Grouped According to

Age
Age T Df p
Factors
19-20 Y/O 21 Y/O or Above      
4.35 4.01
Convenience 3.096* 70 0.003
(0.46) (0.41)
4.11 3.84
Accessibility 2.308* 70 0.024
(0.49) (0.42)
4.01 3.85
Reliability 1.360 70 0.178
(0.51) (0.47)
Note: difference is significant when p<0.05

Independent sample t test was used in table 3 to determine the significance in the

level of acceptability in mobile banking/e-wallets according to the factors when grouped

according to age. There was a significant difference in the level of acceptability in mobile

banking in the factors of convenience [t (70) =3.096, p=0.003] and accessibility [t (70)

=2.308, p=0.024], while significance was not found in the factor of reliability

[t(70)=1.360, p=0.178] when grouped according to age.

 42

This shows that the convenience, reliability of efficient and quality service is

facilitated by information technology. Similarly, Christopher et al. (2006) indicated that

mobile banking provides an important channel to the users and services of banks and is

perceived to be a necessity for banks to be successful. Therefore, reliability, convenience

and efficiency in the mobile banking/e-wallets industry have increased tremendously

worldwide in the world due to the integration of information technology into banking

operation. Christopher et al. (2006)

Mattila (2003) asserted that exploring factors indeed require the process of

splitting the community by considering user's personal similarities and differences, such

as age, gender, income, education level, in using mobile. Mattilla (2003)

Table 4. Significance in the Factors when Grouped According to

Sex

Sex t Df p
Factors
Male Female      
4.08 4.27
Convenience 1.355 70 0.180
(0.37) (0.49)
3.91 4.04
Accessibility 0.918 70 0.362
(0.35) (0.51)
3.81 3.99
Reliability 1.246 70 0.217
(0.48) (0.50)
Note: difference is significant when p<0.05

Independent sample t test was used in table 4 to determine the significance in the

level of acceptability in mobile banking/e-wallets according to the factors when grouped

according to sex. There was no significant difference in the level of acceptability in

mobile banking/e-wallets in the factors of convenience [t (70) =1.365, p=0.180],

 43

accessibility [t(70)=0.918, p=0.362], and reliability [t(70)=1.246, p=0.217] when grouped

according to sex.

On the other hand a study by Madill et al. (2002) have shown that strong

relationships between banks and customers increases bank profits and enhances

customers accessibility to credit, more favourable rates on payments, less stress and

greater convenience. This in turn enhances customers’ satisfaction and influences

customers to make recommendations to others while decreasing their likelihood of

switching to another financial institution’s service. These results are similar to those of

N’Goala (2007) who have shown that affective commitment, combined with strong

relationships are crucial in detecting resistance in switching banks.

Being location free (perceived convenience) and system free is very important

relative advantage of Mobile Banking/E-Wallets as other features of anywhere, anytime,

one touch, convenience and time saving etc. (Püschel et al., 2010). The major trigger of

Mobile Banking are accessibility, anytime and anywhere availability, saving time and

efforts (Mattila, 2003)

Table 5. Significance in the Factors when grouped according to Year Level

Convenience Accessibility Reliability
Variables
M F df P M F df p M F df p
Year Level
4.43a 4.12 3.98
First Year (0.56 (0.53
(0.47) ) )
4.27ab 4.00 3.95
Second 4.332 2,6 0.01 0.61 2,6 0.54 0.05 2,6 0.94
(0.47 (0.56
Year * 9 7 6 9 3 6 9 6
(0.43) ) )
4.02 3.96 3.93
Third Year (0.45) (0.42 (0.40
b
) )
Note: difference is significant when p<0.05
 44

Analysis of variance was used in table 5 to determine the significance in the level

of acceptability in mobile banking according to the factors when grouped according to

year level. There was no significant difference in the acceptability in mobile banking/e-

wallets in the factors of accessibility [F (2,69)=0.616, p=0.543] and reliability

[F(2,69)=0.056, p=0.946] however, significance was found in the factor of convenience

[F(2,69)=4.332, p=0.017]. Post hoc test revealed the difference in the level of

convenience among the first year and third year respondents.

However, gender and educational qualification were found not to exhibit

significant effect on adoption of mobile banking/e-wallets. (Rogers 1995; Mattila, 2003;

Sohail & Shanmugham 2003).

More so, another finding of this study which revealed that educational

qualification do not significantly affect the adoption of mobile banking/e-wallets services

is contrary to earlier study by Goi (2005) that demonstrated that less-educated people are

less likely to use Internet banking. Mattila (2003)

Table 6.Significance in the Factors when grouped according to Preferred Bank/E-Wallet

  Convenience Accessibility Reliability

Variables M F df P M F df p M F df p
Preffered
Bank/
E-Wallet
4.15 1.04 5,6 0.40 3.93 2.10 5,6 0.07 3.88 0.66 5,6 0.65
BDO (0.46 2 6 1 (0.36 6 6 6 (0.46 3 6 3
) ) )
4.21 3.71 3.94
BPI (0.45 (0.59 (0.62
) ) )
4.57 4.50 4.00
Metrobank (0.61 (0.71 (0.00
) ) )
GCash 4.24 4.13 4.02
(0.48 (0.46 (0.51
 45

) ) )
4.57 4.14 4.57
Paypal (0.00 (0.00 (0.00
) ) )
4.79 4.29 3.65
Others (0.30 (0.81 (0.50
) ) )

Note: difference is significant when p<0.05

Analysis of variance was used in table 6 to determine the significant difference in

the level of acceptability in mobile banking/e-wallets according to the different factors

when grouped according to preferred bank/e-wallet. There was no significant difference

in the acceptability in mobile banking in the factors of convenience [F(5,66)=1.042,

p=0.401], accessibility [F(5,66)=2.106, p=0.076], and reliability

[F(5,66)=0.663,p=0.653].

The banking sector has had to adopt technological change to remain competitive.

In search the technological financial service industry, banks have acknowledged value of

differentiate themselves from others financial institution through new service distribution

channels (Daniel 1999). Banks bureaucratic process of account opening cut out many

rural poor as they could not qualify to own accounts. With competition banks had to

simplify the process and had to come up with innovative ways of doing so. (Daniel

1999).

Implications

The result of the survey has shown that there appears to be a collision on

accessibility of mobile banking/e-wallets of the Financial Management Students when

 46

they are grouped according to age and year level. Results appear that using mobile

banking/e-wallet has significance according to the user’s convenience and acceptability

factors therefore affect the perception towards mobile banking/e-wallet. It is indicated in

the study that respondents regardless of profile highly agree that doing bank transactions

through mobile banking/e-wallet is suited to personal comfort in doing transactions

especially that the students of the University of Negros Occidental is not permitted to

enter the premises during the pandemic. Respondents determine that the denotation of

reliability on using mobile banking/ e-wallet is at risk for it may cause a confusing part

on both sides of the debtor/creditor during the transactions relying online may cause

system problems or an information from the user may be leaked so it should be done

accurately, safe and effective system from the bank and from the user capability to

transact as well as the reliance that the will protect their personal information. Overall the

respondents have inclined to engage in mobile banking/e-wallet for it is convenient and

pleasing for students to do transactions online; however the respondent’s reliance on this

form of transaction should be secured by the bank and by the website where the

information of the users should not be leaked to any uninvited guest. Respondents are

guarded of their transactions and would be able to perform future transactions using

mobile banking/e-wallet with an assurance that the information they needed is enough

and their information would never be shared to any other sources except to the bank they

have chosen.
 47

Chapter 4

CONCLUSIONS AND RECOMMENDATIONS

This section of the paper shows the summary of the findings on the Level of

Acceptability of Mobile Banking/E-wallets to the Financial Management students of

University of Negros Occidental- Recoletos. Moreover, this study was supplemented

with the result of the survey given to the respondents of the study. It also involves the

conclusions, and the recommendations suggested based on the results of the findings of

the study.

Conclusions

Based on the study the findings are;

1. The results of the survey have shown that students’ level of acceptability of

mobile banking/E- wallets vary; first, about the convenience of the online
 48

transaction since the world is facing Pandemic. Second, the accessibility of the

mobile banking/E-wallets such as the familiarity of the usage of technology,

easily access in every transaction, and the compatibility of the application or

system in other devices. Lastly, how reliable the online transactions are. The

study also found that most of the respondents have a consecutive high level of

results of using mobile banking/e-wallets in all types of variables.

2. The result also turned out that respondents generally agree that mobile banking/

E-wallets is convenient, accessible and reliable to the students especially during

this pandemic.

3. The result of the study shows that regardless of respondent’s profile, they have

come up and gather the same outcome.

4. This is evidently showing that respondents are more careful when it comes to

security of their personal information and transactions. Thus, the study revealed

that most of the respondents’ agree that the mobile banking/ E-wallets are prone

to hacking and fraud since scammers are very rampant online.

Recommendations

Based on the findings and conclusion of the study, here are several

recommendations to be considered.

A. The mobile banking/ E-wallets system should ensure that the information of their

customers is treated with confidentiality to keep the trust of their customers.

 49

B. The respondents should also secure their personal information before doing online

transaction like knowing how legitimate the application or system is and make

sure it is not a fraud.

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Mohammad Majedul Islam and Md Enayet Hossain, (2015) An Investigation of

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https://www.researchgate.net/publication/287588390

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banking among retail banking clients. Jurnal Studi Komunikasi (Indonesian

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A.G., Ameiss, M.S., Kitchen, E.R., Pardo, D., & Shekaran, A. (2014). U.S.

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Mohammad Majedul Islam and Md. Enayet Hossain (2015) an Investigation of

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Hanudin, Amin and Baba, Ricardo and Mohd Zulkifli Muhammad, (2007) An analysis of

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COVID Asia. Retrieved from

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could emerge as the winner. Article, The Washington Post Retrieved from

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economies-mobile-money-could- emerge-winner

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Thesaurus © Cambridge University Press)

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Banking Acceptance and Loyalty in Chinese Bank Customers”. Retrieved from

https://doi.org/10.1177/2158244019844084

BY KIMBERLY AMADEO REVIEWED BY ROBERT C. KELLY Updated July 16,

2020 https://www.thebalance.com/what-is-banking-3305812

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Thesaurus © Cambridge University Press)

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 53

Isaac Stanley-Becker, (2020), Washington Post. Retrieved from

https://www.dictionary.com/browse/financial

Jean de Maillard,(1999). Éditions Stock, ISBN 2-234-04827-3, page 28. Retrieved from

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James Chen, (2020). Wikipedia definition, A mobile banking conceptual. Retrieved from

https://en.m.wikipedia.org/wiki/Mobile_banking
 54

APPENDICES

A. Letters/ Business Correspondence

UNIVERSITY OF NEGROS OCCIDENTAL- RECOLETOS

Bacolod City
COLLEGE OF BUSINESS AND ACCOUNTANCY

“ACCEPTABILITY OF MOBILE BANKING/E-WALLETS TO THE

FINANCIAL MANAGEMENT STUDENTS IN UNIVERSITY OF NEGROS
OCCIDENTAL- RECOLETOS”

Date:

Validator’s Name
Position
University of Negros Occidental- Recoletos
Bacolod City

Dear Mr./Mrs.

Good day!

We are currently enrolled in the College of Business and Accountancy Major in

Financial Management in the University of Negros Occidental – Recoletos, Bacolod City.
 55

Our study focuses on ACCEPTABILITY OF MOBILE BANKING/E-

WALLETS TO THE FINANCIAL MANAGEMENT STUDENTS IN
UNIVERSITY OF NEGROS OCCIDENTAL- RECOLETOS. To ascertain that
the instrument is valid, it would be subjected to the guidelines set by Goods and
Scates. With this, your expertise is helpful as a validator.

With consideration to research ethics, you are assured that your anonymity as
validator is protected and that only descriptions of your qualifications would appear in
our paper.

Thank you very much for helping us in our study.

Respectfully yours,

Gardoce, Georgia C.
Arradaza, Jazy T.
Gonzales, Stephanie S.
Laguda, Gypsy Belle Gaea G.
Libre, Kier C.
 56

UNIVERSITY OF NEGROS OCCIDENTAL- RECOLETOS

Bacolod City
COLLEGE OF BUSINESS AND ACCOUNTANCY

“ACCEPTABILITY OF MOBILE BANKING/E-WALLETS TO THE

FINANCIAL MANAGEMENT STUDENTS IN UNIVERSITY OF NEGROS
OCCIDENTAL- RECOLETOS”

February 01, 2021

Mr. Eliand Rey Soliman, MBA

CBA Faculty
University of Negros Occidental- Recoletos
Bacolod City

Dear Mr. Soliman:

Good day!

We are currently enrolled in the College of Business and Accountancy Major in

Financial Management in the University of Negros Occidental – Recoletos, Bacolod City.

Our study focuses on ACCEPTABILITY OF MOBILE BANKING/E-

WALLETS TO THE FINANCIAL MANAGEMENT STUDENTS IN
UNIVERSITY OF NEGROS OCCIDENTAL- RECOLETOS. To ascertain that
the instrument is valid, it would be subjected to the guidelines set by Goods and
Scates. With this, your expertise is helpful as a validator.

With consideration to research ethics, you are assured that your anonymity as
validator is protected and that only descriptions of your qualifications would appear in
our paper.
 57

Thank you very much for helping us in our study.

Respectfully yours,
Gardoce, Georgia C.
Arradaza, Jazy T.
Gonzales, Stephanie S.
Laguda, Gypsy Belle Gaea G.
Libre, Kier C.

B. Data Gathering Instrument

UNIVERSITY OF NEGROS OCCIDENTAL- RECOLETOS

Bacolod City
COLLEGE OF BUSINESS AND ACCOUNTANCY

“ACCEPTABILITY OF MOBILE BANKING/ E-WALLETS TO THE

FINANCIAL MANAGEMENT STUDENTS IN UNIVERSITY OF NEGROS
OCCIDENTAL- RECOLETOS.”

Dear Participants,
Good day!
We are the third year Bachelor of Science in Business Administration major in
Financial Management of the College of Business and Accountancy, University of
Negros Occidental - Recoletos. As part of our requirements in the course Research in
Financial Management (FINRES230), we are currently conducting a study entitled
“Acceptability of Mobile Banking/E-Wallets to the Financial Management Students in
University of Negros Occidental- Recoletos.”
We respectfully choose you as one of our respondents to answer the attached
questions for the completion of the study. The data gathered will measure the
Acceptability of Mobile Banking/E-wallets to the Financial Management Students in
University of Negros Occidental- Recoletos. This information will help us conclude the
knowledge of student about digital mode of payments and how they accept the use of that
technology.
In line with this, we are asking your active participation in answering the
following questions honestly and completely. Rest assured that data we gather will be
kept confidential and will be used for academic purpose only.
 58

Sincerely,
The Reseachers
-Jazy T. Arradaza
-Georgia C. Gardoce
-Stephanie S. Gonzales
-Gypsy Belle Gaea G. Laguda
-Kier C. Libre
I. PERSONAL INFORMATION

Name (Optional): ____________________________________________

Year level: ___________Age:_____ Sex: M F Preferred Bank/e-wallet: ___________
II. QUESTIONS

Instructions: For each of the statements below, choose the best describes yourself or your
opinion concerning the use of mobile banking/e-wallets.

Rating Scale:

5 - Strongly Agree; 4 – Agree; 3 – Uncertain; 2 – Disagree; 1 - Strongly

Disagree
Strongl Agree Uncertain Disagree Strongly
CONVENIENCE y Agree Disagree
(5) (4) (3) (2) (1)
1. Mobile banking/e-wallet allows
me to have easier access with
my account/s.
2. Having mobile banking/e-
wallet allows me to monitor my
accounts at any time.
3. It is easier for me to do
transaction using mobile
banking/e-wallet.
4. It helps me track my last funds
transactions and balance
inquiry
5. Mobile banking/e-wallet saves
time and hassle of going to a
bank.
6. Mobile banking/e-wallets can
 59

secure my monthly savings.

7. I always use mobile banking/e-
wallets whenever I have
payments.

ACCESSIBILITY
8. The guidelines provided make
it easy for me to have
transactions online.
9. Mobile banking/e-wallet is
easier to use than conventional
banking.
10. I am familiar with the
technology usage level of the
mobile bank/e-wallet.
11. I find it easier to access an
online transaction system.
12. Network services does not
charge up quickly.
13. Mobile banking/e-wallet is
compatible on other devices
14. Mobile banking/e-wallet can
be readily adopted.

RELIABILITY
15. I am able to manage my
banking tasks more effectively
using mobile banking/e-wallet
16. Mobile banking/e-wallet for
me is prone to hacking and
fraud.
17. I am able to save considerable
time and effort using mobile
banking/e-wallet
18. I believe that mobile banking
site will not share my
information to third party
without permission
19. Online transaction system is
better than cash.
20. I trust mobile banking/e-wallet
when it comes to my personal
financial transactions.
21. Mobile banking/e-wallet
 60

offers a greater choice for

consumer.

C. Validity Form

VALIDITY OF INSTRUMENT

Direction: Kindly evaluate the data gathering instrument attached herewith according to
the following criteria set forth by Carter Good and Douglas Scates.

Rating: 5 – Excellent; 4 – Very Good; 3–Good; 2– Fair; 1 – Poor

Criteria Rating
1. The questionnaire is short that the respondents respect it and it 3
would not drain much of its precious time.
2. The questionnaire is interesting and has a fair appeal such that the 4
respondents will be induced to respond to it and accomplish it fully.
3. The questionnaire can obtain some depth to the responses and avoid 4
superficial.
4. The items/questions and their alternative responses are neither too 4
suggestive nor too stimulating.
5. The questionnaire can elicit responses which are definite but not 4
mechanically forced.
6. Questions/Items are stated in such a way that the responses will not 5
be embarrassing to the person’s concerned.
7. Questions/Items are formed in such manner to avoid suspicion on 4
the part of the respondents concerning hidden responses in the
questionnaire.
8. The questionnaire is not narrow or restricted or limited in the 4
philosophy.
9. The responses to the question when taken as whole can answer the 4
basic purpose for which the questionnaire is designed and therefore
considered valid.
 61

Total Score: 36
Average Score: 4

Evaluator: ELIAND REY C. SOLIMAN

Date: FEBRUARY. 4, 2021

VALIDITY OF INSTRUMENT

Direction: Kindly evaluate the data gathering instrument attached herewith according to
the following criteria set forth by Carter Good and Douglas Scates.

Rating: 5 – Excellent; 4 – Very Good; 3–Good; 2– Fair; 1 – Poor

Criteria Rating

1. The questionnaire is short that the respondents respect it and it

would not drain much of its precious time. 4
2. The questionnaire is interesting and has a fair appeal such that the
respondents will be induced to respond to it and accomplish it fully. 4
3. The questionnaire can obtain some depth to the responses and avoid 4
superficial.
4. The items/questions and their alternative responses are neither too 4
suggestive nor too stimulating.
5. The questionnaire can elicit responses which are definite but not 3
mechanically forced.
6. Questions/Items are stated in such a way that the responses will not 3
be embarrassing to the person’s concerned.
7. Questions/Items are formed in such manner to avoid suspicion on 4
the part of the respondents concerning hidden responses in the
questionnaire.
8. The questionnaire is not narrow or restricted or limited in the 4
philosophy.
9. The responses to the question when taken as whole can answer the 4
basic purpose for which the questionnaire is designed and therefore
considered valid.

Total Score: 34
Average Score: 3.7
 62

Evaluator: Sgd. RIZALIE N.E. MIBATO, PhD

Date: FEBRUARY 4, 2021

VALIDITY OF INSTRUMENT

Direction: Kindly evaluate the data gathering instrument attached herewith according to
the following criteria set forth by Carter Good and Douglas Scates.

Rating: 5 – Excellent; 4 – Very Good; 3–Good; 2– Fair; 1 – Poor

Criteria Rating
1. The questionnaire is short that the respondents respect it and it 4
would not drain much of its precious time.
2. The questionnaire is interesting and has a fair appeal such that the 4
respondents will be induced to respond to it and accomplish it fully.
3. The questionnaire can obtain some depth to the responses and avoid 5
superficial.
4. The items/questions and their alternative responses are neither too 4
suggestive nor too stimulating.
5. The questionnaire can elicit responses which are definite but not 4
mechanically forced.
6. Questions/Items are stated in such a way that the responses will not 5
be embarrassing to the person’s concerned.
7. Questions/Items are formed in such manner to avoid suspicion on 4
the part of the respondents concerning hidden responses in the
questionnaire.
8. The questionnaire is not narrow or restricted or limited in the 4
philosophy.
9. The responses to the question when taken as whole can answer the 3
basic purpose for which the questionnaire is designed and therefore
considered valid.

Total Score: 37
Average Score: 41
 63

Evaluator: MERALIE MAE B. GUALDRAPA,CPA,MBA,CTT

Date: FEBRUARY 3, 2021

VALIDITION SUMMARY

Criteria J1 J2 J3 Mean

1. The questionnaire is short that the respondents 4 4 3 3.7

respect it and it would not drain much of its
precious time.
2. The questionnaire is interesting and has a fair 4 4 4 4
appeal such that the respondents will be induced
to respond to it and accomplish it fully.
3. The questionnaire can obtain some depth to the 4 5 4 4.3
responses and avoid superficial.
4. The items/questions and their alternative 4 4 4 4
responses are neither too suggestive nor too
stimulating.
5. The questionnaire can elicit responses which 3 4 4 3.7
are definite but not mechanically forced.
6. Questions/Items are stated in such a way that 3 5 5 4.3
the responses will not be embarrassing to the
person’s concerned.
7. Questions/Items are formed in such manner to 4 4 4 4
avoid suspicion on the part of the respondents
concerning hidden responses in the questionnaire.
8. The questionnaire is not narrow or restricted or 4 4 4 4
limited in the philosophy.
9. The responses to the question when taken as 4 3 4 3.7
whole can answer the basic purpose for which the
questionnaire is designed and therefore considered
valid.
3.77 4.11 4 3.96
Average Mean
 64

VALIDATORS:

Sgd. Rizalie N.E. Mibato, PhD

Mr. Eliand Rey Soliman, MBA

Ms. Meralie Mae B. Gualdrapa CPA, MBA, CTT