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Chapter 1

INTRODUCTION

Background of the Study

Mobile banking is service used for financial

transactions through the utilization of mobile devices.

Individuals are now able to check their balances, view

their statement online, make transfers, and

even perform prepaid service purchases. Mobile banking

also presents a chance not just for its clients

(individual; corporation and businesses) it also provides

opportunity for the bank on expanding

their penetration through mobile services (Lee, Lee &

Kim,2007).

Spajic (2021) says that in line with their mobile

banking statistic within the US, 86.5% Americans uses

mobile devices to test their balances in 2020. Bank of

America static shows that there are 30 million active

users of its mobile app and over 40 million online banking

customers. Accordingly, the statistics shows in GSMA

Intelligence (2021) there are 5.22 billion unique mobile

users in 2021 which included the usage of mobile banking.

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In the Philippines, Filipinos use their smartphones

for mobile banking and payments (Visa Study,2017). In line

with the Visa Consumer Payment Attitudes study, nearly

three among four Filipinos have a banking app on their

mobile phones, and over half them use mobile banking

services a minimum of once every week. The foremost common

reasons for using banking apps are to determine account

balances (85 per cent); pay bills (63 per cent); and

transfer money (59 per cent). In fact, 80 per cent of

Filipinos highlighted that they'd prefer using the mobile

app for checking balances and paying bills over visiting a

physical branch.

In Davao City, there are only few studies conducted

in determining the factors that influences the Davaoenos

to use mobile banking. A study of Quilantang (2015) states

that mobile banking systems is beneficial to bank

customers.

The researchers therefore find this study very

relevant to the current times where it helps determine the

predictors of the staff in using mobile banking. However

there have been some recorded studies on the predictors of

mobile banking usage among the staff internationally and

there are few studies conducted in Davao City.

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Thus, it's expected that results of this study can

contribute in gaining new knowledge and insights in

determining the predictors of mobile banking usage among

DCC employees.

Statement of the Problem

This study aims to find out from DCC employees’

perspective, the predictors of mobile banking usage.

Specifically, it seeks answers to the following questions:

1. What is the respondent’s demographic profile in terms

of:

1.1 purpose of use

1.2 frequency of usage

2. What is the respondent’s level of factors on mobile

banking usage in terms of:

2.1 Pursuance

2.2 Speed of Transaction

2.3 Communication

2.4 Ease of use

2.5 Assurance

3. What factors predict mobile banking usage among DCC

employees?
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4. What intervention or development program can be

developed based on the findings of the study?

Hypothesis

Ho: No factors predict mobile banking usage among DCC

employees.

Review of Related Literature and Studies

This chapter provides an overview of the literature

which has implications for the findings. It is divided

into six main sections: the usage of mobile banking:

pursuance, speed of transaction, communication, ease of

use and assurance.

Usage of Mobile Banking

Lacmanovic (2012) states that mobile Banking refers

to a service platform that enable customers to access

financial transaction services such as fund transfers,

bill payments, balance information and etc. He also states

that Mobile banking is a must for banks that focus on

customer services and innovation as key differentiators.

These gadgets allow people to connect with the server, it

fulfills verifications and authorization, carry out

payments and assure the finalized transaction (Kim et al.

2010). Mobile banking assist banks in attaining ruthless

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advantage; this is why the issues linked to its vast

employment are of enormous significance (Dinesh war and

Steven, 2013).

A study of Trisnawati (2020) conducted on the

University of Surabaya, Indonesia concluded that the use

of mobile banking has affected the loyalty and the

satisfaction of its bank’s customers to its services.

Lou et al (2010) stated that mobile banking is an

innovative method for acquiring mobile service by a

channel where consumers interplay with the banks using

mobile device.

It also determines as the most relevant virtue in

uplifting the use of mobile banking that was related to

the costs of regulating banking (Mattila 2003) although

social norms were the only predictors constructed

unimportant. Since, most of the literature are not

established associated to mobile banking in Bangladesh,

this paper is a strive to alleviate the research gap in

this concern. Thus, on the basis of the above literature

the paper ought at knowing the predictors influencing

usage of mobile banking.

Pursuance
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Alsamydai et al. (2014) states that bank customer

pursuits mobile banking transactions because it's useful

in following up any bank transactions and it benefits it

customers. Bank customers pursue on using mobile banking;

thanks to its convenience, simple access and security (RBL

Bank, 2021).

There are also researches that provide significant

effect of following up transactions by bank customers of

mobile banking usage intention and this is the study

conducted by Kiogothe, (2018).

Speed of transaction

Transaction speed is that the rate at which data is

transferred from one account to a different account. This

suggests that the faster a transaction is confirmed, the

higher the transaction speed is claimed to be (Strelenko,

2018).According to Financial commercial paper (2013) bank

customers are now able to transact their financial

services through the use of speed banking on their mobile

phones.

Computer business research (2017) added that the

higher transaction speed is, the higher the customer

satisfaction and provides more system availability and

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faster process. Additionally, they concluded that a

customer reason for using mobile banking is due to the

systems speed of transaction.  

Various studies discuss the importance of speed of

transaction in engaging in mobile banking and one factor

that influence the mobile banking customers to subscribe

is its quality and this includes the speed of its banking

transactions (Islam et. Al, 2018).

Communication

Communications is defined as the process of creating

information, vies and ideas among the people to reach a

customary understanding (Toppr,2021). According to The

Financial Brand (2021) consumers also want to have a face-

to-face communication on their banks with the use of

mobile devices. Statistics have shown by KPMG more than

half of global banking consumers desire for combined

social, personalized and “human” interactions to be

integrated into a bank’s online services and mobile apps.

Banking communication strengthens the connection and

relationship between the bank employees, managers and

board of directors to its customers. Banker’s experience

on banking communication enhances banking industry,

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employee’s behavior and core banking services facilities

management (Shrestha et. al, 2019).

Luo Li, Zhang and Shim (2010) said that communication

has been an innovative method for accessing banking

services via a channel whereby the customer interacts with

a bank using a mobile device. A study of Tran (2016)

concluded that mass channel of communication is needed

especially in using mobile banking to access their

customers banking transactions.

Ease of use

Ease of use of any services such as in mobile banking

is one of the factors that lead a customers use it whether

it can be operated easily; they can conduct their

transaction smoothly with no hassle.

Riquelme & Rosa (2011) conducted a study in

Singapore to check factors that influence adoption of

mobile banking keeping gender as a moderating variable.

The study found that simple use features a stronger

influence on female respondents than male whereas relative

advantage features a stronger effect on perception of

usefulness on male respondents. Ease of use influences the

viewpoint of an individual towards using a technology

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(Rauniar et al., 2014).Additionally, ease of use have a

significant effect on the attitude which ultimately affect

the user’s intention to use the Mobile banking (Raza et.

al, 2017).

According to ATM market place (2017) ease of use or

navigation is the most heavily weighted driver of

satisfaction. The most commonly features associated with

ease of use included login process, access to account

information and overall ease of managing the account. 

Assurance

Investopedia (2021) defined assurance as a financial

coverage that provides remuneration for an event that is

certain to happen.

Islam (2018), states that customer assurance has a

relationship toward mobile banking. He also added that

structural assurance have significant and direct effect on

both trust and customer satisfaction.

Consumer trust on banking drives behaviors and builds

loyalty to its bank (Vizolution,2020). Peng and Moghavvemi

(2011) contend that accuracy in completing orders,

maintaining precise records and quotations, accuracy in

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billing, and fulfilling promised services are most

important in retaining customer. These are the basic

aspects of reliability. It was also proved that

reliability and assurance have a positive relationship

with customer satisfaction in the banking sectors.

Selvakumar, J.J. (2016). Assurance in mobile banking is

the main concerned of its customers since through this

they can build their trust to banks that their money and

investment will be kept safe.

Correlations between Measures

Mobile banking and customer satisfaction

The study of Hossain and Hossain (2015) gives

predictors a huge and petite effect on the dependent

variable. The outcome of the study will help out banks to

put more emphasis on the most influential factors. This

case research adopted a simple random sampling method, and

it showed that reliability and responsiveness are the

major determinants of the customer satisfaction. It also

revealed that consumers desire to have the same quality

and service every time they purchase it.

Compared to other studies, this study is only

confined to Bangladesh's mobile banking sector and doesn’t

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give an actual fact on the mobile banking sector. The

analysts failed to conduct a good analysis of the

relationship between service quality and customers

loyalty, captivating some emphasis on customer

satisfaction although it's linked to loyalty.

Factors influencing customer satisfaction of mobile

banking

The study of Jannat and Ahmed (2015) spilled that the

most dominant predictors have an influence on customer

satisfaction of mobile banking of the second-generation

banks. The analysis of the data collected has confide that

security and trust, convenience accuracy of transaction,

ease of use, system availability, responsiveness,

transaction speed, and cost effectiveness are the most

influential factors for customer satisfaction.

It contrives that a strong relationship exists among

customer satisfaction and the nine independent variables.

Each and every variable (independent) has its power for

customer satisfaction. Unlike the previous studies, these

nine variables also show a positive relationship with the

dependent variable and it is not assured that these are

the only determinants of mobile banking.

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Theoretical Framework (Theory Base)

This study is mainly anchored on the Technology

Acceptance Model developed by (Davis 1989) assumes that

computer use is determined by two specific beliefs:

perceived usefulness and perceived ease of use, obviating

the need for subjective norms and normative beliefs.

According to the model, users' attitudes toward new

technology are influenced by perceived usefulness and

perceived ease of use (Davis 1989). The Technology

Acceptance Model is more focused on the prediction of an

information system's acceptability. The goal of this model

is to predict a tool's acceptability and to identify the

changes that must be made to the system in order for it to

be acceptable to users.

TAM proposes that the behavioral intention determines

the use of an information system, but that the behavioral

intention is also determined by the person's attitude

toward the system and his perception of its utility. The

degree to which a person believes that using a system will

improve his performance is defined as perceived

usefulness. The degree to which a person believes that

using a system will be simple is referred to as perceived

ease of use. Perceived usefulness and perceived ease of

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use were found to be two distinct dimensions in several

factorial analyses (Davis et al. 1992).

This study is supported on the Social Cognitive

Theory by Bandura (1989). The emphasis on social

influence, as well as external and internal social

reinforcement, distinguishes SCT. SCT takes into account

the unique ways in which people learn and maintain

behaviors, as well as the social context in which they do

so. The theory considers a person's past experiences,

which influence whether or not they will engage in

behavioral action. These past experiences have an impact

on reinforcements, expectations, and expectancies, all of

which influence whether or not a person will engage in a

particular behavior and why they do so.

The Theory of Reasoned Action developed by Fishbein

and Ajzen (1967) aims to explain the relationship between

attitudes and behaviors within human action. It is

primarily used to forecast how people will act based on

their prior attitudes and behavioral intentions. An

individual's decision to engage in a particular behavior

is based on the outcomes that the individual anticipates

as a result of performing the behavior.

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The TRA's main goal is to better understand an

individual's voluntary behavior by looking at the

underlying basic motivation for doing something. It states

that a person's intention to perform a behavior is the

main predictor of whether or not they actually perform

that behavior. This is known as behavioral intention, and

it arises from a belief that engaging in the behavior will

result in a specific result. The theory emphasizes

behavioral intention because it is determined by attitudes

toward behaviors and subjective norms. Stronger

intentions, according to TRA, lead to more effort to

perform the behavior, which increases the likelihood of

the behavior being performed.

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Conceptual Framework

Independent Variable Dependent Variable

Factors of
Mobile Banking
Usage

 Pursuance A Proposed
Level of One (1)
 Speed of Mobile Year Mobile
transacti Banking
on Banking Usage
communica Usage Enhancemen
tion t
 Ease of Program
use
 Assurance

Figure 1- Conceptual Framework of the Study

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Shown in figure 1 is the conceptual framework of the

study showing the relationship of the variables in the

study. It shows the relationship between factors of mobile

banking usage (independent variable) and the level of

mobile banking usage (dependent variable). Indicators of

factors of mobile banking usage are pursuance, speed of

transaction communication, ease of use and assurance. The

output of the study is an intervention program which will

be developed based from the findings of the study.

Significance of the Study

This study is expected to bring benefits to the

Banking Industries, as well as, to the employees,

students, and future researchers in Davao City.

Banking Industries. Results of the study may provide

new insights and information that will help managers in

the banking industries assess and evaluate the factors of

using mobile banking on their employees. The result may

also may also serve as a guide in enriching the mobile

banking experience for their employees in the current and

future situation as needed.

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Employees. Findings of the study will provide

employees with some new ideas on the important factors of

mobile banking usage to them thus, these factors are

positively related with the influence to use mobile

banking services.

Students. This may be a source of new and relevant

information on the aspects concerning the factors

influencing mobile banking usage to employees and

employers of different organization.

Future researchers. The result of the study will also

serve as a baseline for future researchers who also want

to explore the same topic to research. The variables used

may be considered in drafting their proposals.

Scope and Limitation of the study

The scope of this study will be limited only on

determining the factors influencing of DCC employees

mobile banking usage in terms of pursuance, speed of

transaction communication, ease of use and assurance

This study shall also be limited in DCC, Toril, Davao

City considering the pandemic health protocols which is

strictly being implemented in Davao City. Finally, data

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gathering will be limited to the use of survey

questionnaire.

Definition of Terms

The following operational definition of terms were

used to help readers easily understand this study.

Mobile Banking Usage. In this study, it refers to the

employee’s level of mobile banking usage in terms of

pursuance, speed of transaction communication, ease of use

and assurance. It will be measured as very high, high,

average, low, and very low

Intervention Program. In this study, it refers to the set

of actions, activities, and planned strategies that the

banking sector will adopt to address issues found in the

results of the study to be conducted.

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