See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/355173400

Impact of Mobile Banking on Customers' Satisfaction

Article  in  International Journal of Management Practice · January 2021

DOI: 10.34218/IJM.12.1.2021.111

CITATIONS READS

3 7,630

5 authors, including:

Sanaullah Abro Ghulam Saqib Buriro

Shah Abdul Latif University University of Sindh Jamshoro
7 PUBLICATIONS   8 CITATIONS    10 PUBLICATIONS   12 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Transformational leadership and its impact on organizational commitment and work motivation: Moderating role of teamwork at workplace View project

Narrative Inquiry as Guiding Principle for Novice English Teachers: A Narrative Reflection based on Ethnicity and Gender as Major Themes. View project

All content following this page was uploaded by Ghulam Saqib Buriro on 11 August 2022.

The user has requested enhancement of the downloaded file.

International Journal of Management (IJM)
Volume 12, Issue 1, January 2021, pp. 1263-1271 Article ID: IJM_12_01_111
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=12&IType=1
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.1.2021.111

© IAEME Publication Scopus Indexed

IMPACT OF MOBILE BANKING ON

CUSTOMERS’ SATISFACTION
M. Younis Metlo
Department of Public Administration, Shah Abdul Latif University,
Khairpur Mirs, Pakistan

Nazar Hussain
Department of Public Administration, Shah Abdul Latif University,
Khairpur Mirs, Pakistan

Ghulam Saqib
Institute of English Language and Literature University of
Sindh Jamshoro, Pakistan

Kamran Phulpoto
Department of Public Administration, Shah Abdul Latif University,
Khairpur Mirs, Pakistan

Sanaullah Abro
Department of Public Administration, Shah Abdul Latif University,
Khairpur Mirs, Pakistan

ABSTRACT
In the world of today’s telecommunication and internet based digital business
economy, mobile banking is a milestone for banking sector. Like other developing
countries, the service firms like mobile banking services of Pakistan are very much
conscious about the importance of customer satisfaction. This study attempts to
empirically analysis the effect of mobile banking on customer satisfaction in the
Pakistani banking sector. Study is based on 111 samples collected through self-
administrated survey. It is concluded that perceived usefulness, ease of use, credibility
and customer attitude have significant influence on determination of customer
satisfaction in banking sector. Study recommended that the Bank management should
strive for providing more value added services in their mobile banking apps and design
more user friendly m-banking apps to enhance customer experience so that more people
can transact and fulfill their essential banking needs through mobile Banking.

http://www.iaeme.com/IJM/index.asp 1263 editor@iaeme.com

 Impact of Mobile Banking on Customers’ Satisfaction

Key words: Evaluation, Expectation, Teachers-parents behavior, Academic achievement,

cognitive abilities
Cite this Article: M. Younis Metlo, Nazar Hussain, Ghulam Saqib, Kamran Phulpoto
and Sanaullah Abro, Impact of Mobile Banking on Customers’ Satisfaction,
International Journal of Management, 12(1), 2021, pp. 1263-1271.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1

1. INTRODUCTION
In the current era where science and technology is dominating all spheres of our lives banking
services has become very viable and innovative all around the globe. Technology has reshaped
the ways banking was done and it gave banking a new facet by moving it from manual ledgers
to systemized processes which brought more efficiency, convenience and saved time. The
competition in banking sector has increased in last few years and to remain in competition banks
keep looking for new innovations in their products and keep an eye on technological
advancements and novel tools and techniques to attain customer satisfaction and retain them,
Mobile Banking is a tool towards it. It is not less than a revolution in banking industry which
brings with itself convenience, credibility, ease of use, promptness and banking experience at
finger tips of its users or Banking customers, it is the act of doing banking transactions on a
mobile device (Cell phone, tablet etc). Mobile banking apps (part of Fintech, or financial tech)
are not, at this point simply a helpful method to check your account balances, they are a
fundamental piece of the financial experience and something that customers assess while
choosing a bank.
Mobile Banking a part of financial technologies commonly known as Fintech are getting
prominent and capturing their market share rapidly in Pakistan. Fintech services which range
from Mobile Banking, Internet Banking, e-Wallet Accounts, ATMs, Debit & Credit Cards,
Robo Advisers etc are a key concern for financial sector and almost all players of Financial
sector including Banks are either acquiring fintech application or trying to develop their own.
According to State Bank of Pakistan (SBP) Mobile Phone/App based banking is being offered
by 21 Banks/MFBs to 3.4 million registered users at the end of June, 2018. These users
processed 5.9 million transactions valued at Rs.112.8 billion via Mobile Phone Banking apps.
These transactions depicted a quarterly growth of 12.2% and 23.0 % in volume and value of
transactions respectively, which depicts high acceptance of Mobile Banking facilities among
the people of Pakistan.
Barquin, S., & HV, V. (2015)., According to the Nadeem Hussain, CEO & President of
Tameer Micro Finance Bank, Mobile banking has revolutionized banking sector of Pakistan,
and in future we need to present Electronic prize bond, Treasury Bills and virtual gold as
contributing items for speculators. Banking area ought to use the data innovation at proverb
level to fulfill and encourage the clients to give them comfort in their monetary exchanges.
Pakistan is becoming the huge market for Mobile Banking as largest portion of its
population is still un-banked: not maintaining a conventional banking account, even being
largely populated with unbanked people our country has a huge number of mobile phone users
which reveals that a satisfactory mobile banking app can convert these mobile phone users to
mobile banking app users thus making them financially included and more useful to economy
of Pakistan, this study is therefore intended to find out what is the perception of mobile banking
app users in Sukkur, Pakistan and how satisfied they are from their available mobile Banking
apps.

http://www.iaeme.com/IJM/index.asp 1264 editor@iaeme.com

 M. Younis Metlo, Nazar Hussain, Ghulam Saqib, Kamran Phulpoto and Sanaullah Abro

2. OBJECTIVES OF THE STUDY

The aim and objective of this study is to find out customers’ perception and satisfaction towards
the mobile Banking services they use and to be in position to give recommendations and
suggestions to the higher management of banks to develop Mobile Banking Apps which are
user friendly so that more users can divert to e Banking channels which is cost effective for
banks as well as beneficial for economy of Pakistan. Specific objectives include:
1. To know influence of perceived usefulness on customers’ satisfaction in banks
2. To know influence of perceived ease of use on customers’ satisfaction in banks
3. To know influence of perceived credibility on customers’ satisfaction in banks
4. To know influence of customer attitude on customers’ satisfaction in banks

2. LITERATURE REVIEW
We Live in extraordinary times where new technologies are reshaping almost all aspects of our
lives, technology is changing things and changing them much faster than our linear way of
thinking, time is not too far when people will be experiencing drone deliveries, driverless cars
and Hyperloop train in their societies. Advancements in virtual reality will replace text books,
fully furnished 3D printed houses will come in to existence and the internet of things will be
ubiquitous, Like wise, paper money may be replaced by digital or virtual currencies and Brick
& mortar Banks will be replaced by Mobile, Internet banking and other Financial technologies
which are expected to arrive in future.
Banks play an important role in today's age. Banks compete in introducing new products
and services to get an edge in the increasingly competitive industry. Provisions of services such
that customers are facilitated are of utmost importance. To expand the step of banks' services,
banks should stretch more thought towards improving services, generating new ideas and
innovations to enhance customer satisfaction. Consequently banks need to develop such tools
and techniques to keep up to their client's expectations fulfilled. This study focuses on factors
influencing customers’ satisfaction towards financial services in Sukkur Sindh, Pakistan.
Banking industry is going through many transformations such as offering their customers
services over the handheld mobile devises. Such services are not constrained by the geographic
locations, legal or other barriers and therefore if it has facilitated the customers on hand. The
development and coverage of wireless telecommunications has served as a stage for mobile
banking services. Hibberd (2007) informed there were three billion mobile phones users
worldwide and it has been keep growing at a fast pace. Banks have recognized the potential of
phone devices to reach out to customers through advertisements. . Furthermore, Keen and
Mackintosh (2001) portrayed that advancement in technology played a significant part in the
selection of mobile value-added services. He further predicted that services offered through
mobile devices may further grow over time with new innovations in mobile banking. Waverman
et. al, (2005) found that many studies have been conducted in different countries worldwide
over the use of mobile phones for banking.
Mobile banking furnishes the stage where clients interface with a bank through a cell phone
or personal digital assistant (Barnes & Corbitt, 2003). Mobile banking (m-banking) is a part of
e-banking that provides customers access to a range of banking services like saving and credit
information and customers can do payments or transfers of money through electronic channels
(Macharia, 2001). It can be said that these days a large number of the population across all
demographic and socio-economic levels use mobile phones in their daily life. Such users of
mobile phones, if they sign for m-banking, can get the services like checking account balance,
mini statement, transfer of funds and transactions and password administration and others right
on their mobile phones.

http://www.iaeme.com/IJM/index.asp 1265 editor@iaeme.com

 Impact of Mobile Banking on Customers’ Satisfaction

Husnain, M., & Akhtar, M. W. (2016), Mobile banking services has numerous advantages
for both service providers as well as service users, Banks need not to change their infrastructure
or prevailing systems or huge sums of money they can easily convey their message to large
number of people, m-banking has served as a good platform for banks to maintain good
relations with their customers as banks get valued information about their clients hence they
become able to device and implement effective consumer relationship management policies
and practices, it also gives quick response and assistance in customer retention and retaining
customers loyalty as well.
The users of m-banking save time and money as they are not required to physically visit the
bank branches. Mobile users find it easy to track the transactions and thus help in better
management of funds. The user of m-banking can access his bank account from a remote
location. Advancement and innovation of mobile technology enhanced the potential to better
use the financial services available. There has major cost reductions through branchless banking
and using third party networks (can be post offices and small retailers) as a financial service
providers. Utilization of cell phones can also facilitate provision of micro-finances. Foreign
remittances are backbone of the economy of developing countries and play an integral part in
the development of a country, it has been observed that many people uses mobile banking for
receiving and sending remittances. Transferring funds through conventional banks, western
union, Money Gram has shown to be costly and therefore mobile banking can also play a huge
role here too. Mobile banking also facilitates the transfer of funds in small amounts into remote
areas in case of emergencies. Reamonn and Williams (2005) found that the foreign direct
investment is likely to be higher in countries where cell phones use and coverage is more
widespread.. Although recently there has been more scrutiny of funds through mobile banking
due to the concern about funds being transferred to wrong hands. However, m-banking/m-
payments has still been growing. Use of m-banking services also lead to subsidiary effects, such
as improvement in domestic savings, revenues generations. It changes the dynamics of family
savings and distribution (Reijswoud, 2007). Generally speaking, mobile banking compliments
the traditional banking. InfoDev (2006) reported that mobile banking has reduced the
dependence on traditional banking system. Based on these theoretical relationship following
research model is designed.

3. RESEARCH MODEL
This study endeavors to explore the influence of Mobile banking on satisfaction of mobile
banking users in sukkur Sindh. Therefore, the research model and hypothesis has been
developed as under:

Figure 1

http://www.iaeme.com/IJM/index.asp 1266 editor@iaeme.com

 M. Younis Metlo, Nazar Hussain, Ghulam Saqib, Kamran Phulpoto and Sanaullah Abro

Hypothesis
• There is a significant influence of perceived usefulness on customers’ satisfaction in banks in
Sukkur Sindh.
• There is a significant influence of perceived ease of use on customers’ satisfaction in banks in
Sukkur Sindh.
• There is a significant influence of perceived credibility on customers’ satisfaction in banks in
Sukkur Sindh.
• There is a significant influence of customer attitude on customers’ satisfaction in banks in
Sukkur Sindh.

4. RESEARCH METHODOLOGY
As purpose of this study is to test relationship (the influence of Mobile banking on customers’
satisfaction) so philosophical assumption is positivism and approach is deductive;
methodological choice is quantitative and research strategy is survey. Sampling method is
probability (simple random sampling) and natures of data collected are numerical; Our study
focuses on banks customers who use Mobile Banking facility of Banks, to understand level of
satisfaction among customers a pre-built questionnaire was adopted from previous studies,
which uses a Five point Likert Scale ranging from strongly agreed, Agree, Neutral, Disagree
and strongly disagree. A total number of 125 questionnaires were distributed in simple random
sample method out of which 110 filled questionnaires were received and used in statistical
analysis. Data analysis methods includes descriptive, correlation and simple linear regression.

5. RESULTS & DISCUSSION

5.1. Reliability of Scale
Cronbach’s alpha which is used to measure internal consistency is reflected to be a measure of
scale dependability. The alpha value is 0.9 which suggest a high reliability and consistency in
items of scale.

Table 1
Reliability Statistics
Scale Cronbach's Alpha N of Items
Perceived Usefulness .906 05
Perceived Credibility .914 05
Customers' Attitude .902 05
Perceived Ease of Use .911 05
Customers' Satisfaction .892 05
A reliability coefficient of .70 or higher is considered “acceptable” in most social science
research situations.

5.2. Demographics
Demographic information illustrated in appended Table shows that majority of the respondents
were male which are 89 (80.2%) male respondents and 22 (19.8%) female respondents.

http://www.iaeme.com/IJM/index.asp 1267 editor@iaeme.com

 Impact of Mobile Banking on Customers’ Satisfaction

Table 2
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 89 80.2 80.2 80.2
Female 22 19.8 19.8 100.0
Total 111 100.0 100.0
Out of our 110 respondents 63 (57%) were single respondents and 48 (43%) were married
in their marital status.

Table 3
Marital Status
Frequency Percent Valid Percent Cumulative Percent
Valid Single 63 56.8 56.8 56.8
Married 48 43.2 43.2 100.0
Total 111 100.0 100.0
According to data the age of the respondents that ranged between 18 – 30 are 70 (63%)
means a large numbers of Mobile Banking users are young people in Sukkur, Sindh. However,
those who ranged between 31 - 40 years old are 28 (25%). It can also be seen that the age of
the respondents that ranged between 41 – 50 are 11 (10%). Nevertheless those who aged
between 51 - 60 years old were 2 (2%),

Table 4
Age
Frequency Percent Valid Percent Cumulative Percent
Valid 18-30 70 63.1 63.1 63.1
31-40 28 25.2 25.2 88.3
41-50 11 9.9 9.9 98.2
51-60 2 1.8 1.8 100.0
Total 111 100.0 100.0
Lastly, as per acquired data about education or qualification of respondents it is observed
that most of the respondents are educated as 47 (42%) respondents hold bachelor degree, 59
(53%) hold master’s degree and 5 (5%) hold PhD degree.

Table 5
Qualification
Cumulative
Frequency Percent Valid Percent Percent
Valid Bachelor Degree 47 42.3 42.3 42.3
Master Degree 59 53.2 53.2 95.5
PhD 5 4.5 4.5 100.0
Total 111 100.0 100.0

http://www.iaeme.com/IJM/index.asp 1268 editor@iaeme.com

 M. Younis Metlo, Nazar Hussain, Ghulam Saqib, Kamran Phulpoto and Sanaullah Abro

Correlation (Association between Mobile Banking Factors and Customers’ Satisfaction)

Table 6
Correlations
Perceived Perceived Customers' Perceived Customers'
Usefulness Credibility Attitude Ease of Use Satisfaction
Perceived Pearson Correlation 1 .593** .658** .286** .566**
Usefulness Sig. (2-tailed) .000 .000 .002 .000
N 111 111 111 111 111
Perceived Pearson Correlation .593** 1 .796** .194* .425**
Credibility Sig. (2-tailed) .000 .000 .041 .000
N 111 111 111 111 111
**
Customers' Pearson Correlation .658 .796** 1 .263** .604**
Attitude Sig. (2-tailed) .000 .000 .005 .000
N 111 111 111 111 111
Perceived Pearson Correlation .286** .194* .263** 1 .745**
Ease of Use Sig. (2-tailed) .002 .041 .005 .000
N 111 111 111 111 111
** ** ** **
Customers' Pearson Correlation .566 .425 .604 .745 1
Satisfaction Sig. (2-tailed) .000 .000 .000 .000
N 111 111 111 111 111
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
We can observe in the appended table that Mobile Banking Factors are positively and
significantly associated with customers’ or users satisfaction, as depicted in the table below
perceived usefulness holds a significant value of 56.6% which shows a strong association with
Mobile Banking factors and its users satisfaction, Similarly , perceived credibility recorded a
value of 42.5%, customers attitude recorded a value of 60.4% and perceived ease of use holds
a value of 74.5%, all these values reflect that there is strongly positively association of Mobile
Banking factors and customers satisfaction.
Regression Analysis (The Effect of Mobile Banking factors on Customers’ Satisfaction)

Table 7
Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .872a .761 .752 1.113
a. Predictors: (Constant), Perceived Ease of Use, Perceived Credibility, Perceived Usefulness,
Customers' Attitude

http://www.iaeme.com/IJM/index.asp 1269 editor@iaeme.com

 Impact of Mobile Banking on Customers’ Satisfaction

Table 8
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -1.503 1.288 -1.167 .246
Perceived
.208 .068 .197 3.046 .003
Usefulness
Perceived
-.122 .059 -.164 -2.062 .042
Credibility
Customers' Attitude .428 .082 .446 5.232 .000
Perceived Ease of
.552 .046 .603 12.094 .000
Use
a. Dependent Variable: Customers' Satisfaction
In order to recognize the effect of Mobile banking factors on users satisfaction, regression
analysis is done, appended table gives us the outcome of regression analysis.
Results of our analysis suggest that there is enormous effect of Mobile Banking factors on
the satisfaction of the customers, as shown in the results of analysis perceived usefulness bears
a coefficient of 0.208 and probability value of 0.003, Similarly, perceived credibility shows
significant association with customers satisfaction with a coefficient of -0.12 & probability
value of 0.42. Customers’ attitude is also positively associated with customers’ satisfaction
which holds a probability value of 0.000 and Finally, The perceived ease of use is found to be
substantially associated with customers’ satisfaction and bears a coefficient of 0.552 and
probability value of 0.000

6. CONCLUSION
At the End, we can conclude on the basis of our studies that Mobile Banking factors essentially
contribute towards the satisfaction of the users, factors like perceived usefulness, ease of use,
credibility, and customer attitude can influence customers’ satisfaction hence brining more
users or customers to banks. The correlation analysis also suggested that there is positive and
substantial relationship between the Mobile banking factors and customers’ satisfaction. Hence
we can accomplish that positive and significant influence of Mobile banking factors is valid on
customers’ satisfaction in Mobile Banking Users of Sukkur Sindh.

RECOMMENDATIONS
Other researchers who are intrigued to lead research on Mobile banking can improve other
model that comprise same factors utilized in this investigation yet in various areas, such as
telecommunication or industrial and service sector rather than focusing on financial sector.
Likewise interested candidates or researchers can also design models that contain some other
issues that could influence the customers’ satisfaction in financial services.

REFERENCES
[1] Kombo F., Paulík J. and Kwarteng A. M. (2016). E-Banking Functionality as a Measure of
Customer Satisfaction In The Czech And Kenyan Banking Sectors. International Journal of
Business and Commerce, 1(10): 82-105.
[2] Kaynak, E. & Harcar, T.D. (2015). Consumer Value Creation in Mobile Banking Services’,
International Journal of Technology Marketing, 1(1): 62–78.

http://www.iaeme.com/IJM/index.asp 1270 editor@iaeme.com

 M. Younis Metlo, Nazar Hussain, Ghulam Saqib, Kamran Phulpoto and Sanaullah Abro

[3] Ahmed Abu Sini, College of Business (2015) the effect of e-banking on customers’ satisfaction
in financial services: an empirical investigation on financial sector in saudi arabia
[4] Almansour, Y. & Ibrahim, Y. (2010). Market and Companies Confidence Index and Their
Relation with Stock Return in Kuala Lumpur Stock Exchange. International Postgraduate
Business Journal, Vol. 2 (1), 61 – 72.
[5] Al-Abed, S. (2003): Electronic Banking.
[6] Aladwani, A. (2001). Online banking: a field study of drivers, development challenges, and
expectations International Journal of Information Management, Vol. 21, pp. 213–225.
[7] Al-Madi, F. (2010). The effects of E-banking on the Jordan Islamic Bank clients Satisfaction,
Faculty of Economic & Administrative Sciences, Business Administration Department, The
Hashemite University, Jordan.
[8] KhalidA.S,Wijayanayake,J.(2014). Banking Services and Customer's Satisfaction in Qatar: A
Kahandawa, K., &. Impact of Mobile Banking Services on Customer Satisfaction: A Study on
Sri Lankan State Commercial Bank. International Journal of Computer and Information
Technology, 3(3): 546-52.
[9] Rizwan, M., Rehman, A., Rizivi, A., Khan, R., Ayuub, S., Baloch, U., & Sardar, B. (2014).
Modern Banking and Customer Satisfaction. Journal of Finance and Accounting.
[10] Lee, K. S., Factors Influencing the Adoption Behavior of Mobile Banking: A South Korean
perspective, Journal of Internet Banking and Commerce, August 2007, vol. 12, no.2
[11] Mian, A., Mobile Technology Innovation and Islamic Finance.

http://www.iaeme.com/IJM/index.asp 1271 editor@iaeme.com

View publication stats