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

net/publication/352440882

Study of features of mobile trading apps: A silver lining of pandemic

Article · November 2020

DOI: 10.5958/2582-6115.2020.00009.0

CITATIONS READS
2 2,835

1 author:

Suzanee Malhotra
Shaheed Bhagat Singh Evening College, University of Delhi
8 PUBLICATIONS   7 CITATIONS   

SEE PROFILE

All content following this page was uploaded by Suzanee Malhotra on 16 June 2021.

The user has requested enhancement of the downloaded file.

 STUDY OF FEATURES OF MOBILE TRADING APPS :
A SILVER LINING OF PANDEMIC

Suzanee Malhotra*

ABSTRACT

The medical pandemic crisis has recently stirred the business world and functioning of the economies. Investing in stock market has
seen a rise by retail investors especially on mobile trading apps. This is due to the key features of these mobile trading apps. This
research paper makes an attempt to look into these key features of these mobile trading apps of some popular stock broking brands
empirically to bring out the significance of these features from the users’ perspective. Using factor analysis, the study has found ease
of app usage as the most important key feature. Apart from this investment analysis information and security and privacy concerns
came second and third in place as the significant features impacting consumer choice and preference for a specific mobile trading
app. The research paper offers important managerial implications for these investing apps owners and designers.

Keywords: App Culture, Mobile Trading Apps, Pandemic, Silver Lining, Stock Broking Brands

INTRODUCTION first time investors mainly under the age of 30 years

(Mookerjee et al., 2020). Many people jumped on this rise
“Whatever you are, be a good one.” feeling the justified valuation of stock prices post March lows
- Abraham Lincoln (Mookerjee et al., 2020).

Mobile apps have started dominating our everyday lives
(Balapour, Nikkhah & Sabherwal, 2020). Due to the
proliferated technology and ‘App Culture’, we need them
every nano second of our lives. From the ‘Good Morning
Messages’ to the ‘Daily Fitness Regime’ to the ‘Entertainment
and Enjoyment’ all have now been ruled by mobile apps. And
the lockdown blues have added to this growth of ‘App Culture’
where people sitting in the hem of their houses have resorted to
using more apps than ever.
One such area where mobile app culture has grown is the stock
market(Anand, 2020; Rukhaiyar, 2020; Mookerjee,
Mazumdar & Acharya, 2020). Many people have been using
the mobile trading apps of stock broking brands since last
couple of years. But the lockdown has witnessed a surge in
stock trading and investing activity on mobile phones to the
extent of 45% in May 2020 as compared to 24% in last year for
the same (Rukhaiyar, 2020). With 1.2 million new accounts
opening at CDSL in March and April, stock broking brands
apps like Zerodha and Upstox have seen around 20% rise in
The two month lockdown and the work from home ease have
given more time to investors and users of mobile trading apps
more time at their hands to concentrate on stock prices in a
more focussed way (Anand, 2020). The technology savvy
investors of the new times also make the mobile trading apps a
preference choice (Anand, 2020). Many stock market analysts
have also predicted this rise couldgo to doubling in 2020 and
beyond in years ahead (Anand, 2020). With many people
facing salary cuts, the stock markets give an extra advantage to
people to earn some more money, which they see as a silver
lining of the pandemic(Anand, 2020). This is not only a visible
trend in metro cities but also in non-metro cities like Vizag,
Patna, , Agra, Jaipur etc (Anand, 2020).
This paper makes an effort to look into the key features offered
by these mobile trading apps by some popular stock broking
brands, analyse them using factor analysis and comment on the
significance of these features from a marketing perspective.
Also, the associated managerial implication and future scope
are presented at end.

DOI : 10.5958/2582-6115.2020.00009.0

*Shaheed Bhagat Singh Evening College, University of Delhi, New Delhi, E-Mail: suzaneedu11@gmail.com

J-GIBS Volume 12, Number 1, January-December 2020 75

LITERATURE REVIEW
This section discusses the literature review regarding some key
features of stock broking mobile apps which are ease of app
usage, user interface experience, security and privacy
concerns, investment analysis information and app
performance and speed.
EASE OF APP USAGE
Ease of usage of an app is very important factor behind
consumer satisfaction, its benefits for them and their opinions
about an app (Lu, Lu, Yu & Yao, 2003). It is the easy to use
factor that determines the efforts on the part of the consumers
while using an app (Davis, 1989). Some studies have found
easy to use an app as an important factor behind using apps
(Kaasinen, 2005; Balapour et al.,2020; Venkatesh & Davis,
2000). Venkatesh (2000) found that the easy to use feature of
an app makes the acceptance and usability of an app more
favourable and likeable. So, ease of use becomes a key feature
which an investor user of a mobile trading app looks for.
USER INTERFACE EXPERIENCE
Interface design refers to the features like screen design items
and featuring inputs (Lu et al., 2003). The fast adoption of apps
depends on their interface designing (Lu et al., 2003;
Kaasinen, 2005). The information display, its font, design and
receptivity with the user all depends on the user interface thus
it is very important for an app delivery and adoption (Bergeron,
2001; Regis, 2001). Mobile trading apps are more likely to
attract to tech savvy investors when they find the user interface
experience appealing in the first-time use (Welch, 2020). In a
way, user interface experience determines the users’ likeliness
of adoption of the mobile trading apps.
SECURITY AND PRIVACY CONCERNS
In internet and mobile based apps trust built provided by
security and privacy safety is a must (Kaasinen, 2005).
Figure 1: Key Features of Mobile Trading Apps as identified in literature
Source: The Author
76
Kindberg, Sellen and Geelhoed (2004) has studies that it is
often the security concerns which makes the users sometimes
susceptible of mobile apps. Welch (2020) in his working paper
have also stated security concerns as a potential demerit for
growth of mobile trading apps. Many a times the cause behind
an app deletion or non-adoption is the poor security features
offered by the apps (Balapour et al., 2020; Levenson, 2016).
Old and traditional security features are not enough in today’s
times (Harris, Brookshire & Chin, 2016) thus, it has become a
key app feature for the mobile trading apps adoption now.
INVESTMENT ANALYSIS AND INFORMATION
The in-depth information and analysis ability of an app plays
an important role in app adoption (Lu et al., 2003; Venkatesh,
2000). For penetration and wide adoption mobile trading apps
need to provide wide variety of financial data on them (A
Digital Blogger, 2020; InvestorAcademy, 2020). This includes
the historical information and fundamental analysis of
companies, the price, volume and technical analysis, the
charting and advance charting tools, the variety of ratio data (A
Digital Blogger, 2020; InvestorAcademy, 2020). Besides this
real time price quotes information available across all
exchanges also need to be available on the mobile trading apps
to make them useful and handy (InvestorAcademy, 2020). So,
up to date and wide investment analysis and information is also
a key feature which users of a mobile trading app looks for.
APP PERFORMANCE AND SPEED
In stock trading and investing, time is actual money where
information needs to be provided information at friction of
zoom seconds to enable the investors make quick decisions
(Welch, 2020). The improved performance and app speed
leads to more adoption of an internet-based technologies
(Davis, 1989; Lu et al., 2003), where effectiveness depends on
systems speed and delivery (Clarke, 2000). Thus, latest apps
providing data at fast speed combined with performance
parameters are more appealing to users of an app.
J-GIBS Volume 12, Number 1, January-December 2020
METHODOLOGY
The data for the research was collected from the users of
mobile trading apps using snowball sampling. A pre-test
survey was conducted on 50 users first to remove unfit items
not making sense to the investor consumers. After pre-test, the
refined scale was put to data collection using self-administered
questionnaires using mobile survey form. Data was collected
from 384 respondents across genders (276 male and 108
females), age (239 aged less than 30 years, 86 aged between
30-40 years, 59 aged more than 40 years) and occupation (192
students, 156 employed, 22 self employed and 14
housewives).
Mobile trading apps features were examined using adapted
existing scales.Ease of app usage and user interface experience
were measured using adapted items from Lu et al. (2003).
Security & Privacy Concerns were measured using adapted
items from Balapour et al. (2020). To measure investment
analysis and information feature and app performance and
speed feature suitable items could not be found in existing
studies. So after seeking help from experts and professionals in
the field from finance own set of items were framed to measure
them. Investment and analysis information items used are, “
This app provides me with company analysis and historical
data needed”, “This app provides me advance technical chart
patterns”, “This app provides me information of new
indicators which helps me with making investing decisions”
and “This app provides me real quotes from all exchanges”.
App performance and speed feature items used are, “This app
provides me with quick real time information needed”, “This
app does not hang or freeze often” and “There are no time
delays while loading heavy information or charts”.All these
items used a 5-point Likert scale. Popular mobile trading apps
noted were Zerodha's Kite, Angel Broking, 5Paisa, Upstox and
IIFL Markets mobile trading app.
Table 1 : KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Approx. Chi-Square
Sphericity Df
Sig.
Source: own analysis
J-GIBS Volume 12, Number 1, January-December 2020
ANALYSIS AND FINDINGS
On the collected data EFA was run using SPSS and KMO
(0.905) and Bartlett's test of sphericity significance results
were noted. As reported in Table 1 they fulfilled their
sufficiency. Next Cronbach's alpha was noted for all items
which was greater than 0.70 (Hair, Black, Babin & Anderson,
2010)as reported in Table 3.
Next Variance explained by each component as returned by the
EFA was noted as reported in Table 3. The maximum variance
explained was for the feature ease of usage (21.34%) and the
least was for app performance and speed feature (13.75%).
Overall, all these 5 features in total explained 82.75% variance.
The rotated component matrix and factor loadings as run by
EFA is reported in Table 2. A clear structure of the
factors/features is being seen in the rotated component matrix
table.
CFA was run to check for the key features factor relationship
using AMOS. The averaged correlations results (SMC) are
reported in Table 3 which are more than the needed value of
0.70 (Hair et al., 2010) for all features. Also, a check for
validity (CR and AVE) was done in the CFA which found
CR more than .70 for all and AVE more than 0.50 (Hair et
al., 2010). Chi-square difference test (Bagozzi, Batra &
Ahuvia, 2017) indicated for the presence of discriminant
validity among the features.
Results of the model fit are also reported in the Table 3
where CFI and TLI (goodness indicators) are more than 0.90
and RMSEA and SRMR (badness indicators) are lower than
0.10(Schreiber et al., 2006). Also, Chi-square coefficient is
less than 3 (Schreiber et al., 2006)meeting the needed level.
All these indicate a good model fit for the key features.
0.905
4244.007
136
0.000
77
 Table 2 : Rotated Component Matrix

Component

1 2 3 4 5

EAU1 0.905 0.077 0.115 0.153 0.156

EAU2 0.883 0.161 0.096 0.195 0.248
EAU3 0.859 0.222 0.147 0.157 0.245
EAU4 0.851 0.124 0.101 0.241 0.233
IAI1 0.126 0.796 0.263 0.164 0.188
IAI2 0.111 0.791 0.264 0.181 0.140
IAI3 0.079 0.790 0.098 0.148 0.277
IAI4 0.199 0.762 0.129 0.076 0.057
SPC1 0.092 0.200 0.888 0.158 0.168
SPC2 0.135 0.191 0.847 0.213 0.161
SPC3 0.152 0.280 0.834 0.167 0.133
SPC4 0.172 0.263 0.762 0.156 0.101
UIE1 0.155 0.182 0.162 0.868 0.143
UIE2 0.222 0.163 0.201 0.850 0.187
UIE3 0.325 0.182 0.215 0.762 0.191
APS1 0.291 0.219 0.106 0.185 0.816
APS2 0.323 0.199 0.194 0.175 0.770
APS3 0.275 0.248 0.263 0.205 0.761

Note: Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization
Rotation converged in 6 iterations
Source: own analysis

DISCUSSION
The factor analysis of the 5 features as identified in the
literature review provide us a ranking basis of priority of
these features effecting the mobile trading app adoption and
liking. The analysis shows that the ease to use an app comes
across as the most important feature for the mobile trading
apps. It is owing to this feature that people develop a good
attitude for these apps. Secondly the investment analysis and
information feature has come as the second most important
factor while using a mobile trading app, because this only
helps investor users to make money in stock markets.
Thirdly, security and privacy concern have come as the next
important feature due to the risks and frauds associated with
mobile apps.
The user interface experience followed by app performance
and speed comes as fourth and fifth factor. This suggests that
in users view these two seem as slightly less important for
mobile trading apps specifically in comparison to the three
features. But the margin of difference between gap between
the third, fourth and fifth key feature preference is very
minute making the difference seem only numeric rather
qualitative.

78 J-GIBS Volume 12, Number 1, January-December 2020

 Table 3 : Income Group

Cronbach's Variance SMC

Dimension and Items Alpha Explained (averaged) CR AVE
(in %)

Ease of App Usage (EAU) 0.912 21.34 0.809 0.858 0.858

Investment Analysis & Information (IAI) 0.898 17.40 0.742 0.843 0.843

Security & Privacy Concerns (SPC) 0.893 15.59 0.734 0.809 0.809

User Interface Experience (UIE) 0.876 14.67 0.722 0.766 0.766

App Performance & Speed (APS) 0.774 13.75 0.714 0.732 0.732

Chi-square coefficient - 2.452

CFI - 0.934

TLI - 0.926

RMSEA - 0.077

SRMR - 0.069

Source: own analysis

LIMITATIONS AND FUTURE SCOPE REFERENCES

1. A Digital Blogger. (2020, January 1). 6 Best Mobile Trading
The present study has studied only 5 key features and the Apps in India
EFA provides around 85% explanation, which means other 2020.https://www.adigitalblogger.com/trading/best-mobile-
factors like advertisement, add on benefits, pop up trading-apps-india/

advertisements etc have not been studied. Also, charges of 2. Anand, K. (2020, August 30). As lockdown blues hit, most
brokerages see mobile trading doubling in
using an app and the broking fees which effect the adoption
2020.https://www.moneycontrol.com/news/business/markets/
of mobile trading apps have not been studied since the study as-lockdown-blues-hit-most-brokerages-see-mobile-trading-
focussed on all age groups. Previous studies have found that doubling-in-2020-5758791.html
youth users are more prone to making choices based on 3. Bagozzi, R. P., Batra, R., & Ahuvia, A. (2017). Brand love:
broking fees (Mookerjee et al., 2020). development and validation of a practical scale. Marketing
Letters, 28(1), 1-14. https://doi.org/10.1007/s11002-016-
9406-1
The future studies can research into key features for a
4. Balapour, A., Nikkhah, H. R., & Sabherwal, R. (2020).
mobile trading apps specifically for investors under 30 as
Mobile application security: Role of perceived privacy as the
they are the majority of first time users. Also in future the predictor of security perceptions. International Journal of
effect of new age features, like trade in crypto-currency Information Management, 52(102063), 1-13.
https://doi.org/10.1016/j.ijinfomgt.2019.102063
opportunity, can be looked into. Besides the correlation
between the app popularity and the listed stock broking 5. Bergeron, B. (2001). The wireless Web: How to develop and
execute a winning wireless strategy. New York, NY:
share prices can also be studied in future.
McGraw-Hill.

J-GIBS Volume 12, Number 1, January-December 2020 79

6. Clark, C. (2000). Coming attraction. Wireless Review,
17(12), 12-16.
7. Davis, F. D. (1989). Perceived usefulness, perceived ease of
use, and user acceptance of information technology. MIS
quarterly, 13(3), 319-340. https://doi.org/10.2307/249008
8. Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E.
(2010). Multivariate Data Analysis: A Global Perspective (7th
ed.). Upper Saddle River, N.J.: Pearson Education.
9. Harris, M. A., Brookshire, R., & Chin, A. G. (2016).
Identifying factors influencing consumers’ intent to install
mobile applications. International Journal of Information
Management, 36(3), 441-450.
https://doi.org/10.1016/j.ijinfomgt.2016.02.004
10. InvestorAcademy. (2020, November 20). Best Share Trading
Apps in India for 2020:- Online Mobile Trading Android
Apps. https://investoracademy.in/best-share-trading-apps/
11. Kaasinen, E. (2005). User acceptance of mobile services .
value, ease of use, trust and ease of adoption [Master's thesis,
VTT Technical Research Centre of Finland]. VTT
Publications 566. http://www.vtt.fi/inf/pdf
12. Kindberg T., Sellen A., Geelhoed E. (2004) Security and Trust
in Mobile Interactions: A Study of Users’ Perceptions and
Reasoning. In: Davies N., Mynatt E.D., Siio I. (eds)
UbiComp 2004: Ubiquitous Computing. UbiComp 2004.
Lecture Notes in Computer Science, vol 3205. Springer,
Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-30119-
6_12
13. Levenson, H. (2016, August 2). 7 Common Reasons Users
are Abandoning your
App.https://www.webanalyticsworld.net/2016/08/why-users-
are-abandoning-your-mobile-app.html/
14. Lu, J., Lu, C., Yu, C. S., & Yao, J. E. (2003). Exploring
factors associated with wireless internet via mobile
80
View publication stats
technology acceptance in Mainland China. Communications
of the IIMA, 3(1), 101-120.
https://scholarworks.lib.csusb.edu/ciima/vol3/iss1/9
15. Mookerjee, I., Mazumdar, R., & Acharya, N. (2020, May
17). India’s lockdown mints more than a million new stock
traders. The Economic Times.
https://economictimes.indiatimes.com/markets/stocks/news/i
ndias-lockdown-mints-more-than-a-million-new-stock-
traders/articleshow/75772315.cms?from=mdr
16. Regis, J. B. (2001) Wireless broadband handbook, New York,
NY: McGraw-Hill.
17. Rukhaiyar, A. (2020, June 3). Mobile trading surges during
lockdown. The Hindu.
https://www.thehindu.com/business/mobile-trading-surges-
during-lockdown/article31742088.ece
18. Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., &
Jamie, K. (2006). Reporting structural equation modeling and
confirmatory factor analysis results: A review. The Journal of
educational research, 99(6) , 323-338.
https://doi.org/10.3200/JOER.99.6.323-338
19. Venkatesh, V. (2000). Determinants of perceived ease of use:
Integrating control, intrinsic motivation, and emotion into the
technology acceptance model. Information systems research,
11(4), 342-365. https://doi.org/10.1287/isre.11.4.342.11872
20. Venkatesh, V., & Davis, F. D. (2000). A theoretical extension
of the technology acceptance model: Four longitudinal field
studies. Management science, 46(2), 186-204.
https://doi.org/10.1287/mnsc.46.2.186.11926
21. Welch, I. (2020). Retail raw: Wisdom of the Robinhood
crowd and the COVID crisis (NBER Working Paper No.
w27866). National Bureau of Economic Research.
https://www.nber.org/papers/w27866
J-GIBS Volume 12, Number 1, January-December 2020