AN ANALYSIS OF FACTORS AFFECTING MOBILE BANKING ADOPTION

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CONTENTS

SUMMARY.........................................................................................................................................4

INTRODUCTION..............................................................................................................................5

AN ANALYSIS OF FACTORS AFFECTING MOBILE BANKING ADOPTION 5

PROBLEM STATEMENT & RESEARCH QUESTION(S).........................................................6

PROBLEM JUSTIFICATION AND PROBLEM STATEMENT.....................................................................6

RESEARCH QUESTION.......................................................................................................................6

RESEARCH OBJECTIVES.............................................................................................................7

RESEARCH OBJECTIVES.....................................................................................................................7

LITERATURE REVIEW..................................................................................................................8

SIGNIFICANCE OF THE STUDY..................................................................................................9

RESEARCH DESIGN AND METHODS......................................................................................10

OVERVIEW.......................................................................................................................................10
RESEARCH APPROACH....................................................................................................................10
CONCEPTUAL DIAGRAM..................................................................................................................10
HYPOTHESES...................................................................................................................................10
POPULATION AND STUDY SAMPLE..................................................................................................10
SAMPLE SIZE AND SELECTION OF SAMPLE.....................................................................................10
SOURCES OF DATA..........................................................................................................................10
COLLECTION OF DATA....................................................................................................................10
DATA ANALYSIS STRATEGIES.........................................................................................................10

SCOPE OF THE STUDY................................................................................................................11

LIMITATIONS OF THE STUDY..................................................................................................12

SUMMARY AND CONCLUSION.................................................................................................13

TIMEFRAME...................................................................................................................................14

REFERENCES.................................................................................................................................15

APPENDICES..................................................................................................................................16

APPENDIX 1: QUESTIONNAIRE........................................................................................................16

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 SUMMARY

Background

By examining the variable "digital literacy" and the effect of branch visit frequency on the intention
to embrace mobile banking, the study fills a literature gap by examining the effects of e-readiness
on adoption. This study utilizes cultural and individual attributes, for example, social impact and
individual creativity, that have only here and there been investigated in past examinations. All of
our responses came from real bank account holders. The practice of carrying out banking
transactions without physically visiting a bank is known as mobile banking. Account holders can
draw in with their banks without having to genuinely visit a branch to finish monetary exchanges.
Portable banking is open by means of an application created by every client. The goal of this article
is to provide a conceptual model that describes the most critical elements influencing Lebanese
banks customers' adoption of mobile banking.- Based on survey data, the hypotheses were
evaluated using structural equations modeling and route analysis. Customers answered a total of
120 questions. According to the findings, the main variables influencing users' attitudes toward
mobile banking adoption were discovered to be digital literacy, resistance to change, perceived risk,
perceived ease of use, and perceived usefulness, while awareness and compatibility had no
significant impact on adoption. Additionally, subjective norms and personal innovativeness
influenced user adoption by modulating the relationships between usefulness and ease of use
opinions.

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 INTRODUCTION

AN ANALYSIS OF FACTORS AFFECTING MOBILE BANKING ADOPTION

Because of expanded contest among banking foundations and the developing utilization of new data
and correspondence advances, portable banking (M-banking) was brought into the world in banks
all around the world during the 1990s and immediately secured itself as an undeniable
correspondence channel permitting not exclusively to fortify client connections yet in addition to
give a plenty of advantages regarding comfort and benefit. Many studies attempted to comprehend
the attitudes of banking clients in the face of new E-banking technologies, notably mobile banking,
which is one of its core components, using a variety of theoretical models. These researchers
emphasize numerous characteristics that encourage the usage of Mbanking and attempt to identify
the extent to which this channel helps to the improvement of client relationships.

Mobile Banking
Initially, technical advances in the mobile telephony business and telecommunications technologies
may have aided the quick rise of mobile banking. Customers, for example, clients, and specialist co-
ops, for example, banks, are two substantial participants in the building of flexible financial aid
conveyance channels, according to Shareef and partners. Portable correspondence transporters serve
as a delegate in this channel, providing assistance.
M-Baking is a novel new communication channel that allows customers to communicate with their
banks using a mobile phone. According to Shaikh and Karjaluoto , M-banking customers can access
it through four different channels: web browsers that are accessible on mobile, smartphone, or
tablet, tablet applications that can be downloaded, and Short Messaging Services that provide
account alerts are all examples of mobile applications.
Banks or financial institutions provide this service. Financial transactions such as money transfers
and bill payments are handled by microfinance organizations. Checkbook requests and balance
enquiries are examples of payment and non-financial transactions.According to Rajaobelina and
colleagues [26], mobile banking services allow financial transactions to be completed utilizing
portable wireless network devices with built-in internet connectivity. These portable devices, for
example, include a link. iPods, telephones, and tablets, for example.

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PROBLEM STATEMENT & RESEARCH QUESTION(S)

Problem Justification and Problem Statement

Many studies attempted to comprehend the attitudes of banking clients in the face of new E-banking
technologies, notably mobile banking, which is one of its core components, using a variety of
theoretical models. These researchers emphasize numerous characteristics that encourage the usage
of Mbanking and attempt to identify the extent to which this channel helps to the improvement of
client relationships.
This study is a synthesis of research from well-known scientific databases. The goal is to provide an
overview of Mbanking adoption, highlight gaps that may be the subject of future research, and
provide practitioners with a scientific base from 26 countries around the world, particularly in the
Asian continent, such as Malaysia [1, 2], Thailand [3, 4], Taiwan [5, 6], Korea [4, 5], China [6, 7],
Vietnam [7], Indonesia [8, 9], Bangladesh [9], Turkey [10], Jordan [11], Saudi Arabia [12], Iran
[13], Oman [14, 15].
Luarn and Lin (2005) discovered a wide range of dangers in portable banking and other forms of
monetary innovation. Customers are concerned about their privacy and security as a result of the
possibility of hacking and Personal Identification Numbers (PINs). According to him, unshakable
quality is also a danger due to limited handling power, memory limit, and battery life. Finally, "self-
efficacy has been demonstrated to be a significant risk factor indicating resistance to technological
advancements." According to RamandSheth (1989), it signifies that someone feels they can employ
a particular technology. We may describe the concept of mobile banking by combining multiple
definitions: online banking service via mobile devices that allow clients to check their financial
support wherever they are. Access is made possible through a set of financial and non-financial
operations that are open 24 hours a day, seven days a week. This mobile banking solution
complements and supports each other.There are currently accessible electronic channels, such as
automated ATMs, customer support centers, and Internet banking services.
Bank of Ceylon and People's Bank are two government-owned commercial banks with a substantial
number of retail clients in Sri Lanka. Both of those organizations have mobile banking services in
place, allowing customers to execute mobile banking transactions from any cell phone.The Bank of
Ceylon and PeoplesBanks make it easier and faster to settle bills, transfer cash from person to
person (P2P), and check account balances using mobile banking.Furthermore, this service allows
customers to perform banking transactions from the comfort of their own homes, companies, or any
other location, removing the stress of queuing at bill payment centers or bank branches, and clients
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do not need to waste time physically visiting a bank branch or an ATM.Despite the fact that mobile
banking is more convenient.Hence keeping in view significance an analysis of factors affecting
mobile banking adoption.

Research Question/s

RQ1 What is the impact of perceived usefulness to the mobile banking adoption ?
RQ2 What is the impact of social influences to the mobile banking adoption?
RQ3 What is the impact of perceived risk to the mobile banking adoption ?
RQ4 What is the impact of compatibility to the mobile banking adoption ?

RESEARCH OBJECTIVES

The overall objective of the study was to determine factors affecting adoption of mobile banking
adoption in Sri Lanka. This study was guided by the following specific objectives to establish:

Research objectives
RO1 To examine the impact of perceived usefulness to the mobile banking adoption .
RO2 To examine the impact of social influences to the mobile banking adoption .
RO3 To examine the impact of perceived risk to the mobile banking adoption .
RO4 To examine the impact of compatibility to the mobile banking adoption .

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 LITERATURE REVIEW

Mobile Banking

According to (Zhou, 2012), mobile banking is the use of a mobile device to accomplish banking
chores without physically visiting the bank. According to Audi et al., mobile banking is a banking
channel that allows customers to do a range of financial functions on mobile devices over the
internet, such as writing checks, transferring money, and paying bills. Account holders can
withdraw funds from their banks without physically visiting a branch to complete financial
transactions.Portable banking is provided through an application developed by each individual bank
that allows consumers to access their personal data and choose the type of transaction they want to
carry out via portable.

This method was developed to enhance banking.Customers will be able to do financial transactions
on the go, reducing the stress caused by long lineups in banks. Customers benefit from mobile
banking in a variety of ways, according to Akturan and Tezcan (2012), including instant
connectivity, engagement, time optimization, and convenience (Malaquias and Hwang, 2016). This
breakthrough in the financial services sector, according to Laforet and Li (2005), stresses the issue
of pure mobility to service consumption.According to Farah et al. (2018), around 1 billion people
used mobile banking in 2017.

This contributes to the elimination of international boundaries since users may perform transactions
at any time and on any day to any region of the world, regardless of the bank's operation hours or
time zone variations (Zhou, 2012).For example, Lebanese banks have implemented a range of
initiatives and services, including mobile banking, to improve clients' banking experiences. The
reaction, however, was not particularly positive, as researchers observe that a substantial percentage
of the Lebanese populace is hesitant to accept this technology. According to market research, there
is a lack of knowledge and comprehension of the benefits of this technology. As a result, the
general population in Lebanon is uninformed of the usefulness, compatibility, and flexibility of
mobile banking services.

According to Burucuoglu and Erdogan (2016), one of the major impediments to progress because
the growth of mobile banking services is related to customers' reluctance to attempt mobile banking
due to a lack of confidence. According to Zhou (2012), this is common with new disruptive

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technologies.Consumers have never tested these technologies. The most often studied factors
scholars have identified trust and value as important factors in mobile banking adoption models.
Laforet
According to and Li (2005), trust has a major impact on consumer behaviour and satisfaction.
Readiness to accept a new technology. They go on to say that trust is one of the most vital.

According to Makongoro (2014), an individual's level of trust is tied to their perceived level of
goodness and integrity, whilst the amount of risk associated with a certain method is related to the
ideas of security and privacy. Most of the time, an increase in perceived risk is connected with a
drop in trust since danger is typically regarded as a limitation to safety and confidence (Malaquias
and Hwang, 2016). In the context of mobile banking, perceived risk relates to the risk of data loss,
insufficient access, and other security risks that the client must accept before engaging in mobile
banking (Makongoro, 2014).
Various academic theories, according to Zhou (2012), have emerged in an attempt to discover the
qualities that impact user adoption and study how an innovative technology may be favorably
assessed by potential users. The concept of technology acceptance model (TAM) has proven to be
highly intriguing and has gained a great deal of academic interest. The TAM was developed by
Davis et al. (1992), and it is the most extensively used technology adoption theory because it
analyzes the factors that influence people's trial and usage of new technology. Humans, according
to the paradigm, go through a four-step sequential process that begins with belief and ends with
behavior.

Consumer Resistance to Innovation Theory

According to Ramand Sheth's (1989) Consumer Resistance Theory, there are two types of
resistance: functional and psychological. Usage barriers, value barriers, and risk barriers were
among the functional hurdles. Tradition and image barriers are examples of psychological barriers.
Fain and Roberts (1997), Laukkanen T, (2007), and Cruz (Luakkanne, 2009) used the similar
concept in banking technology.The usage barrier, according to (Sheth, 1989), is engaged when an
innovation is incompatible with established processes, practices, or habits.
According to Laukkanen and Kiviniemi (2010), this concept is related to the ease-of-use concept in
Davis et al.'s (1989) Technology Acceptance Model (TAM).Small mobile devices with small
screens and tiny multifunction keypads can be frustrating to utilize.
According to Chung and Lee (2009), the reason for the delay of mobile banking is due to system
limits such as small screens and keypads, as well as slower transaction speeds when compared to
online banking. According to P. Laukkanen (2007), smaller screens are excellent for information-
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based mobile apps like account registration balance, but transactions require a big screen size.The
usage barrier has the greatest influence on mobile banking.According to and Sheth (1989), the value
barrier refers to an innovation's efficacy and monetary worth in comparison to its substitutes.
Laukkanen and others This idea, according to Kiviniemi (2010), is strongly connected to Rogers'
(2003) concept of advantage, which is defined as an object's perceived superiority.

The risk barrier, according to Ram and Sheth (1989), is related to the amount of risk.Connect with
an invention. According to Dunphy and Herbig (1995), if there is less risk connected with the
invention, it may result in more innovation adaption. Luarn and Lin (2005) identified risks in
mobile banking and other financial technology. He has seen that clients are concerned about their
personal identification numbers (PINs) and the risk of hacking. Reliability, he claims, is also a risk
due to limited processor power, memory capacity, and battery life. Finally, ''self-efficacy is
demonstrated to be a significant risk factor signaling resistance to technological advances. It
denotes a person's confidence in his or her ability to use a specific technology.' RamandSheth.
The risk barrier is another key factor influencing mobile banking adoption (Kazi and Mannan,
2013; Akturan and Tezcan 2012; Badrawy, Aziz, and Fady 2012).Conflicts with consumers'
previous beliefs and values are more likely to create tradition and image obstacles than actual use of
the new service. ''If innovation does not give increased performance over current choices, it is not
feasible,'' write Ram and Sheth (1989).''beneficial for customers to change their present habit.' ''joy
or displeasure with electronic media,'' say Srijumpa et al., (2002).Financial services are not just
linked to technology. Customers' personalities also have an impact on this''. Financial sector
innovations such as mobile banking, according to Dunphy and Herbig (1995), are paradoxical.

Traditional barriers to mobile banking adoption are significant (Laukkanen 2007; Badrawy et al.,
2012). According to Ram and Sheth (1989), when new services acquire a distinct identity from their
origins, such as the product category to which they belong, the image barrier increases due to
negative associations with these identities.According to Fain and Roberts (1997), the image barrier
in online banking stems from a negative hard-to-use image of computers and the internet, which
also applies to mobile banking because consumers may perceive mobile technology to be difficult
to use by demonstrating that the technology has a negative impact on service.According to Badrawy
et al. (2012), the image barrier had the lowest mean score and is thus considered the weakest
barrier.

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The scope of this work is to cover the major technological constructs.TAM comprises the intention
to use mobile banking services, as well as perceived utility and simplicity of use. Following a
thorough review of the literature, below are some key facts concerning the improvements in
Pakistan's mobile banking landscape.The information we received serves as the backdrop for our
investigation. Perceived danger and social impact are factors. TAM is being affected in order to
build a research model to investigate the factors driving mobile banking acceptance in Sri Lanka.
We will examine previous research, and I have gathered various data that will be mentioned one by
one, including the concept of mobile banking.

Perceived Usefulness
One of the main components of TAM is perceived usefulness. The degree to which a person feels
that utilizing a certain system will improve his or her job performance is characterized as perceived
usefulness (Davis, 1989). Perceived usefulness is highly linked to productivity. It implies that
utilizing computers at work would improve user productivity.Increase productivity, work
performance, and job effectiveness and usefulness.Previous research has found a link between
perceived usefulness and perceived usefulness and intention to use (Yang, 2004); indicates the
effect of customer perceived usefulness on intention to use Singapore has embraced m-commerce.
Similarly, in the online context, perceived beneficial effects Scholars have validated the usefulness
on behavioral intents to utilize the online shop. It was said that perceived utility is the greatest
predictor of intention to use. (Davis, 1989) The internet shop and its website. These studies confirm
the significance of perceived utility in understanding individual responses to information
technology. As a result, it is People utilize mobile services because they find them beneficial, which
is fairly predictable.

Perceived Risk
The perceived risk, described as "the user's subjective expectation of suffering a loss in pursuit of a
desired outcome." When purchasers are worried about the quality, brand, or online services of a
product, they may be concerned about an unreasonable delay in product delivery, providing money
without receiving the goods, or indulging in other illegal or fraudulent conduct. Perceived risk was
first introduced in marketing research as an external variable in the study of innovation
dissemination and adoption, with the claim that the quantity of perceived risk is negatively linked
with the rate of adoption (Schillewaer, 1999). The Perceived Risk connected with an invention may
cause a potential adopter to delay making a decision on whether to embrace or reject the innovation.
As an example, danger was mentioned. Risk has been incorporated as an additional measure in IT
adoption. The importance of perceived risk has also been studied in information systems research,
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specifically in the literature on online banking (Lyman, 1974). Confirmed security hazards for
internet-based financial transactions are a key concern (Sathye, 1999).

Social Influence

The amount to which a person perceives that fundamental others believe he/she should practice the
innovation is referred to as social impact (Sheth, 1989). The researchers studied 681 Singaporean
customers and concluded that obvious benefit, established practices, and hazards were three critical
factors influencing the acceptance of mobile banking (Davis, 1989). An empirical research of 158
clients of a prominent Malaysian bank discovered that people's inclinations to utilize mobile
banking were highly impacted by their surroundings . Furthermore, it was discovered that a person's
decision to accept portable trade administrations was influenced by friends and family (Sathye,
1999). According to empirical study on 441 Taiwanese respondents, social influence was the most
important predictor of an individual's desire to embrace mobile banking. The behavioral intention of
entrepreneurs to utilize a computerized accounting system is Positive social impact explains .This
implies that when people have little expertise with information technology, Social Influence 28
becomes more important (Sheth, 1989).

Compatibility
Compatibility is an essential feature of innovation, described as the degree to which a new service is
compatible with consumers' current values, beliefs, prior experiences, and habits (Sheth, 1989).
Innovations that fit an individual user's lifestyle will be adopted more quickly [28]. In the context of
a virtual shop, m-payment (Sathye, 1999), and m-commerce, compatibility has therefore been
included into the TAM model. According to research, compatibility leads to increased perceived
ease of use since less effort is required (Sheth, 1989).

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 SIGNIFICANCE of THE STUDY

Sri Lanka's banking system is one of the most active and powerful in the country. Banks in Sri
Lanka are always competing for market share, therefore mobile banking would serve as a critical
competitive advantage for those banks who adopt this technology early. As Sri Lankan banks
choose for innovation, new opportunities for engagement with fintech firms emerge. Mobile
banking has begun to gain a significant percentage of the banking business in Sri Lanka, as it has in
the majority of emerging nations characterised by the increasing use of technology and mobile
devices (Malaquias and Hwang, 2016).

The study's results are designed to contribute to current information by examining the dynamics of
mobile banking adoption in Sri Lanka, as well as the factors that impact mobile banking acceptance
among Sri Lankan clients. The publication fills a research vacuum by providing a more thorough
model and a more representative sample in comparison to the nation's only research. Furthermore,
we seek to provide insights into how individual characteristics and social stimuli, such as personal
innovativeness and social influence, interact with mobile banking adoption. As a consequence, our
research is important because previous research focused on environmental difficulties while
disregarding social and human aspects.
Furthermore, because earlier studies in Sri Lanka failed to include representative samples and
largely comprised of university student samples, our research may be regarded the first systematic
attempt to address this problem in Sri Lanka, embracing more representative respondents. Finally,
we add the "number of branch visits" item in our questionnaire for the first time in our knowledge.
Our objective is to determine whether there is a link between the number of branch visits, a
customer's transaction frequency, and his proclivity to utilize mobile banking.
I believe that the findings of our study will help banks, which are continuously competing for
market share, obtain a better knowledge of the barriers to adoption, allowing them to tailor their
strategy to the particular scenario.

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 RESEARCH DESIGN AND METHODS

Research Approach
This study was conducted as quantitative research, which begins with a theory and then develops a
research strategy to test the theory using relevant hypotheses after a comprehensive review of
academic literature. As a result, the study will employ a deductive research methodology.
In this study, the use of a deductive research approach is appropriate since it tries to uncover
relationships between factors such as perceived utility, social influences, perceived risk,
compatibility, and mobile bank usage in Sri Lanka. Inductive reasoning would not be applied in
this study since it focuses on developing a hypothesis, whereas the author would be analyzing an
existing theory.

Conceptual Diagram

Source : (Ravichandran, 2016)

Hypotheses
H1- There is no relationship between perceived usefulness (PU) and adoption of Mobile banking
technology.
H2- There is no relationship between social influence’s (SI) and adoption of Mobile banking
technology.
H3- There is no relationship between perceived risk (PI) and adoption of Mobile banking
technology.
H4- There is no relationship between compatibility (C) and adoption of Mobile banking
technology.
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14
perationalization

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Variable Operationalization References

Perceived “Using M-banking allows me to accomplish more tasks Venkatesh

Usefulness(PI) than would otherwise be possible” (2012)

“M-banking addresses my banking needs and

requirements”

“M-banking enables me to accomplish banking tasks

efficiently.”

“M-banking saves my time”

Social Influences “I intend to adopt with M-banking in near future” Venkatesh

(SI) (2012)
“I plan to continue to use mobile banking frequently”

“I will always try to use mobile internet in my daily

life.”

“Using the M-banking is not appropriate for a person

with my values regarding the role of M-banking
technology andapplication”

Perceived Risk “My credit card/ account number may not be secure
(PR) when I process transactions”

“M-banking might be overcharged”

“Using M Banking is risky.”

Compatibility (C) “M-banking does not require significant changes in Venkatesh

existing resources” (2012)

“M-banking is compatible with other technologies I

use.”

“I think that using M-banking fits well with the way I do

things.”

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Population and Sample

The population for this study includes 100 people whou use mobile banking of selected branches of
different Banks in Sri Lanka. The people are expected to have knowledge and insights into the
bank's financial performance.

The sample size is the number of participants or entities selected from the population to be included
in the research study. To determine an appropriate sample size, the researcher can refer to the
Morgan table (Morgan, 1970). The Morgan table provides guidelines for determining the sample
size based on the desired level of precision and confidence. According to the Morgan table when the
population size is 120, sample size should be 100.

Sampling Technique: For this research, a probability sampling technique can be used to select a
representative sample from the population .Probability sampling strategy was utilized in this study,
which indicates that the components of the population have no chance of being chosen as sample
subjects and must instead rely on the researcher's viewpoint. As a result, the results of the sample
research cannot be generalized. The population was confidently generalized. This sampling method
was chosen over random sampling because it enables for the collecting of early data in a timely and
cost-effective way. Convenience sampling is one of the non-probability sampling procedures used
since a list of respondents cannot be supplied specifically; instead, the researcher collects data from
respondents who are easily available to offer it. Aside from that, convenience sampling was chosen
because it is less expensive, takes less time, and is handier.

Sources of Data & Collection of Data

Primary Sources of Data
Primary data is defined as information acquired directly from survey respondents. In this project,
survey questionnaires will be used to collect primary data. The questionnaire will be an online
survey delivered to respondents.

Secondary Data Sources

There were a few earlier studies on economic crisis and financial performance across the many
sources that give a better knowledge and conception to the research study. Along with prior

17
research, this work has referenced to institutional reports and publications in order to get statistical
numbers for the study relevant to the setting of the financial sector in Sri Lanka.
Data may be gathered by a number of ways, in a range of circumstances, and even from several
sources (Sekaran, 2003). Primary data was gathered through the use of a questionnaire. A
questionnaire is a pre-written collection of questions to which respondents must respond (Sekaran,
2003). Self-administered questionnaires are delivered to each respondent in the specified sample
using online platforms in this study. Without being interviewed, respondents completed the
questionnaire. Secretariat, secrecy, and voluntary involvement should all be taken into account.
During the data collecting procedure. This form of data collecting allows researchers to obtain all
completed replies in a shorter amount of time, which saves time and money. Emerald, Research
Gate, and other databases such as Google Scholar are utilized for secondary data collecting because
they are cost effective, time efficient, and easily available.

Data collection using questionnaires has various advantages. For starters, it enables uniform data
collecting, guaranteeing that each responder receives the same set of questions, limiting the
possibility for bias and simplifying data analysis. Questionnaires are also cost-effective and
efficient since they can be distributed to a big number of people at the same time, saving time and
resources. Furthermore, respondents frequently feel more at ease delivering honest and forthright
responses to sensitive or personal topics in writing, which can result in more accurate statistics.
Finally, questionnaire data is often straightforward to measure and evaluate, making it useful for
both quantitative and qualitative research and a versatile instrument in a variety of study situations.

Data Analysis Strategies

The collected data will be presented in the form of charts and tables by the researcher. Particularly,
the data acquired here is examined using statistical software such as Statistical Package for the
Social Sciences 26 (SPSS) to generate a conclusion while completing the general and specific
objectives. The study's particular aims. To test hypothesis one, two and three use simple linear
regression analysis. Following that, the other processes of the data analysis section will be
completed, such as coding, editing, converting, and measuring data (Sekaran, 2016). To analyze
data, the researcher has selected appropriate statistical techniques as the next step. Following
statistical tests will be used to analyze data collected by the questionnaire.

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• Also, in this part of the study, to test the relationship between the variables measured by the
questionnaire several tests will be carried out such as, Tests of Correlation, Independent sample T
Test, Regression analysis, etc.

SCOPE OF THE STUDY

Descriptive statistical analysis

Frequencies and descriptive statistics will be utilized to determine the proportion of responses,
which may also be depicted using bar carts or pie charts (Sekaran, 2016). The profile of the
respondents and the normality of the variables will be examined in this section of the research.

Inferential statistical analysis

Also, in this part of the study, to test the relationship between the variables measured by the
questionnaire several tests will be carried out such as, Tests of Correlation, Independent sample T
Test, Regression analysis, etc.

Pearson correlation analysis

The degree to which variables are related is shown by correlation. Pearson's correlation coefficient
(Hauke & Kossowski, 2011) measures the strength of a linear relationship between two variables.
Furthermore, when a researcher needs to confirm if there are any probable correlations between
variables, this sort of study is used (Malhothra & Dash, 2015).

It displays the Pearson Correlation values between the independent variables and the dependent
variable used in the study. Pearson Correlation values demonstrate the linearity of the variable
association, whilst the p value reflects the importance of the components' relationship (Hair et al.,
2014). Furthermore, Pearson's correlation coefficients might range from -1.0 to +1.0. Furthermore,
the relationship between two variables might be positive or negative (Malhothra & Dash, 2015).

Chi-Square Testing

The chi-square test is a statistical hypothesis test used to determine whether there is a significant
association or independence between two categorical variables. It is often employed when you want
to assess whether there is a relationship between two variables that are both categorical (nominal or
ordinal) in nature. The test is named after the Greek letter "χ²" (chi-square), which is used to
represent the test statistic.

Regression testing

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Regression analysis is a set of statistical methods for evaluating relationships between one or more
independent variables and one or more dependent variables. It is available in a variety of forms,
including linear, multiple linear, and nonlinear (Corporate Finance Institute, 2015).

Because this study only looks at one independent variable, a basic linear regression model may be
used to assess how the independent effects the dependent variable. The proportion of variance
explained by the independent variable for the dependent variable should then be explored, taking
R2, the coefficient of determination, which is the squared value of the multiple correlation
coefficient value (R) in the model summary table below, into account.

LIMITATIONS OF THE STUDY

This study has a number of drawbacks. To begin, the study will be conducted in Sri Lanka with data
collect from limiten number of sample size . As a result, the findings may not be generalizable to
other districts or banks across the nation. Second, the influence of demographic characteristics such
as age and gender on mobile banking adoption will not be thoroughly investigated. This occurrence
may necessitate future research on a larger scale. So it would be interesting to investigate the
geographical influence, such as in rural places where transportation takes significantly longer and is
more expensive.
Data Access
Data access constraints are difficulties in acquiring relevant and reliable data for study. Accessing
confidential data about ABC Bank's financial performance during the economic crisis may be
difficult in this study. Specific financial data and internal reports may be unavailable, limiting the
depth and breadth of research.
A thorough data access strategy will be devised to address this barrier. To acquire access to
essential data sources, efforts will be made to create a working connection with ABC Bank. To
secure sensitive information, confidentiality and data security agreements will be developed. In
addition, to enhance the research, different data sources such as publicly available financial reports
and economic indicators will be used.
The financial resources necessary to perform the study are referred to as a cost restriction. Expenses
for data collecting, data analysis, participant incentives, and research supplies are common in

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research undertakings. Limited financial resources, on the other hand, may limit the degree to which
data can be gathered or the scope of data analysis that can be undertaken.

The term "time constraint" refers to the restricted amount of time available for doing the
investigation. Given the study's scale, there may be time constraints in terms of data collecting,
processing, and reporting.
Careful planning and timing of research efforts will be required to alleviate this limitation.
Adequate time will be set out for data collection to ensure that sample size and data quality are not
jeopardized. To guarantee that all study objectives are met, the research timeframe will be
continuously monitored.

SUMMARY AND CONCLUSION

In conclusion, this research proposal outlines a comprehensive study designed to shed light on the
factors influencing mobile banking adoption within the Sri Lankan population. Mobile banking has
the potential to play a pivotal role in expanding financial inclusion and improving access to
financial services in Sri Lanka. By identifying and understanding the factors that shape adoption
patterns, we can devise strategies to promote and enhance mobile banking utilization in the country.

The findings of this study will be crucial for banks, policymakers, and stakeholders in Sri Lanka as
they seek to harness the benefits of mobile banking while addressing the unique challenges and
preferences of the local population. Ultimately, fostering mobile banking adoption in Sri Lanka has
the potential to drive financial empowerment, economic growth, and technological advancement in
the nation.

21
 TIMEFRAME

Time Plan basked on Weeks

Tasks
1 2 3 4 5 6 7 8 9 10 11 12
Chapter 1
Introduction
Background.
Problem Statement.
Specific Objectives of the study
Significance of the study
Limitations of the reearch
Summary
Meet the Supevisor
Chapter 2
Introduction literature review of the study
Meet the Supevisor
Chapter 3
Methodology
Meet the Supevisor
Chapter 4
Presentation of Data
Meet the Supevisor
Chapter 5
conclusion & recommendation
Meet the Supevisor

22
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25
 APPENDICES

Appendix 1: Questionnaire
Part A

1) Do you have a Mobile banking app?

Yes
No
2) Extent of Mobile/Computer Knowledge
Unaware
Fair
Good
Excellent
3) Most used Bank type
Government
Private
4) Bank facilities using present
ATM
Online Banking
Mobile Banking

26
Part B

27
Perceived “Using M-banking allows me to accomplish more tasks
Usefulness(PI) than would otherwise be possible”

“M-banking addresses my banking needs and

requirements”

“M-banking enables me to accomplish banking tasks

efficiently.”

“M-banking saves my time”

Social Influences “I intend to adopt with M-banking in near future”

(SI)
“I plan to continue to use mobile banking frequently”

“I will always try to use mobile internet in my daily

life.”

“Using the M-banking is not appropriate for a person

with my values regarding the role of M-banking
technology andapplication”

Perceived Risk “My credit card/ account number may not be secure
(PR) when I process transactions”

“M-banking might be overcharged”

“Using M Banking is risky.”

Compatibility (C) “M-banking does not require significant changes in

existing resources”

“M-banking is compatible with other technologies I

use.”

“I think that using M-banking fits well with the way I do

things.”

28