' i 3cus’ u TOMER’S ADOPTION OF MOBILE BANKING IN NEPALESE COMMERCIAL BANKS By: JAMUNA MAHARJAN IIMS COLLEGE LUC Reg. No.:1,C00015000578 A Graduate Research Report submitted in partial fulfilment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION At the Lincoln International College of Management & IT Network (p) Ltd Lincoln University College Faculty of Business and AccountancyKECOMMENDATION Finan oo te scl ae thee Cwrabantna Rance t Pougens Ragnat pebaattted by Jommume Stakesjen Dates CST OME > ADOPTION OF MODEL A BANKING EN NER AL ESE COMMEMCTAL BANK Man Nuuin priced a agyrowed by los grogeson on the grienailtd fomwmad al Che Hacudtty af Bunions and Acooumancy Lanceit: Limnarity College Mie Graduation Ronowtst Mrequir no homrmanetio’ fev! exwimenaiion, Crate Banned Rregact Sein ier {4 aMege of Manug’ fjodvoniwe\ '— CERTIFICATION We. the undersigned, certify that we have read and hereby recommend for acceptance by the Lincoln International College of HE and Management Pvt, Ltd, Lincoln University College. Graduate Research Project (GRP) report submitted by Jamuna Maharjan entitled Ks” in partial “Customer's Adoption of Mobile Banking in Nepateye Commercial Ba tion fulfilment of the requirements for the award of the degree of Master in Business Admini of Lincoln University College GRP Supervisor Mr. Brihat Singh Boswat External Examiner Dr. Megh Raj Dangal Graduate Research Committee Chairman Prof. Dr. Mahendra Prasad Shrestha Deputy Director Satyendra Upreti Lincoln International College of I'T and Management Pvt. Ltd.DECLARATION Thereby declare that the work reported in this thesis entitled “Customer’s Adoption of Mobile Banking In Nepalese Commercial Banks” submitted to office of the Dean, Faculty of Management, Lincoln University is my original work done conducted in the form of partial fulfilment of the requirement for the degree of Masters of Business Administration (M.B.A) under the supervisions of Brihat Singh Boswa. Jamvna Maharjan IIMS C00015000578 LUC Reg. No.ACKNOWLEDGEMENT use several people have «difficult to draw up a list of persons to be thanked beca itself is cumulative so s. Knowledge ble to acknowledge all those blicly acknowledged. the partial fulfilment of Iti helped in preparation of this report in diverse way it is difficult to acknowledge intellectual ideas. It is impossil persons need to be pul who contributed to this study. But some for initiating this thesis as the practical experience of real for giving me I am grateful to Lincoln University tration that provides one Masters of Business Administ like to express my Sincere thanks to IIMS working environment. I also the opportunity to undergo my thesis work. J would like to thank our respected supervisor Brihat Singh Boswa for their guidance, reparing this report. artly gratitude to all the honourable lecturers of IIMS, support and cooperation in pI gues, who helped I would like to express my he staffs of the library and administrat me directly and indirectly for the com, I would like to extend my heartil: tion of the campus and all my collea: pletion of thesis work. y thanks to all the members of my e during the entire period of the study. family and inally, relatives who inspired me in many ways to cop’ JAMUNA MAHARJANATM e-banking e-commerce IcT ie. MB m-commerce NBL PSP SMS TAP UTAUT WAP ABBREVIATIONS Automated Teller Machine Electronic Banking Electronic Commerce Information and Communication Technology That is Information System Internet Service Provider Information Technology Interactive Voice response Mobile Banking Mobile Commerce Nepal Bank Limited Perceived security and privacy Short Messaging Service Technology Acceptance Model Unified Theory of Acceptance and Use of Technology Wireless Access ProtocolEXECUTIVE SUMMARY The specific objectives of the study is to analyse customer satisfaction in relation to mobile banking service quality of Nepalese commercial banks, to find the reasons for preferring mobile banking services in Nepalese commercial banks, to identify the dimensions of the intemet services with reference to customer adoption in Nepalese commercial banks, to examine the impact of the personal factors on customer satisfaction and dealing with mobile banking services and to compare the factors of mobile banking services and customer adoption in between the public and private sector banks of Nepal. The study is based on primary sources of data. Data for this survey is collected from the respondents of commercial banks public as divided in three categories private banks, joint venture banks and public banks. A sample of 193 respondents of sampled commercial banks covered for questionnaires concerning the dimension of mobile banking services and customer’s adoption in Nepalese commercial bank. Seven scale Likert questions were used to collect the information from respondent. The study provides a basic picture about mobile banking services offered by Nepalese commercial banks as well as the customer’s views about mobile banking services and its acceptance. The study related with mobile banking is mostly conducted in developed countries but in country like Nepal such studies are merely carried out. It is equally significant for bank executives and indeed the policy makers of the banks and financial institutions to be aware of mobile banking as a product of mobile commerce with a view to make strategic decisions. ‘This study is especially designed to explore the mobile banking adoption and its acceptance among customers of Nepalese commercial banks and therefore, this research provides insight knowledge about mobile banking services being provided to its customers in developing country like Nepal. viiTable of Contents RECOMMENDATION CERTIFICATION DECLARATION ACKNOWLEDGEMENT .. EXECUTIVE SUMMARY List of Figures List of Tables CHAPTER I: INTRODUCTION... 1.1. Background of the study. 1.2. Statement of the problem. 1.3. Research questions. 1.4, Objective of the study 1.5. Significance of the study. 1.6, Limitation of the study . CHAPTER Il: LITERATUR REVIEW AND THEORETICAL FRAMEWORK.....12 2.1. Review of related literature. 2.1.1. Review of major literature... 2.1.2. Review of Nepalese studies. 2.2, Benefits for banks .. 2.3. Benefits for customers .. 2.4, Research gap. 2.5. Theoretical framework, CHAPTER III: RESEARCH METHODOLOGY .. 3.1. Research design 3.2 Population and sample 3,3. Sampling Technique -.3.4 Nature and sources of data. 3.5, Research framework. 3.5.1. Population and sampling framework. 3.6. Method Analysis. 3.6.1 Independent variabl 3.6.2 Dependent variable 3.7. Software Used.. 3.7.1. Tools... 3.7.2. Instruments... 3.8. Analysis of Plan... CHAPTER IV: DATA PRESENTATION AND ANALYSIS... 4.1. Analysis of data. 4.1.1 Profile of respondents. 4.1.2 Response towards use of mobile banking services. g servie 4.1.3 Ranking of factors to adopt mobile bankin; 4.2. Open end questions 4.3. Concluding remarks .. 4.4 Major Findings... CHAPTER V: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5,1, Summary. 5.2. Conclusion .. 5,3, Recommendations 5,4, Scope for future research .- References. Annexes... ‘Appendix A: Survey Questionnaire/ List of Figures Figure 1: Theoretical Framework. Figure 2: Gender of respondents. Figure 3: Response towards use of mobile banking services . List of Tables Table 1 Review of major literature... Table 2 Review of major Nepalese studies. Table 4 : Sample description of the respondent... Table 5 : Respondent's profile bani Table Table 8 : Response towards perceived usefulness in mobile banking ‘esponse towards reasons for adopting mobile banking services. Table 9 : Response towards perceived ease of use in mobile banking . Table 10 : Response towards perceived security and privacy risk in mobile banking 44 Table 11 : Response towards perceived cost in mobile banking 6 Table 1 esponse towards awareness in mobile banking.CHAPTER I: INTRODUCTION 1.1. Background of the study Mobile banking refers to provision and aliment of banking and financial services with the help of mobile telecommunication devices. It is one developing mobile technique used in the commercial domain, It has combined information technology and commerce applications together. Since mobile banking was introduced, consumers have been able to use it to obtain special services 24 hours a day without having to visit the traditional bank branch for personal transactions, The scope of offered services may include facilities to conduct bank transactions, to administer accounts and to access customized information with the recently quick growth in the market of 3G smart mobile phones, the wireless service delivery channel becomes @ promising alternative for firms to create commercial opportunites (R.Tiwari & S.Buse, 2007). However, despite many wireless commercial services increase quickly, the use of mobile banking service is much lower than expected and still underused (Huili, Y. , Chunfang, Z, 2011), That is the widespread adoption and large usage of cell phones do not reflect on the adoption and usage of mobile banking (Cruz, P., Neto, L., Gallego, M. P.& Laukkanen, ns 2010), Mobile banking perhaps was the first commercial mobile service introduced in the early 2000s through short messaging service (SMS) and wireless aceess protocol (WAP) (Dasgupta, S., Paul, R.& Fuloria, 8. 2010) “The modem technology adopted by bank i electronic barking or e-banking, The term electronie banking refers to process of performing various banking activites by the use of electronic channels through telephone, mobile phone, and internet ‘The internet banking and mobile banking are considered as part of electronic banking, But, internet banking and mobile banking are two altermative channels for banks to deliver their services and for customers to acquire services. Internet banking is used through computers connected with internet. Mobile banking is used through wireless devices sie, mobile phones. With the immense penetration of cell phones, the commercial banks has large potential to offer mobile banking services t0 people living in remote villages where only few computers are connected to the intemet Suggested that the emergingmobile banking services can give banks a good commercial opportunity to rural people who are unable to access the internet. Hence, the customer segments of mobile and intemet banking is not necessarily the same (Dasgupta, S., Paul, R.& Fuloria, S. , 2010). The mobile banking technology allow access to one’s bank account and conduct a host of banking transactions and inquiries through the mobile banking service. One can check balance, stop a cheque payment, or even pay utility bills through the service. Mobile banking provides account information and real-time transaction capabilities from the mobile phones at a true "anywhere, anytime, anyhow" convenience. Some examples of financial services through mobile banking solutions include: mobile account enquiries, mobile fund transfers, bill presentment and payment, personalized alerts and notifications on security prices, real-time stock quotes on a wireless device, and extension of corporate applications to remote offices through advanced synchronization. Most of the customers prefer account enquiries and account alert through mobile banking. With mobile banking, customers are free of being in front of their personal computers. Customers may be checking their accounts online all day because they are waiting for specific funds. But what mobile banking does is to give them the freedom of being away from their personal computers. The customers get the freedom to manage their business and not to be tied to the bank. With current technology, the message that is sent to any mobile device is tailored to that device, and is sent in real time, as soon as a transaction has occurred within the account. Text messages from the bank go directly to the mobile device, and are encrypted as SMS (short messaging service) or e-mail messages. most often been performed via SMS or the Mobile banking has, until recently (2010), .¢ rapid growth of phones based mobile web. Apple's initial success with iPhone and th android (operating system) have led to increasing use of special client plications downloaded to the mobile device. Before the transactions of banks were mostly on Google’s programs through mobile ap, advent of mobile banking, the operations/ ectronically with successful experience in de achine) and or by visiting banks. The emergence of the accomplished el velopment systems such as ATMs (automated teller m: mobile banking is making a significant impact on the diffusion of electronic banking,which is seen as one of the most successfull business-to-consumer applications in mobile-commerce, Mobile banking has changed the business of retail banks significantly in terms of increased convenience for the customers. Although there are now over a billion mobile phones in the developing world, these changes in social interactions in the developed world have captured the bulk of the research community's attention to date. With the establishment of Nepal Bank Limited in 1937, banking sector and its customers had to wait for 65 years to use internet banking service in Nepal (around 2002) after the adoption of electronic banking. The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP (wireless application protocol) support enabling the use of the mobile web in 1999, the first European bank started to offer mobile banking on this, platform to their customers. In the context of Nepal, the major milestones occurred with establishment of first ISP (intemet service provider) in 1994 i.e. mercantile office systems. The first ATM (automated teller machine) was launched by Himalayan bank limited in 1995. The bank also introduced telephone banking facility in 1997. In the year 2000, IT (information technology) policy was formulated to regulate the electronic banking. After the formation of IT poliey, the private sector bank evolved in Nepal ie. Kumari bank established in 2001. Kumari bank was the first bank to introduce intemet banking in Nepal in the year 2002. The bank also launched SMS banking in terms of mobile banking, Thus, electronic transaction and digital signature act was revised in 2005, which is yet to be brought in practice. To attract new customers and provide the present ones with new channels of interacting with the bank, there is adequate need for deploying & providing mobile banking applications. Such an infrastructure will enable wireless banking capabilities via secure SMS or WAP. The solution can be customized to quickly deliver banking services and provide another value-added benefit on interaction and relationship with clients. The mobile banking application can allow customers to use their mobile phones to view account balances, transaction histories, transfer funds, pay bills, order cheques, account alert and so on, Moreover, mobile banking isa type of execution of financial servicesin the course of which within an electronic procedure the customer uses mobile communication techniques in conjunction with mobile devices. The technologies generally used for mobile banking are interactive voice response (IVR), standalone mobile application clients, SMS and WAP (Tiwari, R. & Buse, S. , 2007). The technological revolution has added more value to services coupled with their virtual bank accounts. Information technology (IT) developments in the banking sector have speed up communication and transactions for clients mobility and 24/7 service are just a few of the many advantages associated with mobile banking, The growing adoption of information and communication advancements in banking services delivery make it necessary to analyse and identify the service quality perceptions of the customers in the mobile banking(m-banking) context to evaluate the trends in its acceptance. To achieve competitive advantage, it becomes essential to make strategic investments in IT infrastructure. The valid information regarding perceptions of the users regarding their acceptance or avoidance of this technology may supplement the information needed by the developers of mobile banking systems. ‘There is no doubt that the use of wireless mobile networks and devices is growing. From the 1990s onwards, we have been witnessing a great shift in methods of doing jc commerce (e-commerce). Advanced and business with the emergence of the electroni conducted from a wired mature wireless and mobile technologies facilitate e-commerce c network to a wireless network. Mobile commerce (m-commerce) can be viewed as a part of e-commerce and refers to any transaction with monetary value that is conducted via a mobile network. Think of the possibilities that mobile and wireless technology From the freedom of paying bills while stuck in traffic, to ‘a change in stock price while having lunch, the convenience al services are huge. The challenge, then, is Some of the possibilities fast offers your customers. receiving notification of. and time saving benefits of wireless financi hese possibilities into a reality for your customers. howto turn tl 1g include: integration of existing financial systems; with the use of mobile bankin, liable access to financial information at a lower cost. and re1.2, Statement of the problem Nepal is considered as emerging country in the field of mobile banking. All the public banks of Nepal are offering mobile banking services. But, customers have not yet welcomed the services because they are not familiar with the way these services are accessed. Most importantly there is the lack of confidence to electronic systems (Pedersen, 2005). o A ' ane i After launching of mobile banking in Nepal, mobile banking transactions have seen some growth. What attracts customers to mobile banking is the ease of transactions. But mobile banking still has a long way to go as majority of customers prefer banking in the traditional ways (Ashta, B.& Arvind, R., 2010). There has been a rapid diffusion of new mobile devices by commercial banks, but internet banking services have not been widely adopted by bank, It is due to lack of trust, poor customer's attitude and perceived risk towards the services. Customers have been complaining that reversing @ transaction, stopping @ payment after discovering a mistake, or a refund may not be possible, Customers have also reported that there is no real need for mobile internet- based banking services because it is associated with electronic bank fraud where only ord stand between your money and a fraudster (Luar, P. & Lin, a.username and passw. H. H, 2005). services have not only inereased in the urban ¢ demands along with the problems faced now solved through the mobile g channels of delivering the main services had become in concern of the people might be the financial dhelp The demands of banking and financial areas but also in the rural areas of Nepal. Thest by the rural people banking because the existin in receiving the main services are inadequate and inconvenient. The mai ut proper education about the n' cost and so withot ew technologies and how it woul le, they will never invest their money. Moreover, the telecommunication companies along with the banks should als ce the consumer’s adopting mobile banking services. 1! venience and reliability of the service that should match the , Anus, S., Malik, S., Abbasi, A., Chaudhary, A& them among these peopl ‘0 concentrate on the factors that influen hey also have to focus mainly on the col demand of the users (Qureshi, F. Mirza, S. N., 2011).Centralized decision making negatively affects the adoption of new technology while, decenralized decision making helps to come up with more creative and innovative ideas (Saleem, Z. &Rashid, K., 2011).There is a clear indication that Nepalese banks may not be able to adopt new technology without making decentralized decision and designing firm's strategy. The successful strategy in terms of customer retention oF enhancement ultimately leads to profitability. In the banking sector, the strategic focus of banks is to remain competitive in order to retain many customers as possible. Further, the retention of existing customers is more economical compared to acquiring new ive to price changes. So, ones. They take little time of the company and are less sen: there is a great need to focus on the retention of the existing customers and achieving customer loyalty through services. Therefore, banks also put in their best effort to sell But, today's customers desire quality different products and services to customers products and services along value added benefits. Furthermore, improvement in communications efficiency could have a significant impact on customer satisfaction tentions (Saleem, Z. &Rashid, K., 2011). and consequent behavioral With the technological innovations, there is rise of risk in Nepalese commercial banks. So, in order to sustain and guarantee the survival, the banks should be able to adopt the changing environment with new ideas and business methods. Today, the performance ions is mainly being impacted by technological advancements such of financial instituti es. Customers now have access to fist, as use of mobile phones and the internet servic (Okiro, K., Ndungu, J. , 2013). Most Jarge sums of money in information and efficient and convenient bankii commercial banks in Nepal are investing | tion technology (ICT). While the rapid development o al advancements have fair communical f1CT has made some efficient and cheaper. But, technologi banking tasks more there is a need to manage costs and of problem on lost, stolen card and fraud, Thus, risks associated with mobile banking and internet. (information technology) has tended to focus on esearch in IT jomer’s value and its relative Additionally, the 1 + characteristics rather than cust innovation and use! customers’ adoption to a significant lev importance to adopt mobile services. AS.related to decision making and thereby depending on the value of technology. Customers also think of the risks they undergo if they adopt the new banking through mobile services; especially due to the rising number of hackings and identity theft that has invaded the electronic sector. Many people feel like they have exposed themselves to the possible theft and misuse of their bank accounts. In the event that hackers can get access to the secret codes or from friends and relatives who are likely to access user's mobile phones (Alsheikh, L.& Bojei, J., 2012). The customer may feel at risk and t makes him or her anxious about adopting benefits derived from the mobile exposed to insecurity and uncertainty tha mobile services such that they end up enjoying the banking. security, network speed, Investigated that individual expectations regarding accuracy, ortant quality user-friendliness, and user involvement and convenience is the most imp« s in the perceived usefulness of internet-based electronic banking (Safeena, R.. A. , 2011). But, the crucial factors that affect an individual the difficulties of attribute: Hundewale, N. &Kamani, decision to use or not to use the banking services such as the age, using the internet, fear of changes in banking sector due to technological development and lack of information concerning products and services provided 10 customers through electronic delivery channels. The study revealed six dimensions of electronic service quality including provision of convenient/accurate electronic banking bility and reliability of service; good queue management; service ‘on of friendly and responsive customer serv! The result of the study shows that WAP operations; the access ice; and the personalization; the provisi provision of targeted customer service. reless application protocol), GPRS and 3G features from mobile devices are of no (wit significance in the adoption of electronic banking services. The study also concludes that majority of customers are accepting online banking because of various favorable factors ie. usefulness, ease of use, subjective norm, awareness and risks related to it. re, these factors have also stron} Therefo 1 and positive effect on customers to accept mobile banking system. mers are not adopting mobile banking. Various factors argued that adoption will not ta The key question is why custon ence customers” adoption. It is ke place unless may influcustomers perceive the service to be usefull (Ali, F., Samar, $.&Bharadwaj, R. K., 2010). Understanding the symptoms of the problem of why there is a low rate of mobile banking usage along with understanding of preferred mobile banking services, could help banks to come up with a right solution to improve their mobile banking service aS well as to increase the rate of mobile banking usage. Various studies regarding the factors of mobile banking and its adoption are found in many developed countries. In the context of Nepal, the studies are found in regards to the factors of internet and online banking service and its adoption. ‘Thus, the study has tried to examine the mechanism associated with customers’ perception of mobile banking services in Nepalese commercial banks. 1.3. Research questions This study therefore deals with the following issues: of ¢ What kind of attitude does the banking customers have towards the us mobile banking? «Do the users trust the mobile banking system provided by the banks? an} How well informed are the customers about the mobile banking service’ ¢ What kind of risk do they perceive with the use of mobile banking system? © What are the factors affecting user satisfaction from mobile banking? 1.4. Objective of the study 1¢ the effect of perceived ease of use, ed cost, awareness ‘The major objective of the study perceived risk, trust, pere commercial banks, The specific objectives are perceived usefulness, service qual on mobile banking adoption in Nepalese as follows: * To examine the attitude of customers towards the mobile banking system in terms of perceived usefulness and ease of use innovativeness and awareness in m¢ ‘ceived risk towards mobile banking. © Toanalyse the i bile services adoption. To examine the customers per © Tomeasure the users satisfaction from the mobile banking service.1.5. Significance of the study ‘The study provides a basic picture about mobile banking services offered by Nepalese commercial banks as well as the customer's views about mobile banking services and its acceptance. The study related with mobile banking is mostly conducted in developed countries but in country like Nepal such studies are merely carried out, It is equally significant for bank executives and indeed the policy makers of the banks and financial institutions to be aware of mobile banking as a product of mobile commerce with @ view to make strategic decisions. Mobile banking is the latest and most innovative services offered by the banks. But not enough study has been done regarding how customers perceive and evaluate electronically delivered mobile bankin; and availability of banking and financial telecommunication devices. Through mobile banking, 1g services. Mobile banking refers to provision services with the help of mobile one can check balance, complete his account transactions and make payments on time via mobile device such as a mobile phone. Today, mobile phones have become common for the customers: Most of the le banking through SMS or the mobile intemet, Some financial customers use mobil hod to provide mobile banking to their customers. They institutions take up another met make customers download special software or mobile applications on their mobile phones which act as client for the mobile banking services. the understanding of the mobile banking services in terms ‘The study will contribute t perceived risk, service quality, trust perceived ease of use, of perceived usefulness, to develop business models and marketing ceived cost and awareness. It can help ¢ for the mobile banking users in Nepal. Th tance of the mobile banking services. ‘The st wn to use and factors that affects the custome! ps to understand the present significance pei approaches ese factors have great influence ‘on the customer acce| uudy will help to gain knowledge regarding the intentio1 rs to accept obile banking services. The study king in the market, The study is also ex ‘the m also hel of the mobile ban the state of mobile banking/mobil n Nepal. Mainly, financial institutio |1as they can use the findings to stra pected to give an insight on ie money services as a competition to the commercial banks i as and telecommunications industry will find the study useful tegize on how they can mutually10 benefit from this development. Finally, the study adds to the existing literature and is a valuable tool for students, academicians, institutions, corporate managers and individuals who want to learn more about mobile banking services. However, there is lack of proper literature review on the customer adoption in mobile banking services in the context of Nepal, So, the study is expected to be important as it analyses the demographic characteristics of mobile banking and also measure the level of customer adoption by taking the dimensions of mobile banking such as usefulness, ease of use, risk, service quality, trust, cost, and awareness.This study is especially designed to explore the mobile banking adoption and its acceptance among customers of Nepalese commercial banks and therefore, this research provides insight knowledge about mobile banking services being provided to its customers in developing country like Nepal. 1.6. Limitation of the study The study is mainly conducted on the local areas as per the due to which few respondents h convenience. The survey questionnaire was in English only, ad difficult time to This could have led to misinterpretation and understand the questions. are the certain misunderstanding on the content of various questions. The following general limitations of this study: «The behaviour of the customer while approaching them to fill the questionnaire was unpredictable. Limited Statistical tools are used. 1 due to bias of respondents. There may be error the analysis of the data, «The use of sampling method can vary 1.7. Organization of the study round of the study, review of f data, and summary, ructured with five chapters: Backg This study has been st presentation and analysis o Iiterature, research methodology, conclusion and recommendations. stigated along with the background, tains the major issues to be inves further to highlight the research The first chapter cont purpose of the studys it goes f statement of the problem,questions, significance of the study, limitations of the study and organization of the study. ‘The sccond chapter contains the literature review that talks about mobile banking in Nepal. It will also look at some basic concept on mobile banking in order to have understanding on the issue of mobile banking. It goes further to review theories on her major studies on mobile banking adoption which more innovation adoption model and ot! serve as a basis for the research framework. ‘The third chapter explains the research methodology, the research plan and design, nature and source of data, description of the sample, tools and instrumentation, data collection procedure and analytical tools used. The fourth chapter contains the analysis and the interpretation of the data. It goes further to compare the findings of the present research with the past once. Finally, the last chapter contains the summary, conclusion and possible recommendations. References and annexure are included at the end of the study and recommendation, viva-voce sheet, declaration, abbreviation, list of contents are presented in the front part of this stages.CHAPTER II: LITERATUR REVIEW AND THEORETICAL FRAMEWORK This chapter provides theoretical framework of the study and deals with review of the studies associated with customer adoption on mobile banking and its impact on society. ‘The motive of this research is to find the relationship of Mobile Banking Service Quality with the customer satisfaction. It demonstrate the effect of Mobile Banking Service Quality dimensions on customer satisfaction in the mobile banking industry. is Mobile Banking is a new technology channel to the banking customers. Hence, important to understand their perception towards this technology by studying the intention towards using mobile banking. This research study proposes to integrate the best-known elements of technology adoption models in a research model, to predict the intention to use mobile banking. It specifies an integrated model that incorporates the relationship of the factors in order to provide a comprehensive representation of the positive influences of these constructs on customer's intention to use mobile banking services. The first section includes of an in-depth review of related studies around the world whereas in the second section the conceptual framework is presented and the third section deals with concluding remarks on the conceptual and literature review. 2.1. Review of related literature Mobile banking is an application of mobile commerce which enables customers to access bank accounts through mobile devices to conduct and complete bank-related transactions such as balancing cheques, checking account statuses, transferring money and selling stocks (Kim, G., Shin, B.& Lee, H., 2009), Today, the mobile phones provide consumers immense facilities ‘through which their lives have become so much easier. The combination of carrying out banking transactions from mobile phones is a great one because not only does it reduces the time spend on making transactions physically but it also reduced certain consumer's fears. ‘These fears are turned into trust and security by the service providers through mobile banking. Now because the consumers have great leverage towards the latest technologies that is why mobile banking is more convenient to them (Qureshi, F. A., Anus, S., Malik, S., Abbasi, A., Chaudhary, A.& Mirza, S.N., 2011)2.1.1, Review of major literature Relating to this topic, many studies have been carried out in both developed as well as developing economies. In Nepalese context, the studies on mobile banking have fo focused on factors that affect customer adoption. The prominent studies on customer's ait f , a et adoption of mobile banking along with major findings of the studies conducted are indicated in table 1. Table 1. Review of major literature This table summarizes the review of literature at glance observed for the purpose of study concentrating on the referred variables and its results observed from various studies. Study Major findings The study revealed the gap between theory and practice of mobile commerce where the research shows significant growth ‘of mobile technologies in the market compare to past years. The research concerned with limited articles on mobile commerce including published journal, m-commerce applications, and (Elbadrawy, R. & Aziz, RA., 2011) cases. (Ramayah, T._& | The study focused on the relationship among attitude, subjective ‘Amin, H., 2010) | norm, perceived security and privacy (PSP) and intention to tise | SMS banking, The study concluded that attitude and subjective | norm were significantly associated with intention to use SMS banking where these variables were the Key predictors determining one’s intention to use a partioular system, The study concluded perceived risk as the most significant Anus, S» Malik, | determining factor for mobile banking servic® acceptance. It S, Abbasi, A., | proved that those who believe mobile banking service are useful 'A.& | and have less tisk towards making transactions and privacy will Qureshi, F. A., Chaudhary, Mirza, S. N., tend to adopt such innovative technology. 1011) Elbadrawy, The study disclosed the non-adopters namely postponcrs, 011) opponents, and rejecters differ significantly with respect to usage, value, and image barriers. Saleem, Z.| The study revealed the factors such organizational, Rashid, K.,| Technological, Strategic ‘and Functional were positively O11) significant in relation to customer satisfaction and intention to use mobile services whereas the result shows insignificant s cost of doing business and relation with economic factors. A: market risk being the most importa factor which affects the customer satis nt measures of economic isfaction.Gafeena, __R, | The result of the study revealed that perceived usefulness, Hundewale, _N. | perceived ease of use, Subjective norms, consumer awareness &Kamani, A. ,| and perceived risk are the important determinants of mobile 2011) _ banking adoption. (Alsheikh, — L.& | Customer's adoption of technology is related to decision making Bojei, J., 2012) _ | which depends on the value of customer's perceived value to use mobile banking services of technology. (Okiro, K,, | The result showed the impact of mobile banking and internet Ndungu, J., 2013) | banking on performance of financial institutions. At the same the study found that mobile banking has been adopted at a faster rate than internet banking. (Chitungo, 8. K. | The result revealed that perceived usefulness, perceived ease of & Munongo, S., | use, relative advantages, personal innovativeness and social 2013) norms influence the intention toward mobile banking, while perceived risks and perceived costs deterred the adoption of the service. The results showed that mobile banking improve banks service (Adewoye, 2013) | delivery in a form of transactional convenience, savings of time, quick transaction alert and save of service cost which has recuperate customer's relationship and satisfaction. 4 The studies indicated in table 2 have been briefly described in the following sections. (Gunasekaran, A. & Ngai. E.W.T, 2005)examined a review for mobile commerce research and applications. The study identified 149 articles on mobile commerce published between 2000 and 2003. The study concluded that the topic is still under development and offers potential opportunities for further research and applications, Since the mobile commerce is at the stage of development, a review of the literature in the study determined the objective of bringing to the fore the state-of-art in mobile commerce research and applications. It will initiate further research on the growth of, mobile commerce technologies. Besides the reasons for selecting the time period is fairly new and most of the research on mobile commerce began to be conducted only during this period. The articles were analysed through the distribution of articles by year of publication, journal and subject. Further, (Gunasekaran, A. & Ngai. BWity 2005)reviewed the literature on mobile commerce and applications using a suitable classification scheme to identify the gap between theory, practice and future research directions. However, it has provided some future directions for research and has selected and searched various online journal databases to provide a comprehensive bibliography on mobile commerce literature. Each 149 articles was carefully reviewed(Gafeena, R. Mundewate, Wi | mee fest OF the study revealed that perecved wsfulnss @Kamanh” a, N: | Perceived ease of use, Subjective norms, consumer awareness 2011) > Sige risk are the important determinants of mobile (Alshelkh, LE] Cus ee Seema lustomer’s adoption of technology is related to decision making a which depends on the value of customer’s perceived value to use | mobile banking services of technology. (Okiro, K 7 rere og | dis fen Showed the impact of mobite Banking and intemet + J-»2013) | banking on performance of financial institutions. At the same the study found that mobile banking has been adopted at a faster om rate than internet banking. (Chitungo, S. K- | The result reveated that perceived usefulness, pereeived ease of ra |e relative advantages, personal innovativeness and social norms influence the intention toward mobile banking, while perceived risks and perceived costs deterred the adoption of the service. The results showed that mobile banking i i e resul i improve banks service (Adewoye, 2013) | delivery ina form of transactional convenience, savings of time, quick transaction alert and save of service cost which has recuperate customer's relationship and satisfaction. The studies indicated in table 2 have been briefly described in the following sections. (Gunasekaran, A. & Ngai. E.W.T, 2005)examined a review for mobile commerce research and applications. The study identified 149 articles on mobile commerce published between 2000 and 2003. The study concluded that the topic is stil under development and offers potential opportunities for further research and applications. Since the mobile commerce is at the stage of development, a review of the literature in the study determined the objective of bringing to the fore the state-of-art in mobile commerce research and applications. It will initiate further research on the growth of mobile commerce technologies. Besides the reasons for selecting the time period is f the research on mobile commerce began to be conducted only analysed through the distribution of articles by E.W.T, fairly new and most 0} during this period. The articles wer Gunasekaran, A. & Nga ions using a suitable year of publication, journal and subject. Further, ( ture on mobile commerce and applicati 2005)reviewed the litera ip between theory, practice and future research classification scheme to identify the gay it has provided some future dires journal databases to provide a com| articles was carefully reviewed directions. However, tions for research and has selected and searched various online le commerce literature. Each 149 prehensive bibliography on mobil15 ee al _ five aera Wireless network infrastructure, (2) eee ae ireless user infrastructure, (4) mobile commerce theory and fea rig earn ae e applications. All of the articles were journal; and by subject. Although dee WA. Ma ed to be exhaustive, it has provided a reasonable amount of insight into the state of the art in m-commerce research. In the ast Wiese mobile devices or technologies were regarded as Kind of haxury for individuals. Thus, this situation has changed. The market for mobile technologies has seen significant growth in the past few years. This is creating a new opportunity for the growth of mobile commerce. According to the survey conducted by data monitor, global mobile commerce revenue was amounted to $31.7 billion on 2005 Mobile commeres | frontier and is an attractive area for research because technologii of its relative novelty, rapid growth, and potential applications (Wiley, M. & Sons, J, 2002). Mobile commerce applications have two major characteristics: mobility and broad reach. Mobility implies portability, e.g., users can conduct real time business via mobile devices. With mobile commerce, people can reach at any time via a mobile device. It refers to the conduct of commerce via wireless devices. The fact that mobile commerce articles are scattered across various journals in disciplines such as business, management, marketing, engineering, and information technology (IT), and information system (IS). It would be difficult o group the literature under any specific disciplines. So, the literature search was based on the descriptor, “mobile commerce” cor “m-commerce” and was limited to peer reviewed journal articles. Mobile commerce applications require the support of technology from the foundation of wireless user mobile middleware, and wireless net ). In addition, corresponding theory a the development of m-commerce. were deemed to be for financial uses such infrastructure, twork infrastructure (Mennecke, B. BE. & Strader, T. J 2003; nd research activities are essential to provide guidance fo Mainly the review of the mobile commerce articles as mobile ile banking and relatively fe infrastructure which wel ments and mot wer articles on wireless network, ie ; yetworkins infrastructure wireless user re related to mi 1s requirements and mobile interfaces.Therefor re, mobile commerce research can rise in academic sectors which can support financial activiti pares cial activities, Mobile banking and payments are issued that have been widely Seeaiieaae Research in the 2005 reached a conclusion that itis surprising to see limited articles on other m-commerce applications. Besides, the research is concemed with the published journal, mobile commerce applications, and eases which focused on descriptive and theoretical matters rather than practicality of the mobile banking. ‘The results based on a data set that indicates that attitude, subjective norms, and perceived security and privacy (PSP) are influential predicators of intention 0 use sms (hort messaging service) banking (Ramayah, T. & Amin, H., 2010). One of the facil + of conducting banking transactions, which is also easy to access, is SMS banking. By definitions, SMS banking is defined asa banking transaction through SMS using mobile phone. Previously, SMS banking evolved among people a5 2 key social memo to connect with family members, friends, and teachers. At present, SMS banking has evolved as a medium of disseminating banking information to mske individual contact with banks better. SMS banking was first introduced in 2004 in Malaysia. Since then, SMS banking has become an interesting topie research, not only in Malaysia but also in other countries. In the light of this research, Technology Acceptance Model (TAM) and multiple regression model was widely employed. Inthe light ofthe research, the study focused on the bank customers who had cell phone ve willing to use SMS banking in the future. Rooted on bank customers, out of total 200 questionnaires, only 115 questionnaires were found to be usable for the further and wel analysis of the data. The analysis and discussion of findings based on factor analysis which was conducted prior to regression analysis in order to identify the appropriate ‘tems. Research concluded that attitude and subjective norm were significantly tention to use SMS banking where these variables were the key associated with in ystem. Thus, communicating predictors determining one’s intention S$ particular s the importance of security and privacy of SMS banking services is therefore important tomers’ personal information and money. As proven i rity and privacy) was one ofthe key factors to determine a to protect bank cust in the study results, PSP (perceived sec!17 bank cu: °s intenti ank customer's intention to use SMS banking. Therefore, of the three tested Hao lependent variables, PSP was the strongest followed by subjective norm and attitude, Ina recent paper, the study on customer's adoption of mobile commerce (m-commerce) enumerates thatthe mobile phones provide customers immense facilities through which their lives have become so much easier. The process of carrying out banking transactions from mobile phones is a great one because not only does it reduces the time spend on making transactions physically but it also reduced certain customer's fears. These fears are turned into trust and security by the service providers through mobile banking. Studies such have shown the sophisticated technology with common. characteristics of competitive volatility, market uncertainty, and technology uncertainty (Qureshi, F. A., Anus, S., Malik, S., Abbasi, A., Chaudhary, A.& Mirza, S. N., 2011). It have concluded the research based on m- commerce applications and its related journal and cases (Gunasekaran, A. & Ngai. E.W.T, 2005). While Qureshi (2011) pointed out the risk influencing the initial adoption of mobile banking which indicates that risk perception derived from eight different facets, is a salient antecedent to innovative technology acceptance. Based on quantitative survey 306 responses of which 187 were male and 119 were female, observed to determine the risk perception and trust of mobile banking. Moreover, the paper showed that adopters of mobile banking had some intermediate education and is generally younger. As younger customers tend to perceive lower risks in mobile banking than mature customers and are less resistant to changing their habits to perform financial transactions. This proved that students are potential subjects in adopters of mobile banking. n of mobile banking Qureshi (2011) focused on the risks influencing the initial adop| in Pakistan. Mobile banking can be successful if the economic transactions were carried out in a convenient and vigorous system. Many users were unable to understand this 1m and technology because of the lack of awareness. They cou! stem, This perceiving could be reduced with the help of syste Id only perceive the risks involved in this sys awareness provided by marketers through advertsi that perceived risk was the most significant determi “The analysis indicated that perceived risk has six ing and publications. The results and findings indicated ning factor for mobile banking services acceptance.18 significant facets: financial, performance, privacy, rychological, and overal ial, ance, privacy . ime, psychological, risks. The report suggested that mol : ae : ‘commerce project will continue to grow more e international demand of the mobile technology that is advancing with the development of humans rapidly. However, if mobile commerce is introduced through methods evolved by the developed nations, the innovation can be ae over to a great extent and can attract more attention, The paper of Qureshi (2011) concluded that perceived risk is the most significant determining factor for mobile banking services acceptance. Therefore, it proved that those who believe mobile banking service are useful and have less risk towards making transactions and privacy tend to adopt such innovative technology. Examined that mobile banking (m-banking) faces various types of resistance that may hinder customers’ adoption in Egypt and provide extensive surveys on the three groups of m-banking non-adopters, namely postpones, opponents, and rejecters (Elbadrawy, 2011), The study explores the reasons for resisting m-banking services and determined whether it differs with regards to customer groups. Based on the models and different studies on consumers behaviour towards innovation, consumers’ resistance adoption anking is mostly determined by psychological barriers; image and tradition of m- barriers, and functions barriers; usage, value and risk barriers towards existing products. ‘Thus, the study reported that the three non-adopter groups differ significantly with s. On the other hand, risk and tradition barriers respect to usage, value, and image barrier did not show any statistical significances however, risk barrier received the highest overall mean. Significant relations between usage, isk and image barriers with the gender and level of education were noted. Finally, tis seems to justify why people will be less open to new ideas and to be more resistant to innovations such as mobile banking. satisfaction and mobile banking adoption in study revealed the key factors of mobile .ction in Pakistan where the firms ‘The relationship between customer &Rashid, K., 2011). The technology adoption which influence customer satisfa wn technology) applications, should focus upon IT (informatio ; and risk. The dimensions considered for thi Pakistan (Saleem, Zz innovative services, e current study are security, customer trusteritcans facets: financial, performance, privacy, time, paychological, and overelt ahs. The report suggested that mobile commerce project will contimar wo Brow —OTE ecuese of the international demand of the mobile technology thet is advancing =i ths Gevehopmmrnt of tmumans rapetly However, if mobile commerce is nwrodeced teeengh methods evolved by the Seveioped mations, the innovation can be exploited ones to 8 great extent and can atiract more attention. The paper of Queeshi (2011) comchated that perceived risk is the most significant determining fackor for soinite | penking services scccptance. Therefore, it proved that those sho belies motile banking service are wef! and have leas rsh towards making trannacticms and prnvacy wil tomd to adopt such wnnowative techmclogy Bxarnimed that encinile banking (ee banking) faces various types of eesintamce that mney hinder cussamors’ adoption in Egypt and provide cxtemalve marweys om the thoes GroM Of m-bambing non-adomtors, namely joakpomes, opponents, asmed Mepecters (bide, 2011). Thee saad copitores the reasons for rosinting e-banking services and determined tabetha it differs with regards to camomer groupe Based on the medals and diffrent | smalics om comsumers bcheviout tomands enowstion, comumary’ emiitamce to adoption of mehunkiing ts most) detormunad &} poycholugwal barrier, image amd tmsition rasviers, and functions barriers, asngs. other aad rik Barrens tomes exiting product Thess, thee std) roprorind that the Cues sum-atopter groupe on sagmaticamtly wath panpect to wings. ue und amege Barriers On Dae ice Band, rah am wreitaom Barrer Gad 208 thom amy sate! sapeificance, Romewer, ftok basrier received the highest overall moan Sagtifuat Mwisinme betwee songs faked mage Darbar with Me perader and lev! of education wees goned Pimaly hae acres bo juntilly ey peragile willl he fens open to ew ions aad to Be Store eeoistamt ko immovatioms sac as ancitihesignificant facets: financial, performance, privacy, time, psychological, and overall risks. The report suggested that mobile commerce project will continue to grow more because of the international demand of the mobile technology that is advancing with the development of humans rapidly. However, if mobile commerce is introduced through methods evolved by the developed nations, the innovation can be exploited over to a great extent and can attract more attention. The paper of Qureshi (2011) concluded that perceived risk is the most significant determining factor for mobile banking services acceptance. Therefore, it proved that those who believe mobile banking service are useful and have less risk towards making transactions and privacy will tend to adopt such innovative technology. Examined that mobile banking (m-banking) faces various types of resistance that may hinder customers’ adoption in Egypt and provide extensive surveys on the three groups of m-banking non-adopters, namely postpones, opponents, and rejecters (Elbadrawy, 2011). The study explores the reasons for resisting m-banking services and determined wiether it differs with regards to customer groups. Based on the models and different studies on consumers behaviour towards innova ion, consumers’ resistance to adoption of m-banking is mostly determined by psychological barriers; image and tradition barriers, and functions barriers; usage, value and risk barriers towards existing products, Thus, the study reported that the three non-adopter groups differ significantly with respect to usage, value, and image barriers. On the other hand, risk and tradition barriers did not show any statistical significance; however, risk barrier received the highest overall mean, Significant relations between usage, risk and image barriers with the gender and level of education were noted. Finally, this seems to justify why people will be less open to new ideas and to be more resistant to innovations such as mobile banking. The relationship between customer satisfaction and mobile banking adoption in Pakistan (Saleem, Z. &Rashid, K., 2011). The study revealed the key factors of mobile technology adoption which influence customer satisfaction in Pakistan where the firms should focus upon IT (information technology) applications, innovative services, security, customer trust and risk. The dimensions considered for the current study areorganizational factor, technological factor, strategic factor, functional factor and economic factor based on technology acceptance model (TAM) and theory of planned behaviour (TPB). It intended to identify which one among these factors perceives significance with respect to customer satisfaction. The study shows significant because of need for research on mobile banking and the impact of technology adoption on customer satisfaction, Based on the survey of 230 bank employees and 230 bank customers, the result found that factors as organizational factor, technological factor, strategic factor, and functional factor were positively significant in relation to customer satisfaction and intention to use mobile services. But, it found insignificant relation with economic factor. However, cost of doing business and market risk being the most important measures of economic factor which affects the customer satisfaction. The study on customer's adoption of mobile commerce. The study consists not enough is known regarding how customers perceive and evaluate electronically delivered services (Saleem, Z. &Rashid, K., 2011). The study highlighted the need for further research to measure the influence of e-service on customer perceived service quality and satisfaction. The study considered the five factors perceived usefulness, perceived ease of use, subjective norms, consumer awareness about mobile banking and perceived risk associated with mobile banking, Whereas, highly publicized cases involving major security failures might have contributed to the public’s concern and lack of acceptance of mobile banking, Thus, the study examined the impact of perceived usefulness, perceived ease of use, subjective norms, and consumer awareness on mobile banking and perceived risk on the acceptance of mobile banking by the consumers. Further research on consumer attitude and adoption of mobile banking showed there are several factors predetermining the consumer’s attitude towards online banking such as person’s demography, motivation and behaviour towards different banking technologies and individual acceptance of new technology. The adoption of electronic banking forces consumers to consider concerns about password integrity, privacy, data encryption, hacking and the protection of personal information. Therefore, the result of the study revealed that perceived usefulness, perceived ease of use, subjective norms, consumer awareness and perceived risk are the important determinants of mobilebanking adoption. The study also concluded that majority of customers are accepting online banking because of many favourable factors. Analysis concluded that usefulness, ease of use, subj tive norms, awareness and risks are the main perusing factors to accept online bankit yystem where these factors have a strong and positive effect on customers to accept mobile banking system. In addition, find that customer's perceived value to use mobile banking services is an attempt to a better understanding of mobile banking usage based on perception value (Alsheikh, L.& Bojei, J., 1012). The study determines benefit factors (performance expectancy and effort expectancy conjunction with sacrifice factors (cost and risk) improving customer usage rate of mobile banking. It has the effects of expanding the information and telecommunications sector along with the financial services industry. This study examined factors affecting the value held by bank customers toward the use of mobile banking services which enable banks to develop a marketing strategic plan based on perceived value from the customer’s point of view. The study based literature on technology adoption which has developed various models for use in describing the usage and adoption of technology among individuals. Introduced the unified theory of acceptance and use of technology (UTAUT) which is based on four core determinants of intention and usage: performance expectancy, effort expectancy, perceived cost and perceived risk (Venkatesh, V., Morris, M., Davis, G. & Davis, F, 2003). The objective ofthe paper was to examine factors affecting the value held by bank customers toward .¢s. This study enabled banks to develop a marketing the use of mobile banking serv’ strategie plan based on perceived value from the customer's point of view. Customers” adoption of technology toa significant level was related to decision making and thereby depending on the value customer's perceived value to use mobile banking services of technology, customers were expected to use a particular technology. Literature on technology adoption has keenly developed various models for use in deseribing the usage and adoption of technology among individuals. With the development of information technology, banking tasks has been more efficient and cheaper. The impact of mobile banking on performance of financial institutions in 2013). The study determined the impact of mobile and Kenya (Okiro, K., Ndungu,internet banking where it identified that the most prevalent internet banking service is balance inquiry wi is i Palance inquiry while the least is online bill payment. Cash withdrawal was the most commonly used mobile banking service whereas purchasing commodities was the least comn ed ae fi monly used. Of the services provided by the financial institutions via internet banking the service that customers used most was online balance enquiry whereas the Teast used service was online bill payment. The result indicated that internet banking had a positive impact on performance of financial institutions. The study was able to achieve the set of objectives; to explore the impact of mobile banking and internet banking on performance of financial institutions, as well as the extent of use of mobile and internet banking by surveying a representative sample of financial institutions. The study found that commercial banks had the highest rate of usage of internet banking, among the financial institutions sampled while micro finance institutions have not yet adopted internet banking. The study revealed that the most prevalent internet banking services were seeking product rate information and the use of online eredit cards. Since its introduction in mid-2005, the adoption of internet banking has been slow due to impaired unavailability of infrastructure and lack of supportive legislation for internet banking. However the adoption of internet banking has enhanced performance of the banking industry due to increased efficiency, effectiveness and productivity. At the same the study found that mobile banking has been adopted at a faster rate than internet banking. Several authors have further identified the benefits and impact of mobile banking in terms of ubiquity coverage, resistance, acceptance, flexibility, interactivity, and with ty compared to conventional banking channels such as automated greater accessil teller machine (ATM), and non-mobile banking (Laukkanen, 2007)).In contrary view, the research related with the technology acceptance model to mobile banking adoption in rural Zimbabwe looked at the bridge gap by extending the technology acceptance model (TAM) originated by Davis (1989) to investigate the factors influencing mobile 2013). banking adoption in Zimbabwe's rural areas (Chitungo, S. K. & Munongo, (Davis, 1989), the acceptance and rejection of technology can be predicted by using the technology acceptance model (TAM), which demonstrates the relationship connecting belief, attitude and action purpose.2 To investigate the © investigate the applicability of the extension of the renowned framework of technology acceptar TAM) i gy acceptance model (TAM) in determining factors that influence unbanked. rural communitics of Zimbabwe's intention to adopt mobile banking servi (Chitungo, S. K. & Munongo, S., 2013). The study distributed self-administered questionnaire, out of 400 questionnaires only 275 useable questionnaires were returned. The study focused on the extended TAM which can predict consumer intention to use mobile banking. Specifically, perceived usefulness, perceived ease of use, relative advantages, personal innovativeness and social norms have significant effect on user's attitude thus influence the intention toward mobile banking. While perceived risks and perceived costs deterred the adoption of the service, The study has provided further insights into mobile banking strategies for mobile network operators, banks, and software engineers to design and implement mobile banking services to yield higher in Zimbabwe. The consumer acceptance amongst the unbanked rural communitis study further surveyed literature on the extended model of TAM therefore provided clearer understanding of the factors influencing mobile banking adoption where the: findings significantly contribute to the existing mobile banking literature, ‘The impact of mobile banking on service delivery in the Nigerian commercial banks (Adewoye, 2013). The study has carried out 140 questionnaires in Lagos state, administered and distributed to both senior and junior staff of the selected banks. The results of the studies regarding the impact of mobile banking on service delivery revealed that mobile banking improve banks service delivery in a form of transactional quick transaction alert and save of service cost which has convenience, savings of time, recuperate customer's relationship and satisfaction. The study analysed the collected data based on frequency table and percentage basis. The study has recommended that banks management should ereate awareness to inform the public about the benefits derived on the electronic banking service products. Collaboration among banks should ‘ned, Skilled manpower and computer wizard should be employed dd hackers from manipulating the bank: be perfectly maii by every bank to prevent fraudulent personal an 4d stealing money from the banks accounts. Finally, provision and maintenance yystem such as the availability of the basic infrastructures is ning of the mobile banking services. data ani of public network, s; fundamental to the efficient funetior