trust in mobile banking

8/12/2019 Trust in Mobile banking

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No Bank nearby? . Go TRUST your Mobile

Analysis of Factorsthat determine trust

in Mobile Banking

Hoda Aghamohammadi Nazari CGA110113Bobby Darmawan CGA110107

Pg Hjh Faizahanim Pg Hj Bakar CGA110120

Shima Abbasi CGA110067Faridah Nadzri CGA110056

Management Information SystemUniversiti Malaya

2012-2013


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Outline

IntroductionResearch QuestionsResearch Objectives

Literature ReviewDiscussionRecommendationsConclusionmobile banking video
http://www.investinganswers.com/financial-dictionary/personal-finance/mobile-banking-2595http://www.investinganswers.com/financial-dictionary/personal-finance/mobile-banking-2595


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IntroductionThree billion users marked globally.

Development of wireless technologyCreating new applications by companies to offer more

value-added mobile services.

Mobile Financial Service (MFS)

Mobile Banking performance is completely different fromthe traditional banking

It is ubiquitous, convenient, and interactive.

Checking account balances and historical transactionsenquiries, transferring funds between accounts ,


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SMS text : simple, customers should register and verify theirphone number with bank.Mobile web browser : same feature as SMS.Application : for iPhone, Android and blackberry connect the

user`s system directly to the bank server

M-Banking is not popular

In Korea, transaction using mobile devices covers only 3.5% of

all internet banking transactions.

In Taiwan is even less only 1.

Introduction


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Figure -1: Deployment of Mobile Financial ServicesIn Developing Countries (2011)

Illustrates that only four countries has a high rate adoption


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Country Usage Percentage Change

2010 2011

China 10% 25% 150%Brazil 10% 21% 110%

Kenya 6% 18% 200%

USA 11% 22% 100%

Percentage Increase in M-Banking Usagefrom 2010 to 2011


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Research Questions

What is the definition of Trust?

Which factors affect the trust to

M-Banking?

What should the institutions do

to increase the level of customers

trust to M-Banking?


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Research Objectives

To identify factors that build TRUST.To examine the role of trust in M-Banking.

To suggest some methods to increase the level of

customers TRUST in using M-Banking services.


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Literature Review

Mobile Banking in MalaysiaInfancy but growing

Increase rate of 1122% from 2005 to 2011

Doubled in 2011

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010 2011

total, 1560.3

N u m

b e r o

f s u

b s c r i

b e r s

( ' 0 0 0

)

Years

Mobile banking penetration


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Literature ReviewTrust Definition

Complex concept

According to Oxford Dictionary : strongly fixed belief inthe reliability, truth, or ability of someone or something

Payne(2002): In a business relationship as to what extend eachparty can rely on the integrity of the other partys promise

Chew (2007) and Pavlou (2003): as a construction of salient beliefthat includes credibility (integrity, honesty, and reliability)and goodwill (benevolence).


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Literature Review

Trust in M-BankingTrust in M-Banking: the belief that allows users being

influenced by a bank after getting the banks characteristics from its system ( Koo , Wati, 2010 )

Determines peoples perception of uncertainty and risk

M-Banking in comparison to E-Transactions involves moreuncertainty and risks

Less research compare to online Trust


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Discussion

Trust is Pre-dominant factor in novel technology

Trust is dynamic

Party trust : trust in the vendor,Control trust : trust in the technologies involvedTransaction trust : the level of trust which a user must

gain in order to confidently complete a transaction.

Party Trust + Control Trust = Transaction Trust


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Discussion

StructuralAssurance

SystemQuality

Information Quality

Familiarity

FirmReputation

Calculative Benefit

TrustPropensity


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Discussion

Structural Assurance

System quality contextVulnerability, integrity and con fidentiality of all

information and data is importantStructural assurance are the safeguards materials such as

contracts, promises, guarantees, and regulations that willbring trustors beliefs that the trustee will fulfill the promise


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Discussion

System Quality

System quality is manifested in the systems overallperformance

Specific system development processes, encryption, andprocedures

Feedback mechanismsThird-party certifications eg. Vendors


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Discussion

Information Quality

Informations accuracy CompletenessRelevanceContent needsTimeliness


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Discussion

Trust Propensity

Trust propensity is a users t endency to trust otherpeople.


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Discussion

Firm Reputation

Corporate image significantly in fluences customers trustnot only in form of traditional bank but also bank thatserves the M-Banking.


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Discussion

Familiarity

Familiarity is an ongoing learnin g process of a person pastexperience, interactions of what, why, where and whenothers do what they do.

What to expect in the future of unpredictable action of aperson, basically based on past interactions


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Discussion

Calculative

The banks customer considers that they would get more

benefits of using mobile banking such as no waiting time oreliminate travelling cost go to the bank, customer morefavourable to use mobile banking.

Applied the game theory in the case of mobile banking


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Recommendation

StructuralAssurance

SystemQuality

InformationQuality

Trustpropensity Familiarity

Firmreputation

Calculativeness


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Recommendation

Structural assurance

Customer protection Govt and central bank

regulations. Security features

System quality

Ease of access,reliability, transparency& accuracy

Technologicalsafeguards.

Customer service Declare vendor

Information quality

Up-to date data Quality lead to trust &

repeat usage Right, completeness,

context, accuracy, format,timing, place and purpose


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Recommendation

Trustpropensity

4 ps marketingmix (product,price, promotion

and place

familiarity

Training Banking

experience

Firm reputation

Good corporateimage

Long-termrelationship

culculativeness

Build rapport KNY policy Revise

guideline


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ConclusionMarket potential for Mobile Financial Service (MFS)

The newest novel technology after :ATM machines Telephone banking

Internet banking M-Banking


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Conclusion

M-Banking truly benefits both customers and banks.

However the factor that adoption rate of M-Banking is

low.


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ConclusionBank should factors that determine the trust for M-Banking.

Structural Assurance : legal aspects

System Quality : service deliveryInformation Quality : information accuracyTrust Propensity : Marketing MixFamiliarity : getting used to

Firm Reputation : corporate imageCalculative : benefit


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Q & A

trust in mobile banking

Documents