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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-25958/12/2019 Trust in Mobile banking
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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