GR 15 Market Research Report Final

7/30/2019 GR 15 Market Research Report Final

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UNDERSTANDING FACTORS AFFECTING TRUST IN AND

SATISFACTION WITH MOBILE BANKING AND ITS FUTURE

PROSPECT IN BANGLADESH


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UNDERSTANDING FACTORS AFFECTING TRUST IN AND

SATISFACTION WITH MOBILE BANKING AND ITS FUTURE

PROSPECT IN BANGLADESHPrepared for:

Mr. Md. Iftekharul Amin

Lecturer

Prepared by:

Ummul Ara Sayeda, Roll: 73, 45D

Md. Mominur Rahman Mondol, Roll: 95, 45D

Md. Farhan Imtiaz, Roll: 112, 45D

Nowreen Rahman, Roll: 21, 44E

Group: 15

Course Title: Market Research (M609)

Institute of Business Administration

University of Dhaka

January 03, 2013


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Letter of Transmittal

January 03, 2013

Md. Iftekharul Amin

Lecturer,

Institute of Business Administration,

University of Dhaka.

Subject: Submission of research report titled Understanding Factors Affecting Trust in and

Satisfaction with Mobile Banking and its Future Prospect in Bangladesh

Dear Sir,

We are submitting our research paper for the topic Understanding Factors Affecting Trust in

and Satisfaction with Mobile Banking and its Future Prospect in Bangladesh as a part offulfilling your instruction for acquiring the learning objectives of Market Research course.

We thank you for assigning us this research project as it has provided us with a valuable

opportunity of improving our knowledge on this new technology as well as our research skills.

Sincerely Yours,

________________ _______________

Ummul Ara Sayeda, Roll: 73, 45D Md. Farhan Imtiaz, Roll: 112, 45D

________________ _______________

Md. Mominur Rahman Mondol, Roll: 95, 45D Nowreen Rahman, Roll: 21, 44


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iv

Table of ContentsExecutive Summary ....................................................................................................................................... v

1. Introduction ............................................................................................................................................ 1

1.1 Overview of bKash and DBBL Mobile Banking .................................................................................. 7

1.2 Limitations of bKash .......................................................................................................................... 8

1.3 Limitations of DBBL Mobile Banking ................................................................................................. 9

1.4 Problem statement ......................................................................................................................... 10

2. Objective of the Report ......................................................................................................................... 10

2.1 Broad Objective ............................................................................................................................... 11

2.2 Specific Objectives........................................................................................................................... 11

2.3 Scope ............................................................................................................................................... 12

3. Research Design and Methodology ...................................................................................................... 12

3.1 Qualitative Research ....................................................................................................................... 12

3.1.1 Secondary Literature Review ................................................................................................... 12

3.1.2 In-depth Interview.................................................................................................................... 13

3.2 Quantitative Research ..................................................................................................................... 13

3.3 Sampling Method, Unit, and Size .................................................................................................... 13

3.3.1 Sampling Technique ................................................................................................................. 13

3.3.2 Sampling Unit ........................................................................................................................... 14

3.3.3 Sampling Size ............................................................................................................................ 14

4. Analyses and Findings ........................................................................................................................... 15

4.1 Findings from Frequency analysis ................................................................................................... 15

4.2 Finding from Factor Analysis ........................................................................................................... 18

4.3 Finding from Multiple Regression ................................................................................................... 18

5. Conclusion ............................................................................................................................................. 20Bibliography ................................................................................................................................................ 21

Appendix A: qualitative research description ............................................................................................. 22

Appendix B: Survey Questionnaire ............................................................................................................. 24

Appendix C: Statistical Analysis................................................................................................................... 30


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v

Executive Summary

Mobile banking is a relatively new concept in Bangladesh. Since its inception few years back, it

has obtained widespread acceptance and a strong user base. Several factors like ease of use,

security, fast transaction, low cost, better system, ample availab ility, etc. affects peoples

adoption of this service. The research studies the main factors that are affecting trust in and

satisfaction with mobile banking provided by bKash and DBBL Mobile Banking and its future

prospect in our country. It attempts to find out whether trust in and satisfaction or adoption of

mobile banking is influenced by factors like perceived usefulness, perceived ease of use,

relative advantage, and perceived risk. The study shows that, mobile banking is most commonly

adopted by male consumers aged between 25 to 34 years. More than half of the respondents

have educational qualification above SSC, most of them are working, and 55.5 % of respondents

have income below Tk. 6000. Almost all the respondents use this service for only sending or

receiving money, only a few pay electricity bills through it. Users agree that it is easy to use

mobile banking to accomplish their task. Majority of the users are satisfied regarding its

security issues and believe that they can accomplish their tasks quickly using mobile banking.

They also trust in the proper maintenance of their accounts by respective banks and not aware

of the relative fees charged by other service providers. However 42% of respondents do not

know whether registration fee is higher than the other operators and one third of them are

unaware of the relative transaction fees. Users think ease of use, low cost, fast transaction,

wide availability, security, and better system quality are the features that has made this service

useful and satisfactory. Nonetheless transaction speed, cost, ease of use, and security used to

affect the level of satisfaction about the service. But users are satisfied with mobile banking

mainly because of fast transaction and its security. In addition Bangladesh has seen a staggering

growth in the number of mobile banking subscribers in 2012. Besides, an overwhelming

amount of money is being transacted each day through this service and the transaction volume

is increasing day by day. So, from its substantial growth and strong and potential customer

base, it can be forecasted that mobile banking has a bright future in Bangladesh.


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1. Introduction

As technology advances, we get more and more amenities to make our lives comfortable.

Mobile banking is one of those amenities which have made our daily lives easier and effortless.

Mobile banking is a term used for performing balance checks, account transactions, payments,

credit applications, and other banking transactions through a mobile device such as a cellular

phone or Personal Digital Assistant (PDA). Mobile banking has until recently (2010) most often

been performed via SMS (short messaging service) or the mobile web. It has shifted the banking

concept in a dramatic way. Globally mobile banking has become very popular as it also permits

mobile commerce. Mobile banking has proven extremely successful in the countries that have

huge population base, agro based economy, and a great level of disparity in the distribution ofwealth in the society. All these criteria match with Bangladesh. Moreover a huge cellular

customer base has promised the success of mobile banking in our country.

A latest statistics issued by BTRC (Bangladesh Telecommunication Regulatory Commission)

states that there were 85.455 million mobile subscribers at the end of December 2011

(www.btrc.gov.bd). This fact shows the huge potential for mobile banking in Bangladesh where

enormous number of un-banked people can be brought under mobile banking and government

can trail each and every financial transaction happening in the country. There are around 160

million people in Bangladesh, of which, only 13% have bank accounts whereas 51.53% of the

total population is using mobile phones. Providing financial services using this mean can make

the service even more accessible and cost effective for the vast population of the country. Also,

providing traditional banking services to the remote areas in this country may not be possible

for all the commercial banks whereas they can easily provide the people of those areas with a

better mobile banking service due to the availability of mobile phones and mobile networks.

Assuming these huge potentials for mobile banking service in Bangladesh, Bangladesh Bank has

allowed 10 banks to initiate mobile banking. So far Dutch Bangla Bank Ltd. (DBBL) and BRAC

Bank Ltd. have launched this service. DBBL has launched the service and after that BRAC Bank

Ltd. has launched the same service named bKash. Both of these banks are using Bank Led
http://www.btrc.gov.bd/http://www.btrc.gov.bd/


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Model of mobile banking. These two providers made the largest contribution to the nearly

500,000 new mobile accounts and more than 9,000 new agents. (www.cgap.org)

With a whopping 275 percent rise, a total of 1.5 million subscribers came under mobile banking

service till November 30, 2012 against 0.4 million of March last, according to Bangladesh Bank

(BB) statistics. "Mobile banking service is more suitable for the huge working people against the

traditional banking services," Khondkar Morshed Millat, Deputy General Manager of

Bangladesh Bank (BB) told the FE recently. Around Tk. 330 million transactions per day is being

settled under the mobile banking services. Each month, the transaction volume through mobile

banking is increasing by 15 per cent. The BB sources said through this service, transaction worth

around Tk. 10 billion (1000 crore) takes place in each month.


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Services provided by mobile banking:

Customer registration

Disbursement of inward foreign remittances,

Cash deposit or withdrawal using mobile account through agents / bank branches / ATM

/ mobile operators outlets.

Person to business payments, for example: a. utility bill payments, b. merchant

payments

Business to person payments, for example: salary disbursement, dividend and refund

warrant payments, vendor payments, etc.

Salary disbursement

Air-time top-up

Fund transfer

Bangladeshi people are less tech-savvy than others and they used to adopt a new technology

slowly. Therefore it is a very big challenge for mobile banking to be successful since it is totally a

new concept in this country. Our focus is to understand users satisfaction with mobile

applications by assessing the following three quality factors associated with mobile banking,

and how they affect consumers trust and satisfaction:

System quality

Information quality

Interface design quality

Our proposed research model, based on DeLone and McLeans model, assesses how these

three external quality factors can impact satisfaction and trust. Moreover, the aim of this

research is also to investigate the factors influencing the adoption and effectiveness,

challenges, and prospects of mobile banking in retail banking.

This model (DeLone and McLean, 2003) explains the impact of IS (Information System) at the

individual and organizational levels. The research model builds on the individual level


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constructs of system quality, information quality and interface design quality, and their

subsequent impact on trust and customer satisfaction.

System quality

The concept of system quality, first introduced by DeLone and McLean (1992), was defined as

quality manifested in a systems overall performance and measured by individuals perceptions

(De- Lone and McLean, 2003; Liu and Arnett, 2000; Schacklett, 2000).

Vendors are faceless on the mobile banking, so their systems quality becomes the online

storefront by which first impressions are formed. It stands to reason that if a consumer

perceives a vendors system to be of high quality, that consumer will be likely to have high

levels of trust in the vendors competence, integrity and benevolence, and will be willing to

spend money with that vendor.

Information quality

The quality of information, as assessed the by customers, usually influences their level of

satisfaction.

Interface design quality

Interface design quality is an area of research that examines how information is displayed. In

mobile banking, an interface is often the first point of contact. It is therefore important that a

good image is presented, as users will form their impressions based on this initial information.

Numerous studies have assessed such factors as display formats, colors, and graphs versus

tables and how these factors affect customer satisfaction. Particularly in the case of mobile

banking, improperly designed screens and interfaces can cause customers unnecessary work

and can negatively influence their utilization (DeLone and McLeans, 2003).


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Fig: DeLone and McLeans (2003) updated IS success model

Determining factors affecting customer perception and attitude towards and satisfaction with

mobile banking is an essential part of a bank's strategy formulation process in an emerging

economy. A framework developed inSingapore identifying factors influencing the adoption of

Internet banking was used as a basis, and amended to assess cell phone banking. Factors

identified as influences included relative advantage, trial ability, and consumer banking needs,

with perceived risk having a major negative influence (Brown et al. 2003). According toReeti et

al. customers are influenced in their usage of mobile banking services by the kind of account

they hold, their age and profession, attach highest degree of usefulness to balance enquiry

service among mobile banking services, consider security & trust most important in affecting

their satisfaction level and find slow transaction speed the most frequently faced problem while

using mobile-banking (Reeti et al. 2009).

A study in Malaysia done by Black et al. (2001) and Lockett and Littler (1997), this study also

found that males are more willing to adopt new technology than females. The results could be

attributed to the male masculine personality which is often willing to take risks, and to

females personality which is anxious to try out new technological products. Besides this, men

also read more technological magazines and have a greater involvement with technological


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products. This study found that mobile banking is most commonly adopted by consumers aged

between 21 to 30 years. The high educational background of mobile banking users is explained

by the need to master the complexity of conducting financial transactions via mobile channels

(Black et al., 2001).

According to (Zhaohua Deng, Yaobin Lu, Zhiyu Chen), Perceived ease of use and perceived

service cost are found to have no significant effect on users behavioural attitude toward

mobile banking. And SMS usage has no effect with either perceived ease of use and behavioural

attitude. First, the result indicates that perceived ease of use have no significant effect on user

adoption of mobile banking. Second, the higher service costs do not definitely decrease

attitudes to use mobile banking. Perceived usefulness and perceived credibility are more

important than other factors for mobile banking adoption. At the same time, perceived ease of

use influences these two factors. Therefore, the development and marketing of mobile banking

service in China should take importance of these factors (Deng et al., 2008).

According to another study in Oman, it was found that, factors influencing the acceptance of

mobile banking usability and perceived quality are deemed key drivers. This is probably not

unexpected, however, what is interesting is that the market profile is skewed to middle aged

users, with social standing and herd mentality does not affect the adoption of the technology.

This, combined with emerging mobile savvy younger generation, poses an interesting challenge

for the future of the banking sector in Oman and implies a need for the sector to rethink the

strategic use of, and approach to, implementation of on-line mobile banking in a way that is

complementary to the cultural and ethological dimension of the market. (Riffai et al. 2011).

As a third world developing country, Bangladesh is far behind to reach the expected level in

global banking system (Hasan et al. 2010). So it is our urgent need to upgrade its banking

system. This research aims at determining the present scenario of mobile banking to

understand the factors influencing users satisfaction and at the same time it would

demonstrate the scope of development and benefits of mobile banking compared with the

existing system.


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1.1 Overview of bKash and DBBL Mobile Banking

bKash (Powered by BRAC Bank)

bKash Limited, a BRAC Bank subsidiary, has launched its mobile banking operation on July 21,

2011. bKash is designed to provide financial services via mobile phones to both the unbanked

and the banked people of Bangladesh. The overall bKash value proposition is simple: a safe,

convenient place to store money; a safe, easy way to make payments and money transfers.

The bKash mobile wallet, a VISA technology platform which is fully encrypted to ensure most

secure transactions, will be the customer account into which money can be deposited and out

of which money can be withdrawn or used for various services. Customers will be able to

receive electronic money at any of the hundreds of cash out agents which bKash assign.

In February 2011, mobile operator Robi Axiata Limited signed a partnership agreement with

bKash to provide access to its services for Robi subscribers and extend the distribution of the

service. bKashs other distribution partner is BRAC which provides a local presence to offer the

bKash service at the vicinity of the beneficiaries. bKash has already selected over 500 agents

and is adding hundreds of new agents to its network every month. In addition, bKash has signed

an MOU with LGD and A2I to use their 4501 Union Information & Service Centers to make

financial services accessible to people who currently do not have access to banks into their

bKash accounts through salary, loan, domestic remittance, and other disbursements and

eventually will cash out the electronic money at any of the hundreds of cash out agents which

bKash assign.

Dutch-Bangla Bank Limited (DBBL) Mobile Banking

DBBL has launched the very first mobile banking service in Bangladesh on March 31, 2011. This

service has been launched with Agent and Network support from mobile operators

Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution

for the service. Under the mobile banking services, bank-nominated Agents perform banking

activities on behalf of the banks, like opening mobile banking account, providing cash services


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(receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account

can also be done from an ATM validating each transaction by mobile phone & PIN instead of

card & PIN. Other services that are being delivered through DBBL mobile banking system are:

person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill

payment), business-to-person (e.g. salary/commission disbursement), and government-to-

person (disbursement of government allowance) transactions. Although Banglalink and CityCell

are the only partner operators right now, DBBL authority has said that it will eventually

embrace all other mobile phone operators to provide maximum number of mobile phone

subscribers with Mobile Banking services.

Services provided by DBBL mobile Banking are as follows:

Customer Registration

Cash-in (cash deposit)

Cash-out (cash withdrawal)

Merchant Payment

Utility Payment

Salary Disbursement

Foreign Remittance

Air-time Top-up

Fund Transfer

1.2 Limitations of bKash

Procedure Requirements: customer needs be a Robi or Grameen subscriber. Moreover,

there are multiple steps of KYC procedures that seem redundant. (One to get a Robi or

Grameen SIM, another to open a bKash account).

Cash out Hazards: Sometimes agents do not have enough money to cash out.

Additionally, cash out charge for small amount (BDT 100-2500) is high which is around 2-

7 % of total amount. One user cannot cash out more than twice in a day.


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Multitasking Agents: bKash agents usually have other businesses. Most often, they

remain busy with other activities. Mobile money transfer requires a lot of hand-holding

(initially). Therefore, the time constraint for the agent is a big challenge.

Agents Expertise: the agents have inadequate training and low educational level. Not

all the agents are familiar with some bKash facilities.

Poor Infrastructure: Agent locations are mostly a part of some other shops, ex: VCD

shop, Laundry etc. Transaction of money occurs at open places so it is difficult to ensure

secrecy and privacy.

Security Issues: The secret code of the token must not be disclosed to the agent but

there is a high possibility to be so at rural areas. Token sender has been given a receipt

against the created token. While en-cashing the token the receiver has to put his

signature in the ledger book and yet there is no way to verify the signature since neither

the receiver nor the sender is a registered user. Therefore, once the secret code is

disclosed anyone can encash the token.

1.3 Limitations of DBBL Mobile Banking

Prolonged Procedure:DBBL mobile banking account takes minimum 3 working days to

be activated. DBBL representative collect the filled up forms from agents and then

submit them to the head office. After entering the required information to the database

the account gets fully activated. Before this procedure gets completed no other service

except Cash In (not even the balance checking) can be executed.

Higher Charges: Overall transaction charge of DBBL mobile banking is higher than of

bKash. For any amount more than 10,000 BDT bKash charges 1% where as DBBL charges

3%. Unlike bKash, DBBL charges for cash-in.

No Option for Fund Transfer Yet: Still DBBL mobile banking is not providing any fund

transfer service though it has been enlisted in their service list. Fund transfer charges

are also to be fixed.


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Limited Transaction: Maximum number of transaction per month is 20 and per day is 5.

So after four busy days, an a/c may become inactive for the rest of the month.

Multitasking Agent: Like bKash agents, DBBL agents are handling other businesses at

the same time. Therefore, the time constraint for the agent has been a major challenge.

Savings: Most of the users of bKash are from BOP segments and are using mobile wallet

for saving money. Since they want to save a little amount everyday the minimum cash in

amount needs be lowered. bKash allows wallet with zero balance and does not provide

any interest on savings. It is not a good option for saving indeed (especially for small

amounts) unless the saved money needs to travel some distance to reach the receiver.

Foreign Remittance: remittance can be sent from any nominated Exchange Houses of

Dutch-Bangla Bank located all over the world. This service is not offered by bKash.

Inadequate Funds Trap: Assume a person want to send Tk. 200 in two shots. Minimum

transfer amount for bKash is Tk. 100. Minimum cash-in amount for bKash is also Tk.

100. The first time, he cashes in Tk. 200 and sends Tk. 100, plus pays a Tk. 5 service

charge. His new balance: Tk. 95. He cant send that. Needs to cash in Tk. 100 at least. So

theres almost always an unusable amount left in the account.

1.4 Problem statement

Based on the secondary literature review we have defined the problem statement of our

research as To find out whether the trust in and satisfaction or adoption of mobile banking is

influenced by factors like perceived usefulness, perceived ease of use, relative advantage,

perceived risk.

2. Objective of the Report

The main objective of the report is to discuss in general about the recent developments and

factors that can affect future prospects of mobile banking in Bangladesh. In the process we will


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make observations about the industry and suggestions for a better future. The broad and

specific objectives are as follows:

2.1 Broad Objective

To develop an understanding of the factors affecting the trust in and satisfaction with

mobile banking in Bangladesh.

2.2 Specific Objectives

To analyze the services of Dutch Bangla Banks DBBL Mobile Banking and BRAC Banks

bKash.

To understand the kind of account users hold, age, education, and profession and

income level.

To identify the age groups more inclined to use mobile banking in Bangladesh.

To identify the services users mostly take through mobile banking.

To identify the factors those affect satisfaction of mobile banking service in Bangladesh.

To identify factors those can establish trust in mobile banking in Bangladesh.

To find out perceived risk associated with mobile banking.

To analyze the perceived ease and cost on the use of mobile banking in our country.

To analyze the relative advantages of using mobile banking and bank account holding

status of mobile banking customers.

To investigate the factors influencing the future prospects of mobile-banking in

retail banking.


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2.3 Scope

We have collected response only from the mobile banking users of DBBL and BRAC

Bank.

We have only covered Dhaka city as our research area.

We have focused on mobile banking users of DBBL and bKash due to shortage of time

and budget.

3. Research Design and Methodology

We have conducted a descriptive research to find out the current customer attitude toward

mobile banking, the factors associated with the satisfaction of using this service and futureprospects of mobile banking in Bangladesh. Also we have applied statistical techniques to see

the relationship among the factors influencing the adoption behavior of the customers. Both

qualitative and quantitative data have been used.

To achieve the objectives of this study, the research has followed a quantitative research

methodology. Quantitative research has been used to provide numerical measurement and

analysis of the adoption dynamic. Survey questionnaires have been used for standardization

purposes to allow for aggregation of the results. The investigation has done to identify whether

the independent variables are statistically significant factors in the adoption of mobile banking.

The research established the effect of independent variables, which included perceived risk,

trust, perceived cost, perceived usefulness, and perceived ease of use on dependent variables,

i.e. the adoption of mobile banking.

3.1 Qualitative Research

3.1.1 Secondary Literature Review

We have conducted a secondary literature review to identify the different factors that affect

the adoption of mobile banking and how they might be linked to the trust in and satisfaction of

users.


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Source of Data

The sources of secondary data are as follows:

National and international journals and articles.

Daily newspapers.

Websites of BRAC Bank, DBBL, and BTRC.

3.1.2 In-depth Interview

We have conducted in-depth interviews with Assistant Vice President of DBBL mobile banking

division, BRAC Bank mobile banking officials, and agents of mobile banking.

3.2 Quantitative Research

Based on the findings of the qualitative research, we have developed some hypothesis by

identifying the key variables and the relationship between them. We have developed

questionnaire based on the hypothesis.

Data Collection Methods

The data collection method for the questionnaire is personal survey.

3.3 Sampling Method, Unit, and Size

3.3.1 Sampling Technique

The sampling methods for this research were:

Non-probabilistic

Convenience sampling

Due to shortage of time we could not choose probabilistic technique. We have chosen

convenience sampling because it was easier for us to conduct personal survey on selected areas

of Dhaka city.


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3.3.2 Sampling Unit

For our survey, we have chosen primary respondents or sample units:

People currently living in Dhaka city.

Mobile phone owner with monthly income less than 12000 BDT.

People from the age group of 18 64.

3.3.3 Sampling Size

We have collected response from mobile banking users from 6 different mobile banking agents

located in Uttara, Motijheel, Dhanmondi, Shamoli, Mirpur, and Farmgate. We have chosen

those areas based on the convenience of survey. Our sample size was 45.


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4. Analyses and Findings

We have conducted frequency analysis, factor analysis, and multiple regression analysis to test

whether trust in and satisfaction with or adoption of mobile banking is influenced by factors

such as perceived usefulness, perceived ease of use, relative advantage, perceived risk, etc. The

results of the tests are described here:

4.1 Findings from Frequency analysis

Analysis of frequency illustrates how many times a variable is appearing when the respondents

have answered a question. For this research frequency analysis has been carried out for ten of

the items from the questionnaire. They are described in details in the following section:

Males are more willing to use mobile banking

Males are usually inclined to adopt new technologies which may contribute to the increasedpercentage of male mobile banking users.

Young people are more interested in using mobile banking

Our study found that mobile banking is

most commonly adopted by consumers

aged between 25 to 34 years.

15.6% of the respondents belong to 18-24years of age group. The majority of the

respondents, i.e. 68.9%, age are between 25-34 years. This can be explained by the fact

that young people are less tech savvy than theelder ones.

Male

58%

Female

42%

According to our study 58 percent

are male users and 42 percent are

female mobile banking users


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Most of the users have a bank account

According to the study, 86.67% of the

respondents have a bank account.

The prevailing notion is that mobile bankingusers are the unbanked ones and DBBL wants

to provide banking to the 87 percentunbanked persons. But according to our

survey most of them are not unbankedpersons.

More than half of the respondents have educational qualification above

SSC, most of them are working

Our study found that, most of the

people surveyed have studied in

college / university, most of the

respondents are engaged in any sort of

service, i.e. they are working.

24.44% of the respondents said they havesome high school education or passed S.S.C.

Next, 60% of the people surveyed have

studied in college / university. There were nosuch respondents who does not have any

formal education or who is from polytechnic

or is an apprentice. This can be explained bythe need to master the complexity of

conducting financial transactions via mobile

phone. Working group consists of 77.8% of

the people surveyed. Only 6.7% of therespondents are housewives. Finally students

make up 15.6% of the respondents.

Low income group people mostly use mobile banking service, it takes them

less than 20 minutes to reach adjacent agent

55.5% of respondents have income

below Tk. 6,000; it takes less than 20minutes for 66.67% of the respondents

to reach the nearest agent or bank.

22.22% of the respondents have no income.

Only 2.22% of the people surveyed have

income below 3000 Tk. Another 31.1% of the

respondents income is between 3000

5999 Tk. Students fall into the no income

group. They usually use the service to receive

money from their parents. 6.67% of the

respondents said it takes more than 1 hour

for them to reach the nearest bank or agent.


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Most of the users transfer or receive money by this service, other services

are rarely taken

Over 95% of respondents use this service for only sending or receiving money, only 5% payelectricity bill though it.

Customers are satisfied with mobile banking because it is easy to use, more

secured, transaction occurs fast and convenient

84.4% of users agree that it is easy to use mobile banking to accomplish their task, 62%

believe that When transferring money through mobile banking, they are not afraid of losing

money due to careless mistakes such as wrong input of account number and wrong input ofthe amount of money, all of the respondents agree that transactions reach on time.17%

users use this service because it is closer to their house, 69% believe that they can

accomplish their task more quickly using mobile banking.

Customers trust in the proper maintenance of their accounts by respective

banks

73.3% respondents believe that banks are trustworthy in maintaining their mobile bank

account. The skills and expertise are also important component to build trust among the

users.

Customers are not aware of the relative fees charged by other service

providers

42% of respondents dont knowwhether the registration fee is higher

than other operators and 36% of them

are unaware of the relative transaction

fees.

This can be explained by the fact that,

previously many of them sent or received

money by known persons. So they could notcompare the fees.


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4.2 Finding from Factor Analysis

Factor analysis is mainly used for data reduction and summarization. It is used to identify a

smaller set of salient variables from a larger set for use in subsequent multivariate analysis. For

this research factor analysis was conducted on six independent variables, namely easy to use,

more secured, low cost, fast transaction, better system quality, and close to my house. The

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is used to determine the

appropriateness of factor analysis. Values between 0.6 and 1.0 indicate the factor analysis is

correct. Here the result shows this value as 0.615. It means the analysis is proper.

The major contributing factors affecting satisfaction with mobile banking are

transaction speed and perceived security

Among the factors

under consideration

these two factors are

predominant, i.e.

transaction speed and

perceived security

Factor analysis is done to determine is a smaller set of

underlying factors grouped together that are affecting

the satisfaction regarding mobile banking to a great

extent. So, respondents believe that they are satisfied

most with transaction speed and security level provided

by the service.

These results are given in tabular format in appendix.

4.3 Finding from Multiple Regression

Regression analysis involves explaining the relationship between one dependent variable and

few independent variables, or how the independent variables are affecting the dependent one.

The model summary shows the fitness of the model. R square value is stated as 0.776 or 77.6%.

It means that 77.6% of the change in dependent variable (adoption of mobile banking) can be

explained by the changes in six independent variables.


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There is a positive correlation of the factors like ease of using, security,

transaction speed, cost with the satisfaction level among users

The individual model variables indicate that learning time, security perception, comparative

registration fee, transaction fee, and fast transaction are positively and significantly affect

the satisfaction of mobile banking. On the other hand bank account maintenance has no

significant relationship with dependent variable.

Result details are provided in the appendix section.


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5. Conclusion

Mobile banking is an emerging concept in Bangladesh. It is not a very old practice in our country

but it has already gained huge popularity and mass usage within a short time. This study was

conducted to see whether people have trust and satisfaction regarding mobile banking. From

the analyses it can be understood that users feel secured while carrying out mobile banking

transaction. This indicates they have trust in the service. Again, they feel that they can easily

fulfill money transaction related tasks through mobile banking and it has made their life easier.

Plus they think using the service is useful because of its ease of use, low cost, fast transaction,

security, wide availability around their homes, and better system quality. Therefore they are

satisfied with it. Among the factors mentioned above, transaction speed, cost, security, and

ease of use are affecting their level of satisfaction with mobile banking. Yet, fast transaction

and security of the service is affecting satisfaction level the most. Moreover there has been a

massive rise of mobile banking subscribers in the year 2012 which has led to Tk. 330 million

worth of transaction per day via this mean. Fortunately the transaction volume is steadily

increasing by 15% each month. Therefore it can be concluded that mobile banking has a bright

prospect in Bangladesh. The companies should capitalize more on this it and make different

aspects of the system better so that more users get interested in enjoying the benefits of

mobile banking.


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Bibliography

1. (n.d.). Retrieved from www.cgap.org: http://www.cgap.org

2. (2011, December). Retrieved from www.btrc.gov.bd: http://www.btrc.gov.bd

3. al., H. e. (2010, October 4).African Journal of Business Management Vol. 4(13), pp. 2718-2727.

4. al., R. e. (2009). Singapore.

5. Black, N. L. (2001). The adoption of internet financial services: a qualitative study. International

Journal of Retail and Distribution Management, Vol. 29 , pp. 390-398.

6. Littler, L. a. (1997). Malaysia.

7. Liu and Arnett, 2., & Schacklett, 2. (2000). System Quality.

8. M.M.M.A. Riffai, K. G. (2011, December 19). Corrected Proof. International Journal of

Information Management, In Press, .

9. McLean, D. a. (2003). DeLone and McLeans model.

10.Reeti Agarwal, S. R. (2009, September 05). Journal of Retailing and Consumer Services,Volume

16. pp. 340-351.

11.Zaheeda Cajee, D. D. (2003). International Journal of Information Management, Volume 23,

Issue 5, October, Pages 381-394.

12.Zhaohua Deng, Y. L. (2008). China.


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Appendix A: qualitative research description

For the qualitative research part depth interview method was selected. Md. Mezbahul Alam,

Assistant Vice President, mobile banking division of DBBL was interviewed.

We had started our interviewing process that made a ladder for our next question and by this

way we get our desired answer what we have used in quantitative analysis. The question and

answer part was as follows:

Question 1: What are the services you are providing currently?

Answer: The services we are currently providing start from customer registration to cash

deposit, cash withdrawal, foreign remittance, person to person transfer (p2p), and mobile top-

up which we have launched recently.

Question 2: How many users do you have at present?

Answer: We have spent around Tk. 2 lac.

Question 3: Tell us something about the relation between customers and agents.

Answer: Our agents are expert at their service and we provide them with adequate training. So,

they are very skillful and cooperative and have good relation with customers.

Question 4: Which Telco's Mobile can be registered?

Answer: Customer having any mobile from any Mobile Operator can be registered for DBBL

Mobile Banking at any nominated agent point of the bank.

Question 5: How much initial deposit is required?

Answer: Customer can open a DBBL Mobile Account with an initial deposit of Tk. 100 only.

Question 6: How is DBBL Mobile Banking secured?

Answer: Customer's money is safe as none can withdraw his / her money without taking

possession of mobile set, PIN and Check digit together. None will be able to deposit unwanted

money into a Mobile Account without knowing the check digit.


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Question 7: Can you please elaborate onperson to person (P2P) transfer?

Answer: The money transfer from one mobile account to another mobile account is called P2P

transfer. At present, Citycell, Banglalink, Airtel mobile account user can transfer maximum Tk.

10,000/- per day and Tk.25,000/- per month from own account to any mobile account any time.

Question 8: What is transaction limit for customers?

Answer: If the customer goes to the agent daily cash in and cash out limit is 5 times and

monthly limit is 20 times, daily P2P limit is Tk. 10000/- and monthly is Tk. 25000/-

Question 9: Tell us about the fees and service charges of the service.

Answer: Registration, remittance disbursement, salary disbursement, P2P fund transfer, mobile

top-up is free, cash in charge is 1% of the transaction amount or Tk. 5/-, whichever is higher and

cash out charge is 2% of the transaction amount or Tk. 10/-, whichever is higher.

Question10: What is the current satisfaction level of this service?

Answer: Our customers are highly satisfied and we have a strong subscriber base with rapid

growth rate. This indicates that customers are interested in the service.

Question 11: What are the factors you think are affecting customer satisfaction level?

Answer: First of all, mobile banking service provides convenience. We provide service at a

cheaper rate, transaction happens instantly; it is safe and user friendly.


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Appendix B: Survey Questionnaire

(DBBL) (bKash)

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Appendix C: Statistical Analysis

Detailed results obtained by Frequency Analysis

1. Frequency of respondents gender:

Gender of respondents

Frequency Percent Valid Percent Cumulative Percent

Valid

Male 26 57.8 57.8 57.8

Female 19 42.2 42.2 100.0

Total 45 100.0 100.0

2. Frequency for Respondents Age

What is your age?


Valid

18 - 24 7 15.6 15.6 15.6

25 - 34 31 68.9 68.9 84.4

35 - 44 4 8.9 8.9 93.3

45 - 54 3 6.7 6.7 100.0

Total 45 100.0 100.0

3. Frequency for Having a Bank Account


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Do you have a bank account?


Valid

Yes 39 86.7 86.7 86.7

No 6 13.3 13.3 100.0

Total 45 100.0 100.0

4. Frequency for Education Level

Education Level


Valid

Primary school completed 7 15.6 15.6 15.6

Some high school or

Matriculated11 24.4 24.4 40.0

College / University/ Post

matric27 60.0 60.0 100.0

Total 45 100.0 100.0

5. Frequency for Work Status

Work Status


Valid

Working 35 77.8 77.8 77.8

Housewife 3 6.7 6.7 84.4

Student 7 15.6 15.6 100.0

Total 45 100.0 100.0

6. Frequency for Income Level

Income Level


ValidNo income 10 22.2 22.2 22.2

below 3000 taka 1 2.2 2.2 24.4


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Between: 30005999 taka 14 31.1 31.1 46.7

Between: 60008999 taka 4 8.9 8.9 55.6

Between: 900011999 taka 6 13.3 13.3 68.9

12000 taka or above 10 22.2 22.2 100.0

Total 45 100.0 100.0

7. Frequency for Time it takes to reach the Nearest Bank or Agent

Time to go to the nearest bank or agent from your home


Valid

Less than 20 Minutes 30 66.7 66.7 66.7

Less than 45 Minutes 12 26.7 26.7 93.3

More than 1 hour 3 6.7 6.7 100.0

Total 45 100.0 100.0

8. Frequency for Previously Used Services for Money Transfer (other than mobile banking)

Which service did you use before using mobile banking?


ValidShundorban 3 6.7 6.7 6.7

SA paribahan 27 60.0 60.0 66.7


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9. Reasons for using mobile banking

Using mobile banking to transfer money

Frequency Percent Valid Percent Cumulative

Percent

Valid

yes 38 84.4 84.4 84.4

No 7 15.6 15.6 100.0

Total 45 100.0 100.0

Using mobile banking to receive money


Percent

Valid

Yes 14 31.1 31.1 31.1

No 31 68.9 68.9 100.0

Total 45 100.0 100.0

10. Reasons for satisfaction with using mobile banking

I think that it is easy to use mobile banking to accomplish my tasks.


Percent

Continental 2 4.4 4.4 71.1

by close person 13 28.9 28.9 100.0

Total 45 100.0 100.0


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Valid

Agree 38 84.4 84.4 84.4

Strongly agree 7 15.6 15.6 100.0

Total 45 100.0 100.0

When transferring money through mobile banking, I am afraid that I will lose money

due to careless mistakes such as wrong input of account number and wrong input ofthe amount of money


Percent

Valid

Strongly disagree 8 17.8 17.8 17.8

Disagree 10 22.2 22.2 40.0

Not sure 10 22.2 22.2 62.2

Agree 17 37.8 37.8 100.0

Total 45 100.0 100.0

Transactions reach on time (instantly)


Percent

Valid

Agree 25 55.6 55.6 55.6

Strongly agree 20 44.4 44.4 100.0

Total 45 100.0 100.0

I think that using mobile banking would enable me to accomplish my tasks more

quickly.


Percent

Valid

Agree 31 68.9 68.9 68.9

Strongly agree 14 31.1 31.1 100.0

Total 45 100.0 100.0


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I believe banks are trustworthy in maintaining mobile banking accounts


Percent

Valid

Not sure 12 26.7 26.7 26.7

Agree 24 53.3 53.3 80.0

Strongly agree 9 20.0 20.0 100.0

Total 45 100.0 100.0

I think the registration fee is higher than other operators


Percent

Valid

Strongly disagree 3 6.7 6.7 6.7

Disagree 10 22.2 22.2 28.9

Not sure 19 42.2 42.2 71.1

Agree 13 28.9 28.9 100.0

Total 45 100.0 100.0

Detail results of Factor Analysis are as follows:

Correlation Matrix

Is the transaction fee more than more than any other operators?


Percent

Valid

Disagree 16 35.6 35.6 35.6

Not sure 16 35.6 35.6 71.1

Agree 13 28.9 28.9 100.0

Total 45 100.0 100.0


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Easy to use More secured Low costFast

transaction

Better system

quality

Close to my

house

Correlation

Easy to use 1.000 .321 .033 .205 -.128 .047

More secured .321 1.000 .101 .374 -.176 -.088

Low cost .033 .101 1.000 .065 -.086 -.033

Fast transaction .205 .374 .065 1.000 -.327 .093

Better system quality -.128 -.176 -.086 -.327 1.000 -.123

Close to my house .047 -.088 -.033 .093 -.123 1.000

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .615

Bartlett's Test of Sphericity

Approx. Chi-Square 18.368

df 15

Sig. .244

Communalities

Initial Extraction

Easy to use 1.000 .355

More secured 1.000 .644

Low cost 1.000 .133

Fast transaction 1.000 .569

Better system quality 1.000 .476

Close to my house 1.000 .741

Extraction Method: Principal Component Analysis.

Total Variance Explained

ComponentInitial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 1.812 30.198 30.198 1.812 30.198 30.198

2 1.106 18.439 48.636 1.106 18.439 48.636

3 .988 16.464 65.101

4 .855 14.252 79.353

5 .695 11.580 90.933

6 .544 9.067 100.000



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Component Matrixa

Component

1 2

Fast transaction .744

More secured .715 .365

Better system quality -.588 .361

Easy to use .579

Close to my house -.852

Low cost


a. 2 components extracted.


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Detail results obtained by Multiple Regression

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .881a

.776 .741 .187

a. Predictors: (Constant), I believe banks are trustworthy in maintaining mobile banking accounts, Transactions

reach on time (instantly), Is the transaction fee more than more than any other operators?, It took me lots of time

to learn how to use mobile banking services., When transferring money through mobile banking, I am afraid that I

will lose money due to careless mistakes such as wrong input of account number and wrong input of the amount of

money, I think the registration fee is higher than other operators

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 4.588 6 .765 21.953 .000b

Residual 1.324 38 .035

Total 5.911 44

a. Dependent Variable: I think that it is easy to use mobile banking to accomplish my tasks.

b. Predictors: (Constant), I believe banks are trustworthy in maintaining mobile banking accounts, Transactions reach on

time (instantly), Is the transaction fee more than more than any other operators?, It took me lots of time to learn how to

use mobile banking services., When transferring money through mobile banking, I am afraid that I will lose money due to

careless mistakes such as wrong input of account number and wrong input of the amount of money, I think the

registration fee is higher than other operators

Coefficientsa

ModelUnstandardized Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

1

(Constant) 7.541 .815 9.253 .000

It took me lots of time to

learn how to use mobile

banking services.

.103 .041 .274 2.530 .016


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When transferring money

through mobile banking, I am

afraid that I will lose money

due to careless mistakes

such as wrong input ofaccount number and wrong

input of the amount of money

-.401 .064 -1.247 -6.224 .000

I think the registration fee is

higher than other operators-.507 .193 -1.230 -2.621 .013

Is the transaction fee more

than more than any other

operators?

.411 .178 .908 2.313 .026

Transactions reach on time

(instantly)-.424 .075 -.581 -5.646 .000

I believe banks are

trustworthy in maintaining

mobile banking accounts

-.086 .095 -.161 -.908 .370

a. Dependent Variable: I think that it is easy to use mobile banking to accomplish my tasks.

GR 15 Market Research Report Final

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