UNDERSTANDING FACTORS AFFECTING TRUST IN AND SATISFACTION WITH MOBILE BANKING AND ITS FUTURE PROSPECT IN BANGLADESH

UNDERSTANDING FACTORS AFFECTING TRUST IN AND SATISFACTION WITH MOBILE BANKING AND ITS FUTURE PROSPECT IN BANGLADESH

Prepared 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

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 of fulfilling 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

Table of Contents
Executive 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 ............................................................................................................................................. 20 Bibliography ................................................................................................................................................ 21 Appendix A: qualitative research description ............................................................................................. 22 Appendix B: Survey Questionnaire ............................................................................................................. 24 Appendix C: Statistical Analysis................................................................................................................... 30

iv

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 availability, 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.

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 of wealth 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
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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 in Singapore 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 to Reeti 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-toperson (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 27 % 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 future prospects 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 increased percentage of male mobile banking users.

According to our study 58 percent are male users and 42 percent are female mobile banking users
Female 42% Male 58%

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 18-24 years of age group. The majority of the respondents, i.e. 68.9%, age are between 2534 years. This can be explained by the fact that young people are less tech savvy than the elder ones.

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Most of the users have a bank account According to the study, 86.67% of the The prevailing notion is that mobile banking users are the unbanked ones and DBBL wants respondents have a bank account.
to provide banking to the 87 percent unbanked persons. But according to our survey most of them are not unbanked persons.

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 have some high school education or passed S.S.C. Next, 60% of the people surveyed have studied in college / university. There were no such respondents who does not have any formal education or who is from polytechnic or is an apprentice. This can be explained by the 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 the respondents 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 20 minutes 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% pay electricity 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 of the 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 know whether 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 not compare 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 topup 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 on person 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. Question 10: 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) / (..), (DBBL) (bKash) -

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- - - - -

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Q1

Q2

Q3

- - -

Q4

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 ? ( ) / / Q6 .. Q5

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Q7

- - - Q8

Q9

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 ? ( , ) ? ? ( )
Q12
Q1

Q10

Q11

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Q13

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()

, ,
Q19 Q18 Q17 Q16 Q15 Q14

( / )

( /)
Q20

,
Q21

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() ( , )

Q22

Q23

Q24

Q25

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Appendix C: Statistical Analysis

Detailed results obtained by Frequency Analysis
1. Frequency of respondents gender:

Gender of respondents Frequency Male Valid Female Total 26 19 45 Percent 57.8 42.2 100.0 Valid Percent 57.8 42.2 100.0 Cumulative Percent 57.8 100.0

2. Frequency for Respondents Age

What is your age? Frequency 18 - 24 25 - 34 Valid 35 - 44 45 - 54 Total 7 31 4 3 45 Percent 15.6 68.9 8.9 6.7 100.0 Valid Percent 15.6 68.9 8.9 6.7 100.0 Cumulative Percent 15.6 84.4 93.3 100.0

3. Frequency for Having a Bank Account Page | 30

Do you have a bank account? Frequency Yes Valid No Total 39 6 45 Percent 86.7 13.3 100.0 Valid Percent 86.7 13.3 100.0 Cumulative Percent 86.7 100.0

4. Frequency for Education Level

Education Level Frequency Primary school completed Some high school or Matriculated Valid College / University/ Post matric Total 27 45 60.0 100.0 60.0 100.0 100.0 7 11 Percent 15.6 24.4 Valid Percent 15.6 24.4 Cumulative Percent 15.6 40.0

5. Frequency for Work Status

Work Status Frequency Working Housewife Valid Student Total 7 45 15.6 100.0 15.6 100.0 100.0 35 3 Percent 77.8 6.7 Valid Percent 77.8 6.7 Cumulative Percent 77.8 84.4

6. Frequency for Income Level

Income Level Frequency No income Valid below 3000 taka 1 2.2 2.2 24.4 10 Percent 22.2 Valid Percent 22.2 Cumulative Percent 22.2

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Between: 30005999 taka Between: 60008999 taka Between: 900011999 taka 12000 taka or above Total

14 4 6 10 45

31.1 8.9 13.3 22.2 100.0

31.1 8.9 13.3 22.2 100.0

46.7 55.6 68.9 100.0

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 Frequency Percent Valid Percent Cumulative Percent

Which service did you use before using mobile banking? Frequency Shundorban Valid SA paribahan 27 60.0 60.0 66.7 3 Percent 6.7 Valid Percent 6.7 Cumulative Percent 6.7

Less than 20 Minutes Less than 45 Minutes Valid More than 1 hour Total

30 12 3 45

66.7 26.7 6.7 100.0

66.7 26.7 6.7 100.0

66.7 93.3 100.0

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

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Continental by close person Total

2 13 45

4.4 28.9 100.0

4.4 28.9 100.0

71.1 100.0

9. Reasons for using mobile banking

Using mobile banking to transfer money Frequency Percent Valid Percent Cumulative Percent yes Valid No Total 38 7 45 84.4 15.6 100.0 84.4 15.6 100.0 84.4 100.0

Using mobile banking to receive money Frequency Percent Valid Percent Cumulative Percent Yes Valid No Total 14 31 45 31.1 68.9 100.0 31.1 68.9 100.0 31.1 100.0

10. Reasons for satisfaction with using mobile banking

I think that it is easy to use mobile banking to accomplish my tasks. Frequency Percent Valid Percent Cumulative Percent

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I think that using mobile banking would enable me to accomplish my tasks more quickly. Frequency Percent Valid Percent Cumulative Percent Agree Valid Strongly agree Total Agree Valid Strongly agree Total 31 14 45 38 7 45 68.9 31.1 100.0 84.4 15.6 100.0 68.9 31.1 100.0 84.4 15.6 100.0 84.4 100.0 68.9 100.0

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 of the amount of money Frequency Percent Valid Percent Cumulative Percent Transactions reach on time (instantly) Frequency Percent Valid Percent Cumulative Percent Agree Valid Strongly agree Total Strongly disagree Disagree Valid Not sure Agree Total 25 20 45 8 10 10 17 45 55.6 44.4 100.0 17.8 22.2 22.2 37.8 100.0 55.6 44.4 100.0 17.8 22.2 22.2 37.8 100.0 17.8 40.0 62.2 100.0 55.6 100.0

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I believe banks are trustworthy in maintaining mobile banking accounts Frequency Percent Valid Percent Cumulative Percent Not sure Agree Valid Strongly agree Total 9 45 20.0 100.0 20.0 100.0 100.0 12 24 26.7 53.3 26.7 53.3 26.7 80.0

I think the registration fee is higher than other operators Frequency Percent Valid Percent Cumulative Percent Strongly disagree Disagree Valid Not sure Agree Total 3 10 19 13 45 6.7 22.2 42.2 28.9 100.0 6.7 22.2 42.2 28.9 100.0 6.7 28.9 71.1 100.0

Is the transaction fee more than more than any other operators? Frequency Percent Valid Percent Cumulative Percent Disagree Not sure Valid Agree Total 13 45 28.9 100.0 28.9 100.0 100.0 16 16 35.6 35.6 35.6 35.6 35.6 71.1

Detail results of Factor Analysis are as follows:

Correlation Matrix

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Easy to use Easy to use More secured Low cost Correlation Fast transaction Better system quality Close to my house .205 -.128 .047 1.000 .321 .033

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. Approx. Chi-Square Bartlett's Test of Sphericity df Sig. Communalities

.615 18.368 15 .244

Initial Easy to use More secured Low cost Fast transaction Better system quality Close to my house 1.000 1.000 1.000 1.000 1.000 1.000

Extraction .355 .644 .133 .569 .476 .741

Extraction Method: Principal Component Analysis. Total Variance Explained

Initial Eigenvalues Component Total 1 2 3 4 5 6 1.812 1.106 .988 .855 .695 .544 % of Variance 30.198 18.439 16.464 14.252 11.580 9.067 Cumulative % 30.198 48.636 65.101 79.353 90.933 100.000

Extraction Sums of Squared Loadings Total 1.812 1.106 % of Variance 30.198 18.439 Cumulative % 30.198 48.636

Extraction Method: Principal Component Analysis.

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Component Matrix

Component 1 Fast transaction More secured Better system quality Easy to use Close to my house Low cost Extraction Method: Principal Component Analysis. a. 2 components extracted. .744 .715 -.588 .579 -.852 .365 .361 2

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Detail results obtained by Multiple Regression

Model Summary

Model 1

R .881
a

R Square .776

Adjusted R Square .741

Std. Error of the Estimate .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 ANOVA
a

Model Regression 1 Residual Total

Sum of Squares 4.588 1.324 5.911

df 6 38 44

Mean Square .765 .035

F 21.953

Sig. .000
b

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 Coefficients
a

Unstandardized Coefficients Model B (Constant) 1 It took me lots of time to learn how to use mobile banking services. .103 .041 7.541 Std. Error .815

Standardized Coefficients Beta 9.253 .000 t Sig.

.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 of account number and wrong input of the amount of money I think the registration fee is higher than other operators Is the transaction fee more than more than any other operators? Transactions reach on time (instantly) I believe banks are trustworthy in maintaining mobile banking accounts a. Dependent Variable: I think that it is easy to use mobile banking to accomplish my tasks. -.086 .095 -.161 -.908 .370 -.424 .075 -.581 -5.646 .000 .411 .178 .908 2.313 .026 -.507 .193 -1.230 -2.621 .013 -.401 .064 -1.247 -6.224 .000

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