A
Research Proposal
On

“Evaluating Customer Perceived Value in Mobile Banking Apps using Technology Acceptance Model (TAM)”

Date: 15th May’15
Introduction
Mobile banking is a result of the development of mobile technology used in the commercial domain. Mobile banking combines information technology and business applications together. Thanks to the mobile banking, customers can use it to get banking services 24 hours a day without having to visit a bank branch for personal transactions. Suoranta, M. (2003) conclude that Mobile banking is a relatively new service offered by banks to customers, and because of the convenience and features that save time and customers appreciate the services. Compared to other e-banking services, the development of mobile banking (m-banking) regarded the fastest. This development is due to the presence of m-banking services to answer the needs of a modern society that is promoting mobility. With one touch, creates convenience m-banking banking services in one hand. Benefit of mobile banking services will increase customer satisfaction. Furthermore, mobile banking creates "value" for the bank as a customer transaction service delivery channel access (wireless). Birch D and Young, M. A, (1997) conclude that the rapid advanced of technology in banking technologies, Customers want the convenience and flexibility on products and services that suit their needs and easy to use which cannot be offered by traditional banks. In the future of e-banking will be an important strategic application to compete that must be offered by all banks and financial institutions. In spite of all efforts aimed at developing a better and easier mobile banking system, mobile banking is generally less noticed and utilized by the customer. Therefore we need an understanding of customers' acceptance of mobile banking and needs to identify factors that could affect customer acceptance for use of mobile banking. The issue is important because the answer to this research will provide clues that will help the banking industry to formulate their marketing strategies to promote new forms of mobile banking in the future.
The variables in this study come from the framework of the Technology Acceptance Model (TAM) developed by Davis, ET. Al Davis, F. D., Bagozzi, R. P., and Warshaw, P. R. (1989) concluded. These variables consist of: Perceived Ease of Use, Perceived Usefulness and Intention to use. Perceived Ease of Use is the belief that the person using the system will be free of effort. The perceived usefulness is the level at which a person believed that the use of the system will be able to improve its performance. Intention to use is defined as a force of one's attention to use something.
Mobile Banking Customers: The number of mobile banking users has jumped to 3.55 crore in 2013-14. In 2012-13, there were 2.25 crore mobile banking users.
Transactions Surge: The number of mobile transactions has surged dramatically as a result. There were 9.4 crore transactions as a result of the sharp rise in mobile banking users in 2013-14.
Value Rising Too: The value of mobile transactions jumped more than four times in just one year. Mobile users have found convenience in the use of mobile phone to transfer money. The total value of money transferred through mobile phones surged to Rs 22,400 crore in 2013-14 from Rs 5,130 crore in 2012-13.

Source:
Mobile Banking Applications - Mobile applications can be used to support e-commerce with customers and suppliers, and to conduct e-business within and across organizational boundaries. Despite these benefits, organizations and their customers still lack an understanding of the value of mobile applications. Value is defined here as the principles for evaluating the consequences of action, inaction, or decision. The value proposition of mobile applications can be defined as the net value of the benefits and costs associated with the adoption and adaptation of mobile applications.
Characteristics of Mobile Banking Usage - The use of mobile applications underlies several specific restrictions. We consider five characteristics of the mobile use to be particularly relevant as they greatly influence the design of mobile banking applications and the suitability of certain technical solutions.
A Mobile Application is used via a mobile device - For these devices (currently either a mobile phone), special limitations are valid. For the mobile banking context, these are the limited input and display capabilities. The connection is provided by a mobile network operator (MNO). This is especially important if applications need to access certain parts of the infrastructure which are under control of the MNO (e.g. the SIM card). The use of mobile data transmission is expensive.
Sensitive data is transmitted - This implicates the use of adequate security measures. A disruption of the usage is possible at any time. This is principally already true for electronic banking as well (the connection may e.g. be disrupted by a breakdown of the transmission or of the operating system of the client computer) and provides a special necessity to avoid incomplete transactions.

Research Objectives * To find out the relation between security, trust and network with ease of use & perceived usefulness. * To find out the intention to use mobile banking with the other three factors i.e. security, trust and network.

Literature Review
With the rapid growth of mobile phones, the mobile services become a promising alternative for many sectors including banking sector. J. Sripalawat, M. Thongmak, and A. Ngramyarn said that Internet banking and Mobile banking are both electronic banking. E.Scornavacca and H. Hoehle concluded that however, they differ in the channels to be used in delivering the services to customer.

Thus, customers using Internet banking are using computers that are connected to Internet, while customers using mobile banking are using wireless devices to do transactions said by H. Riquelme, and R. E. Rios. TAM introduced by Davis on (1989). At that time the emphasis on reaching and effectively identify the factors that have an impact on user acceptance of information technology, There is a lack of the right model for user adoption of IT because all the models at that time was not valid or their relationship with user not verified concluded by Lagoutte, V. (1996).

Ajzen, I. & Fishbein, M. (1980) states that a decade after the entry of TAM into the System Information adoption model, TAM has been accepted as a powerful model, widely accepted and continues used in the area of IT adoption measurement. Davis and Davis et al. states that TAM is the appropriate model to explain reasons why user accept or reject Information technology. TAM was developed based on Theory of Reasoned Action concluded by Fishbein, M., and Ajzen, I. (1975) and Ajzen, I. & Fishbein, M. (1980) and Ajzen, I. (1991) also said that it is also develop based on theory of Planned Behavior.

TRA based on assumption that people consider the possible impact of their action and take decision to act based on their reasoning.TAM consist of two main factors; perceived ease of use and perceived usefulness. Davis identifies two factors; perceived ease of use and perceived usefulness as effective factor which influenced people behavior when use Information Technology with reliability of 0.98 and 0.94.

Davis found both two factors have strong relationship with actual usage of information technology now and on the future. But Davis concludes that PU has stronger relation with usage of computer technology compare with PEOU. Farther, Davis finding indicates that easiness in a system usage has impact on user perception about usefulness a system.
Research Framework & Hypotheses:
The Proposed Research Framework Extending TAM

Perceived Usefulness (PU)
PU define as usefulness a system a seen by user and states that user will keep use that system until they find it useless anymore. Davis defines PU as – level where someone believes that using a system will increase their performance. PU identified as a part of important factor which has influence on intention to use of Mobile Banking. This issue very emphasized by most researchers which attempt to find factors that lead to adoption of Mobile Banking. The perceived usefulness will influence their intention to accept and adopt mobile banking either directly or indirectly.
Perceived Ease of Use (PEOU)
PEOU defines as – level where someone believes that using particular system will free from efforts. Difficulties in using particular system sometimes overcome benefit a system and this issue explain impact of PEOU on PU because easy to use seems more useful and vice versa , said by F. D., Bagozzi, R. P., and Warshaw, P. R. (1989).
Davis introduces extension of TAM model which explain factor from cognitive instrumental process and social influences have impact on PU and intention to use information system. It is one of the major beliefs influencing user intention to use mobile banking.

H1a: There is no significant relationship between Perceived Ease of Use and Perceived Usefulness in mobile banking.
H1b: There is a significant relationship between Perceived Ease of Use and Perceived Usefulness in mobile banking.
Intention to Use (ITU)
L.D. Chen, M.L. Gillenson, & D.L. Sherrell concluded that it refers to the user’s likelihood to use online transactions through mobile banking. It shows two casual pathways – a direct effect as well as indirect effect through other variables.

H2a: There is no significant relationship between Perceived Usefulness and Intention of Use in mobile banking.
H2b: There is a significant relationship between Perceived Usefulness and Intention of Use in mobile banking.
H2c: There is no significant relationship between Perceived Ease of Use and Intention of Use in mobile banking.
H2d: There is a significant relationship between Perceived Ease of Use and Intention of Use in mobile banking.
H2e: There is no significant relationship between Security, Network and Trust with Intention of Use in mobile banking.
H2f: There is a significant relationship between Security, Network and Trust with Intention of Use in mobile banking.
Security
One of the main reservations consumers express about adopting mobile banking and mobile payments is concern about the security of the technology. This is a major concern for the company. One such concern is the theft or loss of mobile devices, which are easily misplaced or stolen, and likely contain sensitive or confidential data that can be accessed by unauthorized persons in terms of payments or transaction.

H3a: There is no significant relationship between Security and Perceived Usefulness in mobile banking.
H3b: There is a significant relationship between Security and Perceived Usefulness in mobile banking.
H3c: There is no significant relationship between Security and Perceived Ease of Use in mobile banking.
H3d: There is a significant relationship between Security and Perceived Ease of Use in mobile banking.
Trust
Trust is defined as dimension of a business relationship that determines the level to which each party feels they can rely on the integrity of the promise offered by the other (Kolsaker & Payne, 2002). On the other hand, trust is characterized by uncertainty, vulnerability and dependence. These characteristics are reflected in an transaction where customers cannot see the seller face to face, physically examine the merchandise or collect the merchandise upon payment.

H4a: There is no significant relationship between Trust and Perceived Usefulness in mobile banking.
H4b: There is a significant relationship between Trust and Perceived Usefulness in mobile banking.
H4c: There is no significant relationship between Trust and Perceived Ease of Use in mobile banking.
H4d: There is a significant relationship between Trust and Perceived Ease of Use in mobile banking.
Network
Mobile phones as a medium for extending banking services have off-late been attaining greater significance. The rapid growth in users and wider coverage of mobile phone networks have made this medium an important platform for extending banking services to customers. With the rapid growth in the number of mobile phone subscribers in, banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. According to market research conducted by Dutch-Bangla Bank Limited (DBBL) conclude that Security of financial transactions, being executed from some remote location and transmission of financial information over the air, is the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the IT departments of bank.

H5a: There is no significant relationship between Network and Perceived Usefulness in mobile banking.
H5b: There is a significant relationship between Network and Perceived Usefulness in mobile banking.
H5c: There is no significant relationship between Network and Perceived Ease of Use in mobile banking.
H5d: There is a significant relationship between Network and Perceived Ease of Use in mobile banking.

Research Methodology
The Researcher will be doing an exploratory type of research by reading various related research papers, article, news papers, news and journals. They conducted a focus group interview with 10 respondents. Out of this exhaustive research they derived six variables namely- Security, Trust, Network, Perceived usefulness, Perceived ease of use and Intention of use.

Sample
A sample consists of approximately 250 mobile banking users and non users from both students and working person in Ahmedabad and Surat, Gujarat was taken. Students were chosen because they had experience mobile banking by purchasing or transaction. However, type of usage varies by age, those who are younger than 29-69 more likely to engage in communication and creative activities, but less likely to purchase or transact through mobile banking. Sample will be taken into consideration to conduct the survey and draw our inferences.

Instrument Development
The tools that will be used to carry out the survey will be through questionnaire which will consist of a few chronological questions.
SPSS will play a vital role in this study as all the analytical processes will be carried out with the help of SPSS.
Contributions/Rationale study
Some of the means objectives provided by the electric company are directly related to mobile devices or services. These are some of the basic requirements for mobile banking applications. They contribute toward the achievement of other means objectives. The Researchers identified that because of M- Banking banks get profit currently and in future also.

Without these basic requirements, mobile applications would be beneficial to the banks. They also identified five necessary variables that were help our research and banks also to focus on this variable— network, security, trust, ease of access and usefulness, and intention to use. Accessibility is a key requirement for wireless applications: being able to use them anytime, anywhere, and while on the move are important criteria.
In addition to personal computers and traditional office equipment, the company needs mobile and wireless devices to provide its employees with access to information about payments whenever the need arises and regardless of location. The company wants to use mobile devices to access and update data in the ERP system and other existing systems for the transaction of the companies.
Hence, the implementation should complement and integrate with existing systems to maximize its overall value to the company. Thus mobile devices and mobile services were also indicated as investment concerns. Mobile applications, however, are advancing by leaps and bounds. Most of the technical limitations and constraints will be alleviated in the near future, making mobile applications more usable, friendly, and financially worthwhile for banks.

Limitation
Due to limited time for the research, the team has an estimate sample of approx 200-250 users only for the collection of data and will be dependent on the same for the inference which is very less in number.

References/ Bibliography
(1) Suoranta, M. (2003) Adoption of Mobile Banking in Finland. Doctoral dissertation. Jyvaskyla University Printing House, Jyvaskyla and ER-piano, Lievestuore.
(2) Birch, D., and Young, M. A, (1997) Financial Services and the Internet: What Does Cyberspace Mean for the Financial Services Industry, Internet Research Vol. 7, No. 2, ,pp. 120-128
[3] Lagoutte, V. (1996). The Direct Banking Challenge, Middlesex University England.
[4] Davis, F. D., Bagozzi, R. P., and Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models, Management Science, 35 (8), pp. 982-1003
[5] https://in.finance.yahoo.com/news/how-india-s-mobile-banking-is-booming-042241456.html
[6] J.Sripalawat, M. Thongmak, and A. Ngramyarn, “M-banking in metropolitan Bangkok and Comparison with other countries,” The Journal of Computer Information Systems, Vol. 51, No.3, 2011, pp. 67-76.
[7] E. Scornavacca, and H. Hoehle, “Mobile banking in Germany: A strategic perspective,” International Journal of Electronic Finance, Vol. 1, No. 3, 2007, pp. 304-320
[8] H. Riquelme, and R. E. Rios, “The moderating effect of gender in the adoption of mobile banking,” International Journal of Bank Marketing, Vol. 28, No. 5, 2010, pp. 328-341.
[9]Venkatesh Viswanath and Davis, Fred D. (2000). A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field. Management Science, Vol. 46, No.2, pp. 186-204 Published by: INFORMS Stable.
[10] Davis, F. D. (1989). Perceived Usefulness, Perceived Ease Of Use, and User Acceptance of Information Technology, MIS Quarterly, 13, 983-1003
[11] Fishbein, M., and Ajzen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and research, Reading, MA: Addison-Wesley.
[12] Ajzen, I. & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice-Hall
[13] Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, pp. 179–211.
[14] Agarwal, R. & Prasad, J. (1999). Are individual differences Germane to the acceptance of new information technologies Decision Sciences, 30(2), 361–391.
[15] W.T. Rupp & A. D. Smith, “Mobile commerce: new revenue machine or black hole?”. Business Horizons, vol. 45, no. 4, 2002, pp. 26-29
[16] L.D. Chen, M.L. Gillenson, & D.L. Sherrell “Enticing online consumers: an extended technology acceptance perspective”. Information & Management, vol. 39, no.8, 2002, pp. 705-719.