Resistance to Adopt Mobile Banking in a Developing Country: Evidence from Modified TAM

Research Article

Mobile banking is an emerging concept with great potential but it is facing lower rate of diffusion. This study examines the perception and intention aspects of mobile banking adoption in Pakistan. Modified Technology Acceptance Model is used with the integration of four perceived risk dimensions (financial, privacy, time and security). A sample of valid 389 responses was drawn from the mobile subscribers of Karachi. The techniques of both exploratory and confirmatory factor analyses were employed to assess the reliability and validity of the measurement model. The structural equation modeling method was also applied to investigate the hypothetical framework with the help of literature's recommended goodness-of-fit measurements. The results indicate a negative association of financial and privacy risks towards the attitude of mobile banking technology. Furthermore, perceived ease of use and perceive usefulness established the significant positive impact on people's attitude towards mobile banking. Likewise, attitude towards mobile banking is also found to significantly influence the adoption intention of technology. The findings are favorable for banks that are pursuing mobile banking in designing strategies for enhancing users' acceptance of mobile banking in Pakistan.

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