Abstract

Mobile banking is a service provided by a bank or other financial organization that permits its customers to conduct financial transactions remotely using a mobile device like a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app, provided by the financial organization for the aim. Mobile banking is typically available on a 24-hour basis. Some financial institutions have restrictions on which accounts could also be accessed through mobile banking, also as a limit on the amount which will be transacted. Mobile banking depends on the provision of an online or data connection to the mobile device. The objectives of the study are to study the advantages and disadvantages of mobile banking and to analyze the relationship between banking conditions towards awareness about mobile banking services in the study area. The study is based on both primary and secondary data. For the present study 50 bank customers are adopted as samples using a convenient sampling method. Percentage and Chi-square method is used to analyze the data.

Keywords: mobile banking, features, problems, advantages and disadvantages.

Introduction

Mobile banking may be a service provided by a bank or other financial organization that permits its customers to conduct financial transactions remotely using a mobile device like a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app, provided by the financial organization for the aim. Mobile banking is typically available on a 24-hour basis. Some financial institutions have restrictions on which accounts could also be accessed through mobile banking, also as a limit on the amount which will be transacted. Mobile banking depends on the supply of an online or data connection to the mobile device.

Transactions through mobile banking depend upon the features of the mobile banking app provided and typically includes obtaining account balances and lists of latest transactions, electronic bill payments, remote check deposits, P2P payments, and funds transfers between customers or another’s accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at the customer’s premises. Using a mobile banking app increases simple use, speed, flexibility and also improves security because it integrates with the user built-in mobile device security mechanisms.

Advantages of Mobile Banking

Time saving : The mobile banking helps us to check account balances, transfer money and organize the accounts without allocating time to walk to the bank and it saves the time of the customers.

Convenient :The other important advantage of mobile banking is the ability to access bank accounts, make payments, track investments at the time and place that suits us instead of waiting in queues.

Secure : The mobile banking application gives the customers a security guarantee and sends verification code by SMS for every payment the customer can make. Mobile banking is said to be even more secure than online or internet banking.

Easy access to your finances: Mobile banking helps us to access financial information even beyond the working hours. It also helps to avail banking services by making a call to the bank.

Increased efficiency: Mobile banking functions are more efficient than other banking services. It also helps in decongesting the banking halls and reduces the amount of paperwork for both the banker and the customer.

Fraud reduction:  The mobile helps to reduce the fraudulent activities because we can check the account balance, review the recent transaction, transfer funds, pay bills, locate ATMs, deposit cheques, manage investments, etc. at any time. It is easy and convenient to identify if any frauds take place in their accounts using their cell phone even in rural areas. (Sushma, 2018).

Disadvantages of Mobile Banking

The following are some of the disadvantages of mobile banking:

• The mobile banking users are at risk of receiving fake SMS messages and scams. There is a chance to get cheated.
• If the mobile banking user lost their smartphone there is a chance to access the mobile banking PIN and other sensitive information regarding their bank accounts and to misuses their account.
• Regular users of mobile banking over time can accumulate significant charges from their banks.
• The customers’ needs internet connection to use mobile banking services and the people live in a rural area or experience internet connection problems and technical problems. So it is difficult to access the bank account at the time needed.
• Most cell phones don’t come standard with anti-virus protection even if they have the capacity to browse the internet. Some phones aren’t even compatible with the anti-virus software available and there are known cases in which people were unable to put anti-virus software registered to them on corporate cell phones. (Sushma, 2018).

Objectives of the Study

The important objectives are

• To study about the advantages and disadvantages of mobile banking.
• To analyze the relationship between banking conditions towards awareness about mobile banking services in the study area.

Review of Previous Studies

Umesh Maiya (2019) in his article “Mobile banking services: a study with reference to coastal Karnataka” says that M-banking refers to provision and ailment of bank related financial services with help of mobile telecommunication devices. He recommended that the banks must arrange seminars and demo activities to aware the customers about mobile banking services. He also suggested that data transmission is low through mobile banking in customer views. Make the services fast and provide timely and accurate information to the customers and the banks must employ some special schemes for different category customers as per their requirements.

Renju Chandran, (2014) in his article “Pros and cons of Mobile banking” reveals that, Mobile Banking refers to provision of banking and financial services with the help of mobile telecommunication devices. The scope of offered services  may  include  facilities  to  conduct  bank  transactions,  to  administer  accounts  and  to  access customized  information.  After  the  launch  of  mobile  banking  in  India,  mobile  banking  transactions  have seen  some  growth.  Still mobile banking has a long way to go as, majority of customers prefer banking in traditional ways. The basic objective is to identify the advantages and limitations of mobile banking and the problems faced by customers in mobile banking. The banking sector reforms and introduction of e-banking has  made  very  structural  changes  in  service  quality,  managerial  decisions,  operational  performance, profitability  and  productivity  of  the  banks.  There are various  factors  which  have  played  vital role in the Indian banking sector for adoption of technology. So in order to run the mobile banking effectively, proper care has been taken care of and take adequate steps to improve the quality services.

Lucia  Vanitha.,C (2013) in his article “A  Study  on  Mobile  Banking”  highlighted Mobile  banking  is  an  electronic  system  that  provides  most  of  the  basic services available in daily, traditional banking, but does so using a mobile communication device, usually a smart  phone.  In  some  cases,  a  well  developed  mobile  banking  system  can  actually  provide point-of-sale ability similar to an ATM or credit card, except the purchaser buys by using their phone instead. With the ease  of  mobile  smart  phones  and  their  wide  variety  of  applications  today,  it’s  not  surprising  the  mobile banking is now coming into full  vogue. However, the concept and ability is not a new concept.

Mohini  Samudra and Milind Phadtare (2012) in their article “Factors Influencing the Adoption of Mobile Banking with Special Reference to Pune City”  reveals that the banking sector in India saw greater emphasis being placed on technology and  innovation. Banks began to use technology to provide better quality services to their customers and at greater speed. Technological advancement allowed them to offer services like Internet banking and mobile banking, making it convenient for customers to interface with their banks from geographically diverse places.

Uppal, R K (2010) in his article “Emerging Issues and Strategies to Enhance M-banking Services” highlighted  now-a-days the total automation of banking operations is an imperative need for all banks to attract more customers, provide efficient services, and survive in the emerging new competition, apart from the profit motive which is the primary objective of the business. Mobile banking is one of the best alternative channels available to customers for quick, correct and efficient service at anytime and anywhere. He concluded that the private sector banks are on the top in providing the M-banking services to their customers and have high profitability as compared to other bank groups under study except foreign banks and suggested that spreading awareness regarding M-banking and increasing its area and scope to enhance M-banking services in India, particularly in rural and semi-urban areas.

Rajnish Tiwari et.al (2007) in their article “Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviour and Its Implications for Banks” reveals that mobile commerce is gaining increased acceptance amongst various sections of the society. The important features of mobile banking technology are: Ubiquity, Immediacy, Localization, Instant connectivity, Pro-active functionality and Simple authentication procedure.

Methodology of the Study

Sources of data

The study is confined with both primary and secondary data.

Primary Data

The primary data is collected through a well structured interview schedule. Direct interview was also conducted among 50 Bank customers from Nagercoil.

Secondary Data

The secondary data have been mainly collected from the books, journals, magazines, and also from the internet.

Sampling Design

In order to study the study on relationship between banking conditions towards awareness about mobile banking services in Nagercoil 50 bank customers enjoying the e – banking services are randomly selected using convenient sampling method.

 Statistical Tools Used

The collected data were analyzed with the help of various statistical measures such as Percentage and Chi-square test.

The following formula has been used for computing “Chi-square Test”.

Where,

x² = Chi – square value

O = Observed frequency

E = Expected frequency

R = No. of rows in a contingency table

C = No. of columns in a contingency table

The calculated value of x² is compared with the table value, at stated level of significance usually at 5 percent level. If the calculated value is less than the table value the Null hypothesis is accepted. Otherwise, it is rejected.

Analysis of DATA

Relationship between the banking conditions and awareness about mobile banking services

An attempt has been made to analyze the impact of banking conditions towards the awareness about mobile banking services by adopting Chi-square test.

Hypotheses

The null hypotheses framed for the purpose of analyzing the impact of banking conditions towards awareness about mobile banking services are given below as follows:

Ho₁    There is no significant relationship between type of bank in which the respondents holding account and the level of awareness.

Ho₂   Location of the bank does not influence the level of awareness towards the mobile banking services.

Ho₃   Duration of holding account is independent to the level of awareness about the mobile banking services.

Ho₄   There is no significant relationship between the years of using mobile banking services and the level of awareness.

Ho₅   Frequency of using mobile banking services does not influence the level of awareness towards the modernised banking services. .

Type of bank in which the respondents holding account and the level of awareness

The respondents hold account in both public and private sector banks. The banks in which the respondents holding the account is also analyzed using chi-square test and presented in the following table.

Table 1. Type of bank and level of awareness [Chi-Square Test]

Source: Computed Value

From the above analysis it is seen that the calculated value (12.36) of Chi-square is greater than the table value (9.488), and hence the null hypothesis is rejected. Hence it is concluded that there is a significant relationship between the type of bank in which the respondents holding account and the level of awareness.

Location of the bank and the level of awareness

The location of the bank is also considered to analyze the relationship between the banking conditions and level of awareness towards mobile banking services offered by the banks using chi-square test and presented in the below table.

Table 2. Location of the bank and level of awareness [Chi-Square Test]

Source: Computed Value

It is inferred from the above table that the calculated value (9.47) of Chi-square is greater than the table value (5.99), and hence the null hypothesis is rejected. Thus the Location of the bank does influence the level of awareness towards the mobile banking services.

Duration of holding account and the level of awareness

The years of holding bank account and the level of awareness is also analyzed using chi-square test and presented in the below table.

Table 3. Duration of holding account and the level of awareness [Chi-Square Test]

Source: Computed Value

From the above analysis it is seen that the calculated value (11.93) of Chi-square is greater than the table value (5.99), and hence the null hypothesis is rejected. Thus it is concluded that the duration of holding account is independent to the level of awareness about the mobile banking services.

Years of using mobile banking services and the level of awareness

The years of using mobile banking services and the level of awareness is also analyzed using chi-square test and presented in the below table.

Table 4. Years of using mobile banking services and the level of awareness [Chi-Square Test]

Source: Computed Value

From the above analysis it is seen that the calculated value (10.61) of Chi-square is greater than the table value (5.99), and hence the null hypothesis is rejected. Thus it is concluded that the years of using mobile banking services is independent to the level of awareness about the mobile banking services.

Frequency of using mobile banking services and the level of awareness

The frequency of using mobile banking services is also considered to analyze the relationship between the banking conditions and level of awareness towards mobile banking services offered by the banks using chi-square test and presented in the below table.

Table 5. Frequency of using mobile banking services and level of awareness [Chi-Square Test]

Source: Computed Value

It is inferred from the above table that the calculated value (13.22) of Chi-square is greater than the table value (5.99), and hence the null hypothesis is rejected. Thus the frequency of using mobile banking services influence the level of awareness towards the mobile banking services.

Findings

The important findings are given below as follows:

• Majority 33 (66 Percent) of the respondents holding a bank account in private sector banks.
• Most 28 (56 Percent) of the respondent’s banks are located in semi-urban areas.
• 34 (68 percent) of the respondents are holding bank accounts for 5 – 10 years.
• It is finding out that 26 (52 Percent) of the respondents are using mobile banking services for up to 5 years.
• From the total respondents, most 21 (42 Percent) of the respondents are using mobile banking services for more than 5 times in a month.
• 24(48 Percent) of the respondents get information related to the bank through media.

Conclusion

The mobile banking service is one of the important technical advancement and very new to society. It plays an important role in the daily of the banking customers and it also helps them to equip themselves with technical knowledge. It is concluded from the above analysis there is a close relationship between the banking conditions and the level of awareness about the mobile banking services offered by the various banks in the study area.

References

BBVA. Mobile Banking. Centro de Innovación BBVA. p. 22

Kamble  Shilpa, Nakhate Nirjala, Golande  Kalyani, & Pawar  Rohini. (2016). Mobile Banking (m-Bank). International Journal of Advance Research and Innovative Ideas in Education, IJARIIE, 2(2), 230-235.

Mohini S. Samudra and Milind Phadtare (2012), “Factors Influencing the Adoption of Mobile Banking with Special Reference to Pune City”, ASCI Journal of Management, 42(1), 51–65.

Rajnish Tiwari, Stephan Buse & Cornelius Herstatt. (2007). “Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviour and Its Implications For Banks”. Portland International Conference on Management of Engineering and Technology (PICMET), vol.1, pp. 8-13.

Renju Chandran. (2014). “Pros and cons of Mobile banking” International Journal of Scientific and Research Publications, 4(10), 1–5.

Sushma. (2018). Mobile Banking: Pain or Gain. Asian Journal of Management. 9(1), 217-222. Retrieved from http://ajmjournal.com/HTML_Papers/Asian%20Journal%20of%20Management__PID__2018-9-1-33.html

Umesh Maiya. (2019). “Mobile banking services: a study with reference to coastal Karnataka” International Journal of Advance and Innovative Research, 6(1), 59–64.

Uppal, R. K. (2010): “Emerging Issues and Strategies to Enhance M-Banking Services”, African Journal of Marketing Management, 2(2), 29-36.

To cite this article

Sophia Evangeline, E., & Rethnasigamony, C. (2020). An Analytical Study on Relationship between Banking Conditions and Awareness towards Mobile Banking Services in Nagercoil. Sparkling International Journal of Multidisciplinary Research Studies, 3(1), 16-23.