FACTORS INFLUENCING THE ADOPTION OF MOBILE BANKING IN RURAL AREAS OF MOULVIBAZAR DISTRICT

P Pooja1, JK Saha1*, and MA Rahman2
Journal of the Sylhet Agricultural University, Volume 7, Issue 1, 2020, Pages 13-23

Abstract:

With the rapid advancement of mobile banking technology in our country, consumers tend to adopt this service for its potential benefits. The present study plans to  determine the underlying factors that affect mobile banking adoption in rural areas. A total of 140 mobile banking users were selected from Kamalganj and Sreemangal Upazila of Moulvibazar district by employing the simple random sampling procedure. Primary data were collected from the respondents through face-to-face interviews using a structured interview schedule. Socioeconomic attributes of the respondents indicated that 67.1% of them belonged to the 30-64 age group and 86.4% of them were male, whereas only 13.6% of them were female. Most of the respondents had agriculture as their occupation. 92.2% of them were bKash users, and only 1.4% used Rocket. The remaining 6.4% of them used both bKash and Rocket in the study area. Factor analysis was applied to identify the factors influencing mobile banking adoption, and a regression model was run to observe the key factor. The study revealed that five predominant factors, namely credibility, ease of use, self-efficiency, usefulness, and social influence significantly influences rural people’s adoption of mobile banking. The extracted five factors explained 94% of the total variation of the data, and credibility was the most influential among them.  Considering the findings, mobile banking service providers can take up some effective strategies for further improvement of the mobile banking sector, essentially in rural areas.

Keywords:

Mobile banking, Adoption, Factor analysis, Rural area


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P Pooja1, JK Saha1*, and MA Rahman2. 2020. FACTORS INFLUENCING THE ADOPTION OF MOBILE BANKING IN RURAL AREAS OF MOULVIBAZAR DISTRICT, Journal of the Sylhet Agricultural University 7(1): 13-23.