An empirical study on facilitators and inhibitors of adoption of mobile banking in India

Mobile banking liberates people from spatial and temporal constraints and delivers significant convenience but people are still hesitant to use mobile banking. The purpose of this study is to examine the most important factors influencing and impeding consumer adoption of mobile banking. This study uses Unified Theory of Acceptance and Use of Technology (UTAUT) and Technology Readiness (TR) as a theoretical basis and integrates it with cognitive resistance to propose a conceptual model for m-banking adoption in India. Data was collected from 536 mobile banking customers from Delhi/NCR, using convenience sampling and was analysed using structural equation modelling. The findings revealed that the impact of facilitating factors namely, performance expectancy, effort expectance, social influence, optimism and innovativeness on behavioural intention to use m-banking is much more than the impact of inhibiting factors namely, discomfort, insecurity and cognitive resistance and also that behavioral intention has a significant impact on adoption of m-banking. In examining the relationship between facilitating factors and behavioral intention, there is no substantial moderation impact of age groups. However, gender moderated the relationship between effort expectancy and behavioral intention, as well as the relationship between optimism and behavioral intention. This research would help policymakers to understand and overcome the reluctance and barriers of adoption and would result in ensuring more adoption of advanced technological channels.