Mobile device is commonly known as cell phone and users commonly use it for communication and as a wireless delivery channel. In the field of commerce and business, mobile technology has brought a drastic
increase in speed and cut down of cost. M-Commerce can be defined as a transaction with a monetary value
which is conducted through mobile telecom network (M ller-Varese, 1999). M-commerce has opened
additional channel for service delivery. According to Muller-Varese (1999), cell phones are a new tool of trade
in the area of m-commerce. Mobile banking is generally defined as carrying out bank transactions and other
related activities via mobile (hand-held) devices. According to Tiwari and Buse (2006) the services offered are
Account operation (bill payments, money transfers etc.)
Account administration (access administration, cheque book requests etc.)
Account information (balance inquiries, statements of account)
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Financial information (interest- and exchange rates etc.)
Brokerage (sale/purchase of stocks)
Mobile banking can also be defined as a bridge that brings traditional banking services to users of
handheld GSM mobile devices (SanBoeuf, 2006). Mobile banking is termed as Anywhere, Anytime Banking as
most of the traditional banking services can be availed irrespective of place and time (Watts, 2002). It is a
service that allows customers to do banking transactions on mobile phone and 24/7 access to bank account
(Tiwari and Buse, 2006).
Pakistan has successful growing economy and telecommunication industry of the country has
advanced tremendously in the recent years. The higher use of mobile phone in an emerging market has
intrigued foreign as well as local banks to provide mobile banking services to its customers.
The purpose of the study is to identify the dimensions (organizational flexibility, strategic
endorsement, technological innovation, functional performance and economic cost) of mobile banking
adoption in Pakistani banks and to find the impact of these factors on new technology adoption. A survey of
bank employees is conducted and the data is analyzed. Descriptive analysis (mean and standard deviation) and
quantitative analysis is performed (factor analysis, regression and correlation analysis). Finally, based on the
analysis results, conclusion and recommendations are detailed.
The paper starts with the introduction, which is followed by Section 2 elaborating the literature review
regarding the factors of mobile banking adoption. In Section 3 the discussion leads to the development of
hypotheses. Section 4 describes the methodology adopted to conduct the research and Section 5 depicts the
conceptual model. Section 6 consists of data analysis and discussion of results. Finally, Section 7 presents the
conclusion of the research.
2. Literature Review
The rapid growth of technology and emergence of service innovation in all aspects of business has led
to a dramatic change. It has increased competition among the firms and businesses to attract more and more
customers and increase their profit share. Technological advancement has influenced the banking sector firms
too, to enhance their services offered to customers. Apart from traditional banking services provided, banks
have moved towards branchless mode of conducting transactions. E-commerce revolutionized the concept of
traditional banking. Mobile banking is a subset of the broader domain of electronic-banking.
According to the definition of mobile banking, the services offered by the banks to its customers are:
Account information (mini-statements and SMS alerts), payments and transfers (domestic and international
fund transfers, mobile recharging, commercial and bill payment processing), investments (portfolio
management services, real-time stock quotes and notifications on security prices), support services (status of
requests for credit, cheque book and card requests, exchange of data messages and email) and content
services (general information such as weather updates, news and location-based services) (Tiwari and Buse,
2006). There are basically two kinds of services offered to customers: Enquiry based and transaction based.
Enquiry based services are those in which the customer inquire about certain information from the service
providers as mini-statement, status of the request for credit, stock exchange rate etc. Similarly, transaction
based services are those in which the customer performs a money transaction from one account to another for
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paying bills etc.
The study is significant because of the need for research on mobile banking and the impact of
technology adoption. In Pakistan, mobile banking is a new area and there exists a need to analyze the critical
aspects of technology adoption. As this technology is not yet exploited by the banks and customer awareness is
comparatively low, therefore there is a need to conduct research on its adoption. To bridge this gap, the
researcher intends to conduct a survey of those banks which have adopted mobile banking technology and
have offered these services to customers. The study is significant at this initial stage when State Bank of
Pakistan has released orders to all the banks to adopt the technology. This is a comprehensive study as an
integrated model is developed and dynamic factors of technology adoption are incorporated. These include
organizational, strategic, technological, functional and economic factors. The study will help banks to recognize
these factors of technology adoption, as they proceed in technology enhancement. It will make financial sector
firms realize the importance of technology adoption and enable banks to enhance IT development and arrange
training sessions accordingly.
2.1 Mobile Banking Adoption
The literature collected from the work done by numerous researchers suggests that mobile banking is
a part of m-commerce which has gained vital importance since last decade. The number of customers using a
technology depicts its usage and popularity among clients. The literature related to customer satisfaction
provides evidence that perceived usefulness, risk and trust are the key elements which are related to
consumer s value perception and adoption of a technology (Dahlberg and Mallat, 2002).
A bank must support major business strategies that strengthen customer service in order to adopt the
technology and provide services to clients. On the other hand, employees also play a vital role in technology
adoption. Resistance shown by the employees to adopt a new technology can lead to poor adoption and
malfunctioning. Employees must be willing to learn and adapt with the shifting environmental needs. Similarly,
time taken by customers to adopt the technology depends upon the ease of use and reliability of the
technology. Customer s intention of mobile banking usage is affected by the security and privacy concerns.
Bank s performance is measured on the basis of trust and reliability in providing services to customers.
The transaction between the customer and the bank has to be maintained secure which requires
advance technological procedures to make the delivery channel safe. The fear of lack of security may cause
reluctance in adopting mobile banking services and can act as a barrier to its adoption. Experience and
expertise of decision makers enhances the credibility which has a significant impact on the development of
willingness in customers to use mobile banking.
2.2 Factors of Mobile Banking Adoption
The study concentrates on the following factors of mobile banking adoption.
2.2.1 Organizational factor
Organization s size refers to the capacity, number of personnel, outputs (customers, sales), resources
(wealth) as suggested by Borgatti (2001). In complex and uncertain environments, typically organizations
differentiate so that each unit faces a smaller, more certain problem. Mobile banking is in the growing phase of
the organizational life cycle. Banks follow different programs related to organizational development like
employee training and development and hiring IT professionals. Competent staff is recognized by their
expertise and qualification. Organizational development can be achieved through effective training and
development which improve employee s performance, skills and knowledge. The reason of providing training is
to make the employee eligible for the changing role of the organization (McNamara, 2007). The belief behind
this is to increase employee s efficiency and capacity which result in financial gains. Thus, organizational factor
contributes to easy adoption of technology.
2.2.2 Technological factor
Technological progress improves the quality of banking services. Financial sector firms have to ensure
the privacy, security and integrity of customer s detail in all aspects. Risk of fraud, loss or theft may discourage
people from relying on the bank. Thus, mobile banking as technology advancement in electronic banking has to
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offer reliable security measures to ensure adoption by the customers. Transactions happening on WAP access
via internet have to deal with the matter in a differentiated way. Threats from viruses, trojan horse and worms
make the internet network unreliable (Ebling, 2005). Soroor and Toosi (2005) state some general security
requirements which apply to electronic banking systems. The most important is confidentiality which means to
ensure that only authorized entities have access to the content of the exchanged information . This leads to
the assumption that higher technological advancement enhances technology adoption.
2.2.3 Strategic factor
Customer loyalty and customer retention has importance over customer acquisition. The value of
customer relationship management has become apparent in the competitive era of technological innovation.
Trust is the backbone of any business (Shariq, 2006). If a bank fails to provide the services accurately as
promised, the trust of the customer is broken which creates anxiety. As mobile network is an open network,
the concerns increase intrinsically. Typical concerns include fraud (loss as the result of unauthorized
transactions), loss of privacy (through inadequate data protection) and even loss of service. Therefore, strategic
endorsement leads to increasing rate of technology adoption.
2.2.4 Functional factor
When customers evaluate the quality of service provided by the financial institution, their satisfaction
depends upon the service features delivered. Thus, it is important to analyze the level of services offered to
customers. Versatility in service offering is very important to attract customer. The number of services must
always increase as well as the quality must improve. Features offered on SMS based alerts like on time delivery
of SMS, authentication, reply option etc. and on WAP-enabled online internet access like navigation speed,
download, content, design, interactivity and security features are added for the convenience and ease of users.
While, problems such as slowness, poor navigational possibilities, and low interactivity with the service settings
and critical incidents such as lack of help and empathy by service providers in service encounters all trigger
considerable switching and anxiety in customers (Shariq, 2006). This suggests that enhanced functionalities
lead to higher technology adoption.
2.2.5 Economic factor
Dahlberg and Mallat (2002) argued that cost paid by a customer to adopt technology usage comprises
of three types: Direct cost which a customer invests to use a technology, indirect cost which incurs when the
technology does not fulfill its function properly as desired and the third is psychological cost which a customer
has to pay due to the fear that he might face a problem while executing. The author is of the view that
customer satisfaction level increases as the cost to carry out a technology innovation decreases. The study
emphasizes that adoption of mobile banking enhances the performance of bank in terms of reduction in costs
such as cost of transaction, administration, and promotion (Daghfous and Toufaily, 2007). This requires an
environment which supports the technological innovation.
3. Conceptualization and Hypothesis development
Drawing on the relevant literature and empirical implications of the study, the conceptual framework
and hypotheses are discussed as under.
3.1 Organizational factor
The organizational structure of a firm plays a pivotal role in new technology service adoption.
Organizational setup constitutes human resource as its main foundation. Any change in the organization s
internal process affects human resource considerably. Change management and organizational flexibility is the
prime requirement for firm s success. Changes in services offered due to technology advancement requires
change in certain managerial practices, such as flexibility in personnel assignments and extent of delegation of
authority, which lay emphasis on results rather than procedures. Organizations whose structures are not fitted
to the environment (which includes other organizations, communities, customers, governments, etc.) do not
perform well and fail mostly within the first few years.
Organizational change is same as personnel growth. It affects the whole as well as each basic unit. The
aim of business activity is profit generation through increasing customer retention and satisfaction. Adopting
mobile banking was primarily intended to bring cost effectiveness in the banks. Ayadi (2006) has quoted
organizational flexibility in the literature, as a factor to enhance productivity and profitability. The financial
resources of a firm are the main assets and efficient utilization of resources is a critical issue. Decision-makers
need to be prepared to build new strategies compatible with mobile usage environment. The cost of
introducing a new technology, its management, promotion and support requires investment. Thus, higher the
financial resources of a firm more likely it is to adopt new technology.
H1: There is a positive association between the level of organizational flexibility and mobile banking adoption.
3.2 Technological factor
Technology is a significant dimension of providing reliable services to customers. Technology must be
authentic that it ensures general security concerns which increases customer satisfaction. Innovation in
technology is adopted considerably when it is believed that the adoption increases the performance of the
bank, in terms of increase in market share, customer satisfaction and reduction in cost (Daghfous and
On the basis of general understanding, it is highly accepted in the economy worldwide that higher
technological advancement leads to more sophisticated customer service which leads to increase in number of
customers. Literature provides support that all the industries, which cater customer service, directly or
indirectly, aim is to provide their best to the client. As discussed by Rogers and Shoemaker (1999) early
adopters are those customers which are on the upfront to adopt a new technology. Adoption of a technology
in customer s point of view is the ease and usefulness he considers to avail from it. As proposed by Davis (1986)
the Technology Acceptance Model (TAM) posits that perceived usefulness and perceived ease of use
determine an individual's intention to use a system with intention to use serving as a mediator of actual system
use (Rao, 2007; Malhotra and Galletta, 1999). The studies suggest that technically sound and reliable
technologies are adopted by customers. In banking sector, mobile technology is one of the most recent
advancement. It is adopted in order to enhance the services provided to customers. Customers demand a
reliable, secure and efficient mechanism to access their accounts. Increasing technological advancement has a
direct impact on adopting technology. Thus, it is postulated that technological authenticity has a positive
impact on the adoption of mobile banking.
H2: There is a positive association between the technological innovation and mobile banking adoption.
3.3 Strategic factor
Business strategies are developed on the basis of firm s vision and mission. The underlying vision of a
business is to generate profit but it is achieved through increasing number of satisfied customers. Businesses
execute their activities mainly based on trust (Shariq, 2006). As mobile network is an open network the
concerns regarding security increase intrinsically. The level of risk involved varies with the nature of the
product offering. The security issues are involved in customer authentication and authorization through all the
stages of wireless transmission. The perceived risk a firm refers to is the level of uncertainty a firm can
tolerate (Daghfous and Toufaily, 2007).
Adopting innovative services and new technology to refine services and utility, is yet another strategic
criterion to encourage customer retention and customer satisfaction. Customer choice is continuously changing
and to cope up with the changing environment service sector firm are always busy in bring about innovation
and creativity. New technology is adopted at higher rate comparatively by service sector firms. Banks being the
central hub of financial setup are leading the rest in adopting innovative services.
Laukkanen (2005) says that customer needs and values have become more important for financial institutions,
not only due to the changing environment but also because of changing customer behavior. According to Ebling
(2005) research shows that the more services the customer uses, the greater are the banks expected profits .
Therefore, to ensure the versatility regular adoption of new technology is positively correlated to adoption of
H3: There is a positive association between the strategic endorsement and mobile banking adoption.
3.4 Functional factor
Functional diversification of each unit to specialize in its field is very important for a firm s progress.
The benefits of adopting electronic banking are numerous which includes reduction in cost. It has a positive
impact on the execution of operations, the cost is lowered for service access and improvement occurs in
customer relationship (Daghfous and Toufaily, 2007).
Functional factor is yet another important aspect of a firm which determines the technology adoption
measurement. Researchers argue that functional diversification and coordination is the key element for the
firm s success. Banks which fail to adopt innovative technological advancement lose satisfied customers who
may have moved, retired, or no longer need certain services (Cohen et al., 2006). As a consequence, retaining
customers is the priority for banks, which requires creativity in its functional process and services offered to
A review of literature suggests that importance of service quality, meeting customer expectations and
satisfaction with the service is significant in market oriented and customer focused firms (Jamal and Naser,
2002). They further added that there are certain dimensions of service quality that affect the customer such as
reliability, tangibles, responsiveness, assurance and empathy . The association between the dimensions of
service quality and customer satisfaction is significant as it suggests a positive relationship which leads to
technology adoption. Banks pursue customer retention strategies and invest on research and related activities
to bring diversification and versatility in the services offered.
H4: There is a positive association between the functional performance and mobile banking adoption.
3.5 Economic factor
Economic cost associated with technology based innovation is a prime factor of its acceptance or
rejection. Numerous researches suggest that mobile banking has reduced the cost of executing a transaction; in
terms of convenience to customers and reduced service charges (Dahlberg and Mallat, 2002; Daghfous and
Reduction in cost of doing business is the major attraction for the customers. The level of cost
reduction depicts its significance in the business world. Polatoglu and Ekin (2001) argued that more rapid
diffusion occurs when customers can have low-cost or low-risk trial of the service . Adopting technology-based
innovation can be costly as institutions require a complete setup of computers, network coverage and skilled
workers to start up with. But mobile technology has advantage over other innovations as it acknowledges the
existing infrastructure available in the market.
Budget allocation to purchase hardware and software accessories for technology adoption is another
element to quantify the economic factor. Huge investment is required to start a new venture. But the concept
of providing customers cheap access to the service must be given the highest priority while investing. Business
risk is another important significant factor of technology adoption. According to Adongo et al. (2005) business
risk refers to the uncertainty of revenues and expenses associated with activities such as loan origination,
servicing and data processing . A technology reaches its critical mass when it is adopted by the economy as an
accomplishment of profitability. The profit generated by the adoption of a technology is regarded as its
success. Thus, lower economic cost leads to higher level of technology adoption.
H5: There is a negative association between the economic cost and mobile banking adoption.
Each variable with its operational definition is depicted in the Table 1.
. Organizational Factor
Size of the bank
Type of decision making
Level of expertise
Availability financial resources
. Technological Factor
Reliable security measures
Ease of use
Sophisticated IT technology
Learning new technology
. Strategic Factor
Risk free technology
Adopting innovative services
Perceived relative advantage
Degree of service expansion
. Functional Factor
Versatility of technology
Timely and reliable service
Feedback and customer inquiry
. Economic Factor
Cost of doing business
. Mobile Banking Adoption
Number of customers
Business strategies that strengthen customer service
Resistance shown by the employees
Time taken by customers to adopt
Barrier to adoption of mobile banking
Experience/expertise of decision makers
Table 1: Operational definition of observed variables
4. Research Methodology
This section encompasses the methodology used in the research. The sample frame and data
collection mechanisms are discussed below.
4.1 Sampling and data collection
The study focuses on people who have had direct interaction with mobile banking technology. The
focus group consists of bank employees, which are providing this utility to their customers. The study consists
of quantitative research, with representative sample of Citibank N.A, Standard Chartered Bank of Pakistan and
Untied Bank Limited.
Survey method is used for conducting the research and data is collected through questionnaire as a
source of primary data collection. Questionnaire is developed according to likert scaling technique, consisting
of initial demographic questions (See Appendix A). The sample size determined to conduct research is 150
responses from bank s employees.
4.2 Econometric Model
The dependent variable, Mobile Banking Adoption (MBA) is depicted as a function of independent
variables: Organizational Factor (OF), Technological Factor (TF), Strategic Factor (SF), Functional Factor (FF) and
Economic Factor (EF) in the following equation.
MBA= a0 + 1(OF) + 2(TF) + 3(SF) + 4(FF) 5(EF) + e
e- error term
5. Conceptual framework
The conceptual framework depicts the relationship between the dependent (mobile banking adoption)
and independent variables (organizational factor, technological factor, strategic factor, functional factor and
economic factor) based on the hypotheses for the study. The conceptual framework also depicts the direction
of the relationship between the variables and is presented below in figure 1.
Figure: 1. Conceptual Framework
6. Research Findings
The data collected from the respondents is analyzed using Statistical Package for Social Sciences (SPSS
12 version). Analysis is based on three steps. Firstly, descriptive statistical analysis is conducted. Then, the
reliability of data analysis is tested and finally, hypotheses testing are performed. The results of the analyses
are discussed below.
6.1 Descriptive statistical analysis
The descriptive statistics of the dependent and the independent variables is depicted in the table 2
Mobile Banking Adoption
Table 2: Descriptive statistical analysis
6.2 Reliability data analysis
Cronbach s alpha is used to verify reliability of the data. The results show that alpha value ranges from
0.624 to 0.678 which depicts that the scale is reliable. This value exceeds the recommended value of 0.6
(Nunnally, 1978; Lee, 2007), demonstrating sufficient internal consistency of the scale used for the research.
6.3 Hypotheses testing
The hypotheses testing techniques used in this study and the results are discussed as follows.
6.3.1 Factor analysis
Factor analysis is used as a tool for hypothesis testing and to find out the factor loading for each
variable as performed by Sivanand et al. (2004) and Karjaluoto et al. (2002). Results for confirmatory factor
analysis holding the eigenvalues and sum of squares loadings for the factors are displayed in Table 3.
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis.
Table 3: Total variance explained
Table 3 shows the results of principal component analysis. The table depicts eigenvalues for each
factor which represents the percentage of variance contributed by the factor. The first three factors contribute
to 77.84% of the total variance and have eigenvalue greater than 1.0. Hence, according to Kaiser s criterian and
Cartell s scree test the first two factors are extracted and further applied with varimax rotation as adopted by
Malhotra and Galletta (1999), Lee (2007) and Sinkkonen et al. (2007).
Table 4 represents the extracted variables and their factor loadings. The results show that the first
factor, exhibits heavy loading for strategic factor (0.943), mobile banking adoption (0.899) and technological
factor (0.803). Hence, it can be named as Business Factor . Second factor exhibits loading for organizational
factor (0.848) and economic factor (0.636) and it can be called as an Operational Factor . Third factor exhibit
for functional factor (0.877) and named as Service Factor .
Mobile Banking Adoption
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
Table 4: Rotated Component matrix
6.3.2 Correlation Analysis
Pearson correlation coefficient depicts the relationship between the dependent and independent
variables which are depicted in Table 5.
Factors of Mobile Banking Adoption
r is Pearson correlation coefficient
** Correlation is significant at the 0.01 level (2-tailed)
Table 5: Correlation matrix
Analysis of the correlation matrix indicate that organizational factor has a significantly positive
relationship with mobile banking adoption [r=.680, n=150, p<0.01], leading to acceptance of hypothesis H1.
Similarly, technological factor shows strong positive association with dependent variable [r=0.732, n=150,
p<0.01] which suggests hypothesis H2 is accepted as true. The result supports the findings of Malhotra and
Galletta (1999) and Rao (2007), who suggested that adoption of the advanced technology by the firm leads to
an increase in customer s ease and usage, increasing the level of satisfaction.
Furthermore, the correlation matrix also indicates that there is a strong and positive correlation
between the two variables, mobile banking adoption and strategic factor [r=0.873, n=150, p<0.01] which
suggests that strategic factor have a direct positive relationship with the dependent variable. It suggests the
acceptance of hypothesis H3. Furthermore, the results also show a relatively weak but significant correlation
between functional factor and mobile banking adoption [r=0.550, n=150, p<0.01]. The variables hold a positive
correlation at a significance level of 0.05. The value shows that functional enhancement of a technology has a
direct impact on the level of mobile banking adoption. This correlation strengthens the results of Jamal and
Naser (2002) and Cohen et al. (2006), accepting the hypothesis H4.
There is a negative correlation depicted between the two variables, mobile banking adoption and
economic factor [r=-0.071, n=150], which shows that low levels of economic cost is associated with higher
levels of mobile banking adoption. The purpose of technology adoption in banks is to provide cheap and
reliable channel to customers for service delivery. The results in table 5 show that adopting new technology has
a negative association with economic standing of the bank as reduced service charges and expensive
technology are negatively related. Therefore, hypothesis H5 is accepted, as argued by Gritti (2007)
6.3.3 Regression analysis
The results for regression analyses show that the value for the R squared is 0.865. It shows that the
independent variables accounts for 86.5% change in the mobile banking adoption. The value for the R squared
is significant at .0001 level, which shows that the findings are statistically robust. The co-efficient of correlation
(R) is 0.888. The equation of the model relevant for the current study is as follows:
MBA= - 11.373 + 0.265 (OF) + 0.175 (TF) + 0.569 (SF) + 0.137 (FF) - 0.016 (EF) + e
(where MBA= Mobile Banking Adoption, OF=Organizational Factor, TF=Technological Factor, SF=Strategic
Factor, FF=Functional Factor, EF=Economic Factor and e=error term)
The results of regression analysis are presented in Table 6 below.
a. Dependent Variable: Mobile Banking Adoption
Table 6: Coefficients
The discussion of the results is presented as follows:
Organizational factor: The result shows that organizational factor has a coefficient value of 0.265 and the
significance level of 0.000. The standardized coefficient value of 0.248 is relatively the low value for coefficient,
depicting that one unit increase in organizational factor leads to 0.248 units increase in mobile banking
adoption, holding the other variables. Therefore, the hypothesis Hi is accepted true.
Technological factor: The result shows unstandardized coefficient value of 0.175 significant at .000
level of confidence. The standardized coefficient value of 0.173 shows importance of the variable in the model.
The findings support prior research of Malhotra and Galletta (1999), Luarn and Lin (2005) and Rao (2007),
which shows that positive relationship exists between technological factor and the dependent variable. The
results indicate that reliable security concern, ease of use, IT application, functional boost and learning new
technology are needed to adopt the technology in order to enhance the level of technology adoption. Thus, the
results confirm that hypothesis H2 is true and accepted.
Strategic factor: Based on the coefficient value (0.569) and significance level (0.000), it is suggested
that strategic factor is the strongest predictor of mobile banking adoption among the rest of the variables. This
is supported by the standardized coefficient value, which depicts that one unit increase in strategic factor leads
to 0.552 units increase in mobile banking adoption. This suggests to the acceptance of the hypothesis as there
exists a positive relationship between strategic factor and mobile banking adoption as argued by Child (1975)
and Cohen at al. (2006).
Functional factor: The result shows unstandardized coefficients value of 0.137 and standardized
coefficient value of 0.159. The statistics are relatively weaker than the other variables but confirm a positive
relationship between the independent and dependent variables at a significance level of 0.000. The statistics
demonstrates that functional factor plays a relatively marginal role in explaining mobile banking adoption. The
result shows that the relationship is not strong but it is positively associated. Functional diversification,
versatility, timely and reliable service, customer inquiry and complaint handling depict the significant aspects
contributing to the factor variance. The findings are consistent with the study done by Jamal and Naser (2002),
Luarn and Lin (2005) and Cohen et al. (2006) which leads to the acceptance of hypothesis H4.
Economic factor: Economic factor is found to have a negative relationship with mobile banking
adoption as shown by coefficient value of -0.016 with the significance level of 0.712. The result shows that
there exists a negative relationship between the economic factor and mobile banking adoption confirming
hypothesis H5, which is consistent with the previous studies of Luarn and Lin (2005) and Copercini (2007).
The paper presents an integrated model that demonstrates the impact of organizational factor,
technological factor, strategic factor, functional factor and economic factor on mobile banking adoption. The
findings prove that mobile banking is technologically a profitable option for the banks. Banks in Pakistan must
adopt mobile banking as an attractive service provided to their customers in order to increase customer
satisfaction. The results of regression support the hypotheses tested in this study. The results show that
technological and functional aspects of the new service are to be ensured so that customers find ease in usage
The findings show that organizational factor has a positive relationship with adopting mobile banking
technology. Although the association is weak but still it ensures that aspects like technical infrastructure and
type of decision making are the most significant contributing factors to the variable. The findings successfully
confirm that technological factor accounts positively towards the adoption of mobile banking. Customers
desire reliable, timely, effective and secure technology to perform money transaction. Traditional technological
measures were found to be the important factors affecting customer behavioral intention to use mobile
banking. These measures include sophisticated IT application and functional boost. The study furthermore,
shows the most significant and strong positive association between the dependent variable and strategic
factor. The key indicators are relative advantage of technology and the degree of service expansion.
Furthermore, the results for correlation show that a weak positive relationship exists between functional factor
and mobile banking adoption. The relationship is not strong but is positively correlated. Customer inquiry and
complaint handling showed the most significant results contributing to the factor variance of functional aspect
of mobile banking. Finally, the research findings show that there is a negative association between economic
factor and mobile banking adoption, the reason being the cost of doing business and market risk which have a
tremendous impact on customer s behavioral intention to use a new technology.