Factors influencing the use of mobile banking : Malta as a case study

Abstract

The phenomenal advancement of the mobile sector worldwide has generated a distinctive alternative to providing financial services over a mobile phone. Mobile banking applications are a relatively new trend which have been growing in popularity ever since their introduction in the banking sector. This is especially the case in Malta, where mobile banking is still struggling to reach its full potential. The aim of this dissertation is to explore what factors influence the use of mobile banking applications. Moreover the study aims to arrive at a clearer understanding of the expectations of individuals who already make use of the service and also those thinking of starting to use mobile banking. Furthermore, it aims to provide some recommendations to banks which are planning on introducing mobile banking services and also banks which already provide the service but want to attract more customers. In order to carry out this research, data was collected through the use of a questionnaire distributed to members of the Maltese public. The questionnaire focused on the factors affecting individuals when using mobile banking services. The key findings of the study are that the majority of respondents make use of a mobile banking service. The main factors that influence the use of mobile banking were found to be risk and security. However the remaining factors still have some influence on consumers. It is therefore recommended that Maltese banks should try to address these factors in order to ensure safety and peace of mind amongst their customers. This could be done by for example, providing information sessions to their customers; implementing further safeguards to improve security; and integrating internet banking services into their mobile banking service.