M-Commerce stands for Mobile-Commerce. It is a wireless mode of communication in which consumers interact with each other or with business. Mobile commerce means using mobile phone buying and selling goods or services. Thus, mobile commerce which is termed as m-commerce which permits customers to make any type of transaction including transferring of money, service enquiry, and buying or selling of goods on mobile phone through internet. Alalwan.et.al (2015) stated that mobile commerce has its limitation but it is gradually but certainly representing signs of strong retrieval. Mobile banking and mobile commerce has been used interchangeably and their meaning is sometime confused and misused. Lee.et.al (2015) focused on m-commerce which is a part of mobile business. Organizations carried out mobile business to sell goods or services, Human Resource Management (HRM), commercial and other purpose, procurement and production, Customer Relationship Management (CRM) while M-commerce involves any activities (such as buying and services) which are related with transactions in consumer segment or business segment. As E-commerce is adopted, similarly m-commerce will also be adopted. Akturan and Tezcan (2012) described that the adoption of m-commerce is at slower pace and degree of progress is varied all over the world. Cruz.et al. (2010) describes that countries are taking lead to establish a single wireless standard such as Europe and Japan.
Mobile business relates to mobile which provides the facility to access any business activity anywhere and anytime around the world. The information which is accessed by customers around the world is managed by computer mediated network. Lee.et.al (2015) suggested that this facility makes service available to user irrespective of his geographical location. Alalwan.et.al (2015) suggests that mobile commerce includes mobile banking, mobile advertising and marketing, mobile entertainment, mobile ticketing and mobile information services. Akturan and Tezcan (2012) described the unique features of mobile commerce and the competitive advantage of mobile commerce over other transactions. They pointed the following features such as immediacy, connectivity, pro-active functionality, localization, simple authentication procedures and ubiquity. Thus, mobile business transforms the global market into one marketplace. But this business has separate features than traditional business which are proximity, confirmation, connecting with people worldwide, etc.
According to Alalwan.et.al (2015) Mobile commerce is a wide term that includes all methods of communication with a consumer through a mobile device such as providing loyalty services, issuing electronic coupons and developing dedicated websiteswhich facilitates browsing through mobile. Mobile finance services means using mobile telecom technology for finance-related services in the banking industry. Mobile finance services are further categorized into mobile banking and mobile payment. This report focuses on mobile banking with respect to research. According to Donner and Tellez (2008) Mobile banking is a kind of m-commerce services which permits consumers to accomplish banking services by using mobile phone technology. It includes services such as banking transactions, alerts and balance enquiries. Morawczynski and Miscione (2008) describe the concept of banking business and he suggests that banking is business which deals in money. Anyasi and Otubu, (2009) suggests that banking is a service involving banking services to public such as account opening, saving money or providing money for the loan purpose. Mobile commerce utilizes the electronic device i.e. mobile for business transactions. One of the sectors in mobile commerce is mobile banking which make use of mobile for transaction of money, enquiring balance, balance SMS alert, etc.
According to Donner and Tellez (2008) mobile banking provides banking services such as funds transfer, balance equity, bill payment and transaction history through mobile phones. Shen.et.al (2010) describes mobile banking as ‘customer accessing banking services on electronic devices such as cellular phones, personal digital assistants, pagers, or similar wireless telecom devices. Cruz.et al. (2010) defines mobile banking as an application of mobile commerce for allowing customers to access banking services virtually at any point of time or any place. It is also found in the research that the penetration rate of internet in Nigeria is only 6% but usage of mobile phone is penetrated up to 50%. Mobile phones are gateway to a progressive future because they facilitate the access to larger customers irrespective of their geographical location (Tiwari.et.al, 2006). It is also believed that mobile banking will lead to increased loyalty of customers. Thus, mobile banking has eliminated the need of customer to physically go to a branch to avail banking services. Through mobile banking, the customer can avail banking services virtually.
Mobile banking has brought positive transformation in field of banking. This research focuses on impact of mobile banking in United Kingdom. The aim of research is to identify the customer’s perception toward mobile banking in United Kingdom. Zhou (2012) describe the advantages of implementing mobile banking to customers in banking services.Mobile banking is also facing barriers and challenges such as poor informational technology system. Thus, new technology has been developed so that the bank can take full advantage such as the UMTS (Universal Mobile Telecom System). It has been made available for realistic mobile application experience. Mobile banking innovation has brought advantages to customers and also barriers and challenges. The customer has ease of service through mobile banking but there is threat of hacking of internet account in mobile banking.
In recent times, mobile banking has undergone radical change. This change can be seen in every field of banking sector. In the banking industry, one of the new and radical change is IT. Banks are using IT in their services to reduce time and improve business operation. It can be said that the efficiency of banks have been improved with the introduction of electronic devices and mobiles. One such IT and mobile service is mobile telephony which provide platform for launching innovative mobile services and mobile applications. The concept of mobile commerce has been generated with the use of mobile technology for commercial purpose. According to Zhou (2012) m-banking is an application of m-commerce which allows customers to bank virtually at any convenient place and time. Shen.et.al (2010) suggests that the number of people subscribing mobile phone is increasing as evident in developing and developed countries. At present, mobile industry is the fastest growing market in the world.
In UK it has been seen that banking with the help of Smartphone and tablet has become one of the leading ways for managing the finance. It has become possible all because mobile banking has overtaken the branches and internet in a most popular way to carry out a banking activity (Alalwan.et.al, 2015). Even it has been identified by CACI and BBA that consumer of UK have been using their mobile devices for checking out their current accounts by 895 million times in 2015 more than that of 427 million branch transactions. By the period of 2020 it has been forecasted that consumers is going to make use of mobile for managing their current account 2.3 billion times and it is seen to be more than that of internet, branch and telephone banking that is put all together. It has also been revealed by UK consumers that they have downloaded banking apps on 22.9 million occasions by the end of March this year and it is seen to be a rise of 8.2 million in just one year period of time (Krol.et.al., 2015). It has also been observed that consumers have moved for £2.9 billion a week with the help of banking apps in the period of 2015 and it was seen to be up from £2 billion in 2014. Some of the other facts that have been revealed in relation to mobile banking are there have been 9.6 million log-ins to internet banking within a particular day and it is 1seen to be 10% increase on a year before. Even banks have sent around 1.3 million text message alert to their consumer each day (Sun & Davidson, 2015). It has also been found that there is 43% decline in telephone instruction laid down by consumers to the bank during the period of 2008 and 2013.
Figure 1: Current account interactions (Source: Alalwan.et.al., 2015)
From the above figure it can be said that in the period of 2010 there have been use of internet as a mode to be higher in order to carry out current account interactions. But after that period it has been that in their period of 2015 the current account interaction has increased through a medium of mobile and it stood at 895 million users. Even it has been forecasted that by the period of 2020 in UK the current account interaction through mobile phones will increase up to 2341 million.
Table 1: Innovation across an industry
According to Barnes (2002) SMS is among the broadly used service and it is used in almost of kinds of cellular phones. According to Sulaiman.et.al, (2006) SMS is the most popular service provided by mobile phones. SMS is the most preferred service of mobile phones globally. In US over one trillion SMS are sent in a year, in UK 97 billion and in Asia 2 trillion. SMS banking has received positive feedback from customers globally. Consumer prefers SMS facility because it is easy to use and customers are familiar with it. The usage of MMS in countries is low due to low level of technology. The facts and figure of MMS usage in US and UK are 601 million and 10 billion respectively. A higher rate indicates the positive attitude of consumer towards the usage of mobile banking services. Thus SMS has reduced the paper work for both bank and for customers. Now the customer can access his bank statement detail through SMS. The penetration of SMS is more than MMS. MMS is not very popular among customers.
Lee.et.al. (2015) describes consumer behaviour as the process of decision making involving need satisfaction of customer. The decision making by customer toward the purchase of goods determine and precede these acts. According to Sun & Davidson (2015), consumers are of two types’ i.e. organizational consumer and personal consumer. Business or organizational consumers are those who buy products, services or equipment for the benefit. A good experience in past increases the rate of adoption of technology. In developed countries technology entered in market earlier than in developing countries. Thus, developing countries have less past experience related to technology. According to Krol.et.al (2015) people resist using technology in banking due to increased cases of hacking, data encryption, and integrity of the password and protection of personal information. Thus, the decision of customers toward banking electronically is negatively affected due to the above reasons an many more reasons. Consumer behaviour is the process of decision making and action taken by customer. In context to mobile banking, consumer behaviour is influenced by cases of hacking and others and resists the use of new technology.
Currently, a broad range of branchless or mobile banking is established now. There are three models which are developed and identified. These models differ on the basis of the party with which the relationship with customers is defined. The party can be telecom and non-bank companies. The relationship discussed here is in context of deposit, opening account, withdrawal, borrowings, etc. Joshua and Koshy (2011), defined the difference is the three models namely- Bank Focused model, Bank-led model and Non-bank-led model.
This model is applicable when customer uses their phone for transaction and not from branch. This model differs from traditional branch-based banking. In this method, telecom and banks develop a joint venture. With the help of this system, bank can manage and establish customer account relationship.
When a traditional bank chooses to utilize a low cost delivery channel, then it is a bank-focused model. This model also supports non-traditional banking system. According to this model, banks provide services to customers such as ATM (Automatic Teller Machine), m-banking facility, internet banking, etc. According to Joshua and Koshy (2011), bank-branch model is an extension of traditional branch-based banking and is additive in characteristic.
The non-bank-led model is applied only when the need arises otherwise it does not get involved. Akturan and Tezcan (2012), suggest that this model is utilized when the need as a safe keeper of surplus fund arises. This model permits the telecom company to manage all its function. However, the low income earners of the population are catered by mobile banking services. The telecom companies have to rely on retail outlets in rural areas.
M-banking As per Lee.et.al, (2015) mobile phone has been an effective tool that is used in order to drive mobile banking in an appropriate manner and it use has also undergone a continuous growth. Even it has been seen that use of mobile phone is banking transaction is increasing at a rapid speed allowing various poor infrastructure countries to make use of mobile phone for carrying out communication and business transactions. It is seen to be possible all due to inexpensive nature and low maintenance that is required to maintained in relation to device that have allowed various consumers in using laptops, desktop, e.tc, that are seen to be quite expensive to be maintained in a most appropriate manner. Even Sekhon.et.al., (2015) showed that there is increasing trends that could be seen in relation to joining up of mobile phones and electronic devices such as Personal Digital Assistant (PDA) together in order to lay down with an effective combination of mobile devices. These are innovation that can be seen in the area of multifunctional phones such as smart phones that has got various combinations of capabilities within the cell phones such as PDA and wireless email.
As per Sayar & Wolfe, (2007) it has been said that mobile phone use has got a significant positive impact on the country’s economic growth and it even it could be said that its impact maybe twice as large in developing countries when compared with a developed economies. It has been identified that banking carried out through mobile are seen to be growing at a faster rate. This is seen to be possible all due to faster movement of development in the area of information technology that have taken place at the global level in order to develop this sector in an significant manner. Even in the past banks have undergone various challenges all due to increase in their consumer base and it has lead to increase innovation with respect to different products and services that could enhance the development of banking sector in a rapid pace (Koenig-Lewis.et.al., 2010). In this respect one of the innovation that has change the entire market of carrying out banking transaction is use of mobile banking that is seen to be targeted at three different categories of individuals that are between the ages of 14 & 18 years, young adult and business people.
According to Porteous, (2006) indicates that use of mobile banking by consumer is going to enhance their overall satisfaction, reduction in the cost of distribution etc. However, it has been seen that mobile banking is going to face with the highest challenge to be with respect to trust and credibility from their provider. Even higher number of individuals undergoing the use of mobile banking is going to save the higher amount of money. As per Donner & Tellez, (2008) the cost of carrying out an electronic transaction is seen to be lesser when compared with the branch transactions. Thus, it could be said that Mobile banking is able to strengthen the relationship that exists between the consumers and banks. It is all because under this aspect banking service laid down to the consumer is directly related to the individuals and it eventually enhances the loyalty of their consumers.
Even it has been identified that mobile banking has been providing bank consumers with greater benefits while accessing the banking services when compared with other types of online banking activities (Ibrahim.et.al., 2006). In this regard it could be said that service of mobile banking can be accessed at any place and there is no use of desktop or PC. Undergoing this aspect helps out bank in carrying out their operation in a more convenient way when compared with that of traditional banking method. Even it has found that mobile banking has always supported time critical situations that require prompt response from the consumer all due to its immediate feature (Morawczynski & Miscione, 2008). Further, it has been seen that mobile banking has been providing their consumer with self service and digital access that can be undertaken in a cost effective manner.
As per Akturan & Tezcan, (2012) mobile banking has got an appropriate potential of laying down impact that it can laid down by the providers (Banks). It is considered to be a critical success factors that can be studied and implemented and can bring positive impact to the provider. Even it has been seen that there are literature indicating the suggestions that constitute critical success factor within mobile commerce. In this regard it has been identified that consumer have been considering the data security, users- friendliness, personalization and transmission to be appropriate factors to be important while carrying out their online transactions. As per Cruz.et.al., (2010) consumer of UK believe that if there will be convenience and easiness of accessing the facilities of banking with the help of internet at any time is going to a great motivating factor for the consumer to undergo services concerning mobile banking. On the contrary Joshua & Koshy, (2011) indicated that user friendliness is seen to be a factor considered by the consumer and higher complexity of phones and size of the screen is going to be a great threat that can be seen among the consumer. Further, it has been argues that psychological issues such as security and privacy is going to be a serious drawback in the comparison of technological issues that is seen to be laying down lesser impact.
Wray, (2008) undergone a research in order to evaluate the factors that have been laying down influence in mobile banking service with respect to innovation theory and have also formulated a model in order t0o describe the behaviour of a consumer. Under the research it has been identified that aspect such as use of internet facilities, compatibility issue, complexity, perceived risk and interest of consumer towards technological adoption has been laying down affect on the use of mobile banking service by a consumer. Even Sulaiman.et.al, (2006) undertakes a research in order to examine online mobile banking in China. The researcher in their study found that lack of understanding and awareness with respect to mobile banking has been major drawback in relation to adoption of mobile banking usage within China. The barriers that have been identified in this regard are perceived risk, culture and technological skills that can be seen within online banking in China.
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