Service Quality of Mobile Banking

Service Quality Of Mobile Banking
Abstract
The main purpose of this research is to study the service quality perceptions and measuring
their impact customers trustworthiness on mobile banking. In order to do this a hierarchical
service quality has been developed in this research and furthermore it confirms that PLS path
modeling can be used to estimate the parameters of a higher order construct and its association
with subsequent consequential latent variables in a network. The findings of this research
represent that service quality is a third-order, reflective construct model with strong positive
effects on customers trustworthiness. Moreover implications and further research indication
of hierarchical service quality model is discussed later.
Acknowledgment
The research on Service quality of mobile banking is prepared to fulfill the partial
requirement of BBA program. Regarding the outcome of this thesis I would like to express my
sincere gratitude profound thankfulness, deep appreciation and indebtedness to the respondents
who helped expressing their valuable opinion by filling up questionnaire survey. Most
importantly, I am very much thankful to my respectable faculty, Dr. Mohammad Alamgir
Hossain for skilled proper guidance, keen supervision, continuous encouragement and advice,
stainless supervision during the preparation of this paper.
I am also acknowledging the co-operation and support that I received from many employees of
Trust Bank Limited, especially Mr. Kamal Hossain (Credit & Foreign exchange manager), Mr.
Riad Hossain (foreign exchange in charge) and Umme Kulshum Lipi (SOD) from Trust Bank
Ltd.
While doing this research, I have encountered some difficulties to collect data and information.
However, despite those difficulties I have completed the paper in time I tried my best to make
it a complete despite my sincere effort, there may some shortcomings. I regret for those
conscious and unconscious mistakes. Finally, I would like to thank my friends: Omar Sakib
Ahmed, Iqbal Aziz Muttake, Habib, Shovon Shajhan, Farhat Anjoom, Tanvir Showan, and
Adnan Hossain Nipu for their continuous encouragement while I am doing this research.
Page 1 of 43
Table of Contents
Abstract ............................................................................................................................................ 1
Acknowledgment .............................................................................................................................. 1
Part- A (Organizational Part) .............................................................................................................. 4
Overview of Trust Bank Limited ....................................................................................................... 5
Vision & Mission of Trust Bank ........................................................................................................ 5
Vision: .......................................................................................................................................... 5
Mission: ........................................................................................................................................ 5
Positioning statement: .................................................................................................................... 6
Companys Value: ......................................................................................................................... 6
Performance of the Bank ................................................................................................................... 6
Branches ........................................................................................................................................... 6
Organogram of Trust Bank Limited, Principal Branch ....................................................................... 7
Corporate Information of the Trust Bank Limited .............................................................................. 9
Legal Form .................................................................................................................................... 9
Initial Public Offering .................................................................................................................... 9
Product & Schedule of Retail Banking On Trust Bank Limited ........................................................ 10
Any Purpose Loan: .............................................................................................................. 10
Car Loan: ............................................................................................................................. 10
House Hold Durable Scheme Loan:...................................................................................... 11
Apon Nibash Loan: .............................................................................................................. 12
Doctors Loan: ..................................................................................................................... 13
Marriage Loan: .................................................................................................................... 13
Education Loan: ................................................................................................................... 14
Travel Loan: ........................................................................................................................ 14
Hospitalization Loan: ........................................................................................................... 14
Credit Cards .................................................................................................................................... 15

For Defense Persons .................................................................................................................... 15
Any Purpose Loan ............................................................................................................... 15
House Hold Durable Scheme Loan:...................................................................................... 16
Trust bank Mobile Banking (TBLMB)............................................................................................. 16
Features of Trust Bank Mobile Money ................................................................................. 17
Service Availability ............................................................................................................. 17
TBMM services can be access through: ................................................................................ 17

Page 2 of 43
General Services of TBMM ................................................................................................. 17
Registration Process ............................................................................................................. 18
Requirements Documents .................................................................................................... 18
Part B
(Research Part) .................................................................................................................. 19
Introduction: ................................................................................................................................... 20
Objectives of the study: ................................................................................................................... 21
Research Model .............................................................................................................................. 21
Hypothesis ...................................................................................................................................... 22
Methodology ................................................................................................................................... 24
Sampling...................................................................................................................................... 24
Measurement Instruments and Data Analysis Strategy .................................................................... 24
Partial Least Square (PLS) Procedures .......................................................................................... 26
Measurement model assessment ................................................................................................ 26
Structural Model Assessment ....................................................................................................... 27
Data Analysis of the Research Model ........................................................................................... 28
Demographic profile of the respondents...................................................................................... 28
Significance of the study: ................................................................................................................. 37
Implications to theory: .................................................................................................................... 37
Implications to practices: ................................................................................................................. 37
Limitations of the study ................................................................................................................... 38
Future Research directions .............................................................................................................. 38
Recommendations .......................................................................................................................... 39
Conclusion ...................................................................................................................................... 39
References....................................................................................................................................... 40
Appendix ........................................................................................................................................ 41
Page 3 of 43
Part- A
(Organizational Part)
Page 4 of 43
Overview of Trust Bank Limited

Trust Bank Limited is one of the leading private commercial banks having a spread network of
53 branches and 7 SME center across Bangladesh and plans to open few more branches to
cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2010.
The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country.
With a wide range of modern corporate and consumer financial products Trust Bank has been
operating in Bangladesh since 1999 and has achieved public confidence as a sound and stable
bank.
In 2001, the bank introduced automated branch banking system to increase efficiency and
improve customer service. In the year 2005, the bank moved one step further and introduced
ATM services for its customers.
Since banks business volume increased over the years and the demands of the customers
enlarged in manifold, our technology has been upgraded to manage the growth of the bank and
meet the demands of our customers.
In January 2007, Trust Bank successfully launched Online Banking Services which facilitate
Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to
all customers. Customers can now deposit or withdraw money from any Branch of Trust Bank
nationwide without needing to open multiple accounts in multiple Branches.
Via Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve
24x7 hours Account information such as account balance checkup through mini-statements and
cash withdrawals.
Trust Bank has successfully introduced Visa Credit Cards to serve its existing and potential
valued customers. Credits cards can now be used at shops & restaurants all around Bangladesh
and even internationally. Trust Bank is a customer oriented financial institution. It remains
dedicated to meet up with the ever growing expectations of the customer because at Trust Bank,
customer is always at the center.
Vision & Mission of Trust Bank

Vision:
We aim to provide financial services to meet customer expectations so that customers feel we
are always there when they need us, and can refer us to their friends with confidence. We want
to be a preferred bank of choice with a distinctive identity.
Mission:
Our mission is to make banking easy for our customers by implementing one-stop service
concept and provide innovative and attractive products & services through our technology and
qualified human resources. We always look out to benefit the local community through
supporting entrepreneurship, social responsibility and economic development of the country.
Page 5 of 43
Positioning statement:
Trust Bank is a contemporary, upbeat brand of distinctive quality of service and solution that
offers a rewarding banking experience as preferred choice of banking partner every time,
everywhere.
Companys Value:
1)
2)
3)
4)
5)
6)
Trustworthy
Dependable
Reliable
Professional
Dynamic
Financial inclusion
Performance of the Bank

TBL a blend of expertise and technological excellence is in place to meet varied needs of
modern customers. The bank aims at mobilizing untapped money of the country and prudent
deployment for productive activities in the form of lending at a competitive interest rates/loan
pricing. Towards attainment of its goals and objectives, the bank pursues diversified credit
policies and strategic planning in credit management. To name a few, the bank has extended
micro credit, consumers durable scheme loans, house building loans etc. to cater to the needs
of the individuals, which in turn has helped thousands of families. The bank also extends loan
in the form of trade finance, industrial finance, project finance, export & import finance etc.
The banks credit policies aimed at balanced growth and harmonious development of all the
sectors of the countrys economy with top most priority to ensure quality of lending by averting
growth of non-performing assets.
Branches
Trust Bank Limited now continues its operation with 53 branches and 7 SME center across the
country. The management is feeling that they need more branches all over the Bangladesh to
provided ardent services to more clients. In association of this view, TBL has taken up a
program to expand its branches in commercially important areas within the country in near
future.
Page 6 of 43
Organogram of Trust Bank Limited, Principal Branch
MANAGER
Figure 1 Working Division of Trust Bank Ltd.
Page 7 of 43
FCAD
Credit Division
FDR
Islamic Banking
Clearing
Card Division
SME
Remittance
Account
Opening
Cash-InCharge
SUB-MANAGER
Chairman
Board of Director
Top Level
Vice-Chairman
Company Secretary
Managing Director (MD)
Executive Vice-President (EVP)

Senior Vice-President (SVP)
Vice-President (VP)
Senior Assistant Vice-President (SAVP)
Assistant Vice-President (AVP)
Executive Level Management
Deputy Managing Director (DMD)
Senior Executive Officer (SEO)
Principal Officer (PO)
Mid Level
Executive Officer (EO)
Management Trainee Officer (MTO)

Junior Officer (JO)
Low Level
Management
Senior Officer (SO)
Figure 2 Management of Trust Bank Ltd.
Page 8 of 43
Corporate Information of the Trust Bank Limited

Legal Form
The company was incorporated on 17 June 1999 under the Companies Act 1994 as a public
company limited by shares for carrying out all kinds of banking activities.
Table 1 Legal Form Of Trust Bank Ltd.
Registration Number & Date
C-37960(2260)/99,
17 June 1999
Sponsor Shareholders
Army Welfare Trust
Certificate of Incorporation Received on
17 June 1999
Certificate of Commencement of Business Received on
17 June 1999
Banking Licenses Received on
15 July 1999
First Branch Licenses Received on
9 August 1999
Formal Inauguration on
29 November 1999
Corporate Web Site
www.trustbank.com.bd
Email
info@trustbanklimited.com
Initial Public Offering

Table 2 Initial Public Offering Information of TBL
Publication of prospectus
17 May 2007
Subscription Opening
15 July 2007
Subscription Closing
19 July 2007
Listed With Dhaka Stock Exchange (DSE) on
25 September 2007
Listed With Chittagong Stock Exchange (CSE) on
24 September 2007
Commencement of Trading of Shares at DSE
01 October 2007
Commencement of Trading of Shares at CSE
01 October 2007
Page 9 of 43
Product & Schedule of Retail Banking On Trust Bank Limited

There are mainly 12 products in retail banking on Trust Bank. These are given below:-
Any Purpose Loan

Car Loan
House Hold Durables
Apon Nibash Loan
Doctors Loan
Marriage Loan
Education Loan
Travel Loan
Hospitalization Loan
Credit Card
Loan against Trust Money Double Scheme.
Any Purpose Loan:
TBL have so many needs, some are attainable with our means & standing and some are
unattainable. The unattainable needs can be met by TBL. "Any Purpose Loan'
Eligibility for Any Purpose Loan:
Confirmed employee of the Govt. Organizations/ Semi-Government Organizations /

Autonomous Bodies / Multinational Companies / Banks /Insurance companies /
Educational Institutions / Corporate Bodies
Supportive cash flow to repay the loan
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can relax the age
limit up to any age depending on the merit of the case.
Table 3 Any Purpose Loan details

For Any Purpose Loan
Loan Limit:
Tk. 0.5 lac -5.00 lac
Interest Rates (%)
17%
Down Payment / Equity N/A
Loan Period / Tenor
1 4 years
Risk Fund
Nil
Car Loan:
Now a car is no longer luxury but necessity. Moreover, a car is more than a symbol of prestige.
TBL offers you to materialize your dream of owning a car through TBL car loan facility.
Page 10 of 43

Eligibility for Car Loan applied by the Employees of:
For New and Reconditioned Car
Confirmed Service holders, Businessman, Professionals

For Microbus, Minibus & Truck
Corporate bodies
Individual(s) with supportive cash flow to repay the loan
Table 4 Car New & Reconditioned Car) Loan details
For New & Reconditioned Car
Loan Limit:
Tk.2.00-20.00 Lac
Interest Rates (%)
15%(New),
16%(Reconditioned)
Down Payment / Equity
20%
Loan Period / Tenor
1 5 years
Risk Fund
Nil
Table 5 Car (Microbus, Minibus & Trucks ) Loan details

Loan Limit
Interest Rates (%)
Loan Period / Tenor
Risk Fund
For Microbus , Minibus & Trucks

Tk.2.00-15.00 Lac(Microbus),
Tk.2.00 50.00 Lac(Minibus & Trucks)
16%
20%
1 3 years(Microbus) ,
1 5 years(Minibus & Trucks)
Nil
House Hold Durable Scheme Loan:
Need are constantly changing phenomena in human life to improve the standard of living.
Sometimes your saving is not good enough to meet your requirements. At, the Trust Bank, we
take care of your financing needs and you can trust on us as your financial partner indeed.
Eligibility for House Hold Durable Scheme Loan applied by the Employees of:
Confirmed Service holders, Businessman, Professionals

Government/Semi Government/Autonomous bodies
Sector Corporation
Non-Government organizations
Multi-national companies
Banks/Financial institutions
Page 11 of 43
Educational institutions
Table 6 House Hold Durable Scheme Loan
For House Hold Durable Scheme Loan
Loan Limit:
Tk. 0.5 lac -5.00 lac
Interest Rates (%)
17%
Down Payment / Equity 30%
Loan Period / Tenor
1 4 years
Risk Fund
Nil
Apon Nibash Loan:
TBL offers Apon Nibash (House Finance) with easy repayment schedule matching your
affordability. It have unlimited options of choosing your home with limited means and
standing. Here, TBL Apon Nibash helps to match long cherished dream.
ELIGIBILITY FOR APON NIBASH (HOME FINANCE) LOAN :

Maximum age limit of the borrower 60 yrs in exceptional case, MD can relax the age limit up to any
age depending on the merit of the case.
Employees:
Confirmed employees of govt./Autonomous body

Confirmed employees of financial institution
Confirmed employees of different Public Limited Company/Private Limited company
having Corporate Structure
Teachers of any school/college/university
Professionals
Doctors /Medical Professionals

Engineers
Accountants
IT Professionals
Management Consultant
Self Employed
Businessman (in business at least for five years)

Table 7: Apon Nibash Loan
For Apon Nibash Loan
Loan Limit:
Tk.upto 75.00 lac
Interest Rates (%)
13%
Down Payment / Equity 40% (for Construction)
30%(for New apartment)
Loan Period / Tenor
Up to 20 years
Risk Fund
Nil
Page 12 of 43
Doctors Loan:
Medical is a noble profession which is evolving fast. In a country like ours it is important to be
a part of those changes as we cannot afford to be lag behind. Keeping that in mind and with a
vision to support and promote health services, TBL is at your side with our Doctors' Loan.
Eligibility For Doctors Loan applied by the Employees of:
General Practitioner, FCPS & MBBS Doctors/dentists or Specialist Doctors having a

Post-graduate degree and specialization in a particular area of treatment such as
Medicine Specialist, Eye Specialist, ENT Specialist, cardiac surgeon/specialist etc.
having 5 years experience as specialist.
Table 8 : Doctors Loan
Loan Limit
Interest Rates (%)

Loan Period / Tenor
Risk Fund
For Doctors Loan

Tk. 1.0 lac -5.00 lac (General Practitioner
MBBS/BDS),
10 lac (Specialized Doctor)
17%
Nil
1 5 years
Nil
Marriage Loan:
Tying the marital knot is an event of a life time and its celebration and memories should last
forever. TBL "Marriage Loan" will help you to arrange celebrate the marriage in style.
Eligibility for Marriage Loan:
Employees of confirmed service holders, Businessman, Professionals

This Loan is applicable for first marriage
This Loan may be availed by the guardian and/or Applicant as the case maybe
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can
relax the age limit up to any age depending on the merit of the case.
Table 9 Marriage Loan
For Marriage Loan
Loan Limit:
Tk.0.6 lac - 3.00 lac
Interest Rates (%)
17%
Loan Period / Tenor
1 3 years
Risk Fund
1%
Page 13 of 43
Education Loan:
A substantial amount of finance is required to give your child the best education or to get a
higher degree either at home or abroad.TBL, "Education Loan" relief you from this burden and
ensure uninterrupted study through steady flow of cash.
Eligibility for Education Loan applied by the Employees of:

Adequate cash flow to repay the loan
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can relax
the age limit up to any age depending on the merit of the case.
Table 9 Education Loan
For Education Loan
Loan Limit:
Tk. 0.5 lac -3.00 lac
Interest Rates (%)
17%
Loan Period / Tenor
1 3 years
Risk Fund
Nil
Travel Loan:
When you plan to travel local or global exotic location, financing is the key issue. Don't be
worried; TBL Travel loan is ready to provide instant financial support.
Eligibility For Travel loan:

Adequate cash flow to repay the loan
Table 10 Travel loan
For Travel
Loan Limit:
Interest Rates (%)
Loan Period / Tenor
Risk Fund
Loan
Tk. 0.5 lac -3.00 lac
17%
20%
1 2 years
1%
Hospitalization Loan:
Crisis comes at any time and wellbeing comes at a price. When the urgency comes for medical
treatment of your family, there can never be compromised. At any urgency if you feel, please
remember us to provide financial support through our "Hospitalization Loan" scheme.
Eligibility For Hospitalization Loan:

Page 14 of 43
Table 11 Hospitalization Loan

For Hospitalization l Loan
Loan Limit:
Tk. 0.5 lac -3.00 lac
Interest Rates (%)
15%
Loan Period / Tenor
1 2 years
Risk Fund
Nil
Credit Cards
Credit Cards forms of clean lending with a maximum limit of Tk. 500,000/- to a single
borrower. Supplementary credit cards shall be considered part of the principal borrower for
this purpose. The limits exceeding Tk. 500,000/- shall be secured appropriately by the banks.
Corporate Card will not fall under this category and shall be regulated by exiting
guideline/regulations for lending.
For Charge Cards, pre-set spending limits generated by the standardized systems, as in the
global practice, shall be allowed.
Table 12 types of Credit Cards:

Sl
1
2
Types of cards
Visa Domestic Classic (VDC)
Visa Domestic Gold (VDG)
Limit
20,000 to less than 1.00 lac
More than 1.00 lac to 5.00 lac
Visa Domestic Gold (VDG)
Visa International Classic (VIC)
SAARC country: US$1,500

Out of SAARC country: US
$5,000
SAARC country: $1,500
Out of SAARC country: $5,000
Service Charge
Tk. 500 plus 15% VAT
Tk.1500 plus 15%
VAT
US $30 plus 15% VAT
US $60 plus 15% VAT
For Defense Persons
Any Purpose Loan
Any purpose loan is a terminating facility offered by retail Banking Unit of the Bank for
customizing the need of Defense Officer. This product is designed for confirmed defense
officers having certain years of unexpired service with supporting cash flow to repay the loan
installment. It is a secured Loan in the sense that defense officers have to take NOC from our
Bank to get service benefits.
Eligibility for Any Purpose Loan applied by the Defense Officer OF:
Confirmed and active in service Defense Officers with 3 years of service ahead and
having supportive cash flow to repay the installment.
Maximum age limit of the borrower 21 yrs;
Page 15 of 43
Table 13 Any purpose loan for (defense person )

FOR ANY PURPOSE LOAN
LOAN LIMIT:
Tk 3.00 lac
INTEREST RATES (%)
13%
DOWN PAYMENT / EQUITY N/A
LOAN PERIOD / TENOR
1 2 years
RISK FUND
Nil
House Hold Durable Scheme Loan:
Household Durable Loan is a loan is designed to facilitate Defense Officers to purchase

different household items such as Motorcycle, Television, Refrigerator, Air-Conditioners,
Washing machine, Computers and other household furniture etc. for personal use. Under this
scheme, the consumer durable product is hypothecated to the bank.
Eligibility For House Hold Durable Scheme Loan:
Any confirmed and active in service Defense Officers with 4 years of service ahead
who have the means and capacity to repay bank loan.
Maximum age limit of the borrower 21 yrs;
Table 14 House Hold Durable Scheme Loan (Defense Person)

For House Hold Durable Scheme Loan
Loan Limit:
Tk. 5.00 lac
Interest Rates (%)
13 %
Loan Period / Tenor
1 3 years
Risk Fund
Nil
Trust bank Mobile Banking (TBLMB)

Trust Bank Mobile Money is a prepaid account facility where Customer can do transactions
from anywhere through mobile phone with 24 hours banking facility. Customer will be able to
fund Transfer, Deposit and Withdraw money from the accredited Pay-points by using Mobile.
Customers also will be able to send remittance faster to the remote place of Bangladesh by
availing this product.
Page 16 of 43
Features of Trust Bank Mobile Money
o
o
o
o
A Bank led model for the Banked and un-Banked citizen of Bangladesh
TBL can provide all services of Trust Bank Mobile Money to all subscriber using
Short Code (160201) and Long Code (+8801199016201).
Cash Deposit, Withdrawals & Fund Transfer facilities.
Any registered subscriber can avail the service through mobile.
Real time updates balance of the account.
All transactions are secured as they pass directly through Bank Accounts.
Every transaction has been verified by user provided PIN & mobile no.
Convenient, Reliable & Fast Electronic Fund Transfer and Payment System.
Accommodate Multibank and Multi-Electronic Communication Channels.
The solution is technically capable of interoperating with the Bangladesh National
payment System.
Very Affordable, widely Available throughout the Country.
Simple Account Opening & Operation Process just by using a Mobile Phone or
Internet.
All the customers account lies with the Bank since it is a bank led model.
TBMM is device independent, supported on ALL cell phones from low to high-end.
Open ended solution where smart card and other transactional instrument can be
integrated.
Interest is provided at the rate of Savings Account in TBMM
Settlement bank in case of multibank mobile payment platform
Service Availability
o
o
o
Branch: All Branches & SME centers of Trust Bank.

Paypoint: TBL accredited all paypoints, UISC, Teletalk outlet & Citycell outlet.
Merchant: Shurjomukhi, Arena etc.
TBMM services can be access through:
o
o
Mobile
Internet
General Services of TBMM
o
o
o
o
o
o
o
o
o
o
o
Account Registration
Cash Deposit & Withdraw
Account to Account Money Transfer(P2P)
Person to Business Payment(P2B)
Business to person payments(B2P)
Government to Person Payments(G2P)
Top up(Airtime recharge)
Utility Bill Payment
Metlife Alico Insurance premium payment
Balance Inquiry
PIN Change
o
o
o
o
o
o
o
o
o
o
o
o
o
Page 17 of 43
Transaction History
Registration Process
Customer comes to Branch / Paypoint

Customer fill up the TBMM registration & KYC form (Mandatory)
Submits the form to the designated branch / Paypoint personnel
The branch personnel will check all the information & supporting documents to
ensure these are properly given.
o The authorized person will give entry to the Mobile Banking application through
Mobile or Internet
o Customer will receive a registration confirmation SMS containing PIN number.
o Customer will preserve his/her PIN number.
o
o
o
o
Requirements Documents
Nominee form and photograph of nominee(s) (signature attested by the account

holder). In case of minor nominee, copy of the birth certificate and photograph
required; nominees national ID cards photocopy.
Photocopy of Citizenship Certificate / Passport / National I.D. Card/ Driving License.
Photocopy of SIM registration form
Two copies of recent passport size photograph
To fill-up the TBMM form properly.
o
o
o
o
Page 18 of 43
Part B
(Research Part)
Page 19 of 43
Introduction:
Today, firms in financial sector are competing to increase their profit share in the market.
Among these firms, banks have radically shifted from traditional banking to branchless mode
of banking. Adoption of latest technology has enabled banks to extend their customer base,
where electronic banking has proved to be the chief advancement. Mobile banking can be
categorized as the latest advancement in electronic banking, which has widened customers
access to bank accounts through wireless channels. Mobile banking is a financial service where
the bank customers perform balance inquiry, credit transfer, and other businesses according to
instruction sent through the mobile phone. From customers perspective adopting mobile
banking services benefit in terms of convenience to perform banking transactions anytime and
anywhere, with ease to use. Security is ensured, as banking transactions are encrypted and
password-protected. (Rashid, 2011)
Bangladesh has a successfully growing economy as its telecommunication industry has
advanced tremendously in the recent years. Bangladesh's mobile technology, which had started
to grow strongly over the last few year. The mobile population has been increasing at a
remarkable rate. People belonging to all income groups are using this technology as a result of
foreign investment in Bangladesh and reduced telecommunication rates. The encouraging
prospect of mobile usage has led banks of Bangladesh to provide mobile banking services to
customers in the country. Numerous local banks have intended to initiate this service for their
customers. The literature review suggests that there exists a gap in the analysis of new
technology adoption in the area of ecommerce in Bangladeshi banks. As customers are yet
novice to the new technology so there is a lot more for banks to exploit before offering the
advance features of this technology (Bhattacherjee, 2001). The study is significant because of
the need for research on mobile banking and the impact of technology adoption on customer
satisfaction. Especially in Bangladesh mobile banking is a new area and there exists a need to
analyze the critical aspects of technology adoption. Furthermore, customer satisfaction has not
been studied specifically for banking sector firms with respect to technology adoption. The
study is significant at this initial stage when Bangladesh Bank has also released orders to all
the banks to adopt the technology. Drawing on the relevant literature and empirical
implications of the study, the author proposes the research question as follows: What are the
dimension/factors affecting service quality of mobile banking and creating trustworthiness
among the customers. This study intends to measure service quality and quality identify
trustworthiness of banks perceived by the customers.
This paper is organized as follows: the next section presents the theoretical background that
includes overall SQ and SQ in mobile banking, and the consequents of SQ. the subsequent
section describes research methodology which is followed by the empirical analysis and
findings. Finally, the interpretation of the findings and both theoretical and practical
implications are described. This paper concludes with the research limitations, future research
direction and recommendation.
Page 20 of 43
Objectives of the study:

Research researchers objectives are
To develop a hierarchical service quality model in the context of Mobile banking
services.
To explore the service quality dimensions of the Mobile banking industry.
To explore the antecedents of customers trust on using Mobile banking services.
To test the relationship between service quality and customers trust.
To show that PLS path modeling can be used to estimate the parameters of a higher
order model.
Research Model
Customer satisfaction measures how well a product or a service supplied by a firm meets
customer expectation. Ease of use, security, low transaction costs, and wide applicability of the
solutions increase perceived customer value and should be managed by mobile payment
solution provider (Mallat., 2002). Numerous researchers have investigated perceived
usefulness and perceived ease of use as a valid construct to measure customer satisfaction level.
Mobile banking is adapted by the banks as means to provide customers swift and easy access
to their bank accounts. Customers adopt a technology when they find it easy to understand and
implement. According to (H. Amin, 2007), perceived usefulness has a positive effect on the
behavioral intention to use mobile banking.
The study identifies service quality as a notion of customers perception on mobile bankings
overall excellence or superiority which is consistent with the generic definitions in service
literature (Brady and Cronin, 2001). In order to develop the dimensions of SQ model this study
focuses on customers perceived service quality of Mobile banking services in Bangladesh. In
fact, the qualitative study mainly focused on the SQ dimensions
A third order hierarchical service quality model has been developed. Here service quality has
been divided into three primary dimensions: system quality, interaction quality and outcome
quality. Again these primary dimensions have been divided into a total of eleven subdimensions. The three primary dimensions are:
I.
II.
III.
System Quality: Quality of service delivery system in terms of system reliability, system
availability, system privacy, system security, system efficacy, system complexity.
Interaction Quality: Quality of service delivery system in terms of responsiveness and
empathy.
Outcome Quality: This represents the functional benefit, financial benefit and selfefficiency.
System Quality
System quality refers users perception regarding technical level and technology of the system.
In this findings there are six constructs of system quality: system reliability, system availability,
system privacy, system complexity, system Security, system efficiency. System reliability refers
to the accurateness and reliant of the system. System availability is about the accessibility of
the system for example instant accessibility, access form any place or anytime etc. System
Page 21 of 43
privacy refers to secureness of the customers information (transaction information, mobile

member or any other information). System security talks about the protection of customers
money, transaction of fund etc. System complexity refers to difficulty of the system to the user
and finally, system efficiency refers to the effectiveness and competent of the system.
Interaction Quality
Interaction Quality is the quality of the interaction between the employees and the customers.
It comprises of the two sub-dimensions for mobile banking: responsiveness and empathy.
Here, responsiveness is the willingness to help customers and provide prompt service and
empathy refers to the emotional aspect of service.
Outcome Quality
Outcomes are the ultimate services that a customer intent to receive; it refers to the services a
bank offer with a mortgage, for instance (Powpaka, 1996). However, Dagger et al. (2007) argue
that outcome does not refer to ultimate result but rather to the outcomes experienced over a
series of service encounters. Here, outcome consist of three constructs: operational benefit,
financial benefit, and self-efficiency. Operational benefit refers to this services worthiness and
facilities. Financial benefit talks about how customers is being benefited financially using this
service for example interest on saving, low service charges and fees etc. and finally, selfefficiency is whether customers are capable of using the service spontaneously without facing
difficulties and prior training.
Hypothesis
The research is about measuring service quality of mobile banking and its onward effect to the
customers. Trust is an important factor which mostly depends on the service quality (Lewis,
1991). If the offered service is not trustworthy, customer will not be satisfied and at the same
time there will be less customer retention or continuance. From the previous research regarding
trustworthiness and service quality, it has been seen that several factors are responsible to create
trustworthiness for customers like security, reliability, responsiveness etc. In this research to
three main dimensions: system quality, interaction quality and outcome quality have been
design to measure service quality and customers trustworthiness.
To embed the hierarchical service quality model in mobile banking, outcome constructs has
been framed such as operational benefit (OPB), financial benefit (FIB), self-efficiency (SEF)
and finally basing on the service quality we will justify trustworthiness of customers on the
service.
H1: Service quality has a significant positive impact on creating customers trustworthiness
on the service.
Figure 1 shows the hierarchical multi-dimensional SQ variables and their relationship with the
other relevant variables by a visual representation with boxes and arrows.
Page 22 of 43
1st Order Model
2nd Order Model
3rd Order Model
Structural Model
System Reliability
System Availability
System Privacy
System
System complexity
Quality
System Security
System Efficiency
Responsiveness
Interaction
Quality
Service
Trust
Quality
Empathy
Operational Benefit
Financial Benefit
Outcome
Quality
Self- Efficiency
Figure 1
Research model and hypotheses
Page 23 of 43
Methodology
This research adopted positivist epistemology. A research can be called positivist if there is
evidence of formal propositions, quantifiable measures of variables, formulation of hypothesis,
hypothesis testing, and drawing of inferences about a phenomenon from the sample to a stated
population (Orlikowski and Baroudi, 1991). However, this research was completed using both
primary and secondary data. Primary data was collected from a questionnaire survey. For the
secondary research, the information from the journals, books and intranet of Trust Bank
(Practicing mobile baking) network has been taken. Also the banks official website and sites
like Google and Wikipedia provided important information.
Sampling
The sample was drawn from the mobile banking users in Bangladesh. Nowadays, there were
great advances in the techniques and technologies utilized in survey research, from systematic
sampling methods to enhanced questionnaire design and computerized data analysis (Mathur,
2007). The field of survey research became much more scientific. Recently, online survey has
become very popular. There are some advantage of online survey like faster, cheaper, more
accurate, quick to analyze etc. However, there are also some disadvantage of online survey
like double entry, error message etc. If conducted properly, online surveys have significant
advantages over other formats. It is imperative that the potential weaknesses of online surveys
be mitigated and that online surveys only be used when appropriate. (Wilson, 2003). In this
study both two method of survey (face to face and online) were used. There was in total 120
samples. There was total 46 questions into the questionnaire. 80 samples data were collected
using online method. A questionnaire was first created using google form and the link was sent
to the targeted mobile banking users through Facebook, and Email. Rest of the 40 samples were
collect via face to face survey.
The questionnaire was separated into three sections; first section containing demographics of
the respondent; the second one measured the effects of service quality determinants upon
customer satisfaction and their loyalty; and finally the third one was regarding any complaints
they had or any suggestion they wanted to give.
Measurement Instruments and Data Analysis Strategy

The measurement items have been taken from prior studies. Few of the items have been adapted
from the SERVQUAL model (Parasuraman, Zeithaml, & Malhotra, 2005) under interaction
quality. Survey was conducted using Liker based questionnaire ranging from 1= Strongly
Disagree to 5= Strongly Agree. This was convenient for the customers as they could easily
quantify their happiness rather than the confusing question-answers. The questionnaire
consisted of 46 statements among which all were positively worded other than just the last
statement.
Table 1 The variables of the current study from existing literature in mobile banking
Constructs
System
Quality
Dimensions
System
Reliability
Items
SR1
SR2
SR3
SR4
Mobile Banking platform works smoothly.

Mobile Banking system are reliably.
Mobile Banking system are dependable.
Mobile Banking system performs accurately.
Page 24 of 43

System
Availability
SA1
SA2
SA3
SA4
SP1
Mobile Banking system are available from any place.

Mobile Banking system are available at any time.
I can receive Mobile Banking system right away.
Mobile Banking system is available from any mobile operator.
Mobile Banking system does not forward malicious SMS from other
System
companies.
Privacy
SP2
Mobile Banking system does not share personal information of customers
SP3
Mobile Baking system protects information about my personal problems.
SP4
I can change my PIN whenever i want.
System
SC1
My interaction with Mobile Banking system is clear.
Complexity
SC2
The system interface is user friendly.
SC3
Mobile Banking system does not require a lot of effort.
SC4
Overall, I perceive that Mobile Banking system is easy to use
System
SS1
The Mobile Banking system is safe to make transaction.
Security
SS2
Mobile Banking system uses secured PIN encryption system
SS3
Customer identification and authentications are accurate
SS4
Overall, I believe Mobile Banking system is entirely Secured.
System
SE1
Mobile Banking system works swiftly
Efficiency
SE2
This system can be adapted to meet variety of needs.
SE3
Mobile banking system is versatile in addressing needs as they arise.
SE4
Mobile Banking system Can flexibly adjust to new condition.
Responsiveness RE1
Helpline staff provides prompt service
RE2
Information regarding this service is easily obtainable.
RE3
The Helpline staff are always willing to help me.
RE4
The Helpline staff happily replay any query
Interaction
Empathy
EM1
Quality
The Helpline staff pays personal attention to the customers.
EM2
The Helpline staff are polite/courteous.
EM3
The Helpline staff are put effort to understand my query.
EM4
The staff handle a problem in a caring way.
Operational
OPB1 Mobile Banking offered wide range of services
Benefit
OPB2 Services from Mobile Banking are worthwhile.
OPB3 Mobile Banking helps to pay regular bills (electric bill, mobile flexi load).
Financial
FIB1 Mobile Banking provides attractive interest on mobile deposit.
Benefit
FIB2
The service charges/fees are competitive/reasonable.
Outcome
FIB3 The transaction costs (e.g., sending money from one account to another) are
Quality
reasonable.
Self-Efficiency SEF1 I could use Mobile Banking service if someone first showed me how to use it.
SEF2 I can perform my transactions using Mobile Banking services even if there is
no one to help me if I get stuck.
SEF3 I can perform transactions in Mobile Banking service if I am allowed
adequate time to complete the job.
TRS1 I trust Mobile Banking services.
TRS2 I would trust Mobile Banking services for reliable transactions
Trust
TRS3 I would trust Mobile Banking services promises and commitment to satisfy
my financial transactions
TRS4 I would trust Mobile Banking services behavior to meet my expectations
Page 25 of 43

Table 2 Highlight of the survey
The aim of the research
To evaluate service quality of mobile banking and customers trustworthiness

on it.
Approach
Quantitative
The source of data
Mobile banking customers
Instrument
Questionnaire
Number of respondents
120
Location
Bangladesh
Online data collection
https://www.facebook.com/groups/jobsfornsuers/
(Facebook group)
https://www.facebook.com/groups/NSU.FCR/
Period
January April, 2013
The research used a quantitative study. SPSS technique was used for demographic data analysis
and PLS was used for model testing. PLS was suitable for the study as it can be used well for
explaining and prediction purpose. As service quality is a third order reflective construct, PLS
path modeling used repeated measures for estimating the parameters of the model. The
manifest variables were used repeatedly for first order variables (sub-dimension), second order
variables (primary dimensions) and for the third order variable (service quality). The structural
parameter had been estimated for the overall model.
Partial Least Square (PLS) Procedures

The research model has been tested and evaluated using this software PLS which is based on
SEM (structural Equation Modeling) technique. Both the measurement model and the
structural model of the overall research model have been evaluated using PLS and the
procedure of how this evaluation is carried out is mentioned below.
Measurement model assessment

Here, the relationship between the observed variables and the constructs are evaluated. It is
evaluated by examining individual item reliability, internal consistency and discriminant
validity (Igbaria, Guimaraes, & Davis, 1995).
Item Reliability
To test the convergent reliability of the model, the item reliability needs to be examined first.
Item reliability assessment refers to an analysis of estimating the amount of variance in each
individual items measure that is due to the construct (Barclay, Thompson, & Higgins, 1995).
Individual item reliability is measured by inspecting the item loadings, or simple correlations
of the indicator with their respective latent variables. This correlation with respective constructs
leads to an item loading in PLS. A widely accepted rule of thumb to accept an indicator as a
constituent of a construct is that the manifest variable should have a loading of at least 0.6 or
preferably 0.7. However, several researchers think this rule should not be so strict. Even lower
loadings are acceptable sometimes. It is advised that items with lower loadings should be
Page 26 of 43
dropped as it would improve the item reliability and would lead to improved estimate of the
relationship between the constructs. This study accepted items that had a loading equal to or
more than 0.6.
Internal Consistency
Another measure of the convergent reliability is the internal consistency. It measures the
reliability of the constructs (Fornell, Claes, & Larcker, 1981). It can be measured by assessing
the Average Variance Extracted (AVE) for each of the reflective constructs. The amount of
variance that is shared between a construct and its measures is indicated by AVE. AVE values
should be equal to or greater than 0.5 which means that 50% or more of the indicator variance
should be accounted for. The higher the value of AVE, the higher is the reliability.
Discriminant Validity
Finally, discriminant validity indicates the extent to which a given construct differs from other
constructs that is the degree to which constructs differ with each other in the same model. In
rare cases, an item might share more variance with other construct than its respective one and
discriminant validity checks for this error. To assess discriminant validity, according to Fornell
and Larcker, the AVE should be greater than the variance between the construct and other
constructs in the model (Fornell, Claes, & Larcker, 1981). The cross loading analysis needs to
be done in PLS and the results put in a table format. The square root of the AVE should then
be compared with the inter construct correlation and to prove discriminant validity, an item
should not load more on other constructs than on its own.
Structural Model Assessment

The two key ways to assess the structural model are by the amount of variance explained or R
square (R2) and Path coefficient ().
Amount of variance explained or R square (R2)
The R2 value represents the extent to which the dependent constructs are explained by the
independent constructs. R2 has the capability of predictive power for the research model. The
bootstrap method in PLS produces values of R2. A value greater than 0.1 is acceptable (Teo,
Wei et al.2003).
Path coefficient () and T-statistics
The relationship of the constructs needs to be examined as the hypotheses mentioned. In order
to estimate the precision of the PLS estimates, nonparametric techniques of re-sampling should
be used and one common approach is bootstrapping which provides path coefficient and tstatistics of the parameters. The t-statistics can be used to evaluate the significance of the
structural paths.
Page 27 of 43
Data Analysis of the Research Model

PLS Graph 3.0 has been used to evaluate the research model. First, the third order reflective
hierarchical model has been created. There are three Dimensions of service quality at the 2nd
order model (System Quality, Interaction Quality, and Outcome Quality). In each dimension
there are few sub-dimensions: system reliability (SR1-SR4), system availability (SA1-SA4),
system privacy (SP1-SP4), system complexity (SC1-SC4), system Security (SS1-SS4), system
efficiency (SE1-SE4), responsiveness (RE1-RE4), empathy (EM1-EM4), operational benefit
(OPB1-OPB3), financial benefit FIB1-FIB3), Self-efficacy (SEF1-SEF3), Trust (TRS1-TRS4).
Constructs are shown into the graph. Respondences aggregate their evaluations of the
constructs to form their perceptions of mobile banking service quality on each of the three
primary dimensions. Those perceptions then lead to an over-all service quality perception.
However, after conducting survey, the raw data file (contacting all survey data) was made and
linked with PLS for the calculation.
Demographic profile of the respondents

From the below table 3, it can be observed that majority of the respondents are male. Out of
120 respondents there is 87 male respondents which represents 72.5% and rest of them are
female. It clearly shows that male users of mobile banking are higher than the female users.
Table 3 Demographic data of respondents (Gender)
Gender
Frequency
Percent
Male
Female
87
33
72.5
27.5
Valid
Percent
72.5
27.5
Total
120
100
100
Cumulative
Percent
72.5
100
Gender
28%
72%
Figure 2 Exhibits a pie chart illustrating the gender distribution of the respondents
The demographic data in blew Table 4 shows that almost 64% of the respondents are between
age 18 to 30. Approximately 28 percentage of respondents are between age 31 to 50 and rest
of them are more than 50 years old. From this chart we can see that tendency of using mobile
banking is higher between young people.
Page 28 of 43
Table 4 Demographic data of respondents (Age)

Age
Freque
ncy
Percent
Cumulativ
e Percent
18-30
77
64.17
64.17
31-50
34
28.33
92.50
Above 50
7.50
100.00
Total
120
100.00
Age
100.00
80.00
77.00
60.00
40.00
34.00
20.00
9.00
0.00
18-30
31-50
Above 50
Figure 3 exhibits a bar chart illustrating the age distribution of the respondents.
From Table 5, it is observed that the highest numbers approximately 79% of the respondent are
students. Second largest respondents are service holder. 4.17% respondents are businessman
and finally the lowest percentage people are no job category. The chart represent that there is
a higher tendency of using mobile banking.
Table 5 Demographic data of respondents (Profession)
Profession
Frequency
Percent
Cumulative
Percent
Business
4.17
4.17
Service
18
15.00
19.17
Student
95
79.17
98.33
No Job
1.67
100.00
Total
120
100.00
Page 29 of 43
Profession
100
90
80
70
60
50
40
30
20
10
0
95
18
5
Figure 4 exhibits a bar chart illustrating the profession of the respondents
Table 6 shows that the income shares are distributed from 84.17% for customers with less than
20,000Tk income per month, 12.50% customers with more than 20,000Tk and less or equal to
40,000. 2.5% customers income is between 40,001Tk to 60,000Tk and the lowest 0.83%
customers income is more than 80,000Tk. Since most of the respondent was students their
income level is below 20,000Tk
Table 6 Demographic data of respondents (Income Level)
Income level
Frequency
Percent
Cumulative
Percent
Below 20,000
101
84.17
84.17
20,001-40,000
15
12.50
96.67
40,001-80,000
2.50
99.17
Above 80,001+
0.83
100.00
Total
120
100.00
Income Level
Above 80,000+
40,000-80,000
20,000-40,000
15
Below 20,000
101
0
20
40
60
80
100
120
Figure 5 exhibits a bar chart illustrating the income distribution of the respondents.
Page 30 of 43
Measurement Model assessment

There were total 120 cases. Non parametric technique, bootstrapping was applied to those
cases. The model was assessed for the convergent reliability that is individual item reliability,
internal consistency and discriminant validity by using the confirmatory factor analysis (CFA)
of PLS.
Item Reliability
All the items needed to load equal to or higher than 0.6 for the model to be satisfactory.
However, at the outset of this study, four items (SA4, SE3, RE1, OPB3) failed to meet this cutoff point 0.6 and was removed from the indicator list of the individual constructs. PLS was
again run without these four items and then again one item (SE4) failed to meet the requirement
of minimum loading 0.6. Then this item was removed. However, PLS was run again and now
all the items loaded higher than 0.6 which was a good acceptable cut-off point for our research
proving that all the individual items used are reliable.
Internal Consistency
The average variance extracted (AVE) and composite reliability (CR) was checked to assess
the internal consistency of the model. In this research, all the values of AVE exceeded 0.5.
System efficiency (SE) has the highest AVE (0.787) and at the same time Trust (TRS) has
highest CR (0.934). On the other hand it was also observed that system reliability (SR) has the
lowest AVE (0.592) and Responsiveness (RE) has the lowest CR (0.846). The lowest value of
CR was 0.846 which even exceeded the 0.7 cut-off value.
Table 7 Results of psychometric properties for first order constructs

Constructs
System Quality
Dimensions
System Reliability
System Availability
System Privacy
System Complexity
Items
Loading CR
SR1
0.6502
SR2
0.8422
SR3
0.8068
SR4
0.7648
SA1
0.8372
SA2
0.8768
SA3
0.7912
SA4
0.5512
SP1
0.8689
SP2
0.8864
SP3
0.8325
SP4
0.7758
SC1
0.7611
SC2
0.7638
SC3
0.7867
AVE
0.852
0.592
0.874
0.699
0.907
0.709
0.87
0.627
Page 31 of 43
System Security
System Efficiency
Ineraction Quality
Responsiveness
Empathy
Outcome Quality
Operational Benefit
Financial Benefit
Self-Efficiency
Trust
SC4
0.8512
SS1
0.8705
SS2
0.7913
SS3
0.8293
SS4
0.8557
SE1
0.8994
SE2
0.8749
SE3
0.5972
SE4
0.5932
RE1
0.4653
RE2
0.8548
RE3
0.7254
RE4
0.8287
EM1
0.7533
EM2
0.8279
EM3
0.8533
EM4
0.8075
OPB1
0.8976
OPB2
0.8918
OPB3
0.5226
FIB1
0.8578
FIB2
0.8738
FIB3
0.8711
SEF1
0.7745
SEF2
0.8083
SEF3
0.8761
TRS1
0.8758
TRS2
0.9056
TRS3
0.8859
TRS4
0.8616
0.904
0.701
0.881
0.787
0.846
0.648
0.885
0.658
0.889
0.8
0.901
0.753
0.861
0.674
0.934
0.779
Page 32 of 43
To check the discriminant validity, Table 8 has been prepared. The diagonal values of the table are the square root of the AVE of the constructs.
These values are compared to the inter-construct correlations (the off-diagonal values). From the table, we can see that the square root of AVE for
each construct is higher than the variance shared between a construct and other constructs in the model which confirms discriminant validity (Chin,
2010a).
Table 8 Inter-correlations of the first order constructs
SR
SA
SP
SC
SS
SE
RE
EM
OPB
FIB
SEF
System Relibility (SR)
0.769415
System Accessibility (SA)
0.524
0.836062
System Privacy (SP)
0.481
0.623
0.842021
system Complexity (SC)
0.363
0.471
0.512
0.791833
System Security (SS)
0.618
0.539
0.656
0.69
0.837257
System Efficiency (SE)
0.447
0.428
0.61
0.521
0.745
0.88713
Responsiveness (RE)
0.489
0.426
0.441
0.56
0.588
0.466
0.804984
Empathy (EM)
0.461
0.405
0.59
0.597
0.645
0.565
0.685
0.811172
Operational Benefit (OPB)
0.479
0.505
0.606
0.453
0.626
0.65
0.609
0.724
0.894427
Financial Benefit (FIB)
0.371
0.416
0.506
0.381
0.461
0.309
0.561
0.5
0.544
0.867756
Self-efficiency (SEF)
0.187
0.415
0.572
0.323
0.368
0.491
0.157
0.249
0.447
0.502
0.820975
Trust (TRS)
0.51
0.46
0.541
0.659
0.705
0.527
0.398
0.645
0.555
0.316
0.37
TRS
0.88261
* Bold diagonal values are square root of AVE of relevant construct
Page 33 of 43
So, it was justified that the measurement model was considered satisfactory as all the criteria
met properly. Now the model was ready for testing the hypotheses and research model
validation. The next phase examines the higher order model and then the PLS analysis conducts
the assessment of the structural model.
Assessment of the higher order model
The model of this study has been presented as a hierarchical third order reflective model. After
removing the low loading items, the third-order constructs consist of 40 items among which 21
items reflect system quality, 7 items reflect interaction quality and 8 items reflect outcome
quality. Each of these second order constructs again reflect their first order constructs. Figure
6 on the next page shows that the amount of variance explained of the third order construct
(service quality) is reflected in the second order dimensions: system quality (96.0%),
interaction quality (85.1%) and outcome quality (90.7%). The second order constructs amount
of variance is explained in the first order constructs for example the R2 of station quality is
reflected in system reliability (72.6%), system accessibility (72.2%), system privacy (82.7%),
system security (90.7%), system complexity (75.1%), and system efficiency (78.4%).
Similarly, the amount of variance explained of interaction quality and outcome quality are also
reflected in their corresponding first order constructs. Fig 6 provides a detailed diagram.
Moreover, all the path coefficients and t-values from service quality to second-order and firstorder constructs are significant at p<0.01 (Appendix A). Also, in Table 4, the results show that
the CRs and AVEs of the second or third-order model are greater than 0.60 and 0.50
respectively, which provides evidence of reliable higher order measures.
Table 9 Reliability of higher-order constructs
Model
Second order
Third order
Construct
CR
AVE
System quality
0.938
0.424
Interaction quality
0.895
0.551
Outcome quality
0.881
0.484
Service quality
0.955
0.377
Page 34 of 43
0.726
System Reliability (0.526)
0.722
System Availability (0.521)
0.827
System Privacy (0.685)
System
0.751
Quality (0.921)
System complexity (0.565)

0.907
0.960
System Security (0.823)

0.784
System Efficiency (0.614)
0.851
0.884
Responsiveness (0.782)
0.943
Interaction
Quality (0.725)
Service
Quality
Empathy (0.890)
Operational Benefit (0.579)
Financial Benefit (0.767)
0.761
0.807
0.876
Outcome
Quality (0.651)
Self-efficiency (0.605)
Figure 6
0.778
Service Quality hierarchical model for Mobile Banking (including Path Coefficient
and T-vale of Hierarchical Model)
Page 35 of 43
Table 10 Path Coefficient and T-vale of Hierarchical Model

Hierarchical Model
Path Coefficient ()
t-value
system quality to SR
0.726
15.3638*
system quality to SA
0.722
17.2803*
system quality to SP
0.827
29.1251*
system quality to SC
0.751
16.0679
system quality to SS
0.907
52.0466
system quality to SE
0.784
16.7031
Interaction quality to RE
0.884
39.9759
Interaction quality to EM
0.943
94.9202
Outcome to OPB
0.761
13.7116
Outcome to FIB
0.876
25.446
Outcome to SEF
0.778
13.763
Service quality to system quality
0.96
104.0824
Service quality to interaction quality
0.851
30.9954
Service quality to outcome quality
0.807
19.3098
0.719
13.4058
Structural Model
Service quality to Trust
*p<0.001 significance level
Table 11
Evaluation of the structural model and research hypothesis
Hypothesis
H1
Service quality has a

significant positive impact
on creating customers
trustworthiness on the
service.
Path Coefficient
()
0.719
t-value
13.4058
Result
Supported
Hypothesis H1: From the above table 11 it is proved that service quality has a significant
positive impact on creating trust on customers mind regarding this service (=0.719 and
t=13.4058). The study proves that as long as there is excellent quality of service, the customers
trust on the service will be increased. Customers trust is a very important factor for business
especially for the financial institutions. Service quality creates trust on the customers mind. If
service quality increases customers will consider the service trustable.
Page 36 of 43
R square (R2): The amount of variance explained by the model in term of R2 is 0.517 for trust
on mobile banking which means that the model explained 51.7% of the variances in customers
trust on service which satisfies the acceptable cut off value 0.10.
Analysis of the Open-ended Question

There was an open-ended question included in section B into the questionnaire. The question
was about any suggestion or complaints respondents want to make regarding Mobile banking.
Majority of the respondents skipped that question. However few of the respondents shared their
opinion. Some people said the user interface is not updated compared to other banks in foreign
countries. Mobile banking should concentrate on satisfactory user interface of the customers.
Some other people talked about the charges and Fees. They expected to have lowers charges
for text message since for conducting every transaction customers need to send SMS.
Significance of the study:

This is a study that will try to find out the difference between customers expectation and
perception of mobile banking service quality. Bank management is always much more aware
about cost rather quality of their service. They always try to provide service in an economic
way that will maximize their economic return. Thats why most of the time customers found
huge gap perceived service quality and promised service quality. So it is really an important
factor from management point of view that is they able to provide committed service. This
study will help management practitioners to set the service quality range based on service
criteria as well as it will help the customer for getting better and reliable service.
Implications to theory:
This study prolonged existing service quality theory in the context of Mobile banking services
by capturing users insight on three primary dimensions (platform quality, interaction quality,
outcome quality) and eleven sub-dimensions (system reliability, system availability, system
efficiency, system privacy, system security, system complexity responsiveness, empathy,
operational benefit, financial benefit and self-efficiency ). Moreover, it added uniqueness in
theory by modeling the association between service quality and outcome constructs trust (TRS),
which has not been examined before. It is believed that the proposed theoretical framework of
this study can make significant contribution to knowledge
Implications to practices:
The implications of this research are highly relevant to all banks which are providing mobile
banking service. The findings propose that customer evaluate service quality of mobile banking
basing on three dimensions: system quality, interaction quality and outcome quality. This study
will help the managers to understand the perception of the customers. It suggests managers that
mobile banking platform should be focused more for improving the quality of the services. For
a developing country like Bangladesh where mobile banking is basically a newly practiced
concept, Managers should concentrate mostly on system availability and system efficiency
which can affect service quality positively. The proposed service quality model provides
managers with a tool for conducting an integrated analysis and design of service delivery
systems. Moreover, having only a good technological platform is not enough to deliver the
Page 37 of 43
desired levels of service quality. Thus, managers also need to concentrate on interaction quality
as responsiveness and empathy, and outcome quality such as operational benefit, financial
benefit and self-efficiency associated with the service platform. These findings provide a useful
road map for making interventions in the service delivery systems targeting the improvement
of a particular quality dimension at different levels. The findings of this study support the
importance of service quality as a decision making variable in creating trustworthiness among
the customers. It is proved that if service quality improves customers trustworthiness will also
be increased. So, these findings suggest that managers should consider service quality as
important strategic objectives to gather trustworthiness from the customers. Thus. This
proposed service quality model can help the banks which have mobile banking service.
Limitations of the study

The study has several limitations those pushed to cross the scope and capability of the findings.
The information regarding Mobile banking was collected by sharing survey

questionnaire online and although most of the respondents did not practically use
Mobile banking. They filled up the questionnaire from their assumption.
Although this research attempted to explore extensively underlying key attributes of
mobile banking service quality and captured a total of 11 quality dimensions in the
areas of mobile banking system quality, interaction quality and outcome quality, there
may be still exist the possibility of missing key dimension since customers
compliments and complaints tend to provide the information about the extremes of
satisfactory and dissatisfactory experiences (Johnston, 1995).
In some cases customers were not willing to take part on the survey as well as few
customers were confused or did not understand some questions whereas, it was not
possible to describe their confusion, since majority portion of the survey was conducted
via internet.
It was not easy to find out the perfect and knowledgeable customer to do proper survey.
The time constraint was another limitation factor; time was not that much for
conducting such an important research.
The sample scale was also too small to go for the maximum possibility method that is
accepted now as a better technique for connecting model testing.
Future Research directions

The proposed service quality model of mobile banking has been prepared basing on very poor
sample size and the survey was conducted via internet. In regard to suggestions for future
studies, firstly the identified 11 dimensions need to be validated by analyzing the data directly
collected from the mobile banking customers. Again interview should be taken to add some
quality data into the survey. Secondly, the sample (120 cases) size of this study was very small
indeed to measure service quality and trust on the service. Another study may be designed with
a larger sample size which may represent most reliable result.
Page 38 of 43
Recommendations
Considering all the findings and data the following recommendations can be considered.
Mobile banking should perform the promised service dependably and accurately.
The above dimensions tend to have strong impacts on either customers satisfaction,
dissatisfaction or trust depending on the quality performance of those dimensions. So,
company should mostly focus on the service quality.
The way of communication with the customer should be improved.
Mobile banking system should be upgraded with the passage of time considering
customers satisfaction.
Conclusion
This research was about measuring service quality of mobile banking and at the same time
finding out how service quality effects customers trust on the service. Previously, lots of
research had been conducted on service quality. In this research the proposed service quality
model is believed to be helpful for the mobile banking industry. This study attempted to
examine a contribution of various dimensions of service quality. The advantage of such surveys
is that it presents not only a clearer picture of the customers perceived value but also portrays
the area where the company needs to improve.
Page 39 of 43
References
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Brady, M. K., & Cronin, J. J. (2001, July). Some new thoughts onconceptualizing perceived service
quality: A hierarchical approach. Journal of Marketing, 34-39.
Fornell, Claes, & Larcker. (1981, February 1). Evaluating Structural Equation Models with
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H. Amin, R. B. (2007). An analysis of mobile banking acceptance by Malaysian customers. Sunway
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Parasuraman, A., Zeithaml, V., & Malhotra, A. (2005). E-S-QUAL: a multiple-item scale for assessing
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Page 40 of 43
Appendix
QUESTIONNAIRE
This is a survey regarding the Evaluation of Service Quality Mobile Banking in Bangladesh The
information provided will be kept confidential and will only be used for academic purpose.
Gender
Age
Profession
Income/month
Male
18 to 30
Business
Below
20,000
Female
30 to 50
Service
20,001 40,000
Above 50
Student
40,001
80,000
No Job
Above 80,000
Please rate the following statements under 1-5 point scale where 1 refers to the lowest
degree of agreement and 5 refers to the highest degree of agreement.
Strongly Disagree (SD)
(SA)
1
Disagree (D)
2
Neutral (N)
3
Agree (A)
Strongly Agree
Put a tick () or circle your choice of answer.

SN.
1
2
3
4
5
6
7
8
9
10
Questionnaire
System Reliability
Mobile Banking platform works smoothly.
Mobile Banking system are reliably.
Mobile Banking system are dependable.
Mobile Banking system performs accurately.
System Availability
Mobile Banking system are available from any place.
Mobile Banking system are available at any time.
I can receive Mobile Banking system right away.
Mobile Banking system is available from any mobile operator .
System Privacy
Mobile Banking system does not forward malicious SMS from other
companies.
Mobile Banking system does not share personal information of
customers
SD D
A SA
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
Page 41 of 43

11 Mobile Baking system protects information about my personal
problems.
12 I can change my PIN whenever I want.
System Complexity
13 My interaction with Mobile Banking system is clear.
14 The system interface is user friendly.
15 Mobile Banking system does not require a lot of effort.
16 Overall, I perceive that Mobile Banking system is easy to use
System Security
The
Mobile
Banking
system
is safe to make transaction.
17
18 Mobile Banking system uses secured PIN encryption system
19 Customer identification and authentications are accurate
20 Overall, I believe Mobile Banking system is entirely Secured.
System Efficiency
21 Mobile Banking system works swiftly
22 This system can be adapted to meet variety of needs.
23 Mobile banking system is versatile in addressing needs as they arise.
24 Mobile Banking system Can flexibly adjust to new condition.
Responsiveness
25 Helpline staff provides prompt service
26 Information regarding this service is easily obtainable.
27 The Helpline staff are always willing to help me.
28 The Helpline staff happily replay any query
Empathy
29 The Helpline staff pays personal attention to the customers.
30 The Helpline staff are polite/courteous.
31 The Helpline staff are put effort to understand my query.
32 The staff handle a problem in a caring way.
Operational benefit
33 Mobile Banking offered wide range of services
34 Services from Mobile Banking are worthwhile.
35 Mobile Banking helps to pay regular bills (electric bill, mobile flexi
load).
Operational Benefit
36 Mobile Banking provides attractive interest on mobile deposit.
37 The service charges/fees are competitive/reasonable.
38 The transaction costs (e.g., sending money from one account to
another) are reasonable.
Self-Efficiency
39 I could use Mobile Banking service if someone first showed me how
to use it.
40 I can perform my transactions using Mobile Banking services even if
there is no one to help me if I get stuck.
41 I can perform transactions in Mobile Banking service if I am allowed
adequate time to complete the job.
42
I trust Mobile Banking services.
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
Page 42 of 43

I would trust Mobile Banking services for reliable transactions
I would trust Mobile Banking services promises and commitment to
satisfy my financial transactions
45 I would trust Mobile Banking services behavior to meet my
expectations
43
44
1
1
2
2
3
3
4
4
5
5
46 Q. Do you have any specific complains or recommendations that you would like to
Share regarding Mobile Banking?
Page 43 of 43

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