Effect of Mobile Banking on the saving practices of low-income users

in Kathmandu valley

Project work

Submitted by:
Dristi Ghimire
T.U. Exam Roll No: 22278/18
T.U. Registration No: 7-2-31-73-2018

Submitted to:
Faculty of Management, Tribhuvan University
In partial fulfillment of the requirements for the degree of
Bachelor of Business Administration

Public Youth Campus

Dhobichaur, Kathmandu
March, 2023
 STUDENT’S DECLARATION

This is to certify that I have completed the Summer Project entitled “Effect of Mobile
Banking on the saving practices of low-income users in Kathmandu valley” under the
guidance of Rameshwar Acharya in partial fulfillment of the requirements for the degree of
Bachelor of Business Administration at Faculty of Management, Tribhuvan University. This
is my original work and I have not submitted it earlier elsewhere.

……………………………

Dristi Ghimire

March, 2023

i
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Effect of Mobile Banking on the saving
practices of low-income users in Kathmandu valley” is an academic work done by Dristi
Ghimire submitted in the partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information presented by her in
the summer project report has not been submitted earlier.

____________________
Signature of the Supervisor
Name: Rameshwar Acharya
Designation: Research Faculty
March, 2023

ii
 ACKNOWLEDGEMENTS

This study entitled ‘Effect of Mobile Banking on the saving practices of low-income users
in Kathmandu valley’ has been prepared for partial fulfillment of Bachelor of Business
Administration. It is directed towards investigating the perception of commerce students to be
the entrepreneur in future and critical determinants of Entrepreneurial Intention. Individuals
and Organizations did contribute immensely towards the success of this project. My limitless
thanks go to my supervisor, Rameshwar Acharya, Public Youth Campus, for regularly seeing
me through the arduous task in Management studies, and also for his continuous support and
relentless advice to ensure the completion of the study. I would also like to express my
profound gratitude to the Campus chief, Program Director, Deputy Director of Public Youth
Campus for their guidance and encouragement throughout the completion of this summer
project work. I am also grateful for capable assistance of all the faculties and staffs of the
BBA, Public Youth Campus, whose efforts have equipped me with the quantitative and
qualitative tools to undertake this analysis.

I would also like to thank all the library staffs under study for their cooperation in providing
me all the necessary information and suggestions for my study and sincerely appreciate the
participation of the respondents for making this summer project possible. I am equally
indebted towards all my classmates for their continuous support and encouragement.

Dristi Ghimire

March, 2023

Table of contents

iii
STUDENT’S DECLARATION...............................................................................................i

CERTIFICATE FROM THE SUPERVISOR......................................................................ii

ACKNOWLEDGEMENTS...................................................................................................iii

Table of contents.....................................................................................................................iv

List of tables.............................................................................................................................vi

List of figures..........................................................................................................................vii

Executive summary...............................................................................................................viii

Chapter I...................................................................................................................................1

Introduction..............................................................................................................................1

1.1 General background.............................................................................................1

1.2 Statements of problems........................................................................................4

1.3 Objectives of study...............................................................................................6

1.4 Significances of study..........................................................................................7

1.5Literature review...................................................................................................7

1.5.1 Review of major literature.........................................................................................8

1.5.2 Review of recent literature......................................................................................11

1.5.3 Review of Nepalese literature.................................................................................14

1.6 Conceptual framework.......................................................................................16

1.7 Operational definitions and hypothesis..............................................................17

1.7.1 Dependent variable..................................................................................................17

1.8 Research methodology.......................................................................................20

1.8.1 Research design.......................................................................................................20

1.8.2 Nature and sources of the data................................................................................20

1.8.3 Data collection instruments.....................................................................................20

1.8.4 Population and sample............................................................................................21

1.8.5 The model specifications.........................................................................................21

1.8.6 Validity and reliability............................................................................................21

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 1.9 Limitations of the study.....................................................................................22

1.10 Organization of the study.................................................................................23

Chapter II...............................................................................................................................23

Data analysis and major findings.........................................................................................23

2.1 Presentation and analysis of data.......................................................................23

2.1.1 Profile of respondents.............................................................................................24

2.1.2 Respondents perception on effect of mobile banking on the saving practices of

low-income users in Kathmandu valley...........................................................................26

2.2 Correlation analysis............................................................................................37

2.3 Regression analysis............................................................................................38

2.4 Major findings....................................................................................................40

Chapter III..............................................................................................................................42

Summary and conclusion......................................................................................................42

3.1 Summary............................................................................................................42

3.2 Conclusion..........................................................................................................44

3.3 Recommendation................................................................................................44

3.4 Scope for future research...................................................................................45

References...............................................................................................................................46

Appendices..............................................................................................................................55

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 List of tables

Table 1.1: Review of major literature........................................................................................8

Table 1.2: Review of recent literature......................................................................................11
Table 1.3: Review of Nepalese literature.................................................................................14
Table 1.5: Coefficient of Cronbach’s alpha.............................................................................22
Table 2.1: Demographic characteristics of the respondents.....................................................25
Table 2.2: Respondent’s perception on ease to use..................................................................27
Table 2.3: Respondents perception on service quality.............................................................28
Table2.4: Respondent’s perception on adoption of mobile banking........................................30
Table 2.5: Respondent’s opinion on convenience....................................................................31
Table 2.6: Respondent’s opinion on perceived usefulness......................................................33
Table 2.7: Respondents perception on customer’s attitude......................................................34
Table 2.8: Respondent’s perception on saving practices.........................................................36
Table 2.9: Kendall’s correlation coefficients matrix................................................................37
Table 2.10: Estimated regression results of ease to use, service quality, adoption of mobile
banking, convenience, perceived usefulness and customer’s attitude on saving practices in
Kathmandu Valley....................................................................................................................39

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 List of figures

Figure 1.1: Conceptual framework...........................................................................................17

vii
 Executive summary

The study shows that ease to use have positive impact on the saving practices. It means that
ease to use lead to the saving practices. Likewise, service quality have positive impact on the
saving practices. It indicates that proper service quality, would result as the saving practices.
Similarly, convenience has a positive impact on the saving practices. It means that
convenience leads to the saving practices. Moreover, adoption of mobile banking has a
positive impact on the saving practices. It indicates that good adoption of mobile banking
leads to the saving practices. In addition, perceived usefulness have positive impact on the
saving practices. It means that perceived usefulness provided to saving practices. The result
also revealed that customer’s attitude has a positive impact on the saving practices. It shows
that proper customer’s attitude lead to the saving practices. The study also concludes that
service quality is the most influencing factor that explains the effect of mobile banking on the
saving practices of low-income users in Kathmandu valley.

viii
 Chapter I

Introduction

1.1 General background

Donovan (2011) stated mobile money is a relatively new phenomenon, and since it has not
been evaluated from a wide variety of approaches, the literature on mobile money tends to be
descriptive. Mas and Radcliffe (2011) argued the money transfer aspect of the mobile money
system and note that M-Pesa one of the mobile money systems now handles more
transactions domestically than Western Union does globally. Wausi et al. (2013) investigated
innovations the mobile money applications and conclude that Kenya has become a global hub
for mobile money innovations.

Macmillan (2016) examined the issue of a dominant player in the mobile money has also
been argued to lead towards stifling the development of an ecosystem of financial services
around mobile money. Katharine et al. (2015) analyzed the fore the issues of attendant risks
in mobile money form a customer’s perspective. Amin et al. (2007) defined mobile banking
is also known as M-banking. M-banking is defined as a form of banking transaction carried
out via a mobile phone.

Deb et al. (2011) studied the dimensions affecting the adoption of mobile. Banking in
Bangladesh and found that the handset operate ability, convenience, and security are the
prime influencing factors, while reliability, cost, confidentiality, network procedure, and
knowledge also have a significant influence. Al-Akhras and Qwasmi (2011) stated that
mobile banking (or m banking) describes the banking services that the user can perform via a
mobile device ubiquitously at any time and from anywhere.

Banking today is undergoing a radical transformation. The symptoms are obvious; new
products, new players, new channels are appearing daily. This transformation is taking place
across all sectors of the banking industry. Technology is a major force in this radical
transformation that led to breaking the geographical, legal and industrial barriers and has
created new products and services. The escalation and convergence of wireless
telecommunications has created a tremendous potential platform for providing business
services. It's estimated that mobile phone users are approaching the three billion mobile
subscriptions mark globally, and advertisers and operators alike are keenly aware of the
opportunity to connect with potential consumers through mobile phones (Hibberd, 2007).

1
Keen and Mackintosh (2001) showed that technological features play an important role in the
adoption of mobile value added services. In service use, mobile phones are no longer used as
they have typically been used before. Talking and text messaging will remain, but extensive
service use is expected to grow.
Electronic banking, in its diversified forms, represents an innovation in which both intangible
service and an innovative medium of service delivery employing high technology
convergence. Electronic banking is the provision of information and services by a bank to its
customers via electronic wired or wireless channels, for example Internet, telephone, mobile
phone or interactive television (Daniel, 1999). Moreover, rapidly changing technology has
reshaped behavioral pattern how consumers interact with their financial institutions. In future
along with physical market competition the virtual market is also going to take place
(Rayport and Sviokla, 1994). 

Significant changes in the banking system are led by globalization and financial liberalization
Bamoriya et al. (2013). Responding to these changes, banking system is continuously
expanding the choice of services offered to the customers and increasing their reliance on
technology to offer such services (Al-Smadi and Al-Webel, 2011). During the last two
decades, the financial sector has developed rapidly in terms of size, industry structure and the
variety of consumer products and services (Aziz and Beeson, 2008). This prompted most
banking sectors to reduce pressure within the banking hall and hence the intensive use of
ATMs, Internet banking and m-banking. However, some studies view them as a result of
technological developments and financial liberalization (Gardener et al., 1999). Chinofunga
et al. (2012) stated that these technological changes motivated banks to be aware of future
trends in order to survive and compete.

Raman et al. (2010) tested six e-service quality components that they believed to be of
paramount importance in adopting e-banking services in Malaysia. The tested components
were ease of use, appearance, reliability, customization, communication, and incentive. Their
objectives were to evaluate consumer perceptions on quality of services and internet banking
adoption in Malaysia. Results reveal that internet users and non-users have different
expectation towards e-service quality preferences.

Devi and Malarvizhi (2010) investigated customers' perception of e-banking in India .They
found that customers are satisfied with the quality of e-banking services. Their studies
showed that ATM is more popular and most cost effective. Their findings reveal that

2
customers were experiencing technical problems and formalities and less social relation with
banks. Results witnessed insufficient number of ATM centers. Aslam et al. (2011) conducted
a study in non-metropolitan area of Pakistan to explore the perceived barriers in adoption of
internet banking. Their study revealed that customers were more concerned of forming
relationship with bank's service providers and internet banking perceived to be a possible
cause for losing such opportunities.

Internet banking (IB) refers to systems that enable bank customers to get access to their
accounts and general information on bank products and services through the use of bank’s
website, without the intervention or inconvenience of sending letters, faxes, original
signatures and telephone confirmations. IB offers significant benefits for both banks and
customers. It provides banks additional channels to deliver products and services to
customers at a lower cost while expanding the customer base and thereby IB has become a
strategic resource for achieving higher efficiency (Thulani et al., 2009).

Obviously, the benefits of online banking do not, in and of themselves, explain why some
consumers accept the new technology and others do not (Lassar et al., 2005). For banks it is
important to understand relevant user characteristics and to be able to assess who specifically
is adopting and utilizing online banking technologies and why. At first sight, it seems that the
literature on the acceptance of online banking is already mature and makes up a consistent
theoretical body (Hernandez and Mazzon, 2007).

In the context of Nepal, Sherpa (2015) studied that the mobile banking has changed the
traditional banking method. The use of mobile banking in developed countries are extremely
higher than the developing countries due to technological and proper infrastructure
development of the country. Thapa (2003) conducted a study of future prospective of online
banking in Nepal to examine the future feasibility of the online banking services in Nepal.
The study found that the most important factor to online banking users surveyed was the
overall security of their money.

Shrestha (2012) concluded the literacy rate is low, most of the people are technologically
ignorant while among the literate portion many of them have computer phobia. Internet
banking is increasingly becoming a ‘need to have’ than ‘nice to have’ service. Digital
Transformation is the use of technology to build new plans of action, procedures,
programming and frameworks that outcomes in progressively gainful income, more
competitive advantage, and higher efficiency (Niraula and Kautish, 2019).

3
The above discussion shows that the studies dealing with effect of mobile banking on the
saving practices of low-income users are of greater significance. There are findings in the
context of different countries but no such findings using more recent data exist in the context
of Nepal. Hence, this study attempts to analyze the customer's attitude toward the saving
practices using mobile banking and internet banking in context of Nepal.

1.2 Statements of problems

Siaw et al. (2017) analyzed revisiting domestic savings and economic growth analysis in
Ghana. The study founded that the central bank pays a particular attention to rural savings
mobilization through the regulation of mobile banking by allowing the telecommunication
companies to also pay interest to savers on their mobile deposits and establishment of
banking financial institutions at least in each district. Rabaa’i et al. (2021) analyzed exploring
the determinants of users’ continuance intention to use mobile banking services in Kuwait.
The study found that the existing literature of m-banking services and examined different
factors predicting users’ intension to continue using m-banking services in the post-adoption
phase, where, studies on this phase are scarce in general, and so far, has not been studied in
the Kuwaiti.

Kumbhar (2012) investigated the alternative banking channels and customer satisfaction in
Satara City. The study showed that there is a positive relationship between age, education
and profession. Musiime and Biyaki (2010) identified that information technology has
brought revolutionary changes in the economy of business, particularly in the banking sector.
In recent years, bank systems rapidly inclined to invest on new. Wang et al. (2003) analyzed
systems rapidly inclined to invest on new technologies of presenting services to new
customers and meet the expectations of the customers. Some technologies as internet
banking, telephone banking, ATMs, etc. are on the priority as a strategic requirement.

Areiqat et al. (2010) analyzed marketing strategy for new banking services and products and
its effects on the stockholders equity. The study founded that the new banking services and
products are useful in retaining the current customers and in attracting new customers. -The
marketing Strategy that applied by the Arab Bank was the success key in providing Shabab
Product. Rilling (2015) analyzed mobile banking acceptance among young consumers in
Germany. Subsequently, a multi-group analysis inspects differences between users and non-
users of MB.

4
Decades back banking was a simple business; consumers were not keeping money homes but
rather saved their money and received their money from financial institutions from banks
(Timothy, 2012). Consumer’s trust needs to be built and maintained over time and an
understanding of consumer’s risk perception is helpful to banks in identifying barriers to
adoption that have to be overcome ( Wang et al., 2006).

Electronic banking service came out of information and communication technology that
made it feasible for service providers and their customers in developing economies to enjoy
the services that is also enjoyed in the developed countries. Electronic banking services have
given banks the chances to inspire clients which urge them to continue banking with them.
Information and communications technology has become a vital asset that has transformed
many areas of life including business and commerce. Information systems are used in
business to facilitate new products, and create market opportunities. Developed and
developing areas of the world are now using internet banking services as a competitive
strategy (Gurau, 2002).

With the emergence of technology and its rapid globalization, E-banking services are the
demand of customers. However, the online services are not always available to every
customer, which is a reality. It may be due to limited access to the technology, internet, or
lack of awareness of technology, or some people may feel insecure or to avoid the excessive
fees charged for E-banking services (Alkhowaiter, 2020). Tan and Thompson (2000) argued
that there are impacts on businesses as a result of e – banking. Nowadays, Internet has
become a famous delivery and distribution channel. Among them electronic financial
products and services are more significant. Similarly, Kadir et al. (2011) examined the
impacts of service quality on customer satisfaction. The study found that tangible and
responsiveness dimensions out of 5 dimensions of SERVQUAL model are found unable to
fulfill the respondents demand as well. So, ATM services related to these dimensions need
for further enhancement to satisfy customers.

At present e-banking adopter's use the basic banking facilities such as cash receive and
withdraw, balance enquiry, regular schedule and mini statement (Banstola, 2007). These
changing scenario in Nepalese banking industry indicates that the banking sectors have come
to realize the importance of customers satisfaction and as result they have been promoting or
offering number of services in fact the emphasis is diverted towards quality service to retain

5
their customers and in overall generates higher revenues by increasing deposits and market
share in long run.

The above discussion shows that empirical evidences are not consistent. Therefore, in order
to support one view or the other, this study has been conducted. Hence, this study focuses on
the effect of mobile banking on the saving practices of low-income users in Kathmandu
valley.

1. What is the perception of ease to use, service quality, convenience, adoption of

mobile banking, perceived usefulness and customer’s attitude on saving practices
through digital banking?
2. Is there any correlation of ease to use, service quality, convenience, adoption of
mobile banking, perceived usefulness and customer’s attitude with individual
intention on saving practices?
3. What is the impact of ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude with individual intention on
saving practices?
4. Which factors among ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude need to be improved to enhance
saving in banking institution ?
5. Which is the most significant factor that affects ease to use, service quality,
convenience, adoption of mobile banking, perceived usefulness and customer’s
attitude with saving practices in banking institution?

1.3 Objectives of study

The major objective of this study is to examine the effect on saving practices of low incomes
users in Kathmandu valley. The specific objectives of the study are as follows:

1. To analyze the perception of mobile banking, e-banking, convenience, perceived

usefulness, ease to use, customer’s attitude and service quality that affect saving
practices.
2. To determine the relationship of ease to use, service quality, convenience, adoption
of mobile banking, perceived usefulness and customer’s attitude with individual
intention on saving practices.
3. To examine the impact, service quality, convenience, adoption of mobile banking,
perceived usefulness and customer’s attitude on saving practices.

6
 4. To identify the most important factors affecting behavioral intention to saving
practices individual low income in Kathmandu valley.

1.4 Significances of study

This study helps to achieve insights on effect of mobile banking on the savings practices of
low income users in Kathmandu valley .This study will pave way for the government and the
concerned authorities to accept the variable that. Savings practices of low income users, such
an acceptance could be utilized to improve on the social and political factors. It serves as a
reference material for future researches in this area also.

The study mainly focuses on analyzing the effect on mobile banking on savings practices of
low income users. The study will also address the status of online and conventional
advertisement that will guide government in formulating plans and policies to maintain sound
economic condition. The study will also provide insight on understanding the behavioral
aspects of educated manpower. Hence, deeper understanding about the impact of mobile
banking’s helps management and policy makers of a country to build and plan proper social
and political environment The study will also enable government to know how to address
issues Saving practices as well as adoption of mobile banking , mobile banking skills,
perception of mobile banking, ease to use mobile banking.

This study also helps the customers to know the influence of digital banking while doing
different kind of activities or work. Customers are more loyal towards this service when they
feel that this service is appropriate and provide securities. The data and information are
deeply safe and secure rather than in written form. This study is used to examine the impact
of digital banking on customer satisfaction. It concluded that this study assists many person
who are unaware about the services and technology provided by the bank will get information
and knowledge.

New entrants in the banking industry will also benefit from the findings on what the
consumers look for in a bank. It will serve as an industry analysis to enable them to know
how consumers make their choices for banks. Researchers and academicians will use these
findings as a basis for future research. Understanding customers’ behavior is a key
component of any marketing activity for banks. Investigate the main determinants of bank
selection decision by customers therefore benefits in understanding their customers better.

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1.5Literature review

The review of literature has been organized as follows:

1.5.1 Review of major literature

1.5.2 Review of recent literature

1.5.3 Review of Nepalese literature

1.5.1 Review of major literature

Table 1.1: Review of major literature

Studies Major findings

Sathye (1999) Security is concerned and lack of awareness about Internet banking and its
benefits stand out as being the obstacles to the adoption of internet
banking.
Laukkanen(2007) Customer perceived positive value and value created negative value to
fund transfer between one account to another account via online banking
and mobile banking.
Tan et al.(2010) Perceived usefulness, perceived ease of use, convenience, computer
efficiency, device features and security were major influence the adoption
of e-banking service savings.
Elisha(2010) Security, time factor, queue management, fund transfer, accessibility and
user friendly are main factors influencing to e-banking services.
Masochal et al. Customers were influenced to bank which uses advanced new banking
(2011) technologies.
Khan and Foiza Informational, modified and self-service assistance improved the existing
(2011) function of traditional banking.
Kazi and Mannan Consumer’s intention to adopt mobile banking services was significantly
(2013) influenced by social influence, perceived risk, perceived usefulness, and
perceived ease of use.
Mavhiki et al.(2015) Factor in the first stage of adoption, that is, knowledge of m-banking.

Sathye (1999) examined the factors affecting the adoption of internet banking by Australian
consumers. The sample for this study was drawn from individual residents and business firms
in Australia. The study showed that security concerned and lack of awareness about Internet
banking and its benefits stand out as being the obstacles to the adoption of internet banking in
Australia.

Laukkanen (2007) presented a comparative study on customer perception in online banking

and mobile banking service and also measured customer perceived value and value creation
between online and mobile bill payment services. The study found that the customer
perceived positive value and value created negative value to fund transfer between one
account to another account via online banking and mobile banking. The major noteworthy

8
differences between online and mobile banking were related to internet free access to the
service and the display of screen. The mainly essential contributor to mobile banking seems
to the skill to use the facility anywhere need. E-Banking was related to the capability for
quick actions and time saving in service utilization. The computer and mobile key board and
the display of the device appear to the clearest inhibitors to the use of mobile bill payment
facility whereas in the use of personal computer the case appears to the opposite.

Tan et al. (2010) identified factors influencing adoption of E-Banking and mobile banking
services and measured customers' preferences in choosing between E Banking and Mobile
banking when conducting transactions. The findings of the study indicated that perceived
usefulness, perceived ease of use, convenience, computer efficiency, device features and
security were major influence the adoption of E Banking services. Similar findings are
obtained for mobile banking adoption except for mobile phone efficiency and device features.
The maximum of customers prefer from E-Banking to mobile banking because they have
mobile phone in pocket. Hence, it is essential to analyze the various features of mobile
banking services.

Elisha (2010) examined the major attributes responsible for internet banking based on
customers' perception on different E-Banking technologies. The study found that E Banking
serves more advantages to Nigerian banking sector. Factor analysis found that security, time
factor, queue management, fund transfer, accessibility and user friendly are main factors
influencing to E-Banking services. Out of 750 customers, 660 customers were agreed with
factor of convenient and flexible of E-Banking services. Hence, now-a-days most of the
departments link with banking sector because all the payments are made through online
banking services. In this connection one has to find out the level of awareness urban people
in internet banking.

Masochal et al. (2011) found out what extent do banks implement innovative banking
technologies in marketing strategies and practices and investigated the customers' perceptions
on the level of satisfaction gained through the use of technology in transactions with their
banks. The findings showed that most of the customers' were influenced to bank which uses
advanced new banking technologies. Therefore, innovative banking channels namely mobile
banking, credit card, debit card, SWIFT and internet banking reflected very low levels of
usage by customers and also maximum of customers' prefer from E-Banking methods to
traditional banking methods. Unluckily, there was a vast gap between ownership and usage of

9
E-Banking resources entailing that there was no effective consumption of technologies
owned by rural customers. Therefore, it is necessary to identify what level of modern banking
technology services was expected by the urban people.

Khan and Fozia (2011) identified the customers' perception on traditional banking and E-
Banking services and also investigated the character of internet and core banking services
offered by banks in traditional banking and E-Banking. The study was concluded that the
informational, modified and self-service assistance improved the existing function of
traditional banking. Online services were differentiating from traditional retail banking to E-
Banking. E-Banking makes obsolete, the technological knowledge of traditional banking. In
addition, the new value propositions of E Banking will create the fundamental changes in
business model dimensions such as customer value, cost structure, customer base, and market
sector and revenue source. Finally, both the technological knowledge and business model
dimension between traditional banking and E-Banking are definitely different. Therefore, it is
essential to identify the customers' perception of E-Banking services provided by commercial
banks in corporation of Tamil Nadu.

Kazi and Mannan (2013) investigated the determinants likely to influence the adoption of
mobile banking services, with a special focus on under banked/unbanked low-income
population of Pakistan. The adoption of mobile banking services has been a strategic goal,
both for banks and telcos. For this purpose, Technology Acceptance Model (TAM) was used,
with additional determinants of perceived risk and social influence. Data was collected by
surveying 372 respondents from the two largest cities (Karachi and Hyderabad) of the
province Sindh, in Pakistan using judgement sampling method. This study empirically
concluded that consumers’ intention to adopt mobile banking services is significantly
influenced by social influence, perceived risk, perceived usefulness, and perceived ease of
use. The most significant positive impact is of social influence on consumers’ intention to
adopt mobile banking services. The study concluded with discussion on results, and several
business implications for the banking industry of Pakistan.

Mavhiki et al. (2015) examined the socioeconomic factors that explain the adoption of
mobile banking (m-banking), based on data collected from households in the suburbs of
Dakar (Senegal). In the first part of the project, a sample of 900 households was selected by
the method of quotas in the suburbs of Dakar. The criteria used were the residential area, the
gender of the household head, and the age of household head. Information was collected on

10
the household, household members, their knowledge and use of mobile banking, and
economic activity. In the second phase of the project, households whose per capita income
was in the range of 10% above and below the poverty line in Dakar were selected. Among the
households that meet this criterion, a sample of 400 households was randomly selected. This
sample was randomly divided into two groups of households. The first group had mobile
account banking and training in its use. The second group received no training. The final
sample of the second phase was composed of 127 households and 648 individuals. In this
article, we use a sequential logit model to highlight the determinants at each level of this
process. The results show that age was the only determining factor in the first stage of
adoption, that is, "knowledge" of m-banking. In the second phase, other factors appeared in
addition; cognitive factors came into play, such as literacy, education level, as well as
financial factors such as membership in a ROSCA (rotating credit and savings scheme) that
influenced the ‘possession' of m-banking. At the final stage of the adoption process, the
variables education level, wages and owning a business were the factors involved in the
adoption of m-banking.

Having examined the major literature on the effect of mobile banking on the saving practices
of low-income users in Kathmandu valley, the next section is devoted to evaluation of major
recent literature.

1.5.2 Review of recent literature

Table 1.2: Review of recent literature

Study Major findings

Eze and Egoro Impact of electronic banking on the profitability of commercial banks is
(2016) significant; whereas, the impact of the individual channels was varied.
Sampi et al.(2017) Benefits offered by mobile banking are positively related to customer
satisfaction.
Priya et al. (2018) Statistically insignificant in terms of its relationship with internet banking
to use the service.
Zhang et al.(2018) Motivates consumers to embrace mobile banking for saving purpose.
Banu(2019) Perceived ease of use, perceived usefulness, perceived credibility, relative
advantage and self-efficiency are influencing factors to adopt Internet
banking.
Hadid et al. (2020) Reliability, tangibility, responsiveness and assurance has a positive
influence on customer satisfaction.
Reddy (2021) Level of usefulness of e-banking services is significantly less for rural bank
customers when compared to their semi-urban and urban areas.
De Mel (2022) Gains from reducing transaction costs in saving may be mediated by other
constraints.

11
Eze and Egoro (2016) examined on the impact of electronic banking on the profitability of
commercial banks in Nigeria. The study used the confirmed ECM model (via residual
diagnosis) to test the formulated hypotheses. The study showed that the over impact of
electronic banking on the profitability of commercial banks was significant; whereas, the
impact of the individual channels was varied. The study found that, there is a strong positive
and significant relationship between electronic banking and profitability of commercial banks
in Nigeria. Similarly, ATM transactions have a positive and significant impact on the
profitability of commercial banks in Nigeria.

Sampi et al. (2017) analyzed apps for mobile banking and customer satisfaction. The study
used primary sources of data. The study used 383samples. The study found that the benefits
offered by mobile banking are positively related to customer satisfaction, three consequences
of customer satisfaction were analyzed as trust, loyalty and positive word-of-mouth. The
study concluded to develop strategies to better serve customers. Contribution is to extend
previous study on the benefits offered by mobile banking and the consequences of
satisfaction with mobile banking, which includes studies on service failure and perceived
justice.

Priya et al. (2018) analyzed the mobile banking adoption in an emerging economy. This
study used primary sources of data. The study suggests that perceived usefulness (pu),
perceived ease of use (peu), perceived credibility (pc) and structural assurance (sa) are strong
determinants of user satisfaction (us) and behavioral intention (bi) to use the mobile banking
service (us) was found to partially mediate the relationship between pu, peu, pc and sa and bi
to use the service. The study consists on sample 269 respondents aged between 23 and 30
years from India. The study found to be statistically insignificant in terms of its relationship
with bi to use the service.

Zhang et al. (2018) examined the quot banking “on-the-go”: examining consumers’ adoption
of mobile banking services and quot. The study used primary sources of data.   The study
consists of a sample survey used to test proposed relationships between factors and
consumers’ mobile banking adoption. The data was collected from200 respondents.
Structural equation modeling is performed to analyze consumers’ intentions toward mobile
banking. Trust in the banks has its predominant role in mobile technology adoption for
banking services. The studies had to use test proposed relationships between factors and

12
consumers’ mobile banking adoption. The study found the technology safety concerns,
including reliability and privacy factors, are found to play an important role in motivating
consumers to embrace mobile banking. 

Banu et al. (2019) examined online banking and customer satisfaction. The study used
technology acceptance model (TAM) and decomposed theory of planned behavior (DTPB).
The present study was aimed at studying customer satisfaction in online banking in India.
Data collected from 750 respondents from both public and private sector banks were used to
test the mediated model using the hierarchical regression. The study concluded that the
perceived usefulness acted as a partial mediator in the relationship between various
independent variables, such as awareness of online banking services, security, knowledge of
Internet, self-efficacy, intention to adopt, trust, easy to use, and dependent variable, that is,
customer satisfaction.

Hadid et al. (2020) investigated the effect of digital banking service quality on customer
satisfaction. This study has employed a quantitative research approach with a planned data
collection and analyzed using correlational survey design. The changes occurring in business
environment, especially strong competition and the changed in customer’s preferences
required the bank management team to define, implement and monitor proactive marketing
strategy constructed on the basis of continuous evaluation of the quality of its services.
Solution of this problem is advocated in all organizational parts of a bank, which makes it the
most critical for service quality and survival of banks in the market. A developed and
validated questionnaire was used to collect data from the sample of 384 participants selected
form the five major commercial banks (Maybank, Hong Long Bank, CIMB Bank, RHB Bank
and Muamalat). The data collected were analyzed using Partial Least Square Structural
Equation Modeling (PLS-SEM) using SmartPLS software. Measurement and structural
model were assessed with all adequate validity and reliability evidences. The results revealed
that the reliability, tangibility, responsiveness and assurance has a positive influence on
customer satisfaction.

Reddy (2021) examined the impact of e-banking on customer satisfaction. Data were
gathered using a survey instrument, which was distributed among bank clients in the
Lebanese banking sector. The independent variable is Reliability, Responsiveness and
depended variable customer satisfaction. The study found that “time saving and less cost”
tend to influence the bank customers, intention to continue using the internet banking site in

13
the future. The study concluded that the level of usefulness of e-banking services is
significantly less for rural bank customers when compared to their semi-urban and urban
areas. Likewise, time saving and less cost tend to influence the bank customers, intention to
continue using the internet banking site in the future.

De Mel (2022) examined mobile-linked services have the potential to significantly reduce
transaction costs and provide a truly new conduit that could be used to facilitate the flow of
savings into banks. We test this premise by introducing a product that permits Sri Lankan
households to deposit mobile airtime balances into a formal bank using a new mobile money
interface. Using high frequency panel survey data and randomizing access and prices at the
individual level, we find that there are moderate percentage increases in savings deposits with
the partner institution and formal banks more generally, but no change in overall savings
deposits. To select the sample for the study, we conducted a listing exercise in August 2010
in six municipalities13 in central Sri Lanka. The household listing identified 13,435
economically active adults from 10,300 households. The data was collected through survey
method. Our results highlight two potential explanations for why reducing transaction costs
for formal deposits may generate modest marginal gains in increasing savings. The gains
from reducing transaction costs in saving may be mediated by other constraints.

Having examined the major recent literature on effect of mobile banking on the saving
practices of low-income users, the next section is devoted to evaluation of major Nepalese
literature.

1.5.3 Review of Nepalese literature

Table 1.3: Review of Nepalese literature

Study Major Findings

Bhatta (2010) Enhancement of the service quality and pleasant behavior from staff may
contribute toward the client retention as well as increment in future.
Byanjankar et al. True potential of mobile banking in the remote areas of Nepal.
(2012)
Gyawali and Kunwar Significant relationship between customers' satisfaction and five service
(2014) quality dimensions.
Sthapit and Customer perception towards the adoption of e-banking services in terms
Bajracharya(2019) of perceived usefulness, ease of use and perceived risks.
Poudel (2021) The digital payment service providers should seek for the opportunities to
enhance their service by adding more utilities in their application.

14
Bhatta (2010) conducted the study on customer behavior and preferences on banking sector
of Nepal. A survey of Bank’s Customer was conducted on the selected branch inside
Kathmandu valley of 28 Member Institution(s) [MI(s)] of Nepal Banker’s Association (NBA)
for the study. The observation period consist of April to June 2010 with a sample size of 30
respondents from each banks. Removing inconsistent data sets, ultimately a total of 834 data
were used for the analysis. The result showed that use of technologies innovation in banks
leads to increase the use of banking services. The study also pointed toward the increasing
trend of people to keep a large sum of cash at hand. Regarding the reason for preferences of
their banks most customers acknowledged their services and efficiency. The study also found
that having many branches and ATMs is also a competitive feature to attract a large number
of customers.

Byanjankar et al. (2012) identified the studying the possibility of mobile banking and role of
a marketing plan for improving mobile banking in Nepal. The study used primary and
secondary sources of data. The banking is popular among young people and in city areas of
Nepal. The study has been applied to understand the holistic framework of mobile banking in
Nepal. Qualitative and quantitative approaches to perform the research. The study used 500
sample sizes. The survey and interviews were conducted in order to identify the possibilities
and factors that have impact on extending mobile banking in Nepal. The importance of a
marketing plan in geographically extending mobile banking services in Nepal. Relevant
literature and internet articles are included as the source of information. The study found that
the true potential of mobile banking in the remote areas of Nepal.

Gyawali and Kunwar (2014) examined customer's satisfaction over service quality
dimensions. The major objective this research is to explored customers' perceptions about
Banking Service Quality and their satisfaction taking attention over five service dimensions'
responsiveness, tangibility, empathy, assurance and reliability using servperf model. The
study has followed the descriptive research design based on questionnaire survey. Total one
hundred and twenty samples of customer from different commercial banks have been selected
judgmentally for self-administered questionnaire survey. Reliability analysis (Cronbah’s
alpha test), correlation, Test of normality, multi-collinearity, Regression analysis have been
performed. The study showed that the overall perception of customers toward the tangibles,
reliability, responsiveness, assurance and empathy found satisfied. The study concluded that
there is significant relationship between customers' satisfaction and five service quality

15
dimensions. Higher variability in overall service quality satisfaction is contributed by
reliability, responsiveness, assurance and empathy.

Sthapit and Bajracharya (2019) examined the customer perception towards adoption of e-
banking services in Kathmandu. The study used primary data. Prove instrumental in
formulating e-banking strategies. The study used integrates. The study used 159 samples
using, descriptive statistics, t-test, correlation and regression. The study discovered that
customer perception of usefulness, ease of use and risks have impacted on the adoption and
use of e-banking services. The perception of business school students and their adoption of e-
banking service. This study involves the customer’s perceptions towards. The study found
that the customer perception towards the adoption of e-banking services in terms of perceived
usefulness, ease of use and perceived risks.

Poudel (2021) examined structured literature review on impact of covid-19 pandemic on

mobile payment in Nepal. The study used primary sources of data. The study has to minimize
the spread of coronavirus in some extent in Nepal. the study consists of sample the identify
how a user perceives of the mobile payment facility, how a customer derives usefulness of
mobile payment, the various opportunities of mobile payment services, the classification of
mobile payment technology, how demographic features can influence the use of mobile
payment services. The study found that digital payment service providers should seek
opportunities to enhance their service by adding more utilities in their application.

1.6 Conceptual framework

The conceptual framework is the basis or foundation upon which the study is established. It is
within the framework of this theory that entire study proceeds. The preliminary survey of
literature and information provides a solid foundation for developing a theoretical framework.
Since the general purpose of the study is to develop theories about the problems and
questions, it is important that the conceptual framework be carefully developed and
presented.

In other words, conceptual framework is a basic conceptual structure organized around a

theory. It defines the kind of variables that are ongoing to be used in the analysis. Conceptual
framework is a type of intermediate theory that attempt to connect to all aspects of inquiry
within problem definition, purpose, literature review, methodology, data collection and
analysis. Conceptual framework can act like map that give coherence to empirical inquiry as
the conceptual framework are potentially so close to empirical inquiry, take different form

16
depending upon the research question or problem. This study focuses on the relationship
between the digital banking and saving practices. This study has taken saving practices as
dependent variable whereas ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude as independent variable.

Figure 1.1 presents the schematic diagram showing relationship between independent and
dependent variables.

Figure 1.1: Conceptual framework

(The conceptual framework shown in figure 1.1 elaborates the impact among dependent
variables and independent variables. Six variables are used as independent variable. The
independent variables are ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude. Similarly, the dependent variable is
saving practices.)

Independent variable
Ease to use
Service quality
Adoption of mobile banking Dependent variable
Convenience Saving practices
Perceived usefulness
Customer’s attitude

1.7 Operational definitions and hypothesis

This section describes and defines the various dependent and independent variables used in
the study. To analyze the effects of mobile banking on the saving practices of low income
users in Kathmandu valley.

And this study has saving practices as dependent variables while as ease to use, service
quality, convenience, adoption of mobile banking, perceived usefulness and customer’s
attitude the independent variables. These variables along with their proxies have been defined
and discussed below:

17
1.7.1 Dependent variable

Saving practices

Savings are an important financial instrument and are increasingly recognized as a tool for
poverty reduction. However, savings constraints are a significant challenge for the poor in
Sub-Saharan Africa as many households do not have traditional bank accounts. (Demirguc-
Kunt et al., 1999). According to Zhou and Wang (2010), saving practices creates different
level of satisfaction in customer’s attitude. Similarly, Abbas et al. (2018) stated that there is
significant impact on customers’ intention to use e- banking for saving purpose. Likewise,
savings refers to the money that a person has left over after they subtract out their consumer
spending from their disposable income over a given time period (Karjaluoto et al., 2002).
Furthermore, there is positive impact on customer’s attitude and their preference for saving
practices using internet banking (Davis, 1989). According to Fortes and Rita, (2016) saving
plays an important role in the use of e-banking by the people.

1.7.2 Independent variables

Ease to use

Davis (1989) indicated that there is a positive relationship between ease of use and saving
practices. Similarly, Fortes and Rita (2016) showed that ease to use has a positive impact on
saving practices of low income. Likewise, the ease of use affects customers' saving practices
of low income using mobile banking (Phan and Bui, 2019). Furthermore, Daka and Phiri
(2019) revealed that there is a positive impact of ease to use on saving practices. Based on it,
this study develops the following hypothesis:

H1: There is a positive relationship between perceived ease of use and customer’s attitude on
saving practices.

Service quality

Service quality is a measure of how well the service level delivered matches customer
expectations. Delivering quality service means conforming to customer expectations on a
consistent basis (Lewis, 1991). Likewise, Khamis and Rashid (2018) found that service
quality has a significant positive impact on customers’ satisfaction in Tanzania Islamic banks.
Furthermore, Gronroos (1984) has suggested that the quality of service as perceived by the
customer has two dimensions i.e., technical or outcome dimension and the function of
process related dimensions. Similarly, Gurau (2002) stated that there is a significant

18
relationship between service quality and saving practices. Based on it, this study develops the
following hypothesis:

H2: There is a positive relationship between banking service quality and saving practices.

Convenience
Copeland (1923) defined convenience goods as a class of consumer products that were
intensively distributed and required minimal time and physical and mental effort to purchase.
Likewise, Jack and Suri (2011) revealed that convenience has a positive impact on saving
practices. Furthermore, Eastin (2002) found that perceived convenience is the strongest
predictor of online banking usage. In addition, Gurau (2002) indicated that there is a
significant relationship between convenience and saving practices. Based on it, this study
develops the following hypothesis:

H3: There is a positive relationship between banking convenience and saving practices.

Adoption of mobile banking

Gardener and Williams (1999) revealed that adoption of mobile banking has a positive
impact on saving practices. Likewise, Tan and Teo (2000) indicated that there is a significant
relationship between adoption of mobile banking and saving practices .Similarly adoption of
mobile banking has a strong, direct and positive effect on saving practices (Kim et al.,2007).
According to Wang et al. (2003) found that there is a positive relationship between adoption
of mobile banking and saving practices. Based on it, this study develops the following
hypothesis:

H4: There is a positive relationship between adoption of mobile banking and saving
practices.

Perceived usefulness

Perceived usefulness is a customer's perception of the ability to improve work efficiency, for
example by saving time, when accessing services to services in multiple ways (Davis, 1993).
Similarly, perceived usefulness directly increases customer’s intention to use the service
(Pavlou, 2003). Pavlou and Fygenson (2006) stated that perceived usefulness significant
impact customer’s attitude on saving practices. Based on it, this study develops the following
hypothesis:

H5: There is a positive relationship between perceived usefulness and saving practices.

19
Customer’s attitude

Cooper (1997) stated that the customer’s attitude has a positive and significant impact on
saving practices. Further, Singh and Srivastava (2020) asserted that customer’s attitude has a
positive impact on saving practices. Similarly, Kim et al. (2007) found that there is a positive
relationship between customer’s attitude and saving practices. Similarly, Sathiyavany and
Shivany (2018) reported that customer’s attitude have great impact on saving practices.
Based on it, this study develops the following hypothesis:

H6: There is a positive relationship between customer’s attitude and saving practices.

1.8 Research methodology

Research methodology provides an overall plan for the activities undertaken during the
action. It is a collective method in a detailed and organized manner for conducting research.
This chapter describes the methods and approaches that were adopted in conducting this
study. It includes the research design, the study population, sampling size procedure, pilot
study, and data analysis. The type and sources of data, the methods of data collection, and
how reliability and validity were tested. The study examining determinants of the saving
practices through mobile banking made use of primary data.

1.8.1 Research design

This study is based upon descriptive and causal comparative research designs to determine
the effect of mobile banking on the saving practices of low-income users in Kathmandu
valley. This study adopts descriptive study design for fact-finding and searching adequate
information about the saving practices of low-income users in Kathmandu valley.

This study is also based on causal comparative design that helps to investigate the possible
causes and effect relationship between various dependent and the independent variables. The
casual comparative study design has been used in order to determine the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley. .

1.8.2 Nature and sources of the data

This study is based on primary data. The primary data and information are collected on
various aspects of ease to use, service quality, convenience, adoption of mobile banking,
perceived usefulness and customer’s attitude on saving practices. This study collects data

20
from structured questionnaire. The questionnaire contains the questions on respondent’s
profile, rank type questions and 5-point likert-scale questions.

1.8.3 Data collection instruments

The data obtained from the questionnaires survey are analyzed through SPSS. The
instruments are descriptive statistics and inferential statistics. The questionnaire is divided
into two sections. The first section ‘A’ contains questions on profile of the respondents.
Section’ B’ contains Likert type questions of independent variables on the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley, which scale
ranges from 1 (Strongly disagree) to 5 (Strongly agree).

1.8.4 Population and sample

The sample banks that have been used for the study purpose are selected based on the
availability of required information and data as per the requirements. The population of this
study consists of customers of Nepalese commercial banks. This study is conducted to gather
the information from the customers regarding their saving practices through digital banking
Nepalese commercial banks. The customers who are consumers of various commercial banks
are selected for this study. The study is based on 119 respondents.

1.8.5 The model specifications

The following econometrics model is employed to test different hypothesis that there is
positive relationship between customer’s attitude and saving practices. The dependent
variables is saving practices and the independent variables are ease to use, service to quality,
convenience, adoption of mobile banking, perceived usefulness and customer’s attitude.

The model is presented as:

SP= β0 + β1 EU + β2 SQ + β3 AMB+ β4 CO + β5 PU+ β6CA+ɛ i

Where,

β0 = Intercept of the dependent variable

β1, β2, β3, β4, β5and β6 = Coefficient of the variables
SP = Saving Practices
EU= Ease to use
SQ = Service Quality

21
CO= Convenience
AMB= Adoption of mobile banking
PU= Perceived Usefulness
CA= Customer’s Attitude

1.8.6 Validity and reliability

Validity refers to the truthfulness of findings. It determines whether the study truly measures
what it was intended to measure or how truthful the study results are. It refers to the accuracy
of a measure and a measurement is valid when it measures and performs the functions that it
supports. It is the degree to which a measure accurately represents what is it supposed to
measure.

Reliability, on the other hand refers to the credibility of the test and it mainly tests
measurements results and measurement tools. The extent to which results are consistent
overtime and an accurate representation of the total population under study is referred to as
reliability and if the results of a study can be reproduced under a smaller methodology, then
the study instrument is considered to be reliable.

In this study Cronbach’s alpha is used to test reliability of the primary data. It allows us to
measure the reliability of the different categories. It is a function of the number of test items
and the average inter correlation among the items. Cronbach’s alpha consists of estimates of
how much variation in scores of different variables is attributable to chance or random errors.
As a general rule, a coefficient greater than or equal to 0.7 is considered acceptable and is a
good indication of construct reliability. Table 1.5 shows the coefficient of Cronbach’s alpha.

Table 1.5: Coefficient of Cronbach’s alpha

Variables Total item Cronbach’s alpha

Ease to use 5 0.762
Service quality 5 0.802
Adoption Of mobile banking 5 0.765
Convenience 5 0.740
Perceived usefulness 5 0.770
Customer’s attitude 5 0.787
Saving Practices 5 0.891
Overall 35 0.902
Source: Responses on Survey Questionnaire, 2023

22
Table 1.5 shows the reliability test for all the components of questionnaire regarding the
effect of mobile banking on the saving practices of low income users in Kathmandu valley by
using SPSS. Cronbach’s Alpha greater than 0.7 is considered as reliable data. The overall
Cronbach’s alpha is 0.902, which means 90.2 percent of the data taken for the study is
reliable.

1.9 Limitations of the study

Despite of the continuous efforts made for arriving at meaningful conclusion, the study
suffers from the following major limitations:

1. The study is completely based on primary source of data regarding saving practices
through digital banking in Nepalese commercial banks. Therefore, the reliability of
conclusions of the study depended upon the accuracy of the information provided by
the respondents.
2. The study is based on the assumption of linear regression between the dependent and
explanatory variable. The study excluded the non-linear regression assumptions.
3. Some of the findings of this study are not consistent with many of the studies.
Therefore, it is worthwhile to note that nature of data and specification of the models
may themselves be responsible for the difference in results.
4. The data are mostly collected through online. Online data may not be reliable. So,
result can be different from such data
5. The data are collected from all banks of Nepal. Thus, the result may not be
generalized for all banks.
6. The study is based on 119 observations only.
7. The study is based on six independent variables only which were considered as
major one as per the literature review.
8. The survey has been carried out in Kathmandu Valley only.

1.10 Organization of the study

The study has been organized into a total of three chapters. The first chapter is the
introduction which covers the background of the study, statement of the problem, objective of
the study, significance, literature review, research hypothesis and operational definition and
assumptions. This is followed by Chapter Two which contains the data analysis and major
findings and the last chapter, that is, Chapter Three offers the summary and conclusion.

23
 Chapter II

Data analysis and major findings

This chapter provides systematic presentation, interpretation and analysis of primary data to
deal with various issues associated with the saving practices through mobile banking. The
first chapter deals with the presentation and analysis of primary data. The second section
covers the analysis of regression model including correlation analysis. The third section of
this chapter deals with concluding remarks associated on the basis of results derived from the
primary data.

2.1 Presentation and analysis of data

This study is primarily based on primary data that are taken to evaluate the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley. This section also
reports the results of questionnaire survey conducted among different group of customer.
Questionnaire survey was designed to understand the views of the respondents in relation
influence of ease to use, service to quality, convenience, adoption of mobile banking,
perceived usefulness and customer’s attitude on saving practices through mobile banking of
low income users. A questionnaire including, multiple choices and Likert scale questions
were provided. Altogether 119 respondents are surveyed and analyzed in accordance with the
objective of the study. The respondents profile along with their personal characteristics and
result of the survey are presented in the following sections. The percentage, frequency, mean
value, weighted average mean value has been calculated to do the analysis of the data.

24
2.1.1 Profile of respondents

The respondent's profile along with their characteristics and results of the survey are
presented in the section below. The general information of the respondents is evaluated in six
major parameters such as gender, academic qualifications, age, employed, marital status, no.
of transactions per month and saving per month. Table 2.1 reports the profile of respondents.

25
 Table 2.1: Demographic characteristics of the respondents

This table shows the number of respondents with the classification on gender, age, academic
qualification, the number of respondents of each category and ‘percent’ refers to the
respondent’s percentage in particular category out of total.
Respondent’s profile Frequency Percentage
Gender
Male 76 63.9
Female 43 36.1
Total 119 100.00
Age
Below 25 72 60.5
25-35 46 38.7
35-45 1 0.8
Above 45 0 0
Total 119 100.00
Marital status
Single 107 89.9
Married 12 10.1
Total 119 100.00
Academic qualification
Intermediate and below 22 18.5
Bachelor's degree 72 60.5
Master's degree 25 21
Total 119 100.00
No. of transactions per month
Below 5 49 41.2
5-10 37 31.1
10-20 18 15.1
20 and above 16 13.4
Total 119 100.00
Saving per month
below 5000 71 59.7
5000-10000 30 25.2
10000-30000 13 10.9
30000 and above 5 4.2
Total 119 100.00
Source: Field Survey, 2023

Table 2.1 shows the personal profile of the respondents. Out of 119 respondents surveyed, the
majority of the respondents (63.9 percent) are males followed by 36.1 percent of the females.
The age of the respondents is divided into four groups. The majority of the respondents (60.5
percent) are in the age below 25 years while 38.7 percent of respondents are in the age group
of (25-35) years. Besides, 0.8 percent of the respondents are in the age group between (35-45)
years while, 0 percent of the respondents are in the age group above 45years. On academic

26
qualification, the majority of the respondents (60.5 percent) have Bachelor's degree while
(18.5 percent) have an Intermediate and Below Similarly, (21 percent) of the respondents
have a Master's Degree. Regarding the marital status, majority of the respondents (89.9
percent) are unmarried while (10.1 percent) are married. Regarding the no. of transactions
per month of the respondents, the majority of the respondents (41.2 percent) have transaction
below 5 per month while (31.1 percent) of the respondents have transaction 5-10 per month.
Likewise, (15.1 percent) of the respondents have transaction of 10-20 per month. Similarly,
(13.4. percent) of the respondents have transaction of Rs 20000 and above per month.
Regarding the saving per month, the majority of the respondents (59.7 percent) save below
5000 while (25.2 percent) save 5000-10000. Similarly, (10.9 percent) save 10000-30000 and
4.2 percent save 30000 and above.

2.1.2 Respondents perception on effect of mobile banking on the saving practices of low-
income users in Kathmandu valley

This section provides the information on the customers’ perception on the level of selected
factors. The respondents were asked question regarding their view on ease to use, service
quality, adoption of mobile banking, convenience, perceived usefulness, customer’s attitude
in Kathmandu Valley.

27
Respondent’s perception on ease to use

Table 2.2 presents the opinions of respondents regarding ease to use of saving practices with
digital banking in Kathmandu Valley.

Table 2.2: Respondent’s perception on ease to use

(This table shows the percentage, frequency and mean of the consumer perception regarding
ease to use of saving practices with digital banking in Kathmandu Valley. The statement is
measured in five-point Likert scales: 5 as strongly agree, 4 as agree, 3 as neutral, 2 as
disagree and 1 as strongly disagree).
Statements 5 4 3 2 1 N Mean
I am informed about all the F 23 63 27 6 0 119 3.86
whereabouts of banking services of my % 19.3 52.9 22.7 5.1 100
bank. A% 71.3 22.7 5.1
I am assured that all the problem faced F 17 58 31 12 1 119 3.65
by me will be handled by my bank. % 14.3 48.7 26.1 10.1 0. 100
8
A% 63 26.1 10.9
It is within my intellectual capacity. F 24 69 24 1 1 119 3.94
% 20.2 58 20.2 0.8 0. 100
8
A% 78.2 20.2 1.6
I can do most of my transaction with F 44 59 9 7 0 119 4.17
electronic banking. % 36.9 49.6 7.6 5.9 100
A% 86.5 7.6 5.9
It is easy to find out information in e- F 36 63 16 4 0 119 4.10
banking systems. % 30.3 52.9 13.4 3.4 100
A% 83.2 13.4 3.4
Weighted average mean 3.944
Source: Field Survey, 2023

Table 2.2 shows that majority of the respondents (71.3 percent) agreed that they are informed
about all the whereabouts of banking services of their bank whereas, some respondents (5.1
percent) disagreed on the same. However, the rest (22.7 percent) of the respondents were
indifferent on the statement.

Likewise, the majority of the respondents (63 percent) agreed that they are assured that all the
problem faced by them will be handled by bank whereas, some of the respondents (10.9
percent) disagree on the same. However, the rest (26.1 percent) of the respondents were
neutral on the statement.

28
Similarly, the majority of the respondents (78.2 percent) agreed that it is within their
intellectual capacity, whereas some respondents (1.6 percent) disagreed on the same and the
rest of the respondents (20.2 percent) were neutral on the statement.

Similarly, majority of respondents (86.5 percent) agreed that it is easy to find out information
in e-banking systems whereas, some respondents (3.4 percent) disagreed on the same.
However, the rest of the respondents (13.4 percent) were indifferent on the statement.

Likewise, majority of respondents (83.2 percent) agreed that most of their transaction with
electronic banking whereas, some respondents (3.1 percent) disagreed on the same. However,
the rest of the respondents (6.1 percent) were indifferent on the statement.

The mean of the ease to use ranges from a minimum value of 3.65 to the maximum value of
4.17. Among them, the most significant observation regarding the ease to use is “I can do
most of my transaction with electronic banking” with mean value of 4.17. The weighted
average mean value for price is 3.944.

The weighted average mean scale for ease to use is 3.944. It indicates that ease to use play
important role on the saving practices of low income. It means that customers agree that the
saving practices through mobile banking affects their saving practices.

Respondent’s perception on service quality

Table 2.3 presents the opinions of respondents regarding service quality in Kathmandu
Valley.

Table 2.3: Respondents perception on service quality

(This table shows the percentage, frequency and mean of the respondent’s perception
regarding service quality in Kathmandu Valley. The statement is measured in five-point
Likert scales: 5 as strongly agree, 4 as agree, 3 as neutral, 2 as disagree and 1 as strongly
disagree.)
Statements 5 4 3 2 1 N Mean
My bank provides services at promised F 17 65 24 13 0 119 3.72
time. % 14.3 54.6 20.2 10.9 100
A% 68.9 20.2 10.9
My bank’s employee sincerely handles F 17 64 25 12 1 119 3.71
customer’s problem. % 14.3 53.7 21.1 10.1 0. 100
8
A% 68 21.1 10.9
My bank maintains timely and error F 12 63 24 20 0 119 3.56
free records. % 10.1 52.9 20.2 16.8 100
A% 63 20.2 16.8

29
 In general, I am satisfied with all the F 16 62 26 14 1 119 3.65
services provided my bank. % 13.5 52.1 21.8 11.8 0. 100
8
A% 65.6 21.8 12.6
My bank provides accuracy in all type F 22 68 21 8 0 119 3.87
of transaction. % 18.5 57.2 17.6 6.7 100
A% 75.7 17.6 6.7
Weighted average mean 3.702
Source: Field Survey 2023

Table 2.3 reveals that the majority of the respondents (68.9 percent) agreed that they think
bank provides all services at promised time whereas, some of the respondents (10.9 percent)
disagreed on the same. However, the rest (20.2 percent) of the respondents were indifferent to
the statement.

Regarding the statement “My bank’s employee sincerely handles customer’s problem.” the
majority of the respondents (68 percent) agreed that their problems are easily solved whereas,
some respondents (10.9 percent) disagreed on the same. However, rest of the respondents
(20.2 percent) was neutral on the statement.

Likewise, regarding the statement “My bank maintains timely and error free records”,
majority of the respondents (63 percent) agreed that they prefer their bank because of error
free records whereas, some of the respondents (16.8 percent) disagreed on the same and rest
of the respondents (20.2 percent) were indifferent about the statement.

Similarly, majority of respondents (65.6 percent) agreed that they are satisfied with all the
services provided bank whereas, some of the respondents (12.6 percent) were disagree on the
same. However, the rest of the respondents (21.8 percent) were indifferent on the statement.

Similarly, majority of respondents (75.7 percent) agreed that they provides accuracy in all
type of transaction whereas, some of the respondents (6.7 percent) were disagree on the same.
However, the rest of the respondents (17.6 percent) were indifferent on the statement.

The mean values of the service quality ranges from a minimum value of 3.56 to the
maximum value of 3.87. Among them, the most significant observation is “My bank
provides accuracy in all type of transaction” with mean value of 3.87.

The weighted average mean value for service quality is 3.702. Accordingly, most of the
customer’s take service quality as an important factor while making saving practices through

30
digital banking. In other words, service quality affects saving practices of low-income
through digital banking.

Respondent’s perception on adoption of mobile banking

Table 2.4 presents the opinions of respondents regarding adoption of mobile banking in
Kathmandu Valley.

Table2.4: Respondent’s perception on adoption of mobile banking

(This table shows the percentage, frequency, mean of the respondent’s perception regarding
product features in Kathmandu Valley. The statement based is measured in five-point Likert
scales: 5 as strongly agree ,4 as agree, 3 as neutral, 2 as disagree and 1 as strongly
disagree)
Statements 5 4 3 2 1 N Mean
I am satisfied with mobile banking F 32 71 9 6 1 119 4.07
services provided by the bank. % 26.9 59.6 7.6 5.1 0. 100
8
A% 86.5 7.6 5.9
I find mobile banking is easy to F 43 66 8 2 0 119 4.26
understand. % 36.1 55.5 6.7 1.7 100
A% 91.6 6.7 1.7
I confident that my transaction’s is safe F 28 69 18 4 0 119 4.02
and confidential. % 23.6 57.9 15.1 3.4 100
A% 81.5 15.1 3.4
Mobile banking is secure and reliable to F 24 72 20 3 0 119 3.98
me. % 20.2 60.5 16.8 2.5 100
A% 80.7 16.8 2.5
I am learning to utilize my banking F 27 78 13 1 0 119 4.10
services provided by bank. % 22.7 65.6 10.9 0.8 100
A% 88.3 10.9 0.8
Weighted average mean 4.086
Source: Field Survey, 2023

Table 2.4 reveals that the majority of the respondents (86.5 percent) agreed that they are
satisfied with mobile banking services provided by the bank whereas, some of the
respondents (5.9 percent) disagree on the same. However, the rest (7.6 percent) of the
respondents were indifferent on the statement.

The table also shows that the majority of the respondents (91.6 percent) agreed that mobile
banking is easy to understand whereas, some respondents (1.7 percent) disagree on the same
however, the rest (6.7 percent) of the respondents were indifferent on the statement

31
Regarding the statement “I confident that my transaction’s is safe and confidential", the
majority of the respondents (81.5 percent) agreed that their transaction’s is safe and
confidential whereas, some of the respondents (3.4 percent) disagreed on the same. However,
rests of the respondents (15.1 percent) were neutral on the statement.

Likewise, regarding the statement “Mobile banking is secure and reliable ”, majority of the
respondents (80.7 percent) agreed that their mobile banking saving practices is reliable and
secure whereas, some respondents (2.5 percent) disagreed about the statement and rest of the
respondents (16.8 percent) were indifferent about the statement.

Similarly, majority of respondents (88.3 percent) agreed that they are learning to utilize
banking services provided whereas, some respondents (0.8 percent) disagreed on the same.
However, the rest of the respondents (10.9 percent) were indifferent on the statement.

The mean values of the adoption of mobile banking ranges from a minimum value of 3.98 to
the maximum value of 4.26. Among them, the most significant observation is “I find mobile
banking is easy to understand.” with mean value of 4.26.

The weighted average mean value for adoption of mobile banking is 4.086. Accordingly,
most of the customers of Kathmandu Valley took adoption of mobile banking as an important
factor while making a choice for digital banking for saving practices. In other words,
adoption of mobile banking affects choice for digital banking for saving practices.

Respondent’s opinion on convenience

Table 2.5 presents the opinions of respondents regarding product quality in Kathmandu
Valley.

Table 2.5: Respondent’s opinion on convenience

(This table shows the percentage, frequency and mean of the respondents’ perception on
convenience. The statement is measured in five-point Likert scales: 5 as strongly agree, 4 as
agree, 3 as neutral, 2 as disagree and 1 as strongly disagree)
Statements 5 4 3 2 1 N Mean
It is easy for me to meet cash F 31 57 24 5 2 119 3.92
requirements even after the banks have % 26.1 47.9 20.2 4.2 1. 100
closed. 6
A% 74 20.2 5.8
I am familiar with banking services and F 33 72 11 3 0 119 4.13
it is a user friendly system. % 27.7 60.5 9.2 2.6 100
A% 88.2 9.2 2.6
My bank provides immediate support F 15 60 33 11 0 119 3.66

32
 available from customer service. % 12.6 50.5 27.7 9.2 100
A% 63.1 27.7 9.2
I find it easy to use and handle banking F 25 76 16 2 0 119 4.04
services. % 21.1 63.9 13.4 1.6 100
A% 85 13.4 1.6
I find it is easy to navigate online F 22 68 27 1 1 119 3.92
services. % 18.5 57.2 22.7 0.8 0. 100
8
A% 75.7 22.7 1.6
Weighted average mean 3.93
Source: Field Survey, 2023

Table 2.5 reveals that the majority of the respondents (74 percent) agreed that they can easily
access to cash collection even if banks are closed whereas, some respondents of the
respondents (5.8 percent) disagree on the same. However, the rest (20.2 percent) of the
respondents were neutral on the statement.

The table also shows that the majority of the respondents (88.2 percent) agreed that they are
familiar with banking services and system whereas, some respondents (9.2 percent) disagree
on the same. However, the rest (27.7 percent) of the respondents were indifferent to the
statement.

Regarding the statement “My bank provides immediate support available from customer
service”, majority of the respondents (63.1 percent) agreed that they get immediate support
for customer service whereas, some respondents (9.2 percent) disagreed on the same and rest
of the respondents (27.7 percent) were neutral on the statement.

Likewise, regarding the statement “I find it easy to use and handle banking services”,
majority of the respondents (85 percent) agreed that their banking system is easy to use
whereas some respondents (1.6 percent) disagreed about the statement and rest of the
respondents (13.4 percent) were indifferent about the statement.

Similarly, majority of respondents (75.7 percent) agreed that they find easy to navigate online
services for saving practices whereas, some respondents (1.6 percent) disagreed on the same.
However, the rest of the respondents (22.7 percent) were indifferent on the statement.

The mean values of the convenience ranges from a minimum value of 3.66 to the maximum
value of 4.13. Among them, the most significant observation is “I am familiar with banking
services and it is a user friendly system” with mean value of 4.13.

33
The weighted average mean value for convenience is 3.93. Accordingly, most of the
customer of Kathmandu Valley takes convenience as an important factor while making a
choice for digital banking for saving practices. In other words, convenience affects choice for
digital banking for saving practices.

Respondent’s opinion on perceived usefulness

Table 2.6 presents the opinions of respondents regarding perceived usefulness in Kathmandu
Valley.

Table 2.6: Respondent’s opinion on perceived usefulness

(This table shows the percentage, frequency and mean of the respondent's perception
regarding perceived usefulness y. The statement is measured in five-point Likert scales: 5 as
strongly agree, 4 as agree, 3 as neutral, 2 as disagree and 1 as strongly disagree.)
Statements 5 4 3 2 1 N Mean
My time is saved by using mobile F 58 58 3 0 0 119 4.46
banking. % 48.7 48.7 2.6 100
A% 97.4 2.6
I can manage my finance easily. F 34 71 11 2 1 119 4.13
% 28.6 59.7 9.2 1.7 0. 100
8
A% 88.3 9.2 2.5
I find it easiest channel to use as F 25 72 21 1 0 119 4.02
compare to other electronic payment % 21.1 60.5 17.6 0.8 100
system. A% 81.6 17.6 0.8
It helps me to accomplish my banking F 40 64 13 2 0 119 4.19
activities more quickly. % 33.6 53.8 10.9 1.7 100
A% 87.4 10.9 1.7
My bank provides financial advices to F 18 51 28 18 4 119 3.51
the customer. % 15.1 42.9 23.5 15.1 3. 100
4
A% 58 23.5 18.5
Weighted average mean 4.062
Source: Field Survey, 2023

34
Table 2.6 reveals that the majority of the respondents (97.4 percent) agreed that time is saved
by using mobile banking whereas, no respondents is disagree on the statement. However, the
rest (2.6 percent) of the respondents were indifferent on the statement.

Regarding the statement “I can manage my finance easily” the majority of the respondents
(88.3 percent) agreed that they can easily access their finances whereas, some respondents
(2.5 percent) disagreed on the same. However, rests of the respondents (9.2 percent) were
neutral on the statement.

Likewise, regarding the statement “I find it easiest channel to use as compare to other
electronic payment system”, majority of the respondents (81.6 percent) agreed that mobile
banking easiest channel to use as compare to other electronic payment system whereas, some
respondents (0.8 percent) disagreed about the statement and the rest of the respondents (17.6
percent) were indifferent about the statement.

Similarly, majority of respondents (87.4 percent) agreed that they accomplish banking
activities more quickly whereas, some respondents (1.7 percent) disagreed on the same.
However, the rest of the respondents (10.9 percent) were indifferent on the statement.

Similarly, majority of respondents (58 percent) agreed that their bank provides financial
advices to the customer whereas, some respondents (18.5 percent) disagreed on the same.
However, the rest of the respondents (23.5 percent) were indifferent on the statement.

The mean values of the perceived usefulness ranges from a minimum value of 3.51 to the
maximum value of 4.46. Among them, the most significant observation is “My time is saved
by using mobile banking” with mean value of 4.46 whereas, the most insignificant
observation is “My bank provides financial advices to the customer.” with mean value of
3.51.

The weighted average mean value for perceived usefulness is 4.062. Accordingly, most of the
customer take perceived usefulness as an important factor while making a choice for digital
banking for saving practices. In other words, perceived usefulness affects choice for digital
banking for saving practices.

Respondent’s perception on customer’s attitude

Table 2.7 presents the opinions of respondents regarding customer’s attitude in Kathmandu
Valley.

Table 2.7: Respondents perception on customer’s attitude

35
(This table shows the percentage, frequency, mean of the respondents’ perception regarding
customer’s attitude. The statement based is measured in five-point Likert scales: 5 as
strongly agree ,4 as agree, 3 as neutral, 2 as disagree and 1 as strongly disagree.)
Statements 5 4 3 2 1 N Mean
The current digital banking system is F 31 77 10 1 0 119 4.16
easily accessible to me. % 26.1 64.7 8.4 0.8 100
A% 90.8 8.4 0.8
I am proactive in arranging my time by F 25 71 21 2 0 119 4
using mobile banking. % 21 59.7 17.6 1.7 100
A% 80.7 17.6 1.7
The mobile banking system helps me to F 15 56 36 8 4 119 3.59
easily compare service prices between % 12.6 47.1 30.2 6.7 3. 100
different providers. 4
A% 59.7 30.2 9.8
The digital banking service is very F 23 83 11 1 1 119 4.06
convenient to me. % 19.3 69.8 9.3 0.8 0. 100
8
A% 89.1 9.3 1.6
I see that the digital banking system can F 41 61 12 5 0 119 4.26
be accessed anytime, anywhere as long % 34.5 51.2 10.1 4.2 100
as there is internet connection. A% 85.7 10.1 4.2
Weighted average mean 4.014
Source: Field Survey, 2023

Table 2.7 reveals that the majority of the respondents (90.8 percent) agreed that digital
banking system is accessible whereas, some respondents (0.80 percent) disagree on the same.
However, the rest of the respondents (8.4 percent) were indifferent to the statement.

The table also shows that the majority of the respondents (80.7 percent) agreed that they are
proactive in arranging my time by using mobile banking whereas, some respondents (1.7
percent) disagree on the same. However, the rest (17.6 percent) of the respondents were
indifferent on the statement.

Likewise, regarding the statement The mobile banking system helps me to easily compare
service prices between different providers” majority of the respondents (59.7percent) agreed
that they are satisfied with the service prices of bank whereas, some respondents (9.8
percent) disagreed about the statement and the rest of the respondents (30.2 percent) were
indifferent about the statement.

Similarly, majority of respondents (89.1 percent) agreed that digital banking service is very
convenient to them whereas, some respondents (1.6 percent) disagreed on the same.
However, the rest of the respondents (9.3 percent) were indifferent on the statement.

36
In addition, majority of respondents (85.7 percent) agreed that digital banking system can be
accessed anytime, anywhere as long as there is internet connection whereas, some
respondents (4.2 percent) disagreed on the same. However, the rest of the respondents
(10.1percent) were indifferent on the statement.

The mean values of the customer’s attitude ranges from a minimum value of 3.59 to the
maximum value of 4.26. Among them, the most significant observation is “I see that the
digital banking system can be accessed anytime, anywhere as long as there is internet
connection.” with mean value of 4.26.

The weighted average mean value for customer’s attitude is 4.014. Accordingly, most of the
customer’s attitude perception as an important factor while making a choice for digital
banking for saving practices. In other words, customer’s attitude affects choice for digital
banking for saving practices.

Respondent’s perception on saving practices

Table 2.8 presents the opinions of respondents regarding Saving Practices of low income in
Kathmandu valley.

Table 2.8: Respondent’s perception on saving practices

(This table shows the percentage, frequency, mean of the respondent’s perception regarding
saving practices. The statement based is measured in five-point Likert scales: 5 as strongly
agree ,4 as agree, 3 neutral, 2 as disagree and 1 as strongly disagree.)
Statements 5 4 3 2 1 N Mean
My frequency of saving practices have F 13 54 28 17 7 119 3.41
increased by using mobile banking. % 10.9 45.4 23.6 14.3 5. 100
8
A% 56.3 23.6 20.1
I plan to continue my saving practice F 20 56 29 12 2 119 3.67
this way. % 16.8 47.1 24.3 10.1 1. 100
7
A% 63.9 24.3 11.8
I am satisfied with the concept to save F 16 56 23 21 3 119 3.53
money using mobile banking. % 13.5 47.1 19.3 17.6 2. 100
5
A% 60.6 19.3 20.1
I have come up with more saving F 12 53 27 22 5 119 3.38
purposes with use of mobile banking. % 10.1 44.5 22.7 18.5 4. 100
2
A% 54.6 22.7 22.7
I actively follow my saving practice F 9 65 31 13 1 119 3.57
habits. % 7.6 54.6 26.1 10.9 0. 100

37
 8
A% 62.2 26.1 11.7
Weighted average mean 3.512
Source: Field Survey, 2023

Table 2.8 reveals that the majority of the respondents (56.3 percent) agreed that their
frequency for saving has increased using mobile banking whereas, some of the respondents
(20.1 percent) disagree on the same. However, the rest of the respondents (23.6 percent) were
indifferent to the statement.

The table also shows that the majority of the respondents (63.9 percent) agreed that they plan
to follow saving practices through mobile banking whereas, some respondents (11.8 percent)
disagree on the same. However, the rest (24.3 percent) of the respondents were indifferent to
the statement.

Regarding the statement “I am satisfied with the concept to save money using mobile banking
"the majority of the respondents (60.6 percent) agreed that they are satisfied with saving
money through digitalization whereas, some of the respondents (20.1 percent) disagreed on
the same. However, rest of the respondents (19.3 percent) were neutral on the statement.

Likewise, regarding the statement “I have come up with more saving purposes with use of
mobile banking” majority of the respondents (54.6 percent) agreed that they are more
attracted to saving prospects whereas, some respondents (22.7 percent) disagreed about the
statement and the rest of the respondents (22.7 percent) were indifferent about the statement.

Similarly, majority of respondents (62.2 percent) agreed that they will follow their saving
practice habits whereas, some respondents (11.7 percent) disagreed on the same. However,
rests of the respondents (26.1 percent) were indifferent on the statement.

The weighted average mean scale for saving practices is 3.512. Accordingly, most of the
customers of low income in Kathmandu valley through mobile banking.

2.2 Correlation analysis

Correlation is a term that refers to the strength of a relationship between two variables. A
strong or high correlation means that two or more variables have strong relationship with
each other, while a weak or low correlation means that the variables are hardly related.

Table 2.9 shows the computation of Kendall’s Tau correlation coefficients matrix of saving
practices for low income in Kathmandu Valley.

38
 Table 2.9: Kendall’s correlation coefficients matrix

This table presents Kendall’s Tau coefficients between dependent and independent variables.
The correlation coefficients are based on 119 observations. The dependent variable is SP
(Saving practices). The independent variables are EU (Ease to use), SQ (Service Quality),
AMB (Adoption of mobile banking), CO (Convenience), PU (Perceived usefulness) and CA
(Customer’s attitude).
 Variables SP EU SQ AMB CO PU CA
SP 1
EU 0.160* 1
SQ 0.297** 0.358** 1
AMB 0.127 0.316** 0.385** 1
CO 0.142* 0.308** 0.227** 0.474** 1
PU 0.268** 0.218** 0.265** 0.379** 0.448** 1
CU 0.276** 0.304** 0.317** 0.426** 0.468** 0.492** 1

Note: The asterisk signs (**) and (*) indicate that the results are significant at one percent
and five percent levels respectively.

Table 2.9 shows the Kendall’s correlation coefficients of dependent and independent
variables. The study reveals that ease to use is positively correlated to saving practices
indicating that higher ease to use leads to increase in saving practices. Likewise, service
quality is positively correlated to saving practices. This implies that good service quality
leads to increase in saving practices. Similarly, adoption of mobile banking is positively
correlated to saving practices. It indicates that higher adoption of mobile banking, higher
would be saving practices. Similarly, convenience is positively related to saving practices
indicating that higher convenience leads to increase in saving practices. Likewise, perceived
usefulness is positively correlated to saving practices which indicates that higher the
perceived usefulness, higher would be saving practices. Further, customer’s attitude is
positively correlated saving practices. It shows that higher attitude leads to saving practices.

2.3 Regression analysis

Regression analysis is a statistical process for estimating the relationships among variables.
The regression results were estimated where easy to use, service quality, adoption of mobile
banking, convenience, perceived usefulness and customer’s attitude are used as independent
variables and dependent variable is saving practices.

The regression result of ease to use, service quality, and adoption of mobile banking,
convenience, perceived usefulness and customer’s attitude in Kathmandu Valley is shown in
Table 2.10.

39
 Table 2.10: Estimated regression results of ease to use, service quality, adoption of
mobile banking, convenience, perceived usefulness and customer’s attitude on saving
practices in Kathmandu Valley

The results are based on 119 observations using linear regression model. The model is SP=
β0 + β1 EU + β2 SQ + β3 ADM+ β4CO + β5 PU+ β6CA+ ɛ i where the dependent variable
is SP (Saving practices).The independent variables are EU (Ease to use), SQ (Service
Quality), AMB (Adoption of mobile banking), CO (Convenience), PU (Perceived usefulness)
and CA (Customer’s attitude).
Regression coefficients of Adj. F-
 Model  Intercept SEE
EU SQ ADM CO PU CA R_bar2 value
0.307
2.297 0.80
1 (2.142) 0.30 4.58
(4.026)** 0
*
0.526
1.561 0.74
2 (4.914)* 0.42 24.15
(3.881)** 3
*
2.227 0.314 0.80
3 0.45 3.71
(3.328)** (1.927)* 3
0.317
2.263 0.81
4 (2.071) 0.53 4.28
(3.734)** 8
*
0.534
1.337 0.77
5 (3.674)* 0.96 13.49
(2.246)* 0
*
0.413
1.860 0.79
6 (2.758)* 0.53 7.6
(3.089)** 1
*
0.523
1.544 0.007 0.74
7 (4.320)* 0.42 11.97
(2.758)** (0.045) 6
*
0.551
1.755 0.029 0.098 0.74
8 (4.175)* 0.56 8.03
(2.557)* (0.185) (0.535) 8
*
9 1.587 0.002 0.550 -0.189 0.165 0.621 0749 6.22

40
 (4.165)*
(2.230)* (0.013) (0.903) (0.905)
*
0.501
1.085 0.025 -0.278 0.040 0.434 0.73
10 (3.820)* 0.643 6.31
(1.490) (0.161) (1.333) (0.203) (2.378)* 4
*
-0.497 -0.286
1.036 0.020 0.060 0.406 0.077 0.73
11 (3.764)* (1.361)* 0.67 5.24
(1.398) (0.129) (0.295) (2.081)* (0.400) 7
* *

Notes:
i. Figures in parenthesis are t-values
ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent
and 5 percent level respectively.
iii. Saving practice is dependent variable.

The regression result shows that the beta coefficients for ease to use are positive with saving
practice. It indicates that ease to use has a positive impact on saving practices. Likewise, the
beta coefficients for service quality are positive with saving practice. It indicates that service
quality has a positive impact on saving practice. In addition, the beta coefficients for adoption
of mobile banking are positive with saving practice. It indicates that adoption of mobile
banking has a positive impact on saving practice. Further, the beta coefficients for
convenience are positively related with saving practice. It indicates that convenience has
positive impact on saving practice. In addition, the beta coefficients for perceived usefulness
are positive with saving practice. It indicates that perceived usefulness has a positive impact
on saving practice. The beta coefficients for customer’s attitude are positively related with
saving practice. It indicates that customer attitude has positive impact on saving practice.

2.4 Major findings

Based on the analysis of data, the major findings of the study are summarized as follows:

1. Out of 119 respondents surveyed, the majority of the respondents (63.9 percent) are
males followed by 36.1 percent of the females.
2. The majority of the respondents are in the age group below 25years (60.5 percent)
followed by the age group 25-35 years (38.7 percent),age group 35-45
years(0.8percent) and above 45 years (0 percent).
3. Out of 119 respondents surveyed, the majority of the respondents (89.9 percent) are
single followed by 10.1 percent of the unmarried.
4. The majority of the respondents (60.5 percent) have bachelor degree followed by
intermediate and below (18.5 percent) and master degree (21 percent).

41
5. The majority of the respondents (41.2 percent) have no. of transactions per month
below 5 followed by no. of transactions per month between 5-10 (31.1 percent),
between10-20 (18 percent) and 20 and above (13.4 percent).
6. The majority of the respondents (59.7 percent) saving per month is below 5000
followed by (25.2 percent) saving per month is 5000-10000, 10000-30000(10.9
percent) and 30000 and above (4.2 percent).
7. As the weighted average mean value for ease to use is 3.944, the respondents agreed
that saving practice in Kathmandu Valley provides better ease to use.
8. As the weighted average mean value for service quality is 3.702, the respondents
agreed that saving practice in Kathmandu Valley provides better service quality.
9. The respondents agreed that saving practice in Kathmandu Valley provides better
adoption of mobile banking as the weighted average mean value is 4.086.
10. As the weighted average mean value for convenience is 3.93, the respondents agreed
that saving practice in Kathmandu Valley is convenient.
11. As the weighted average mean value for perceived usefulness is 4.062, the respondents
agreed that saving practices in Kathmandu Valley provide better perceived usefulness.
12. As the weighted average mean value for customer’s attitude is 4.014, the respondents
agreed that they are satisfied with saving practices of low income in Kathmandu
Valley.
13. The respondents agreed that the customers of low income in Kathmandu Valley are
following saving practices as the weighted average mean value is 3.512.
14. The correlation analysis indicates that ease to use is positively correlated to saving
practices which reveals that high ease to use stimulates saving practices.
15. Similarly, service quality is positively related to saving practices which implies that
superior quality leads to increase in saving practices.
16. Likewise, adoption of mobile banking is positively correlated to saving practices
indicating that higher adoption of mobile banking leads to saving practices.
17. Moreover, convenience is positively correlated to saving practices indicating that
higher the convenience, higher would be saving practices.
18. In addition, perceived usefulness is positively correlated to saving practices indicating
that high perceived usefulness leads to increase in saving practices.
19. However, customer’s attitude is positively correlated to saving practices indicating that
higher customer’s attitude leads to saving practices.

42
 20. The regression result also reveals that the beta coefficients for ease to use are positive
with saving practices which indicates that ease to use has a positive impact on saving
practices.
21. Likewise, the beta coefficients for service quality are positive with saving practices. It
reveals that service quality has a positive impact on saving practices.
22. However, the beta coefficients for adoption of mobile banking are positive with saving
practices. It indicates that service quality has a positive impact on saving practices.
23. Similarly, the beta coefficients for convenience are positive with saving practices. It
means that convenience has a positive impact on saving practices.
24. Moreover, the beta coefficients for perceived usefulness are positive with saving
practices. It means that perceived usefulness has a positive impact on saving practices.
25. In addition, the beta coefficients for customer’s attitude are positive with saving
practices. It indicates that customer’s attitude has a positive impact on saving practices.

Chapter III

Summary and conclusion

This chapter presents the brief summary of the entire study and highlights the major findings
of the study. Additionally, the major conclusions are discussed in separate section of this
chapter which is followed by some implications and the recommendations regarding the
effect of mobile banking on the saving practices of low income users in Kathmandu valley.
Finally, the chapter ends with the scope of the future study in the same field.

3.1 Summary

Mobile banking is also known as M-banking. M-banking is defined as a form of banking

transaction carried out via a mobile phone Amin et al. (2007). Likewise, Akhras and Qwasmi
(2011) stated that mobile banking (or m banking) describes the banking services that the user
can perform via a mobile device ubiquitously at any time and from anywhere. Internet
banking (IB) refers to systems that enable bank customers to get access to their accounts and
general information on bank products and services through the use of bank’s website, without
the intervention or inconvenience of sending letters, faxes, original signatures and telephone
confirmations. IB offers significant benefits for both banks and customers. It provides banks
additional channels to deliver products and services to customers at a lower cost while
expanding the customer base and thereby IB has become a strategic resource for achieving

43
higher efficiency (Thulani et al., 2009). Similarly, Devi and Malarvizhi (2010) found that
customers are satisfied with the quality of e-banking services. Their studies showed that
ATM is more popular and most cost effective. Their findings reveal that customers were
experiencing technical problems and formalities and less social relation with banks. Results
witnessed insufficient number of ATM centers. Aslam et al. (2011) conducted a study in non-
metropolitan area of Pakistan to explore the perceived barriers in adoption of internet
banking. Their study revealed that Customers were more concerned of forming relationship
with bank's service providers and internet banking perceived to be a possible cause for losing
such opportunities.

This study deals with the issues like: the perception of ease to use, service quality,
convenience, adoption of mobile banking, perceived usefulness and customer’s attitude on
saving practices through digital banking; the impact of ease to use, service quality,
convenience, adoption of mobile banking, perceived usefulness and customer’s attitude with
individual intention on saving practices; there any correlation of ease to use, service quality,
convenience, and adoption of mobile banking, perceived usefulness and customer’s attitude
with individual intention on saving practices; ease to use, service quality, convenience,
adoption of mobile banking, perceived usefulness and customer’s attitude have significant
impact on saving practices; ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude on banking institution are correlated
with saving practices; the relationship ease to use, service quality, convenience, adoption of
mobile banking, perceived usefulness and customer’s attitude with saving practices; the most
significant factor that affects ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude with saving practices in banking
institution.

The major objective of this study is to examine the effect of mobile banking on the saving
practices of low-income users in Kathmandu valley. The other specific objectives of the study
are: To analyze the perception of mobile banking, e-banking, convenience, perceived
usefulness, ease to use, customer’s attitude and service quality that affect saving practices ;
To determine the relationship of ease to use, service quality, convenience, adoption of mobile
banking, perceived usefulness and customer’s attitude with individual intention on saving
practices; To examine the impact, service quality, convenience, adoption of mobile banking,
perceived usefulness and customer’s attitude on saving practices and to identify the most

44
important factors affecting behavioral intention to saving practices individual low income in
Kathmandu valley.

In this study conceptual framework has been drawn where ease to use, service quality,
convenience, adoption of mobile banking, perceived usefulness and customer’s attitude are
taken as independent variables and saving practices is taken as dependent variables.

The study is based on primary sources of data. The total number of observations for the study
consists of 119 respondents for analyzing the impact of mobile banking on the saving
practices of low-income users in Kathmandu valley. The primary data are used to extract the
information from the impact of mobile banking on the saving practices of low-income users in
Kathmandu valley. The analysis of data contains the analysis of the descriptive statistics,
Kendall’s Tau correlations, and regressions. A regression model has been used to estimate the
relationship between dependent variable (saving practices) and independent variables (ease to
use, service quality, convenience, adoption of mobile banking, perceived usefulness and
customer’s attitude). The collected data have been processed with the help of SPSS Statistical
package. Microsoft Excel sheet was also used for the data collection procedures and for the
calculation of the average scores.

3.2 Conclusion

The major conclusion of this study is that the higher the adoption of mobile banking,
convenience, ease to use and customer’s attitude, higher would be the saving practices. The
result shows that mobile banking, convenience, ease to use and customer’s attitude are
positively correlated to the saving practices. This indicates that adoption of mobile banking,
convenience, ease to use, service quality and customer’s attitude leads to the saving practices.

The study also concludes that the most influencing factor is service quality followed by
adoption of mobile banking and Perceived usefulness that explains the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley.

3.3 Recommendation

On the basis of the findings of the study, the following recommendations are made for further
improvement of the effect of mobile banking on the saving practices of low-income users in
Kathmandu valley.

45
 1. The study observed a positive impact of ease to use on the saving practices. Hence,
the customer’s willing to develop saving practices should focus on ease to use.
2. The study showed a positive impact of service quality on the saving practices. Hence,
consumers willing to develop saving practices should focus on service quality.

3. The study showed a positive impact of adoption of mobile banking on the saving
practices. Hence, the consumers who are willing to develop saving practices should
focus on adoption of mobile banking.
4. The study also showed a positive impact of convenience on the saving practices.
Hence, the customers who are willing to develop saving practices should focus on
convenience.

5. The study showed a positive impact of perceived usefulness on the saving practices.
Hence, the perceived usefulness who are willing to develop saving practices should
focus on perceived usefulness.
6. The study showed a positive impact of customer’s attitude on saving practices. Hence
customer’s attitude willing to develop saving practices should focus on customer’s
attitude.

3.4 Scope for future research

This study can be regarded as the preliminary steps in investigating the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley. The study leaves
enough ground for future researches which are listed below:

1. This study has mainly considered six variables of effect of mobile banking on the
saving practices of low-income users in Kathmandu valley. So, in future the study can
be conducted by including other variables like security, privacy concern, e-banking,
service charge and so on.
2. This study has taken only 119 sample size. The future studies can select larger sample
size and a greater number of observations for the study that could lead to much more
valid prediction regarding effect of mobile banking on the saving practices of low-
income.
3. The model used in this study is limited to simple linear regression models. Thus, other
models and some advance statistical tools can be used to examine the effect of mobile
banking on the saving practices of low-income users in Kathmandu valley.

46
4. This study has taken only primary data as sample. Academicians are suggested to take
secondary data as a sample for more convenient result.
5.

47
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57
 Appendices

Effect of Mobile Banking on the saving practices of low-income users in Kathmandu

valley

Research Project Work

Dear respondents
I am Dristi Ghimire, BBA student of Public Youth Campus. I am doing my BBA summer
project work on the topic on “Effect of mobile Banking on the Saving practices of low-
income users in Kathmandu Valley” I request you to spare a few minutes to respond to the
questions frankly and honestly. Your ideas and information will be of great importance for
the research. The information and responses gathered will be strictly be used for academic
purposes only and will be kept as confidential.

Thank you very much for your time and cooperation.

Yours Sincerely,
Dristi Ghimire
BBA 8th semester
Public Youth Campus, Kathmandu, Nepal
Section 1: Respondent Information

Name of bank: ……………………………………….

Please put tick (√) mark on the appropriate option.

1. Please select your gender

□Male □Female
2. Age (in years)
□Under 25 □25-35 □35-45 □above 45
3. Academic qualification
□ Intermediate and below □ Bachelor Degree □ Master Degree
4. Marital status
□ Single □Married
5. No. of transactions per month
□below 5 □5-10 □10-20 □20 and above
6. Saving per month
□below 5000 □5000-10000 □10000-30000 □30000 and above

58
 Section 2: Opinion Statement

Please tick mark (√) in one of the best option that best matches your opinion.
(1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5= Strongly Agree).
1. Ease to use

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. I am informed about all the
whereabouts of banking services of
my bank.
b I am assured that all the problem
. faced by me will be handled by my
bank.
c. It is within my intellectual capacity.
d I can do most of my transaction
. with electronic banking.
e. It is easy to find out information in
e-banking systems.
2. Service quality

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. My bank provides services at
promised time.
b My bank’s employee sincerely
. handles customer’s problem.
c. My bank maintains timely and error
free records.
d In general, I am satisfied with all
. the services provided my bank.
e. My bank provides accuracy in all
type of transaction.
3. Adoption of mobile banking

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. I am satisfied with mobile banking
services provided by the bank.
b I find mobile banking is easy to
. understand.
c. I confident that my transaction’s is
safe and confidential.
d Mobile banking is secure and
. reliable to me.

59
 e. I am learning to utilize my banking
services provided by bank.
4. Convenience

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. It is easy for me to meet cash
requirements even after the banks
have closed.
b I am familiar with banking services
. and it is a user friendly system.
c. My bank provides immediate
support available from customer
service.
d I find it easy to use and handle
. banking services.
e. I find it is easy to navigate online
services.
5. Perceived usefulness

Statements Strongl Agree Neutra Disagree Strongly

y l Disagree
agree
a. My time is saved by using mobile
banking.
b I can manage my finance easily.
.
c. I find it easiest channel to use as
compare to other electronic
payment system.
d It helps me to accomplish my
. banking activities more quickly.
e. My bank provides financial advices
to the customer.
6. Customer’s attitude

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. The current digital banking system
is easily accessible to me.
b I am proactive in arranging my
. time by using mobile banking.
c. The mobile banking system helps
me to easily compare service prices
between different providers.
d The digital banking service is very

60
 . convenient to me.
e. I see that the digital banking system
can be accessed anytime, anywhere
as long as there is internet
connection.
7. Saving practices

Statements Strongl Agree Neutral Disagree Strongly

y disagree
agree
a. My frequency of saving practices
have increased by using mobile
banking.
b I plan to continue my saving
. practice this way.
c. I am satisfied with the concept to
save money using mobile banking.
d I have come up with more saving
. purposes with use of mobile
banking.
e. I actively follow my saving practice
habits.

Thank you for your kind cooperation!

https://forms.gle/ryfhQeuwyXt6LfVU7

https://docs.google.com/forms/d/e/
1FAIpQLSfUTQua3Ca0_3sXGBHrVfsTAyKB8DdTUldl52RxdJ02ysvgRQ/viewform?
usp=sf_link

61