1

Factors Affecting the Adoption of Mobile Banking Services

Mayordomo, Meghan Gyle, Maquiling, Jeremy Jan J., Radislao, Karl Benedict, Rejas, Racel Joy,

and Zacal, Kate Delicana

University of San Agustin

College of Commerce

The FM 321- Financial Research

Carina E. Raylos Ph.D

June 8, 2022
 2

Background of the Study

The researchers wanted to start this paper with a quote by Vivek Wadhwa stating

‘’Innovation is all about people. Innovation thrives when the population is diverse. Accepting

and willing to cooperate.’’

Mobile banking is understood to be an innovation bank or other financial institutions of

mobile banking service allows consumers to execute financial transactions remotely using a

mobile device such as a smartphone or tablet. Unlike linked internet banking, it makes use of

software, sometimes referred to as an application, given by the financial institution. Mobile

banking is often available 24 hours a day, seven days a week. Some financial organizations put

limitations on which accounts can be accessed via mobile banking, as well as a transaction limit.

Mobile Banking is a type of mobile commerce that allows clients to use their mobile

devices to access their bank accounts and conduct and complete bank-related operations like

balancing checks, checking account statuses, transferring money, and selling stocks (Kim et al.

2009; Tiwari & Stephan 2007). Mobile banking was defined by Lou Li, Zhang, and Shim (2010)

as a new technique for receiving financial services via a channel in which a consumer interacts

with a bank using a mobile phone.

A study in finland has confirmed that factors contributing to the adoption of mobile

banking are related to convenience, access to the service regardless of time and place, privacy

and savings in time and effort. However, the fact is that the adoption of new technology is not

growing at the same pace as the introduction of the same. Consumers are refraining from using

these technologically advanced services, partly because of lack of awareness and partly due to

other concerns of security, device functionality, etc. Mobile banking, which allows the user to
 3

perform financial transaction using a mobile device, is not an exception to resistance faced from

consumers (Suranta M, 2003).

Weisbaum quotes that 86% of the people who did not use mobile banking services in US

were of the opinion that their banking needs were being met without mobile banking and nearly

two-thirds of people who did not use mobile banking cited security concerns, such as data

interception, phone hacking or lost phone that consumers where not willing to take the risk

(2015).

Another article by Marous states that 22% people owning mobile phones and having a

bank account were not aware of mobile banking In India (2015). But, all is not lost as this report

foresees a bright future for mobile banking, provided the issues are sorted out. The report

displays a growing trend of mobile banking with the volume and value of transactions having

risen at 108.5% and 228.9% from Financial Year 2012 to 2013 respectively. Reserve Bank of

India (RBI) further reports that there were around 870 million mobile connections in India by

June, 2013 and around 450 million bank accounts. Hence, the scope of mobile banking is bound

to increase and it shall also serve as a tool for financial inclusion by bringing unbanked people

with mobile phones in the rural areas in the net(RBI, 2014).

However, digital banking penetration in the Philippines has been slow based on the study

of Ramanathan, Roland & Romano (2014). While 35 percent are digital consumers who perform

online purchases thru smartphone, only 9 percent of the consumers have used the Smartphone to

conduct banking transactions compared with 26 percent in developing Asia. The study concluded

that the country has the lowest digital banking penetration across 13 Asian countries. Based on

the 1st Quarter 2018 Bangko Sentral ng Pilipinas (BSP) Financial Inclusion Dashboard, mobile
 4

banking penetration in the country is 28 percent. Hence, there is a need to investigate factors that

influence the intention of Filipino consumers to use mobile banking. This study fills in the gap

by providing a deeper understanding of the antecedents for consumer behavioural intention to

use mobile banking given there is a dearth of literature that exists concerning developing

countries and is much needed at this time (Kim, Shin & Lee, 2009; Lin, 2011)

The use of mobile phones or tablets to conduct banking transactions is not as high as

expected in both developed and developing countries (Laukkanen, 2007; Riquelme & Rios,

2010; Shaikh & Karjaluoto, 2015). According to Juniper Research (2013), more than 1 billion

people around the world are forecasted to use mobile banking by 2017, but that level represents

only 15% of the global mobile subscription base of 6.835 billion that accounts for approximately

96% of the world’s population (International Telecommunication Union, 2011). Further,

approximately half of all mobile subscribers remain unbanked, with limited access to traditional

financial services (Shaikh & Karjaluoto, 2014)

In today’s generation of Filipinos, we cannot ignore the fact that mass majority of people right

now have a handheld device like a phone for their everyday usage of business would include

checking the weather, watching the news, updating themselves with the happening around you,

messaging loved ones and many other more. The convenience of having a phone would be

advantageous for most of us living in modern society. With this, we the researcher came across

the idea of mobile banking to what extent this could be used to make banking services easier for

most of us. The struggle of preparing yourself to go to the nearest local bank to accomplish your

transaction/s, you have to think about the traffic, the line of people you would come across, and

the time to a lot in finishing the transaction itself. It would be ideal if you have a busy life to use

mobile banking within your comfort time.

 5

Corresponding Problem Objectives

With this said the researchers aim to expand their knowledge about the factors affecting

the adoption of mobile banking services in the Philippines specifically Iloilo city and its

Province. Under the course, Bachelor of Science in Business Administration major in Financial

Management, this study will determine the factors affecting mobile banking, as the COVID-19

pandemic is still on the rise where non-contact transactions are a must.

Statement of Problem
 6

This study aimed to know what factors are affecting the adoption of mobile banking services.

Specifically, this study sought to answer the following questions:

1. Is perceived usefulness significantly affect the adoption of mobile banking services?

2. Is Perceived ease of use significantly affecting the adoption of mobile banking services?

3. Is perceived risk significantly affect the adoption of mobile banking services?

4. Is perceived trust significantly affect the adoption of mobile banking services?

5. Is Perceived Financial Cost significantly affecting the adoption of mobile banking

services?

6. What banking industry is more often being used for mobile banking?

Hypothesis

Based on the preceding questions, the following null hypothesis was at a level of

significance:

Ho: perceived usefulness does not affect the adoption of mobile banking.

Ho: perceived ease of use does not affect the adoption of mobile banking .

Ho: perceived risk does not affect the adoption of mobile banking.

Ho: perceived trust does not affect the adoption of mobile banking.

Ho: perceived financial cost does not affect the adoption of mobile banking.
 7

Theoretical Framework

The framework of this study will be in line with the research model of the "Factors

Affecting Adoption and Use of Mobile Banking Services in Zambia Based on TAM Model" by

(Sakala, L. and Phiri, J.,2019). This study will be using Technology Acceptance Model (TAM).

Technology Acceptance Model was introduced by Davis in 1989 as an extension of the

theory of reasoned action (TRA). This theory is mainly based on the idea of technology

adoption. TAM replaced TRA with two technological accepted features, perceived usefulness

(PU) and perceived ease of use (PEOU) which have been proven to be of significance to the

adoption of technologies such as mobile banking. Many researchers have used these models to

analyze key issues about the acceptance and usage of mobile banking and many have yielded

positive results which showed a correlation between the incorporated variables such as PEOU

and PU (Makongoro, 2014). The TAM model identified two major factors; PEU and PEOU,

which can be affected by external variables. Later, it was adapted to include more factors; some

researchers include perceived risk, security, perceived trust, perceived advantage, usability, and

self-efficacy (S. Ozkan et. al., 2010).

Davis et al. (1989) linked perceived usefulness to productivity. They defined it as “the

degree to which a person believes that using a particular system would enhance his or her job

performance” (p. 985). Some researchers also believe that there is a positive correlation between

perceived usefulness and the intention to use a technology (Cheong & Park, 2005; Venkatesh et

al., 2003). Perceived ease of use is defined by Davis (1989) as “the degree to which a person

believes that using a particular system would be free of effort” (p.320). Many studies have been
 8

carried out to investigate the driving factors of M-banking acceptance, for instance, perceived

ease-of-use (PEOU) and perceived usefulness (PU) (Zhou, 2011; Raza et al., 2017).

Perceived risk is viewed as a hesitation regarding the result (whether good or bad)

regarding using a product/service. It is defined as “a combination of uncertainty plus seriousness

of outcome involved and the expectation of losses associated with the purchase and acts as an

inhibitor to purchase behavior” (Bauer, 1960, p.389). Broekhuiz and Huizingh (2009)

considered the perceived risk to be one of the determinants of the online purchase and they found

that it affects the inquirers’ purchase to a great extent. Moreover; enough number of electronic

banking adoption in many countries employed risk as one of the key factors influencing

adoption to it, (Kesharwani & Bisht 2011, Juwaheer &Pudaruth&Ramdin 2012, Nasri, 2011).

Trust is normally defined as the belief that someone or something is reliable, good,

honest, effective, etc. In the case of m-banking trust is found to be the extent to which an

individual believes that using mobile banking is secured and has no privacy threats (Chong

&Ooi& Lin& Tan 2010) who mentioned that when it comes to electronic banking; trust is found

to be crucial and complex as customers should trust the online transaction of the bank to

complete the usage transaction. The measure of trust is considered a critical construct in the

context of emerging self-service technologies; since these technological advancements may have

a dearth in maintaining proper personal interaction, which is integrated with financial issues that

can turn out to be delicate (Alalwan, Dwivedi, Rana, Lal, & Williams, 2015).

Perceived financial costs (PFC) are described as the degree in which a person thinks that

using mobile banking will cost a lot of money. Yen et al. (2010) discovered that perceived cost
 9

plays a key role in customer adoption choices in the case of mobile commerce. They confirmed

that perceived cost had a negative impact on the specific intent of behaviour. Likewise, other

experiments have replaced perceived costs with a comparable theoretical structure, ' perceived

financial resources' (Luarn and Lin, 2005). These researches also experimentally revealed that

perceived financial cost would have an adverse effect on cellular service’s behavioral intent.

In the field of mobile banking, individual connection and interactivity have remained a

vital concern for facilitating customer loyalty purposes; since when an adequate level of personal

interaction may remain missing in the service portal, then customers’ switching intention might

also increase (Farah, 2018).

Conceptual Framework

The conceptual framework was framed as a directional guide to conduct this study. This

study is about the factors affecting the adoption of mobile banking services. The Independent

Variables are age, sex, educational attainment, employment, and income. The Dependent

Variables are Perceived usefulness, Perceived ease of use, Perceived risk, and Perceived trust.

Perceived Usefulness

Perceived usefulness is described by Davis (1989) and Mathwick, Malhotra and Rigdon

(2001) as the degree to which a person trusts that making use of a certain technological and

innovative system would enhance his productivity and output. Along similar lines, a study by

(Deb M, Lomo-David E 2014) also found that perceived usefulness, perceived ease of use and

social influence was related to a positive attitude towards m-banking. Moreover, a positive

relationship existed between attitude towards m-banking and intention to adopt m-banking.
 10

Thus, there was a relationship between service quality and perceived usefulness. These

have been supported by George and Kumar (2014), who have shown the finding that perceived

usefulness has a significant positive indirect effect on service quality on Internet banking.

Perceived Ease of Use

Davis (1989) describes perceived ease of use as the level to which a human trusts that

making use of a certain system will be effortless to practice and consume. Also, based on the

study by Navavongsathaian A, Vongchavalitkul, Limsarun, T, (2020) The study results lead to

recommendations that Thai commercial banks should be cognizant of factors such as awareness

and utilization in designing mobile banking branches that are easily accessible and ease of use.

Many studies have been carried out to investigate the driving factors of M-banking acceptance,

for instance, perceived ease-of-use (PEOU) and perceived usefulness (PU) (Zhou, 2011; Raza et

al., 2017).

Perceived ease of use (PEOU) is a critical construct in TAM, defined as “The degree of

ease associated with the use of the system”. It provides the leverage to create favorable

perceptions, encouraging users to accept and use new systems, (Zacharis, 2012). Most previous

about behavioral decision making demonstrated that individuals attempt to minimize efforts in

their behaviors. Also; extensive empirical literature demonstrated that perceived ease of use

directly and positively influences behavioral intention to use. Moreover; (Choraria, 2012)

considered ease of use is important for the online community users involved in both information

search and contribution.

 11

Perceived Risk

Risk can be defined as the intentional interaction with uncertainty. Risk perception is the

subjective judgment people make about the severity of a risk. Conducting electronic transactions

is a risk that faces consumers, as it does not have any kind of physical contact, which

subsequently; affects the adoption of internet technology, (Cheng & Tsai& Cheng&Chen2011).

In this study, Risk is associated with possible losses from the m-banking transaction

because it concerns a virtual environment with no interaction –with employees-, not a traditional

environment, (Alda´s-Manzano & Lassala-Navarre´ & Ruiz-Mafe´ & SanzBlas, 2008).

Broekhuiz and Huizingh (2009) considered the perceived risk to be one of the determinants of

the online purchase and they found that it affects the inquirers’ purchase to a great extent.

Perceived Trust

Trust is the level of willingness to depend on an object based on the expectation of its

ability, reliability (Ganesan, 1994; Hart & Saunders, 1997), and the intention to accept

vulnerability due to the positive expectations of the integrity and capability of another object

(Lin et al., 2003; Rousseau et al., 1998).

Trust is considered to be connected to different service industries and to contribute

significantly to its adoption (Chen, 2013). The study reveals that perceived trust has a significant

and a positive impact on mobile banking adoption and shows people’s trust in mobile

banking(Jain P 2019).

Perceived of Financial Cost

 12

Academics generally investigate consumer adoption of mobile banking from

psychological and sociological theories, but empirical evidence has also revealed that mobile

banking adoption is highly encouraged by economic factors such as advantageous transaction

service fees (Yang, 2009) or discouraged by economic considerations such as concerns on basic

fees for connecting mobile banking (Yang, 2009), cost burden for using mobile banking (Cruze

et al. 2010), and high payment for using mobile banking (Huili & Chunfang 2011). By

interviewing consumers in person, Luarn and Lin (2005) empirically identified perceived

financial cost as a negative effect on behavioral intention to use mobile banking. Through

analyzing 196 respondents in the Sultanate of Oman, Sadi et al. (2010) noted that high cost was

crucial for unwilling to use mobile banking. Similarly, via collecting 195 surveys from bank

customers in the Bangkok metropolitan area, Sripalawat et al. (2011) recently supported that

perceived financial cost was a salient factor influencing consumers to adopt mobile banking.

Demographic Profile to the Factors affecting the Adoption of Mobile Banking Services

It is usual to include demographic characteristics in models about technology use and

adoption (Kivieniem L 2010). The impact of demographics on the adoption of various electronic

devices has been extensively studied (Shaikh A Karjaluoto H 2015). Revealed that younger

consumers value the convenience or time-saving potential of online and mobile banking more

than older consumers(Howcroft et al. 2002). These authors further found the educational levels

of respondents did not affect the use of telephone or online banking. (Capgemini 2013), (Goh

2014) and (Laukkanen 2012) also found that younger customers, who are more technology

savvy, are placing greater importance on mobile banking than senior people. (Karjaluoto et al.

2002) found a typical user of online banking in the Finnish market highly educated, relatively

young and wealthy person with good knowledge of computers and, especially, the internet. (Li
 13

2005) noted that a typical user of mobile banking in China was male, aged up to 44 years and

belonged to the high-income group. Further, respondents’ level of education was not found to

influence mobile banking adoption in China. According to (Crabbe 2009), demographic factors

play a significant role in adoption decisions. They find that social and cultural factors, such as

perceived credibility, facilitating conditions, perceived elitism, and demographic factors,

significantly affect adoption decisions for m-banking in Ghana.

Similarly, a survey conducted in Malaysia (Sulaiman A, Jaafar NI, Mohezar S, 2007)

reveals that both demographic and psychographic variables affect the adoption of new

innovations such as m-banking-in particular, age, gender, personal income, and education. Also

in the Abayomi, O Olabode, A Reyad M and Teye, E(2019)study which aimed at ascertaining

the influence of demographic variables on the adoption of mobile banking services revealed that

age, income and occupational status have a significant influence on the adoption of mobile

banking services. Finally, in their investigation of the influence of demographic factors on the

adoption of m-banking and its applications, Teo (2012) also incorporate demographic factors and

subjective norms with the Technology Adoption Model (TAM) to assess intentions to adopt in

Malaysia. As indicated by Goswami (2009) Mobile-savvy college students, who are using their

mobile devices for services beyond voice, will drive the adoption of innovative mobility

services, including mobile banking. Similarly, a study conducted by KPMG (2001) found that

mobile phone users aged between 16 and 34 were most comfortable using mobile phones for

financial transactions, while the majority of respondents in the 65 and above age group were not

at all comfortable.

Base on the study by Ainin Sulaiman, Noor Jaafar and Suhana Mohezar(2007) in

Malaysia The results shows that mobile banking Adopters are typically, customers who have
 14

higher education background. The study later discuss that there are higher levels of adoption

among male, younger people, those with higher income and those who have a higher level of

education. Specifically, this study found that demographic factors such as age, gender, personal

income and educational background, do affect the adoption of mobile banking services.

The Philippine Institute for Development Studies (PIDS) on Thursday showed income class

brackets in the country, which government uses to categorize families into social classes.

Families in the Philippines are identified as rich or poor depending on their pooled monthly

income, PIDS president Celia Reyes said during a Senate budget hearing (Domingo K, 2020).

The PIDS identified social classes according to the following income brackets:

 Poor: Below P10,957 monthly income

 Low-income but not poor: P10,957 to P21,914 monthly income

 Lower middle: P21,914 to P43,828 monthly income

 Middle: P43,828 to P76,66 monthly income

 Upper middle: P76,669 to P131,484 monthly income

 Upper middle but not rich: P131,483 to P219,140 monthly income

 Rich: P219,140 and above monthly income

(Alber J,Abrigo M, Quimba F, Vizmanos J, 2020)

 15

Research Paradigm

This study aims to know what factors are affecting the adoption of mobile banking services.

The paradigms show the relationship between Antecedent variables which are age, sex,

educational attainment, employment, and income with the Independent variables which are

Perceived usefulness, Perceived ease of use, Perceived risk, Perceived trust, and Perceived

financial together with the dependent variable adoption of mobile banking.

RESEARCH PARADIGM

Antecedent Variable Independent Variable Dependent Variable

Figure 1. Research paradigms

Age Factors Affecting the Adoption of Adoption of Mobile
Mobile Banking Services: Banking
Sex
Perceived usefulness
Educational attainment
Perceived ease of use
Employment Perceived risk

Income Perceived trust

Perceived of Financial Cost

 16

Significance of the Study

The researchers conducted a study to give valuable insights and knowledge to those

groups of individuals in society. The valuable and relevant information obtained from the study

and results might be beneficial and highly notable to the following:

Researchers. This study can help the researchers learn the factors affecting the adoption of

mobile banking services among Ilonggos when talking about perceived usefulness, perceived

ease of use, perceived risk, and perceived trust.

The Future Researchers. The results of this study may be beneficial to future researchers for

providing reference when investigating similar fields. This study will serve as their guide and

inspiration to conduct more future research on other firms. They could use the techniques,

strategies, and ideas that were executed by the researchers.

Banking Users. The results of the study could give them knowledge and idea of what are the

most factors affecting the adoption of mobile banking services. The research will help banking

users on what to do when using mobile banking.

Non-Banking Users. This study will develop the idea of the non banking users what to consider

if they want to use mobile banking and acquire mobile banking services. The results in the study

can embed in their minds the customers adoption of mobile banking services.

Banks. The findings of the study could give them more ideas and knowledge on how to address

and solve the issues of mobile banking and what tactics and strategy to develop and improve

their banking services to meet customers expectations.

 17

Government. The ideas in the study may help in mobile banking for consumers requiring

consistent government support policies. The introduction of substantial government laws and

regulations to establish innovative developments in the banking industry makes the mobile

banking services convenient, useful, and trusted.

METHODOLOGY

Research Design

The present study will investigated the relationship between Perceived ease of use,

Perceived usefulness, Perceived risk, Perceived Trust, and Perceived of Financial Cost to

adopt mobile banking within the city of Iloilo and Province of Iloilo. According to (Cooper

and Schindler, 2011) correlation study identifies the association among two or more factors.

Correlation research design has been selected to answer the research questions and later

multiple regression analysis was used to test the hypotheses. Then in order for each of the

Independent variable to be treated the researcher will be using kruskal-Wallis H test to

determine the statistical significant differences.

Base on the CNBC news article Millennial and Generation Z are the most likely to

use mobile banking It comes as no surprise that millennia’s and Gen Z are the two groups

who are using mobile banking apps the most. The study found that 99% of Gen Z and 98% of

millennials use a mobile banking app for a wide range of tasks, including viewing account

balances, checking their credit score and depositing a check. Millennials and Gen Z

overwhelmingly complete numerous tasks with mobile banking apps, whereas older

generations are less likely to use mobile check deposits and transfer money between

accounts(Whites A, 2021).
 18

Moreover, Mobile banking could be affiliated with online shopping where online

shoppers in the Philippines are almost in the age of Generation Y/Millennials and Generation Z.

The age ranges from 25 years old to 34 years old. In 50 percent of online shoppers are members

of the society earning highest among the other working groups. (Statistics, Philippines E-

Commerce.,2019.)

If you do some research, you’ll find that dates overlap and names vary. While we hear

generational terms all the time, the definitions are not official. However, based on widespread

consensus as well as new Gen Z analysis by the Pew Research Center, and the one generation

defined by Michael Dimock(2019) these are the birth years and ages of the generations you’ll

want to use in 2022. In the study it was illustrated that millennia’s are born in the years 1981-

1996 with the age range of 26-41 while Generation Z are born in the years 1997-2012 ages 10-

25.

With the ethical consideration taking place only respondents who are 18-41 years will be

taken as the respondents of the study.

Sampling Technique

According to Saunders et al., (2009) Sampling cannot be avoided in a research because it

is impracticable to survey the entire targeted population due to budget and time constraints. This

study used a non-probability sampling methods. According to Saunders et al (2009) non-

probability sampling methods provide a range of alternatives in terms of techniques that can be

used by the researcher.

 19

The researcher will be using purposive sample, this sampling technique is selected based

on characteristics of a population and the objective of the study. Purposive sampling is different

from convenience sampling and is also known as judgmental, selective, or subjective

sampling(Crossman, A 2020). The researcher uses Purposive due to the nature of the study

focusing on Mobile banking so people that influence Mobile banking will be selected as

respondents of the study.

Population and Samples

This research will targeted the population that will defined to include the age group from

18-41 years of age that are residing in Iloilo City and Iloilo Province that are mobile banking

users since these are the people that the researcher can reach and decided to be their

respondents. The data collection was conducted through social media for an accessible answer to

the given questionnaire.

The respondents for this research study will be composed of 384 selected respondents

from Iloilo City and Iloilo Province, we calculated our number of respondents with 95%

Confidence level and 5% margin of error with the population of Ilonggos. Specifically,

responses are taken in the 2nd semester of this school year 2022. Will be using Research made

questionnaires as instruments in gathering information with the use of Google form to conduct a

survey online about the factors affecting the adoption of mobile banking services in terms of

Perceived Usefulness, Perceived Ease of Use, Perceived Risk, Perceived of Financial Cost, and

Perceived Trust when respondents are taken as a whole and, when grouped according to age, sex,

educational attainment, employment, and income. For some studies, the population may be
 20

enough to warrant the inclusion of a sample of the mobile banking users in Iloilo city and

province.

Research Instrument

The research instrument to be used in gathering the needed data will be a researcher-

made questionnaire. With this kind of data gathering method, researchers will be able to collect

data that will help assess the factors affecting the adoption of mobile banking services.

The questionnaire will be composed of questions related to factors affecting the adoption

of mobile banking services of costumers residing in Iloilo City and Iloilo Province. The

Instrument will consist of two parts.

Part I will be used to obtain information on the profile of the respondents in terms of age,

sex, educational attainment, employment and monthly income.

Part II will be the main questionnaire on the factors affecting the adoption of mobile

banking services. The items will be answerable by Strongly Agree, Agree, Neither, Disagree, and

Strongly Disagree. The response to the statements will given corresponding frequency and

descriptions as follows:

Response Weight

5 Strongly Agree

4 Agree

3 Neither

2 Disagree
 21

1 Strongly Disagree

“Strongly Agree”, means that the factor are at all times present affecting the adoption of

mobile banking services in all cases.

“Agree”, means that the factors are most of the time present affecting the adoption of

mobile banking services in all cases.

“Neither”, means that the factors are sometimes present affecting the affects the adoption

of mobile banking in some cases.

“Disagree”, means that the factors are infrequently present that affecting the adoption of

mobile banking in very few cases.

“Strongly Disagree”, means that the factors do not exist or the adoption of mobile

banking is not negatively affected.

Validity of the Instrument

The questionnaire made will be submitted to the research adviser for checking,

recommendations, and revisions for improvement. Thereafter, it will be submitted to two (2)

validators of the College of Business Administration and Entrepreneurship and one (1) from the

banking industry for additional checking and recommendations. Then, it will eventually be

submitted to the statisticians and validators for content validation and final revisions.

The Researcher will be using Goods and Scates evaluation form in knowing the validity

scale of the researcher instrument.

Reliability of the Questionnaire

 22

Reliability refers to the accuracy and preciseness of measurement procedures, which in

turn leads to consistent results (Kothari, 2014). If the research is to be carried out on similar

respondents and similar results are obtained, then the results are said to be reliable. Furthermore,

reliable information is usually valid information. Therefore, accuracy and quality of

measurements are the defining factors towards attaining reliability and validity of the

information from the study. As for this research, a total of 40 non-respondent will be taken in

order for a reliability test to be done for the instrument, short and simple language was adopted

in the structuring of questionnaires so as to enhance respondents easily understand the requested

information needed from them and hence, avoid any confusions in the course of providing their

opinions and views regarding the quality of service provided by the mobile banking service.

Moreover, accuracy and quality of measurements was adhered, therefore attaining consistent

results for this study. In this study, our chosen statistician used Cronbach's alpha is a measure of

internal consistency, that is, how closely related a set of items are as a group. It is a measure of

scale reliability. As the average inter-item correlation increases, Cronbach's alpha increases as

well (holding the number of items constant). A general accepted rule is that α of 0.70 or more,

indicates an acceptable level of reliability.

This aims to develop a validated and reviewed questionnaire, as well as tests its

reliability. The researchers will perform the survey to selected users of mobile banking.
 23

Data Collection

The present research is a unique one for Iloilo City sector. For data collection we

distributed 384 questionnaires in the city of Iloilo by applying purposive sampling method. The

survey was conducted in localities comprising of 384 selected correspondents during the school

year 2021-2022. The survey questionnaire consisted of two parts. The first part recorded the

respondents’ demographic details. The second part recorded respondents’ multi-item attitudes of

each factor in the model using the five-point Likert scale from 1 being Strongly Disagree to 5

being Strongly Agree. When required, the questionnaire items for factors affecting the adoption

of mobile banking were being translated to local languages in order to achieve better accuracy in

data collection.

The data will be collected from the target respondents by using structured and non-

disguised questionnaire. The respondents of the study will be spotted and given the questionnaire

on various hangouts. The choice of data collection was justified as the aim was to get an

understanding of personal experience. By using questionnaire it allows the participants to share

ideas or information. As this study took an overt approach, all participants were informed about

the purpose of the study before they answer the questionnaire, by e-mail, telephone or message.

Providing the participants withy example questions was considered important for the participants

to understand what level the question would be at. The ethical considerations were taken into

account by applying informed consent, informing about the participants’ integrity, confidentiality

and anonymity (David & Sutton, 2016) at the beginning of the question. The purpose of this

study was also repeated at the questionnaire, and participants were informed about
 24

confidentiality and asked if they agreed on being part of the study. The Respondents are

instructed to put a check () mark on the response that best describes the extent of factors

Affecting the adoption of mobile banking among Ilonggo’s in terms of Perceived usefulness,

Perceived ease of use, Perceived risk, and Perceived trust.

Data Analysis (To be revision by our statistician)

Data Analysis

Based on the nature of the study, it was necessary to analyze data using Quantitative

research design through use of multiple regression analysis to study relationships, Multiple

regression is a statistical technique that can be used to analyze the relationship between a single

dependent variable and several independent variables. The objective of multiple regression

analysis is to use the independent variables whose values are known to predict the value of the

single dependent value. Each predictor value is weighed, the weights denoting their relative

contribution to the overall prediction. (Moore, A and Wong, W 2006)

Here Y is the dependent variable, and X1,…,Xn are the n independent variables. In calculating

the weights, a, b1,…,bn, regression analysis ensures maximal prediction of the dependent

variable from the set of independent variables. This is usually done by least squares estimation.

This approach can be applied to analyze multivariate time series data when one of the variables

is dependent on a set of other variables. We can model the dependent variable Y on the set of

independent variables. At any time instant when we are given the values of the independent

variables (2006)
 25

Y = a + β1x1 + β2x2 + β3x3 + β4x4

Where Y: Mobile banking adoption

Y= the dependent variable

X1: Perceived risk, X= Independent variables

X2: Relative advantage,

X3: Trust,

X4: Convenience

A= Constant

β = is the coefficient on the first, second, third and fourth predictor variable

(citation for websit)

The statistical treatment to be use for each independent variable would be the Kruskal-Wallis H

test sometimes also called the "one-way ANOVA on ranks" is a rank-based nonparametric test

that can be used to determine if there are statistically significant differences between two or more

groups of an independent variable on a continuous or ordinal dependent variable.

Moreover, the researcher will use the Kruskal-Wallis H test to understand whether the factors

could affect the adoption of mobile banking , where adoption are measured on a 5-point scale

from "strongly agree" to "strongly disagree", and your independent variable would be "Perceive

usefulness ", "Perceive ease of use ", "Perceive risk ", "Perceive trust ", "Perceive Financial Cost

", which your dependent variable would be the "Adoption of Mobile banking services".
 26

Figure 2. Kruskal-Wallis H test

Ethical Considerations

The ethical considerations for this study are outlined in inclusion criteria, exclusion

criteria, voluntary participation, duration, benefits, risks, significance to local communities,

reimbursement, and anonymity and confidentiality. This serves as an ethical guideline that

researchers will use as a basis, to enhance research validity, maintain and ensure the quality and

integrity of the research results and protect the rights of the research respondents.

Inclusion Criteria

The inclusions of knowing the profile of the respondents, what Factors Affecting the

Adoption of Mobile Banking among Ilonggo's in terms of the given Independent Variable(IV)

when respondents are group according to age, sex, educational attainment, income, and

employment. Are there significant differences in Affecting the Adoption of Mobile Banking

among Ilonggo's in terms of IV when respondents are group according to age, sex, educational

attainment, income, and employment. This data will be taken to 384 selected respondents from

Iloilo city and Iloilo province School year 2021-2022.

 27

Exclusion Criteria

The exclusions will be in the range of ages 17 years old below and 42 years old above.

The non-residence of urban areas in Iloilo City especially, those who are not registered officially

in the said location. The requirement that groups will exclude without adequate justification does

not mean that it is never appropriate in including their data based on residency and age. For

example, the family member who stayed for a vacation. Also, those who do not have experience

in Mobile banking platforms.

Voluntary Participation

All respondents will be asked for their consent and informed about the goals and

objectives of the study. Participation in this study is voluntary and they may withdraw at any

time they want without having any trouble. They have the right to object to answering questions

that may appear offensive to them. It is also to assure that the respondents of the study will not

be coerced into participating in this research.

Duration

This study will be conducted and will be good for one (1) year, starting 2nd Semester,

AY 2021-2022 until 1st Semester, AY 2022-2023. The researchers are expected to finish

conducting and collecting the data at a given time. Hence, for this study the participants will only

take 5-10 minutes of their time to answer the questionnaire.

 28

Benefits

You will receive no direct benefit from participating in this research study. However,

your response may help us learn more about factors affecting the adoption of mobile banking

among Ilonggo’s. In Addition, we also learn more about what banking institution is frequently

being used by Illonggo’s based on the 384 respondents that would take the survey questionnaire.

Risks

The researchers commonly assure subjects that anything discussed between them will be

kept in strict confidential, especially the personal information of their data that may cause

leakage that can be used to them for some unethical actions. It can cause false information if the

researcher tries to manipulate the data gathered on their respondents that may lead to the benefits

of their study. This study will be honestly interpreted accurately. Precautions should also be

taken to ensure that the research-related information is not carelessly discussed, and the

researcher cannot assure to gather 384 respondents and not all have access well versed in online

data gathering of information.

Significance to local communities

_____________________________________________________________
 29

Reimbursement

The purpose of this study is to collect data from respondents who will voluntarily participate, no

money or other form of compensation will be provided to respondents in exchange for their

participation in the research study.

Anonymity and Confidentiality

It is guaranteed that respondents of the study will remain anonymous. Confidentiality of

the data encoded by the respondents will be kept and ensured, and only the researchers and

statisticians had access to the data, as the case may be.

Privacy

Personal information of the respondents will be kept confidential, only the researchers are

committed to maintaining the confidentiality of the information given by the respondents and we

have must abide by the law based on the Republic Act No. 10173, known as the Data Privacy

Act that seeks to protect all forms of information, private, personal, or sensitive and it is meant to

cover both natural and juridical persons involved in the processing of personal information.

Sharing of Study Results

 30

The accuracy and clarity of the results of this study will help researchers and future

researchers to gain knowledge and a better understanding of the literature on what factors

affecting the adoption of mobile banking services. Sharing the results of this study can benefit

the society that _______________________________________________________

Right to Refuse or Withdraw

Participants of the study have the right to refuse or withdraw since it is not mandatory.

Participants have the right to cancel or not participate at all during the data gathering, researchers

don’t have anything to do about it since participants are entitled to their decisions without harm

or penalization.

Who to Contact

In case of misapprehension of the process of the survey itself, participants can reach out to the

researchers through the following contact channels: Jeremyjan Maquiling

(jjmaquiling@usa.edu.ph or ), Meghan Gyle Mayordomo (mgmayordomo@usa.edu.ph or ), Kate

Zacal (kzacal@usa.edu.ph or ), Racel Joy Rejas (rrejas@usa.edu.ph or ), and Karl Benedict

Radislao (kbradislao@usa.edu.ph or ). If the participants experienced mistreatment towards the

researchers and their rights as a participant in the study were violated, or they have any questions

and problems that they need to address other than researchers they have the right to address their

concerns to the University of San Agustin in General Luna Street, Iloilo City or directly send an

email to cma@usa.edu.ph.
 31

REFERENCES

Al- Fahim, N. H. (2012). Factors affecting the adoption of internet banking among IIUM

students: A structural equation modeling approach. Journal of internet banking and

commerce, 17(3), 1-14.

Al-Jabri, I. M et al., (2012). Mobile banking adoption: Application of diffusion of innovation

theory, Journal of electronic research, vol 13, no 4.

Albert et al., (2020). Poverty, the Middle Class, and Income Distribution amid COVID-19.

Discussion paper series no. 2020-22.

Agyeman et al., (2016). A Comparative Study between the Traditional Banking and Mobile

Phone Banking. Growth, 3(1): 1-6. DOI: 10.20448/journal.511/2016.3.1/511.1.1.6

Asfour et al., (2014). The Impact of Mobile Banking on Enhancing Customers’ E-Satisfaction: An

Empirical Study on Commercial Banks in Jordan. International Business Research, 7(10).

https://doi.org/10.5539/ibr.v7n10p145

Bhatt et al., (2015). Factors Affecting Customers Adoption of Mobile Banking Services. The

Journal of Internet Banking and Commerce, 21(1). Retrieved from

https://www.icommercecentral.com/open-access/factors-affecting-customers-adoption-of-

mobile-banking-services.php?aid=70189
 32

Chakiso, C. B. (2019). Factors affecting Attitudes towards Adoption of Mobile Banking: Users

and Non-Users Perspectives. EMAJ: Emerging Markets Journal, 9(1), 54–62.

https://doi.org/10.5195/emaj.2019.167

Cheng et al., (2011) Predicting intention to purchase on group buying website in Taiwan Virtual

community, critical mass and risk. Retrieved from www.emeraldinsight.com/1468-4527.htm

Choraria (2012). Factors determining the flow of information among the online community user.

Retrieved from www.emeraldinsight.com/1328-7265.htm

Crossman (2012). What You Need to Understand About Purposive Sampling. Retrieved from

ThoughtCo website: https://www.thoughtco.com/purposive-sampling-3026727

Davis, F. D., & Davis, F. (1989, September). Perceived Usefulness, Perceived Ease of Use, and

User Acceptance of Information Technology. Retrieved from ResearchGate website:

https://www.researchgate.net/publication/200085965_Perceived_Usefulness_Perceived_Eas

e_of_Use_and_User_Acceptance_of_Information_Technology

Deb, M., et al,. (2014, May 27). An empirical examination of customers’ adoption of m-banking

in India. Retrieved from ResearchGate website:

https://www.researchgate.net/publication/263286475_An_empirical_examination_of_custo

mers’_adoption_of_m-banking_in_India

De Leon, M. V. (2019). Factors influencing behavioural intention to use mobile banking among

retail banking clients. Jurnal Studi Komunikasi (Indonesian Journal of Communications

Studies), 3(2), 118. https://doi.org/10.25139/jsk.v3i2.1469

 33

Dimock, M. (2019, January 17). Defining generations: Where Millennials end and Generation Z

begins. Retrieved May 14, 2022, from Pew Research Center website:

https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-

begins/

Domingo, K. (2020, September 17). Who are identified rich, poor? Gov’t shows income class

brackets in PH. Retrieved from ABS-CBN News website:

https://news.abs-cbn.com/news/09/17/20/who-are-identified-rich-poor-govt-shows-income-

class-brackets-in-ph?fbclid=IwAR2pJnA1jRN7qT-9JBJ8VDTBVIYgOZ45Ubo-

gHDxzan7sQpxsd7kzWjrOWY

Elhajjar et al., (2020), An analysis of factors affecting mobile banking adoption, International

Journal of Bank Marketing, Vol. 38 No. 2, pp. 352-367. https://doi.org/10.1108/IJBM-02-

2019-0055

Fishbein et al,. (1975). "Belief, Attitude, Intentions and Behavior: An Introduction to Theory and

Research". Fredrick, A.J., and Dosset, D.L. (1983). Attitude-behavior relation. A

comparison of the fishben azjen and the bentlerspeckart models. Journal of personality and

social psychology,45,pp 501-512.

Jain et al., (2019) Factors Affecting Mobile Banking Adoption: An Empirical Study in Gwalior

Region, The International Journal of Digital Accounting Research Vol. 19, 2019, pp. 79-

101. DOI: 10.4192/1577-8517-v19_4

Karma et al., (2014). Key factors affecting mobile banking adoption among banks customer.

international Journal of liberal arts and social Science. 2. 112-122.

 34

Kim, G. et al., (2009), Understanding dynamics between initial trust and usage intentions of

mobile banking, Information Systems Journal, 19(3), 283-311.

Laukkanen et al., (2010). The role of information in mobile banking resistance. International

Journal of Bank Marketing, 28(5), 372–388. https://doi.org/10.1108/02652321011064890

Mattila et al., (n.d.). Factors Affecting The Adoption Of Mobile Banking Services. Retrieved from

https://www.icommercecentral.com/open-access/factors-affecting-the-adoption-of-mobile-

banking-services.pdf

Manzano et al., (2008) Key drivers of internet banking services use. Retrieved from

www.emeraldinsight.com/1468-4527.htm

Marous (2015) Has Mobile Banking Usage Reached A Plateau in Popularity? (2015, April 7).

Retrieved from The Financial Brand website: https://thefinancialbrand.com/51255/mobile-

banking-usage-report-fed/

‌Naruetharadhol et al., (2021). Factors Affecting Sustainable Intention to Use Mobile Banking

Services. SAGE Open, 11(3), 215824402110299.

https://doi.org/10.1177/21582440211029925

Navavongsathian et al., (2020). Causal Factors Affecting Mobile Banking Services Acceptance by

Customers in Thailand. The Journal of Asian Finance, Economics and Business, 7(11),

421–428. https://doi.org/10.13106/jafeb.2020.vol7.no11.421

Riquelme, H.E. et al., (2010). The moderating effect of gender in the adoption of mobile banking.

International Journal of Bank Marketing, 28(5), 328-341

 35

Sakala et al., (2019). “Factors Affecting Adoption and Use of Mobile Banking Services in Zambia

Based on TAM Model”. Open Journal of Business and Management, 07(03), 1380–1394.

https://doi.org/10.4236/ojbm.2019.73095

Shaikh et al., (2015). Mobile banking adoption: a literature review. Telematics and Informatics, 32

(1), 129-142.

‌Suoranta (2003) “Adoption of Mobile Banking in Finland”. Doctoral Dissertation, Jyväskylä

University Printing House, Jyväskylä and ER-Paino, Lievestuore. - References - Scientific

Research Publishing. (2015). Retrieved from Scirp.org website:

https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.aspx?

ReferenceID=1406430

Toroitich et al., (2016) Factors Affecting Individuals to Adopt Mobile Banking In Kenya: A

Case of Kenya Commercial Bank (K.C.B), Eldoret. International Journal of Research in

Business Studies and Management, 03(04), 29-48. Retrieved from

http://www.ijrbsm.org/pdf/v3-i4/4.pdf?fbclid=IwAR3ufyXQ-OzPuJ5gGCiSiS061z-

QIkN4F1yDayft4dlZsaElABLzJmKVpTg

Weisbaum (2015, May 3). “Why Has Mobile Banking Growth Stalled? Blame Hackers.”

Retrieved from NBC News website: https://www.nbcnews.com/business/consumer/why-

has-mobile-banking-growth-stalled-blame-hackers-n351851

White, A. (2020, December 15). Millennials and Gen Z are the most likely to use mobile banking

apps—here’s why, plus budgeting tips. Retrieved from CNBC website:

https://www.cnbc.com/select/why-millennials-gen-z-use-mobile-banking-apps/?
 36

fbclid=IwAR0o2O_hL12eaB-o-

1IM3iPM67Zd4rGbefAFtpGBZgzXVtGwvENXyGQVdwM

Zacharis (2012)"Predicting college students’ acceptance of podcasting as a learning tool".

Retrieve from www.emeraldinsiht.com/1741-5659.htm

‌
37
 38

‌
39