Factors Influencing the Adoption of Mobile Banking Among

University Students of Balochistan

Name: Farasat Ayub

(BBA) 8th semester
Session: 2018-2022
Institute Of Management Sciences
University Of Baluchistan Quetta

Supervisor: Dr. Jameel Ahmed

Introduction:
Background of Study:
• Technology used in service companies improves the quality and delivery of consumer services,
lowers costs, and homogenizes core service components (Ibrahim et al, 2006; Gounaris et al, 2005).
• The banking sector has always been creative and open to emerging technological advancement in the
financial services sector (Ozdemir, Trott, and Hoecht, 2008).
• Chawla and Joshi (2017) defined mobile banking is the practice of carrying out financial operations
via a mobile phone, such as obtaining account information, transferring money, requesting a cheque
book, starting or renewing fixed deposits, opening a dematerialized account, opening a loan account,
paying bills, etc.
Problem Statement:
• In Pakistan, many studies were conducted to find the factors influencing mobile banking adoption
but none of the research were on students.
• Therefore, the study sought to find out from the students perspective, the factors that influence
consumer adoption of mobile banking services in Balochistan.
Research Objective:
• The purpose of this study is to analyze the factors affecting intention to adopt mobile banking
among university students of Baluchistan.
 Research Questions:
• What are the factors influencing student’s intention to adopt mobile banking?
• How does perceived usefulness and perceived ease of use influence the adoption of mobile
banking among university students?

Research Significance:
• This research will be beneficial for banks and other financial organizations to have a clear
understanding of factors which can significantly affect the customer’s intention to adopt mobile
banking.
 • Literature Review:

Ser Name of variables Results References

ial
no.
1 IV. Perceived usefulness Results revealed that consumers’ behavioral intention was Rehman and
IV. perceived ease of use significantly and positively influenced by perceived usefulness Shaikh (2020)
DV. intention to use m-banking and ease of use.

2 IV. Perceived usefulness perceived usefulness and perceived ease of use are significant Akhtar, Irfan,
IV. Perceived ease of use predictors of individuals' intentions to adopt m‐banking in Sarwar, Asma
DV. Intention to adopt mobile Pakistan, whereas the perceived usefulness is an important and Rashid
banking predictor in China (2019)

3 IV. Perceived Ease of Use This study empirically concluded that consumers’ intention to Kazi and
IV. Perceived usefulness adopt mobile banking services was significantly influenced by Mannan (2013)
DV. Intention to adopt m- perceived usefulness, and perceived ease of use.
banking
• Theoretical Model

Perceived
H1.
usefulness H2
Intention to
adopt
H2
Perceived
Ease of Use

Hypothesis:
H1:Perceived Usefulness has a positive influence on the intention to adopt mobile banking services
among university students of Baluchistan.
H2: Perceived ease of use has a positive influence on the intention to adopt mobile banking services
among university students of Baluchistan.
RESEARCH METHODOLOGY
Type of Study:
• This study has adopted the quantitative approach to examine and collect the data. This study was
cross sectional.
Data collection Method:
• Primary data
• The primary data were collected using a survey questionnaire. In order to collect primary data
questionnaire was distributed to Students of University of Balochistan.
• Secondary data
• Secondary data has been collected from the books, journals, articles and case studies for a different
purpose and the data will be added to literature review to clarify gaps existing in the available
literature.
Data collection instrument:
• In this study questionnaire was used to collect primary data from respondents.

Serial Variables Items Scales References

no

1 Perceived usefulness 4 5 point likert scale (Lee,2009; Luarn & Lin,

2005)

2 Perceived ease of use 3 5 point likert scale (Lee, 2009; Luarn & Lin,
2005)

3 Intention to adopt 4 5 point likert scale (Payam and Tabar, 2012)

Scales adopted:
• A five-point Likert scale ranging from (1) “strongly disagree” to (5) “strongly agree” was
employed to measure responses.
Population:
• The population of this research/study consisted of the students of University of Baluchistan.
Sample Size:
• The sample size of this study was 60, which is enough for this research. According to central limit
theorem that states that sample size of 30 or more is approximately approaches to normal
distribution and the sample of this study is more than 30 therefore enough to continue for further
analysis.
Sampling Technique:
• This study has used Non-probability convenience sampling technique to draw samples and collect
the data or opinions of the respondents.
Analysis Technique:
• Correlation was used to examine the bivariate relationships among variables.
Multiple regression analysis was used to test the hypothesis of this study. Multiple regression
analysis is used to analyze the relationship between one dependent variable to several independent
variables (Hair et al, 2005).
 Results Analysis

Correlation Analysis
Variable Perceived Usefulness Perceived Ease Intention to
of Use Adopt

Perceived Usefulness 1.00

Perceived Ease of Use 0.604** 1.00

Intention to Adopt 0.737** 0.729** 1.00

**Correlation is significant at 0.01 level of significance

A two-tail test at 0.01 level of significance indicates that there are positive relationships among the
variables. There are strong relationships between dependent variable “intention to adopt” and two
independent variables (Peceived Usefulness an Perceived ease of Use) as the respective correlation is
above 0.5.
 Multiple Regression
Model Unstandardized Coefficients Standardized
Coefficients T Sig.
B Std. Error Beta

Constant 0.521 0.318 1.63 0.107

7
Perceived 0.450 0.092 0.467 4.89 0.000
Usefulness 8
Perceived 0.432 0.092 0.447 4.68 0.000
Ease of 4
Use
The individual model variables indicated that unstandardized coefficients for PU (p-value < 0.01), PEOU (p-value < 0.01)
positively and significantly affected dependent variable intention to adopt mobile banking among university students of
Balochistan. Both the hypotheses H1 and H2 were supported in that PU, PEOU all had a significant and positive effect on the
intention to adopt mobile banking among university students of Balochistan.
 Conclusion
• This study identified some variables that are more dominant than others in mobile banking
adoption. The empirical results showed that the perceived usefulness, perceived ease of use
have significant effects on behavioral intention to use mobile banking.
• After analyzing the results the study pointed out that perceived usefulness and perceived ease
of use are the most significant influencing factors in mobile banking adoption, for that
reason, mobile banking customers tend to use mobile banking services based on its perceived
ease of use, perceived usefulness.
• The findings fulfilled the main objective which was to identify the factors that influenced
mobile banking adoption among university students of Balochistan, and in the end all the
objectives stated for the study were achieved.
• The result was similar in some cases with past studies. The effects of perceived usefulness
and perceived ease of use towards influencing adoption of mobile banking services were
observed.
 Limitations and Future Research

• One of the limitations of this study was that the respondents were from only one higher education
institute, i.e. University of Balochistan . Therefore, future researchers should consider the responses
from other higher education institutions as well.
• Second, this research has studied only two independent variables, perceived usefulness and perceived
ease of use. Therefore further research can be done by using other variables to see their impact on
mobile banking adoption.
• Due to time and cost limitations, the sample size used in this research is 60. To achieve the best
findings the future researcher must use a large sample size.
(Thank You)