Journal of African Business
ISSN: 1522-8916 (Print) 1522-9076 (Online) Journal homepage: https://www.tandfonline.com/loi/wjab20
Mobile Banking Adoption among the Ghanaian
Youth
Godfred Matthew Yaw Owusu, Rita Amoah Bekoe, Annice Amoasa Addo-
Yobo & James Otieku
To cite this article: Godfred Matthew Yaw Owusu, Rita Amoah Bekoe, Annice Amoasa Addo-Yobo
& James Otieku (2020): Mobile Banking Adoption among the Ghanaian Youth, Journal of African
Business, DOI: 10.1080/15228916.2020.1753003
To link to this article:  https://doi.org/10.1080/15228916.2020.1753003
Published online: 23 Apr 2020.
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JOURNAL OF AFRICAN BUSINESS
https://doi.org/10.1080/15228916.2020.1753003
Mobile Banking Adoption among the Ghanaian Youth
Godfred Matthew Yaw Owusua, Rita Amoah Bekoeb, Annice Amoasa Addo-Yobob
and James Otiekub
aDepartment of Accounting, University of Ghana Business School, Accra, Ghana; bAccounting, University of
Ghana Business School, Accra, Ghana
ABSTRACT KEYWORDS
This paper examines the behavioral intentions of Ghanaian youth Mobile banking adoption;
toward mobile banking as a service delivery channel. Relying on the technology acceptance
Technology Acceptance Model (TAM) and Innovation Diffusion model; innovation diffusion
Theory (IDT), the study further investigates the factors that influ- theory
ence the intention of individuals to adopt mobile banking.
A questionnaire-based survey was conducted on business students
from a large public university in Ghana and a total of 517 valid
responses from the respondents were used in the empirical analy-
sis. The hypothesized relationships were analyzed using the
Structural Equation Modeling technique. Results of this study
demonstrate that perceived ease of use, perceived usefulness, rela-
tive advantage, and complexity are the key predictors of intentions
to adopt mobile banking technology in Ghana. Moreover, the
results demonstrate that complexity has a positive influence on
perceived ease of use while relative advantage was also found to
impact positively on perceived usefulness. Taken together, these
results confirm the applicability of the TAM and IDT models in
predicting technology adoption in different contexts.
Introduction
In contemporary times, mobile phones have evolved from the basic purpose of commu-
nication and social media interaction to a medium for transforming lives and conducting
businesses (Deloitte, 2012). One sector within the business landscape whose activities
have been shaped significantly by the evolutionary use of mobile phones is the banking
sector. Many banking institutions indeed have invested substantially in mobile applica-
tion-related technologies over the years and have relied on this channel as a means of
providing better and efficient service to their customers in a more convenient way. While
the contributions of earlier innovative delivery channels including automated teller
machine (ATM), internet banking have been acknowledged in the literature, it is without
doubt that advances in mobile technologies and devices have revolutionized the banking
sector particularly in the area of service delivery (Safeena, Date, Kammani, & Hundewale,
2012; Schierholz & Laukkanen, 2007; Shaikh & Karjaluoto, 2015).
CONTACT Godfred Matthew Yaw Owusu gmowusu@gmail.com University of Ghana Business School, Accra,
Ghana
© 2020 Informa UK Limited, trading as Taylor & Francis Group
2 G.M.Y. OWUSU ET AL.
In today’s world, individuals can conduct banking transactions and gain access to
a wide range of banking services including; checking account balances, management of
accounts, funds transfers, payment of bills, purchasing investment products, interna-
tional remittance among others at one’s own convenience with a mobile phone (Gu, Lee,
& Suh, 2009; Jacob, 2007; Schierholz & Laukkanen, 2007). Hitherto, these services could
only be accessed upon a visit to a branch (branch banking). As a delivery channel, mobile
banking has been found to offer faster and a more convenient way of rendering services
than the traditional branch banking and the other delivery modes such as the ATM
(Safeena et al., 2012; Schierholz & Laukkanen, 2007).
Due to its service potential as a delivery channel, significant amount of research
attention has been devoted to the concept of mobile banking in recent times. A host of
related issues such as the risks involved, people’s attitudes toward adoption, the difficul-
ties with the adoption, the merits that they offer to the sector (both to the client and the
bank) have been explored by existing studies (Luarn & Lin, 2005; Ndubisi & Sinti, 2006).
However, a major focus for most existing studies has been on users’ willingness to adopt
the mobile banking technology and the factors that influence mobile banking adoption
(Glavee-Geo et al., 2017; Lin, 2011; Karjaluoto et al., 2010; Shaikh & Karjaluoto, 2015).
The surge in research interest in this area in part has been motivated by the fact that
despite its perceived benefits as a delivery channel and notwithstanding the growth in
mobile phone subscription base globally, the adoption of mobile banking technology is
not as widespread as expected (Munoz-Leiva, Climent-Climent, & Liébana-Cabanillas,
2017; Shaikh & Karjaluoto, 2015). As argued by some studies (Afshan & Sharif, 2016;
Ivatury & Mas, 2008; Shaikh & Karjaluoto, 2015) the traditional branch-based banking
still remains the most preferred method to the virtual forms of banking among con-
sumers despite its availability and convenience.
From the literature, several factors including, ease of use, perceived usefulness, trust,
social influence, perceived risk, compatibility, cost, etc., have been found to be associated
with the mobile banking adoption decision mostly from developed countries' perspective
(Chong, Chan, & Ooi, 2012; Kim, Shin, & Lee, 2009; Laforet & Li, 2005; Mortimer, Neale,
Hasan, & Dunphy, 2015). However, it has been argued that the adoption of a mobile
technology does not follow a universal pattern (Bankole, Bankole, & Brown, 2011) and
that cultural differences may affect the use and adoption decision. As Sheng, Wang, and
Yu (2011) point out, the culture of a people is very crucial in the adoption of any
technology or innovation which presupposes that context matters in the adoption of
a technology. Thus, the factors that drive mobile banking adoption may differ based on
context. This view provides a motivating basis to investigate mobile banking within
a different cultural context although it has been investigated in other parts of the world.
The present study offers some perspective on the mobile banking adoption discourse
from the Ghanaian setting by investigating the intentions of some Ghanaians toward
mobile banking adoption and the factors that drive such intentions. The evidence we
provide is relevant to the mobile banking literature in several ways. First, notwithstand-
ing the fact that mobile phone penetration rate in Africa is one of the highest in the world
and the most widely used in terms of communication technology (ITU, 2007), empirical
studies on mobile banking adoption is scant compared with other jurisdictions. Second,
this study unlike some of the existing studies from the African setting (Bankole et al.,
2011; Baptista & Oliveira, 2015) focused on the behavioral intentions of the youth toward
JOURNAL OF AFRICAN BUSINESS 3
mobile banking technology. Given that the younger generation has been described as
extensive users of mobile devices and internet as well as early adopters of mobile-related
technologies (Fife & Pereira, 2003; Kumar & Lim, 2008), an exploration of their inten-
tions toward mobile banking adoption may be useful in contextualizing some of the
findings in prior studies. Compared with the youth, it is believed that matured consumers
are usually laggards in the adoption of new technologies and hence, may have preference
for face-to-face banking services (Mattila, Karjaluoto, & Pento, 2003). The youth there-
fore represents an ideal population group for studies on the adoption of new technolo-
gical innovations such as mobile banking.
Third, the country Ghana provides an interesting setting for a study of this nature in
some respect. Internet usage in Ghana has increased over the years with an increase in the
number of users who access the internet with their phones. A survey by Mobile Africa
(2015) reveals that 51% of Ghanaians have access to the internet through their phones
(http://blog.geopoll.com/mobile-usage-africa). Notwithstanding the fact that a large pro-
portion of the population have access to internet on their mobile phones, mobile banking
technology is highly underutilized in Ghana (Woldie, Hinson, Iddrisu, & Boateng, 2008).
There is therefore a heavy reliance on branch banking as compared to other virtual forms
of banking (like mobile banking) resulting in long tiring queues in most banking halls.
Findings of this study will therefore contribute substantially to literature on why con-
sumers do not patronize virtual forms of banking as frequently as the traditional delivery
channels.
The remaining sections of the paper are organized as follows: the next section contains
the literature review and hypotheses development followed by the methodology section.
The subsequent section discusses results based on the research framework followed by
concluding remarks.
Literature review
Evolution of delivery channels in banking services
The prime concern for banks is to serve their customer base efficiently whilst increasing
profits and maintaining a competitive advantage. In a bid to remain competitive, service
delivery in the banking sector has undergone major structural changes and has evolved
over time with a motive of quality service improvement. Information technologies have
been used to further this agenda of banks and which has resulted in the introduction of
new and improved delivery channels that are more user-friendly to better serve the
clientele base (Akinci, Aksoy, & Atilgan, 2004).
In the past, branch banking was predominantly the primary distribution channel in
the delivery of banking services. Plagued by challenges including long tiring queues,
inconvenience in service consumption and high transaction costs, there was an incentive
to revolutionize the service delivery channels for the development of more effective
distribution channels (Mols, Bukh, & Nielsen, 1999). Notwithstanding the challenges
mentioned, branch banking remains an important means of serving many segments of
the clientele base (Devlin, 1995). However, the pursuit of a more effective distribution
channel has led to the reliance on technological infrastructure in banking service delivery
innovations (Sohail & Shanmugham, 2003).
4 G.M.Y. OWUSU ET AL.
As a means of improving service delivery, electronic banking premised on technolo-
gical infrastructure was developed and introduced. Defined as the provision of informa-
tion or services by a bank to its customers, via an electronic platform (Daniel, 1999), its
purpose was among others to provide convenience, security, privacy, time and effort
savings, and easy access to financial transactions in the banking industry (Schierholz &
Laukkanen, 2007). The evolution of electronic banking began in the early 1970s with the
introduction of the credit/debit card, Automatic Teller Machine (ATM) networks, etc.
Subsequently, telephone and Personal Computer banking emerged followed by the
introduction of Internet banking which provided clients the opportunity to gain access
to their bank account in the comfort of their homes or office.
While the introduction of electronic banking has been of enormous benefit to the
banking sector, concerns have been raised especially about the associated cost in acces-
sing the service. The usage of the ATM and Internet banking, for instance, has been
found to be expensive in terms of transaction cost to the customer and maintenance fees
by the banks (Giannakoudi, 1999). The introduction of mobile banking was therefore
recognized as a useful attempt not only to address some of the afore-mentioned chal-
lenges but also to provide a more convenient platform to serve the masses.
The concept of mobile banking
Mobile banking has been defined as “a channel whereby the customer interacts with
a bank via a mobile device such as a smartphone or a personal digital assistant” (Barnes &
Corbitt, 2003, pg 275). It is simply known by many as a platform for conducting banking
transactions through a mobile device. It is therefore as an extension of internet banking
through a mobile device with some peculiar features for its usage (Brown, Cajee, Davies,
& Stroebel, 2003). As a service delivery channel, mobile banking offers a convenient way
of conducting a wide array of services including checking of account balances, monitor-
ing account and the usage of credit and debit cards, invoice payment (both domestic and
international), buying and selling orders for the stock exchange as well as price informa-
tion (Laukkanen & Pasanen, 2008). It has provided a means for individuals to be in full
control of their bank accounts thereby improving customer satisfaction while minimiz-
ing the cost of services to the banks (Koksal, 2016).
Despite its perceived benefits to the financial sector and the potential to bring banking
services to the doorsteps of customers, mobile banking technology is yet to receive the
much needed acceptance as a delivery channel in many parts of the world especially in
Africa. Thus, notwithstanding the fact that mobile phone penetration rate in Africa is one
of the highest in the world (ITU, 2007), the adoption of mobile banking technology is not
as widespread as expected. While the unwilling nature of consumers to switch to newer
technologies is largely associated with mobile-related technologies like mobile banking,
Rouse (2017) argues that context plays a key role in the adoption decision of individuals
when it comes to mobile banking. For instance, most Sub-Saharan African countries turn
to be averse toward a cashless economy and usually would prefer to conduct transaction
with physical cash and hence, would naturally oppose technologies that promote
a cashless system (Lin, 2011). This is in sharp contrast with most developed countries
where the usage and adoption rate of mobile-related technology is very high (Porteous,
2006).
JOURNAL OF AFRICAN BUSINESS 5
Determinants of mobile banking adoption
Rogers (2003) defines adoption as a decision to make full use of an innovation. Studies on
the determinants of technology adoption are vast and have often been based on theories
on technology and innovation. The next section discusses some of the dominant theories
that have been applied to technology adoption studies in general and mobile banking
technology in particular.
Theoretical review
Among the several theoretical frameworks that have been used in investigating the
adoption of technology or innovation, the Technology Acceptance Model (TAM),
Innovation Diffusion Theory (IDT), Unified Acceptance Theory and Use of
Technology (UTAUT) have been the most widely used. Within the context of mobile
banking literature, however, most existing studies have often employed the TAM frame-
work in explaining the dominant factors that predict users’ intention to adopt mobile
banking (Luarn & Lin, 2005; Karjaluoto et al., 2010, Koenig-Lewis, Palmer, & Moll, 2010;
Tobbin, 2012). Developed by Fred Davis (Davis, 1989), TAM traces its roots from the
Theory of Reasoned Action (TRA) and The Theory of Planned Behavior and basically
posits that the intention to accept and use an innovation or technology is explained by
two beliefs: “perceived usefulness” and “perceived ease of use” (Davis, 1989). Thus, from
the perspective of the TAM, consumers’ intention to use and adopt an innovation or
technology is dependent on the ease of use of that innovation and the usefulness thereof.
Despite its strengths, TAM has been criticized for being too narrow a model in
explaining users’ attitude and behavioral intentions toward mobile banking adoption
(Venkatesh & Davis, 2000). As argued by Nysveen et al., (2005), TAM completely ignores
the relevance of cost in explaining technology adoption. For an innovation that requires
internet accessibility for its use, users or potential users will incur some cost in some
shape or form; hence, cost consideration cannot be completely ignored. Despite the
criticisms of TAM, it has been used in many empirical studies and has been tested to be
reliable and produces statistical results of good quality (Legris, Ingham, & Collerette,
2003).
Closely related to the TAM framework is IDT which postulates that users' adoption of
a technology is determined by relative advantage, observability, trialability, compatibility,
and complexity (Rogers, 2003). Studies that have used this model in their investigations
include (Kim et al., 2009; Lin, 2011; Ramdhony & Munien, 2013; Saeed, 2011). Among
the five constructs that define the IDT, empirical studies have found relative advantage
and complexity to be the most relevant in predicting the adoption of an innovation on
a consistent basis (Al-Jabri & Sohail, 2012; Karjaluoto, Riquelme, & Rios, 2010; Lin, 2011;
Mattila et al., 2003; Pikkarainen, Pikkarainen, Karjaluoto, & Pahnila, 2004; Venkatesh &
Davis, 2000).
It has been suggested that TAM and IDT complement each other. For instance,
relative advantage has an important association with the factor “perceived usefulness”
whereas complexity is also believed to impact negatively on “perceived ease of use”
(Moore & Benbasat, 1991). Again like the TAM, IDT considers the behavioral process
in explaining factors that influence adoption of a technology or innovation
6 G.M.Y. OWUSU ET AL.
(Bhattacherjee, 2000). Therefore, this study relies on both the TAM and IDT as the
theoretical foundation in developing the research model and the main hypotheses for the
study. Additionally, two external factors: perceived cost and perceived risk are added
since prior studies have found them to be particularly useful in enhancing the prediction
of adoption and usage of an innovation (Lucas & Spitler, 2000; Szajna, 1996). The
proposed framework for the study is shown in Figure 1.
Hypothesis development
Based on the framework, eight major hypotheses are developed as follows:
Perceived ease of use (PEOU)
PEOU refers to “the degree to which a user believes that using a particular service would
be free of effort” (Davis, 1989). Effort according to Radner and Rothschild (1975) refers to
a finite resource that an individual may allocate to various activities for which he/she
exercises oversight responsibility. From the perspective of users’ acceptance and adoption
of technology literature, PEOU describes the extent to which a user believes using
a particular technology system would be without serious difficulties. The general view
is that the extent of adoption of a particular technology is likely to be high among users
when it is easier to use that technology compared with another. Thus, the likelihood of
acceptance of a technology is high when users perceive it to be easier to use than another.
Complexity 
Perceived Ease of 
Use 
Relative 
Advantage 
Intention to Adopt 
Mobile Banking 
Perceived 
Usefulness 
Perceived Risk 
Perceived Cost 
FIGURE 1. Proposed Framework.
JOURNAL OF AFRICAN BUSINESS 7
Specific to the mobile banking adoption literature, empirical studies (Gu et al., 2009;
Hanafizadeh, Behboudi, Koshksaray, & Tabar, 2014; Karjaluoto et al., 2010) have found
the ease of use to be important predictor of users' intention to adopt mobile banking. As
surmised by Hanafizadeh et al. (2014) the relevance of ease of use is not limited only to
the adoption of technology but most importantly, it also affects the long-term usage of
a technology as well.
This study therefore hypothesizes that
H1: Perceived ease of use will lead to higher behavioral intention to adopt mobile
banking
Perceived usefulness (PU)
The perception of users regarding the usefulness of a technology is also believed to be
a relevant factor that influences the adoption decision of users. PU measures the extent to
which an individual perceives that using a particular system or technology would
enhance his/her job performance (Liu & Li, 2010). From the perspective of TAM frame-
work, PU is explained to mean the prospective user’s subjective probability that adopting
a specific application system will enhance his/her job performance within an organiza-
tional context (Davis, 1989). Aldás-Manzano, Lassala-Navarré, Ruiz-Mafé, and Sanz-Blas
(2009) accordingly explain PU within the mobile banking context to mean the perceived
benefits that mobile banking provides to users in performing financial transactions. The
argument is that the extent to which an individual perceives something to be useful
directly influences the attitude toward its use and subsequently the intention to use.
Extant literature provides empirical support that PU plays a major role in mobile banking
adoption decisions of people. Gu et al., (2009) for instance found PU to be the most
important factor that influences the behavioral intention of people toward mobile bank-
ing adoption. Many other existing studies have shown that perceived usefulness have
a direct significant influence on behavioral intention to use a particular online technology
(Karjaluoto et al., 2010; Mohammadi, 2015). This study therefore proposes that
H2: Perceived usefulness has a positive effect on intention to adopt mobile banking
Perceived complexity
Rogers (1995) defined complexity as the extent to which an innovation is perceived as
relatively difficult to understand and use. In terms of the adoption decision of individuals
of any innovation, the conventional wisdom is that the intention to adopt is high when
such innovations come with user-friendly interfaces. Complexity is therefore believed to
be inversely related to an individual’s intention to adopt new technologies. Studies on
mobile banking adoption suggest user’s intention to adopt mobile banking could be
negatively affected if they find the application to be very technical, time-consuming, and
unfriendly (Lee, McGoldrick, Keeling, & Doherty, 2003). Complexity, however, has been
found to be related to the construct “perceived ease of use.” Karjaluoto et al. (2010) for
instance argue that the level of complexity of mobile banking applications will be lower
for users who are well versed with mobile phones and suggest that such users will
8 G.M.Y. OWUSU ET AL.
experience minimal difficulties in using mobile banking. Invariably when the perception
of complexity is low the perception of ease of use is likely to be high. Thus, we
hypothesize that
H3: Complexity will lead to a lower behavioral intention to adopt mobile banking.
H4: Complexity will lead to a lower perceived ease of use.
Perceived relative advantage (RA)
Relative advantage refers to whether the innovation is perceived to be superior to the
product or service from which it evolves (Karjaluoto, Laukkanen, & Kiviniemi, 2010). It
is a measure of the extent to which a particular innovation is perceived to be more
beneficial than its precursor and usually manifested in a form of improved efficiency,
enhanced status, and improved economic benefits (Lin, 2011). As argued by Ram and
Sheth (1989) if the performance of an innovation does not have competitive advantage
over substitutes, then there will be no motivation to switch to the innovation. Again, Lee
et al. (2003) affirm that users are more prone to adopt a new technology when they
perceive that it offers a relative advantage over an existing one. Compared with other
delivery channels, mobile banking offers more convenient and quicker means of banking
than the traditional offline banking. According to Lin (2011) when customers can
perceive the advantages offered by mobile banking the intention to adopt is usually
high. While Liu and Li (2010) found relative advantage to be very influential in predicting
the intention to adopt and use a particular innovation, they further argue that relative
advantage may also influence the “perceived usefulness” factor. Based on the above
arguments we hypothesize that:
H5: Relative Advantage will lead to a higher behavioral intention to adopt mobile
banking
H6: Relative Advantage will lead to a higher perceived usefulness.
Perceived risk (PR)
An individual’s perception of risk plays a key role in the adoption of a new technology.
Featherman and Pavlou (2003) consider perceived risk as the potential for loss in the
pursuit of a desired outcome of using an e-service. Aldás-Manzano et al. (2009) argue
that new products in their nature contain risks that increase resistance to adoption. It has
been acknowledged in the literature that the risk factor is critical to applications that
utilize mobile services partly due to the fact that mobility increases the threat to security
(Hanafizadeh et al., 2014). From the perspective of banking, the risks associated with
online and mobile banking are perceived to be higher than conventional banking
channels (Yousafzai, Pallister, & Foxall, 2003). Where the perception of risk is high the
motivation to adopt a mobile banking technology is expected to be low. Perceived risk
may therefore be negatively associated individual’s behavioral intention to adopt mobile
banking. As pointed out by Hanafizadeh et al. (2014), the higher the risk of using a new
JOURNAL OF AFRICAN BUSINESS 9
technology the lower the willingness to adopt that technology for use. We therefore
propose that
H7: Perceived Risk has a negative influence on behavioral intention to adopt mobile
banking:
Perceived cost (PC)
The cost associated with the adoption and usage of a new technology may also be an
important predictor of users’ intentions to adopt the technology. These costs may include
subscription charges, transactional cost, switching cost, etc., which must be borne by the
user of the new technology. The adoption of mobile banking technology like all forms of
mobile technologies usually come with some associated costs such as usage charges.
When individuals perceive the cost associated with adopting mobile banking services to
be high compared with the traditional system of banking, the willingness to switch to
mobile banking will be low. Many studies attest to the fact that perceived costs could be
a barrier to the adoption of mobile banking (Dahlberg, Mallat, Ondrus, & Zmijewska,
2008; Hanafizadeh et al., 2014; Luarn & Lin, 2005). Hence, this study proposes that:
H8: Perceived cost will lead to lower behavioral intention to adopt mobile banking.
Mobile banking in Ghana
Mobile banking was introduced in Ghana by one of the telecommunication giants in
Ghana MTN (Tobbin, 2012). As a concept, mobile banking has evolved over the years
from an unfamiliar mode of banking to one of the contemporary means of banking
available to serve clients. Notwithstanding the spike in exposure, the usage is still
confined to particular groups of people or geographical locations. With increasing mobile
phone penetration and internet usage within the country, the expectation is that mobile
banking adoption would have been widespread due to its numerous advantages.
However, the unfortunate reality is that mobile banking technology is highly underused
in Ghana (Woldie et al., 2008).
A few studies have investigated the concept of mobile banking within the Ghanaian
context. Crabbe et al., (2009), for instance, found perceived usefulness as the most
important factor that affects user adoption of mobile banking amongst non-users in
Ghana. This study, however, found an insignificant relationship between perceived ease
of use and adoption decision. It was interestingly not a factor that influenced adoption.
Other predictors of adoption include perceived credibility, individual differences, pre-
vious banking experience, and sustained usefulness.
Tobbin (2012) assessed the level of awareness of mobile banking among a section of
rural dwellers in Ghana and also sought to ascertain if mobile banking was the way out in
bringing financial services to the unbanked. While the level of awareness of mobile
banking was found to be very low among the participants, the study concludes that it
provides a useful platform to extend financial services to bank the unbanked.
Additionally, this study found perceived usefulness and perceived ease of use, economic
factors, and trust as the main predictors of mobile banking adoption. Perkins and Annan
10 G.M.Y. OWUSU ET AL.
(2013) also found government support, trust, and security to be relevant to mobile
banking adoption decision in addition to perceived ease of use and perceived usefulness.
A notable trend amongst the papers that have investigated mobile banking adoption
within the Ghanaian setting is that most studies found perceived ease of use and
perceived usefulness to be important predictors of mobile banking adoption.
Methodology
Research design and instrument
A quantitative survey approach was employed for this study and for data collection
purposes, a questionnaire was used to elicit responses from the respondent group. The
questionnaire was divided into two sections. Section one consisted of questions on the
demographic characteristics of the respondents. The second part of the questionnaire
sought respondent’s views on their intention to adopt mobile banking and the factors
that drive mobile banking adoption among the youth. A Likert scale with anchors
ranging from 1(strongly disagree) to 7(strongly agree) was used to determine responses
from the respondents and the questions used closely correspond with that employed in
many existing studies (Davis, 1989; Hanafizadeh et al., 2014; Karjaluoto et al., 2010;
Luarn & Lin, 2005). Details of the specific questions used to assess respondents’ views on
the factors that influence adoption of mobile banking as well as the intention to adopt
mobile banking are provided in the appendix.
Respondents
Respondents for this study were chosen from a business school in a large public
university in Ghana. The study focused on undergraduate students as the younger
generation are known to be early adopters of mobile technologies (Karjaluoto et al.,
2010). A total of 600 questionnaires were administered at classroom sessions during the
first semester of the 2017/2018 academic year. However, 517 valid responses were used
for data analysis purposes. Profile details of the respondents can be found in Table 1.
Data analysis
Demographics
The sample population was fairly distributed in terms of gender though slightly domi-
nated by the males in proportion. Majority of the respondents were accounting students
followed by finance, marketing, and Human Resource. This follows the natural pattern of
student population size for the various departments within the Business school, an
indication that the sample size is a true representation of the population. With respect
to bank Account Holder Status, over two-thirds of the students had bank accounts while
majority of the students (92.1%) are smartphone users. This is an indication that majority
of the students who have bank accounts also have smartphones and hence, are good
samples for studies on mobile banking adoption.
JOURNAL OF AFRICAN BUSINESS 11
TABLE 1. Profile of the Respondents.
Measure Item Frequency Percentage (%)
Gender Male 283 54.7
Female 234 45.3
Age 17–20 297 57.4
21–25 211 40.8
26–30 5 1.0
31–35 4 0.8
Major Accounting 223 37.2
Finance 191 31.9
Human Resource 29 4.8
Public Administration 17 2.8
Marketing 57 9.5
Level First Year 65 12.6
Second Year 133 25.7
Third Year 193 37.3
Final Year 126 24.4
Account Holder Status Account-Holder 455 88.0
Non-Account Holder 62 12.0
Smartphone User Status Smartphone User 475 91.9
Not a smartphone User 42 8.1
Descriptive statistics on constructs
An analysis of the respondents’ views on the various constructs for this study is presented
in Table 2. The overall mean for the construct Behavioral Intention was 5.00 an indica-
tion that the willingness to adopt mobile banking by the students is high. Also, ‘perceived
ease of use’ and ‘perceived usefulness’ had mean scores of 5.30 and 5.56, respectively.
These results demonstrate that the respondents highly rated the indicators that described
mobile banking technology as not too difficult to use and also agreed that mobile banking
provides some benefits to users. These findings are also supported by the respondents’
ratings of the relative advantage construct (mean = 5.20) and ‘complexity (mean = 3.54).
Thus, not only do the respondents view mobile banking to be important in their life as
compared to other delivery channels but also believe mobile technology is not too
complex to use. The overall mean for the construct ‘perceived cost’ was 3.42 which
suggests the respondents do not generally view the adoption of mobile banking to be
costly. With a mean score of 4.43 for the construct ‘perceived risk,’ it could be concluded
that most respondents generally believe there could be some risks associated with mobile
banking technology. Results of the skewness and kurtosis tests generally suggest the data
is normally distributed as the values for all the indicators of the various constructs fall
within the recommended ±2 threshold (George & Mallery, 2010).
Statistical analysis technique
The Structural Equation Modeling (SEM) technique was employed to examine the
relationship among the constructs. SEM provides a platform to test and validate relation-
ship and enables researchers to more effectively evaluate measurement models and
structural paths involving multiple dependent variables and latent constructs with multi-
item indicator variables (Astrachan, Patel, & Wanzenried, 2014). The Covariance Based
SEM (CB-SEM) was used in the study and the structure model was tested using version
21 of Analysis of Moment Structures (AMOS) software. A two-stage approach involving
12 G.M.Y. OWUSU ET AL.
TABLE 2. Mean, Standard Deviation, Kurtosis, and Skewness Statistics.
Standard
Construct Mean Deviation Kurtosis Skewness
Behavioral Intention 5.00
When I have banking to do, it is likely I would use mobile banking 4.39 2.095 −1.222 −.285
To the extent possible, I would take advantage of Mobile banking for my 5.00 1.873 −.658 −.691
banking activities
Perceived Ease of Use 5.30
Learning to use Mobile banking would be easy 5.29 1.737 .271 −1.042
I think it would be simple for me to become skilled at using Mobile 5.35 1.743 .369 −1.088
banking
I find my interaction with Mobile banking clear and understandable 5.26 1.7175 .015 −.901
Perceived Usefulness 5.56
Mobile banking would be useful for conducting banking transactions 5.58 1.646 1.179 −1.347
Mobile banking would improve my performance in conducting banking 5.39 1.668 .364 −1.073
transactions
Mobile banking would make it easier to conduct banking transactions 5.60 1.591 1.267 −1.354
Using Mobile banking would enable me accomplish tasks more quickly 5.66 1.626 1.173 −1.377
Perceived Cost 3.42
It would cost a lot to use mobile phone banking 3.21 1.901 −.820 .554
I think that the internet access cost of using mobile phone banking 3.62 1.813 −.952 .258
would be high
Perceived Risk 4.43
I feel that conducting my banking business on my mobile phone would 4.41 1.820 −.905 −.290
be secured
I know that mobile phone banking will handle my business correctly 4.44 1.659 −.695 −.272
I feel that conducting my banking business on my mobile phone would 4.44 1.770 −.870 −.276
be safe
Relative Advantage 5.20
Use of mobile banking can increase the effectiveness of my work/study/ 5.14 1.636 .198 −.926
life tasks
Overall, I find mobile phone banking useful in my daily life 5.22 1.657 .111 −.893
Overall, I find using mobile banking to be advantageous in my life 5.23 1.669 .195 −.962
Complexity 3.54
Mobile Banking requires a lot of mental effort 3.39 1.857 −.991 .342
Mobile Banking requires a lot of technical skills 3.69 1.875 −1.020 .178
Measurement model and Structural Model as recommended by many existing studies
(Gu et al., 2009; Hanafizadeh et al., 2014; Karjaluoto et al., 2010) was adopted.
Measurement model
The measurement model represents the first stage in the CB-SEM analysis process. Being
the preliminary stage, the model was subjected to a Confirmatory factor analysis (CFA)
to check the overall fitness of the research instrument by validating the respective factor
loadings, model fit, reliability, validity, and normality. The CFA results are presented in
Tables 3 and 4. Except for three indicators (PEOU2, COMP2 & PC3) which loaded
poorly on their respective constructs1 all the indicators met the recommended threshold.
By relying on the fit indices: RMSEA, TLI, CFI, TLI, NFI, and CMIN/df as recommended
by Byrne (2010)and Hair et al.,(1998), the results as shown in Table 3 confirm that the
overall model fit for the measurement model was appropriate and within the recom-
mended ranges.
1These indicators had factor loadings below 0.5 and hence were deleted from the model.
JOURNAL OF AFRICAN BUSINESS 13
TABLE 3. Model Fit Indices for Measurement Model.
Fit Indices Accepted Values Model Results Remarks
Parsimony Normed Fit Index (PNFI) > 0.5 Mulaik et al., (1989) 0.674 Good
Root Mean Square of Approximation (RMSEA) < 0.08 Byrne (2001) 0.054 Good
Normed Fit Index (NFI) >.90 Bentler and Bonett (1980) 0.926 Good
Comparative Fit Index (CFI) > 0.90 Bentler (1990) 0.951 Good
Goodness of fit Index (GFI) > 0.90 Chau (1997) 0.952 Good
CMIN/DF < 5.0 Bentler (1990) 2.746 Good
TABLE 4. Confirmatory Factor Analysis.
Factor Cronbach
Construct Loadings AVE CR Alpha
Behavioral Intention 0.716 0.831 0.809
When I have banking to do, it is likely I would use mobile banking 0.707
To the extent possible, I would take advantage of Mobile banking for my 0.966
banking activities
Perceived Ease of Use 0.543 0.781 0.782
Learning to use Mobile banking would be easy 0.71
I think it would be simple for me to become skilled at using Mobile 0.723
banking
I find my interaction with Mobile banking clear and understandable 0.776
Perceived Usefulness 0.762 0.927 0.927
Mobile banking would be useful for conducting banking transactions 0.873
Mobile banking would improve my performance in conducting banking 0.852
transactions
Mobile banking would make it easier to conduct banking transactions 0.901
Using Mobile banking would enable me accomplish tasks more quickly 0.866
Perceived Cost 0.548 0.706 0.700
It would cost a lot to use mobile phone banking 0.653
I think that the internet access cost of using mobile phone banking would 0.828
be high
Perceived Risk 0.704 0.877 0.876
I feel that conducting my banking business on my mobile phone would be 0.797
secure
I know that mobile phone banking will handle my business correctly 0.849
I feel that conducting my banking business on my mobile phone would be 0.870
safe
Relative Advantage 0.718 0.884 0.879
Use of mobile banking can increase the effectiveness of my work/study/ 0.764
life tasks
Overall, I find mobile phone banking useful in my daily life 0.885
Overall, I find using mobile banking to be advantageous in my life 0.888
Complexity 0.594 0.745 0.744
Mobile Banking requires a lot of mental effort 0.769
Mobile Banking requires a lot of technical skills 0.782
Reliability and validity tests
Test for reliability of each construct was assessed using the composite reliability (CR) and
Cronbach Alpha scores. For a construct to be considered reliable in a model, it must have
a CR score and Cronbach alpha value of above 0.7 (Fornell & Larcker, 1981; Nunally,
1978). Results of these tests as shown in Table 4 indicate that the CR and alpha score for
each construct is above 0.70, which falls within the acceptable reliability range.
Convergent validity test was conducted using the average variance extracted (AVE).
Using the formula proposed by Hair et al. (1998), the AVE was computed by dividing the
sum of the squared standard loadings by the sum of the squared standard loadings plus
the sum of indicator measurement errors. Results as shown in Table 4 indicate that
14 G.M.Y. OWUSU ET AL.
convergent validity is assured as the AVE scores for all the constructs were above the
recommended threshold of 0.50 (Fornell & Larcker, 1981). An AVE score above 0.5
suggests that the latent variables explain more than half of its indicators’ variances
(Asyraf & Afthanorhan, 2013).
Further, discriminant validity test was done to ascertain how distinct and uncorrelated
the constructs are. The Fornell–Larcker criterion (Fornell & Larcker, 1981) prescribes
that all AVEs should be higher than the squared inter-construct correlations. Results of
this test as presented in Table 5 demonstrate that discriminant validity is satisfactory as
the AVE scores for the constructs were greater than the squared cross-correlations of the
constructs.
Structural model
Having confirmed the reliability and validity of the constructs, the structural model was
assessed to test for the study hypotheses. The results for the structural model are shown
in Table 6. Except for hypotheses H3, H7 & H8, all the hypotheses for the study yielded
satisfactory results in line with the prediction of this study. The results suggest that
perceived ease of use, perceived usefulness, and relative advantage are the factors that
significantly influence the intention of the respondents to adopt mobile banking. An
analysis of the path coefficient shows that the most influential factor that drives beha-
vioral intention to adopt mobile banking is relative advantage (standard co-efficient of
0.432) followed by perceived usefulness (co-efficient = 0.172) and perceived ease of use
(co-efficient = 0.232). Complexity and perceived Cost are the least influential factors with
a co-efficient of 0.031 and −0.020, respectively. The results also demonstrate that per-
ceived risk, cost, and complexity have no significant association with intention to adopt
mobile banking. Also, a significant positive relationship exists between relative advantage
and perceived usefulness whilst complexity also has a negative influence on ease of use.
TABLE 5. Correlation and Correlation Square Matrix of Latent Variables.
PU PEOU RA PR PC INTENT COMP
PU 1 0.560 0.441 0.210 0.028 0.317 0.039
PEOU 0.748 1 0.540 0.189 0.018 0.379 0.075
RA 0.664 0.735 1 0.241 0.008 0.408 0.018
PR 0.458 0.435 0.491 1 0.002 0.123 0.004
PC −0.166 −0.135 −0.091 0.044 1 0.010 0.168
INTENT 0.563 0.616 0.639 0.351 −0.099 1 0.018
COMP −0.198 −0.273 −0.134 0.063 0.410 −0.134 1
TABLE 6. Standard Coefficients and Significance Values for Hypotheses.
Hypothesis Path Standard Co-efficient P Value Result
H1 Perceived Ease of Use → Behavioral Intention to Adopt 0.232 *** Accepted
H2 Perceived Usefulness → Behavioral Intention to Adopt 0.172 0.03 Accepted
H3 Complexity → Behavioral Intention to Adopt 0.031 0.573 Rejected
H4 Complexity → Ease of Use −0.319 *** Accepted
H5 Relative Advantage → Behavioral Intention to Adopt 0.438 *** Accepted
H6 Relative Advantage → Perceived Usefulness 0.681 *** Accepted
H7 Perceived Risk → Behavioral Intention to Adopt 0.00 0.998 Rejected
H8 Perceived Cost → Behavioral Intention to Adopt −0.020 0.706 Rejected
Note: ***P Value < 0.01.
JOURNAL OF AFRICAN BUSINESS 15
Discussion results
The overall purpose of this study was to examine the intention of students toward mobile
banking application. Relying on two predominant theories: TAM and IDT as the
theoretical basis, the current study examined the factors that influence student’s inten-
tion to adopt mobile banking. Findings of this study support prior literature on the
validity of the TAM model. From the results, both perceived usefulness and ease of use
have significant and a positive relationship with intentions to adopt mobile banking.
These findings thus suggest that when individuals perceive a technology to be useful and
find its application relatively easier to use, the intention to adopt the technology is usually
higher. Empirically, several studies (Karjaluoto et al., 2010; Lin, 2011; Luarn & Lin, 2005)
support the finding that perceived usefulness and ease of use have positive influence
behavioral intention to adopt mobile banking. Within the Ghanaian context, however,
the relevance of perceived usefulness and ease of use on mobile banking adoption cannot
be overemphasized. The preference for face to face transactions is so prevalent in this part
of the world that despite the provision of ATMs by most commercial banks in the
country, customers continue to queue at banks for reasons such as checking account
balance and other services that can easily be done via ATM. Giving this background, any
technology in the banking space aimed at reducing branch banking in Ghana should not
just offer real-time benefits but must be user-friendly in order to encourage usage. The
motivation to rely on a technological innovation for banking needs will be spurred on
once it appears user-friendly, has an easy functionality system, and beneficial to their
everyday banking needs.
Mindful of the known criticisms of the TAM framework, the study further ascertained
the effect of relative advantage and complexity on intentions to adopt mobile banking by
drawing on the IDT. In line with the prediction of this study and consistent with some
empirical studies (Karjaluoto et al., 2010; Lin, 2011), a positive and highly significant
relationship was found between relative advantage and intentions to adopt mobile
banking. This gives an indication that when customers find mobile banking to be more
advantageous than other delivery channels (traditional banking channels), they will have
greater intention to adopt mobile banking. Giving the huge preference for branch bank-
ing in Ghana notwithstanding its inconveniences such as long queues and waiting
periods (Agyei, Asare-Darko, & Odilon, 2015), convincing customers to switch to mobile
banking technology as a delivery mode will depend substantially on the relative benefits it
presents. To this end, an effective communication strategy that highlights the benefits of
mobile banking technology will be key in effecting any change in behavior among the
client base, most of whom would prefer to conduct business physically at the banking
hall.
However, unlike the findings in most prior studies (Davis, 1989; Mattila et al., 2003;
Pikkarainen et al., 2004; Venkatesh & Davis, 2000), the relationship between complexity
and intentions yielded an insignificant result.
The two external factors (perceived risk and cost) though appropriately signed had an
insignificant relationship with intentions to adopt mobile banking. Perceived Risk was
found to be negatively related to intentions but not statistically significant
(p-value = 0.998). Thus, contrary to findings in some existing studies (Brown et al.,
2003; Wu & Wang, 2005), the perceived risk associated with technology adoption does
16 G.M.Y. OWUSU ET AL.
not affect the intentions of students to adopt mobile banking in a significant manner
within the context of Ghana. While this might appear strange, it also raises some
questions about the level of awareness of the respondents of the risks that are plagued
with technological innovations like identity theft, security issues including malware, etc.
Similarly, though the coefficient of perceived cost was negative, in line with findings in
empirical literature (Luarn & Lin, 2005; Rogers, 2003), the relationship was not statisti-
cally significant. Thus, perception of cost does not affect the intention to adopt mobile
banking in any significant manner. This result is somehow expected given that mobile
internet charges in Ghana appear low with time due to intense competition among
players in the telecommunication industry. Most telecommunication companies in
recent times have introduced data bundle packages and other special offers aimed at
making internet access affordable to their clients. The relatively cheaper cost of mobile
data therefore limits the expected impact of the cost factor on the intention to adopt
mobile banking technology in Ghana. Moreover, compared with the benefits associated
with conducting banking services via mobile phones the perceived cost may not be too
much to offset such benefits.
Results of the test of association between complexity and perceived ease of use clearly
confirm the hypothesis that complexity acts as an antecedent to perceived ease of use.
Consistent with findings in some existing studies (Moore & Benbasat, 1991; Wu &Wang,
2005), a negative and highly significant association (p-value < 0.001) was found between
complexity and perceived ease of use. Thus, perception of ease of use of a mobile banking
technology is inversely related to the nature of its complexity. By implication, users may
find mobile banking technology easier to use if the application is less complex. Given that
complexity affects ease of use and the fact that perception of ease of use has important
implications on adoption intent, banks should consider developing applications that are
very user-friendly as a means of promoting the adoption of mobile banking technology
particularly in a setting like Ghana where the average customer prefers to conduct
business often visiting a branch.
Lastly, the results also demonstrate that relative advantage is an important predictor of
users’ perception of the usefulness of mobile banking technology. As the results indicate,
there is a positive and highly significant association between relative advantage and
perceived usefulness (p-value < 0.01). This implies that when users find more premium
in subscribing to mobile banking services than with other banking delivery channels,
their perception about its usefulness increases. Bearing in mind the conclusion estab-
lished on the relationship between perceived usefulness and intention to adopt mobile
banking, it would be needful for banks to be rigorous in their approach to ensure that
mobile banking services are more advantageous to the user than other delivery channels.
This evidence is consistent with literature that affirms the association between relative
advantage and perceived usefulness (Moore & Benbasat, 1991; Wu & Wang, 2005).
Taken together, the findings of this study demonstrate the usefulness of TAM and IDT
models in predicting technology adoption in different contexts. This study finds both
theories to be particularly useful in explaining the intention to adopt mobile banking
technology among the Ghanaian youth as predicted. With results being consistent with
findings in most existing studies that employed TAM and IDT, in other settings, it could
be concluded that both theories are reliable in predicting technology usage which to
JOURNAL OF AFRICAN BUSINESS 17
a large extent explains why they have been the most dominant theories in technological
adoption studies.
Conclusions and implications
One important innovation that has ‘revolutionized’ the banking sector in terms of service
delivery in recent times is the shift from the traditional face-to-face encounter (branch
banking) to other virtual forms of banking, with mobile banking being the most recent
addition. Despite the numerous benefits that mobile banking offers to clients, preference
for face-to-face transactions is still high in most developing countries (Ivatury & Mas,
2008; Juniper Research, 2013). The rate of mobile banking usage is generally believed to
be low in most developing countries even in the presence of high mobile phone
penetration rate and availability of the internet.
The objective of this paper was in two folds. First, the study sought to explore the
behavioral intentions of people towards mobile banking adoption from a developing
country perspective. Second, the dominant factors that drive individuals’ intention to
adopt mobile banking was also investigated. Given that prior studies consider the older
generation to be laggards in the adoption of new technology (Oumlil & Williams, 2000),
coupled with the fact that mobile phone usage remains an integral part of the life of the
younger generation (Fife & Pereira, 2003), this study exclusively focused on the inten-
tions of the younger generations toward mobile banking.
By employing the Technology Acceptance Model and the Innovation Diffusion
Theory, the study documents that the willingness to adopt mobile banking by the
youth is high and that factors such as perceived ease of use, perceived usefulness, and
relative advantage are important predictors of the intention to adopt mobile banking
in Ghana. The results of this study have important implications for Ghanaian banks
and other financial institutions providing mobile banking services as well as those
planning to offer them. For instance, given that ease of use is positively associated
with adoption intentions, the design of mobile banking apps for consumer banks
should consider features that consumers can easily identify with and operate with
minimal difficulty. For banks that are already providing the service, it will be useful
to roll out user-friendly marketing strategies such as ads and brochures, demonstrat-
ing tips on how to set up the platform needed to effectively conduct mobile banking.
Related to the above, the positive association between relative advantage and mobile
banking adoption also suggests that mobile banking should not be a mere alternative
to branch banking if banking institutions want to increase the rate of adoption. One
way of promoting its use is for banks to make it comparatively more expensive to
execute certain transactions at the banking hall than via virtual forms like mobile
banking. Given that the results are generally consistent with studies in other jurisdic-
tions, the findings and recommendations of this study may also be relevant to banks
in developing countries in the formulation and implementation of their mobile
banking strategies aimed at attracting the younger generation to adopt the
technology.
18 G.M.Y. OWUSU ET AL.
Disclosure statement
No potential conflict of interest was reported by the authors.
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22 G.M.Y. OWUSU ET AL.
Appendix
Construct Item Source
Behavioral When I have banking to do, it is likely I would use mobile banking Hanafizadeh et al.
Intention To the extent possible, I would take advantage of Mobile banking for my (2014)
banking activities
Perceived Ease of Learning to use Mobile banking would be easy Lin (2011)
Use I think it would be simple for me to become skilled at using Mobile banking
I find my interaction with Mobile banking clear and understandable
Perceived Mobile banking would be useful for conducting banking transactions Karjaluoto et al.
Usefulness Mobile banking would improve my performance in conducting banking (2010)
transactions
Mobile banking would make it easier to conduct banking transactions
Using Mobile banking would enable me accomplish tasks more quickly
Perceived Risk I feel that conducting my banking business on my mobile phone would be Hanafizadeh et al.
secure (2014)
I know that mobile phone banking will handle my business correctly
I feel that conducting my banking business on my mobile phone would be
safe
Complexity Mobile Banking requires a lot of mental effort Al-Jabri and
Mobile Banking requires a lot of technical skills Sohail (2012)
Perceived Cost It would cost a lot to use mobile phone banking Hanafizadeh et al.
I think that the internet access cost of using mobile phone banking would (2014)
be high
Relative Use of mobile banking can increase the effectiveness of my work/study/life Liu and Li (2010)
Advantage tasks
Overall, I find mobile phone banking useful in my daily life
Overall, I find using mobile banking to be advantageous in my life