UNIVERSITY OF GHANA CUSTOMERS’ ACCEPTANCE OF MOBILE BANKING: OBSTRUCTIONS AND THE ROLE OF CULTURAL MODERATORS BY ERASMUS YEMOFIO (10638062) THIS THESIS IS SUBMITTED TO THE DEPARTMENT OF OPERATIONS AND MANAGEMENT INFORMATION SYSTEMS, UNIVERSITY OF GHANA BUSINESS SCHOOL, UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MPHIL IN MANAGEMENT INFORMATION SYSTEMS DEGREE JULY 2021 University of Ghana http://ugspace.ug.edu.gh i DECLARATION This work is the result of my own research efforts and has not been presented by any other individual for any academic award in this or any other university. All references used in the work have been fully acknowledged, with citations made to the respective authors whose works contributed to the successful completion of this study. I, therefore, bear responsibility for any shortcomings. _________________ _______________ Erasmus Yemofio Date (10638062) ___________________________ _________________ DR. ACHEAMPONG OWUSU Date (Supervisor) _____________________________ ________________ PROF. RICHARD BOATENG Date (Co-Supervisor) 25/10/2020 25/10/2020 24/10/2020 University of Ghana http://ugspace.ug.edu.gh ii ABSTRACT This research intended to identify and analyze security and privacy factors that impede mobile phone banking acceptance in the banking sector in Ghana. It also set out to examine the intervening effect of cultural dimensions on the factors that account for the acceptance of mobile banking. Lastly, the study sought to propose a conceptual model to depict the various obstructing factors and moderators of mobile banking acceptability from the respondents’ perspective. This work was carried out by the combination of the Technology Acceptance Model (TAM), which has evolved and expanded over time, and Hofstede’s Cultural theory as moderators. The study integrates constructs such as security and privacy, perceived trust, perceived risk, and regulatory influence. These constructs mostly make up underpinning theories and models of technology acceptance, such as the Theory of Reason Action (TRA), the Technology Acceptance Model (TAM), and the Unified Theory of Acceptance and Use of Technology (UTAUT). To achieve these objectives, the study adopted a qualitative research method, using an interview guide to collect data from twenty (20) panel participants drawn from mobile banking users and non-mobile banking users. Research questions were generated, and the data collected was analyzed. The study found that privacy and security were both obstructions and motivating factors to mobile banking acceptability. To most respondents, privacy and security were the reasons why they used mobile banking as they believed that their information is secured. They felt that since their account is protected by a PIN, known only to them, their account is safe while those who have not subscribed cited fear for their security and privacy as the rationale for not using mobile banking services. They feel that putting out their information in such a virtual world riddled with hackers may lead to their information ending up in the wrong hands. More devastating maybe, when they lose their phone, since their bank account may be accessed by unscrupulous people. Meanwhile, the University of Ghana http://ugspace.ug.edu.gh iii study extensively, found that cultural moderators serve as factors influencing users’ mobile banking acceptability or rejection. Thus, individualism and uncertainty avoidance have a significant influence on security and privacy thereby determined whether a customer used mobile banking or not. It was also found that high cost, in terms of internet charges and unreliable internet services were the reasons some consumers have perceived not to use mobile banking services. On the basis of the findings, the study concluded that mobile banking has had a significant positive influence on the banking sector in Ghana. Mobile banking users have confidence in their banks. Though many people enjoy the ease and comfort that comes with mobile banking, efforts should be made by operators of these products to convince the few, who still do not trust the system. This country-specific study leads to mobile banking acceptance and offers authors, practitioners, and policymakers some useful insights into how to enhance the acceptability of mobile banking for countries with a similar environment. Especially, the study finally recommended that mobile banking service providers must improve security and privacy by improving security and privacy features on their mobile banking platforms to boost user confidence. More so, mobile banking service providers must use available channels to give adequate information and education surrounding the protection of mobile banking. Also, mobile banking service providers must collaborate with internet service providers to bring about affordable internet charges, and reliable internet services in the mobile banking industry. Further studies should, again, be undertaken with the focus on different possible intervening factors on mobile banking acceptability in Ghana. University of Ghana http://ugspace.ug.edu.gh iv DEDICATION To my Inspirational Family (Wife and Kids), My Mum and My Manager. University of Ghana http://ugspace.ug.edu.gh v ACKNOWLEDGMENT Praise be unto the name of Jehovah, who has been my provider and guardian. I owe my gratitude to all those who have made this thesis possible and because of whom my graduate experience has been one I will forever cherish. Foremost, I would like to express my sincere gratitude to my supervisor, Dr. Acheampong Owusu and Prof. Richard Boateng, my co-supervisor for their immense support throughout this research. I express my warm thanks to my wife and manager who ensured this dream saw the light of day. Your invaluable support and understanding will always be in my heart. I thank my fellow 2017/2018 MPhil MIS course mates for the stimulating discussions, the sleepless nights we endured working together to meet tight deadlines, and for all the fun we had during the period. Finally, words cannot express how grateful I am to my mother, and siblings for all the sacrifices they made on my behalf. Your prayers for me were what sustained me thus far. I say a big thank you to you all. Your contributions were not in vain. University of Ghana http://ugspace.ug.edu.gh vi TABLE OF CONTENTS DECLARATION ................................................................................................................... i ABSTRACT .......................................................................................................................... ii DEDICATION ..................................................................................................................... iv ACKNOWLEDGMENT ....................................................................................................... v CHAPTER ONE ................................................................................................................... 1 INTRODUCTION ................................................................................................................ 1 1.1 Background to study ....................................................................................................... 1 1.2 Research Problem............................................................................................................ 3 1.3 Research Purpose ............................................................................................................ 6 1.4 Research Objectives ........................................................................................................ 7 1.5 Proposed Research Questions ......................................................................................... 7 1.6 Significance of the Study ................................................................................................ 7 1.7 Chapter Outline ............................................................................................................... 8 CHAPTER TWO ................................................................................................................ 10 LITERATURE REVIEW.................................................................................................... 10 2.1 Chapter Overview ......................................................................................................... 10 2.2 Development of Mobile Banking .................................................................................. 11 2.2.1 Mobile Banking Services and Modes of Operations.................................................. 12 2.2.2 Mobile Banking Services ........................................................................................... 12 2.2.3 Modes of Operation by Providers .............................................................................. 13 2.2.4 Technologies Employed to Provide Mobile Banking Services.................................. 15 2.3 The Cultural Dimension in Technology Acceptability ................................................. 17 2.4 Review of M-banking Research .................................................................................... 19 2.5 Acceptance Theoretical Models in Mobile Banking ..................................................... 30 2.6 Chapter Summary.......................................................................................................... 34 CHAPTER THREE ............................................................................................................. 35 University of Ghana http://ugspace.ug.edu.gh vii 3.1 Chapter Overview ......................................................................................................... 35 3.2 Development of the Research Framework .................................................................... 35 3.2.1 Security and Privacy .................................................................................................. 35 3.2.2 Perceived Trust........................................................................................................... 39 3.2.3 Perceived Risk ............................................................................................................ 41 3.2.4 Regulatory or Legislative Influence ........................................................................... 42 3.2.5 Cultural Moderating Effect and the Acceptance of Mobile Banking ........................ 45 3.2.5.1 Power distance (PD) ................................................................................................ 47 3.2.5.2 Individualism/Collectivism ..................................................................................... 49 3.2.5.3 Uncertainty avoidance (UA) ................................................................................... 50 3.3 Justification for the Research Framework..................................................................... 52 3.4 Chapter Summary.......................................................................................................... 54 CHAPTER FOUR ............................................................................................................... 55 RESEARCH METHODOLOGY ........................................................................................ 55 4.1 Chapter overview ........................................................................................................ 55 4.3 Study Design ................................................................................................................. 57 4. 3.1 Research Approach ................................................................................................... 57 4.3.2 Research Strategy ....................................................................................................... 58 4.3.3 Research Target Population ....................................................................................... 59 4.3.4 Sample Size ................................................................................................................ 60 4.3.5 Sample Technique ...................................................................................................... 60 4.3.6 Data Collection Methods ........................................................................................... 61 4.3.7 Data Analysis and Interpretation ................................................................................ 68 4.3.7.1 Unit of analysis ....................................................................................................... 68 4.3.7.2 Thematic Analysis ................................................................................................... 68 4.4 Ethical Issues and Considerations ................................................................................. 68 4.5 Chapter Summary.......................................................................................................... 69 CHAPTER FIVE ................................................................................................................. 70 University of Ghana http://ugspace.ug.edu.gh viii DATA FINDINGS AND ANALYSIS ............................................................................... 70 5.1 Chapter Overview ......................................................................................................... 70 5.2 Introduction ................................................................................................................... 70 5.3 Data Presentations ......................................................................................................... 71 5.3.1 Biodata and Demographics ........................................................................................ 71 5.3.2 Knowledge about Mobile Banking ............................................................................ 74 5.3.3 Mobile Banking Acceptability and Usage ................................................................. 75 5.3.4 Obstructing factors towards the acceptance of M-banking ........................................ 76 5.3.4.1 Security and Privacy Obstructions .......................................................................... 77 5.3.4.2 Perceived Risk and Trust Obstructions ................................................................... 78 5.3.4.3 Perceived Regulatory Influence as an Obstruction ................................................. 79 5.3.5 Cultural Influence Toward M-banking ...................................................................... 80 5.3.6 Challenges with Mobile banking ............................................................................... 83 5.4 Chapter Summary.......................................................................................................... 84 CHAPTER SIX ................................................................................................................... 85 SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS ...................................... 85 6.1 Chapter Overview ......................................................................................................... 85 6.2 Summary of findings ..................................................................................................... 85 6.4 Implication to Research and Practice ............................................................................ 89 6.4.1 Research Implications ................................................................................................ 90 6.4.2 Practical implications ................................................................................................. 92 6.5 Research limitations ...................................................................................................... 93 6.6 Future Research Direction............................................................................................. 94 REFERENCES .................................................................................................................... 95 APPENDIX A ................................................................................................................... 106 University of Ghana http://ugspace.ug.edu.gh ix LIST OF TABLES Table 2.1. Main services offered through m-banking ......................................................... 13 Table 2.2. Prior Studies on Mobile Banking ....................................................................... 20 Table 3.1. Security Issues.................................................................................................... 38 Table 3.2. Hofstede’s Five Cultural Dimensions ................................................................ 46 Table 4.1. Main Research Constructs and Definitions ........................................................ 66 Table 5.1. Demographic factors affecting technology acceptability................................... 72 Table 5.2. Major factors influencing mobile banking Acceptability in Ghana ................... 76 Table 6.1. Mapping out Research Objectives with Research Findings and Contributions . 85 University of Ghana http://ugspace.ug.edu.gh x LIST OF FIGURES Figure 2.1. Mobile Banking Models ................................................................................... 14 Figure 3.1. Proposed Research Model ................................................................................ 52 Figure 5.2. Factors obstructing the acceptance of m-banking ............................................ 83 University of Ghana http://ugspace.ug.edu.gh xi LIST OF ACRONYMS AND ABBREVIATIONS ADC Alternative Delivery Channel ATM Automated Teller Machine BoG Bank of Ghana GCB Ghana Commercial Bank IS Information Systems IDV Individualism ICT Information and Communication Technology IDT Innovation Diffusion Theory MA Masculinity PATU Perceived Ability to Use PDA Personal Digital Assistant PD Power Distance PFB Perceived Functional Benefits PIN Personal Identification Number SSA Sub-Saharan Africa SMS Short Messaging Service TAM Technology Acceptance Model TRA Theory of Reasoned Action TPB Theory of Planned Behaviour TO Time Orientation UA Uncertainty Avoidance University of Ghana http://ugspace.ug.edu.gh xii UNCITRAL United Nations Commission on International Trade UTAUT Unified Theory of Acceptance and Use of Technology WAP Wireless Application Protocols University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE INTRODUCTION 1.1 Background to study The development of the internet, wireless technology, and mobile apps have propelled banks to come up with creative means of outwitting competition (Alalwan, Dwivedi & Rana, 2016; Koksal, 2016; Singh & Malhotra, 2010). As a result, the progression of the internet from a fixed-line limitation to a mobile one, mobile technology gadgets such as mobile phones, which were used in communicating with others, is currently employed in banking transactions (Koenig-Lewis, Palmer & Moll, 2010). This platform, which became known as mobile banking or m-banking, has brought forth a new era in the banking industry worldwide (Shambare, 2013; Oliviera & Tam, 2017). Thus, banks around the world, including Ghana (Cudjoe, Anim & Nyanyofio, 2015), adopted mobile banking as a strategic tool outside the conventional banking structure. M-banking is simply “the delivery of information or services by a bank to its customers by way of different delivery platforms such as mobile and personal digital assistants (PDAs) through wireless application protocols (WAP)” (Afshan & Sharif, 2016, p.371). It has many advantages over traditional banking like the everywhere/anytime service availability, elimination of queues, and reducing branch working hours, etc. Transactions such as money transfers, bill payments, accounts monitoring, managing of bank accounts, enquiries, and Automated Teller Machine (ATM) locations are made available to customers through the m-banking channel (Luarn & Lin, 2005; Goyal, Nagori & Sasmal, 2012). Particularly, there is an increased use of smartphones, which presents the opportunity for m-banking services, encouraging banks, software designers, and other related service providers to offer this innovative service to enhance operational efficiency, increase market shares and improve customer retention and satisfaction (Shaikh, 2013). Banks now provide mobile banking University of Ghana http://ugspace.ug.edu.gh 2 services to their customers (Koenig-Lewis et al., 2010; Alalwan et al., 2016; Cudjoe et al., 2015; Makanyeza, 2017). As Juniper Research (2013) disclosed, over one billion people had used m-banking globally as of 2017, with the mobile banking market expected to be worth $14.27 billion by 2020. While Automated Teller Machines (ATMs), telephones, and m-banking provides effective channels of distribution for conventional banking, as the latest channel of delivery set up by players within the financial service industry in most developed and developing nations, mobile phone use has had a significant market impact (Safeena, Date, Kammani & Hundewale, 2012). An example is the usage of mobile phones by Ugandan farmers, Indian barbers, and microfinance operators in Ghana to obtain prices, provide product and service details, thereby reducing transactional costs, enhancing operational efficiency, improving customer retention, etc. (Goyal, Nagori & Sasmal, 2012; Shaikh, 2013; World Bank, 2011). Presently, various business and institutional models provide these systems. Others are provided solely by banks with others wholly provided by telecommunication service providers and even others include a relationship between a bank and a telecommunications service provider (Porteous, 2006; Goyal et al., 2012). Thus, there is no common form of mobile banking; rather, structure and purpose differ from one country to the other (Makanyeza, 2017; Camilo, Reynolds, Johnson, Halpem & Ransom, 2008). In Africa and beyond, there have been various forms and types of m-banking. For instance, in some Asian countries, there is the Mobile Suica, Octopus NTT DoCoMo with over 20 million subscribers (Goyal, Nagori & Sasmal, 2012). In Kenya, the M-PESA provides an example of the first mobile banking technology as well as the introduction of mobile phones to support microfinance by Safaricom, a Vodafone subsidiary. Uganda is also on the rise in terms of mobile phone usage. As a result, banks have leveraged on this and the adoption University of Ghana http://ugspace.ug.edu.gh 3 rates and the patronage of mobile banking services are high as demonstrated in the Uganda Communication Commission report (2009) and Kochhar (2009). Besides, South Africa is by far the country on the continent with both the highest mobile banking patronage and penetration. However, the legal and regulatory landscape is not entirely conducive to greater financial inclusion (Ondiege, 2010; Lawack, 2013), which has to do with security and privacy issues as well as national culture. Notwithstanding the potential advantages that mobile banking offers to customers, its rate of acceptance has been limited and, in many cases, varies considerably between countries (Takieddine & Sun, 2015). It is grounded in literature that mobile banking is still at its infant stage and has struggled to gain potential consumers ' trust so far (Zhang, Zhu & Liu ,2012). Moreover, despite the improvement in technology and the increased use of m-banking services in developing countries like Ghana, the number of users has fallen short of expectations. Security and privacy, as well as cultural factors, play a significant role in customers’ acceptance of m-banking (Koksal, 2016; Mohammedi, 2015). Therefore, a fact that merits research into the reasons and the cultural intervening effects toward mobile banking acceptance in Ghana. 1.2 Research Problem The current situation demands banks to pay much attention to the various obstructions and the acceptance of electronic banking in its entirety. Compliance with consumers’ needs and requirements (Bilan, 2013), security and privacy issues, and bank customers’ acceptance and more is presently at the center of the focus of researchers and bankers. As a result, the interest of Information Systems (IS) related research is shifted to the area of m-banking channels emerging as one of the latest developments of the IS domain (Al Jabri & Sohail, 2012; Yu, 2012; Shaikh & Kajaluoto, 2015). Previous works have focused mainly on the University of Ghana http://ugspace.ug.edu.gh 4 choosing and use of mobile banking. Research work on electronic banking security and customer satisfaction (Belas & Klujnikov, 2016), dimensions of mobile banking service quality (Jun & Palacios, 2015), determinants of mobile banking adoption in Ghana (Cudjoe, Anim & Nyanyofio 2015), mobile banking, and individual performance (Tam & Oliviera, 2017), acceptance of mobile banking framework in Pakistan (Afshan & Sharif, 2016), predicting the intention to use mobile banking (Singh & Srivastava, 2018), the relationship between electronic banking adoption and the role of cultural influence (Zhang, Zhu & Liu, 2018) and the influence of culture on mobile banking usage and individual performance (Tam & Oliviera, 2018) are a few of the many pieces of literature on mobile banking. Firstly, in mobile banking, theoretical studies have mostly centered on adoption theories that includes the Unified Theory of Acceptance and Use of Technology (UTAUT), the Theory of Reasoned Behavior (TRA), Technology Acceptance Model (TAM), and the Theory of Planned Behaviour (TPB) to examine the behavioral patterns of the users of mobile banking. Some of these studies have extensively focused on the determinants of m- banking studies (Mohammedi, 2014; Cudjoe, Anim & Nyanyofio, 2015). However, there is the need to examine security and privacy, risk, trust, and regulatory influence in mobile banking acceptance from consumers’ perspective. These related security and privacy obstructing factors are scattered in various determinants and theories used in studying the phenomenon of mobile banking. This study, therefore, seeks to pull the constructs from the various literature and understudy them holistically. Secondly, according to Bojjagani and Sastry (2016), with the upsurge in mobile phone usage, challenges encountered in the use of these devices increased drastically. The privacy and security of personal financial data is a major challenge. Certainly, because of this, it has also become quite popular with hostile challenges. A perceived lack of security is seen as a University of Ghana http://ugspace.ug.edu.gh 5 possible loss caused by fraud or system hacking (Lee, 2009). As a result, security and privacy are stated as two basic determinants of customers' trust, generally in e-banking channels (Omariba, Masese & Wanyembi, 2012; He & Tian, 2015; Bojjagani & Sastry, 2016). Thus, customers’ acceptance and satisfaction with mobile banking could be significant within the Ghanaian banking industry. Thirdly, in their contribution to literature, Keating and Hanafizadeh (2013) focused their study on analyzing and bringing together multiple existing studies to better understand electronic banking components. They subsequently, seek to draw some conclusions through comparison across a population, as well as channels or methods of distribution. Hence, they suggested in-depth research in the various components of e-banking – mobile banking (Shaikh, 2015) to intensify possibilities of comparative studies within the wider sphere of e-banking technologies. This does not exclude the various perspectives, especially, from the individual level perspective. The above, among many, is a gap that this study seeks to examine towards finding answers and enhancing literature in mobile banking acceptance. Fourthly, the inclusion of the moderating effect of cultural dimensions in understanding customers’ reluctance in order to accept mobile banking as pointed out by Tam and Oliviera (2018), isolates this study from some of the past mobile banking literature. As Behbodi, Granehim, and Lundman (2014) posit, the increasing demand to motivate customers to utilise mobile phones for their banking needs coupled with the negative trend in the acceptance of this innovative ideas in developing countries, make it relevant to study the obstructive factors of mobile banking acceptance. Moreover, research has called to mind the addition of a group of moderators that have not been mainly tested such as cultural dimensions by (Behbodi, Granehim & Lundman, 2014) to help appreciate the effects of the University of Ghana http://ugspace.ug.edu.gh 6 relationship between the elements and the acceptance of mobile banking at the individual level. Finally, in terms of context gap, a number of studies on mobile banking acceptance have, in some way, focused on developing countries like Kenya, South Africa, Philippines, India, Uganda, and Ghana (Kochhar, 2009; Ondiege, 2010; Klein & Mayer, 2011; Cudjoe, Anim & Nyanyofio, 2015; Asante-Gyaabah et al., 2015). There is also the need to consider the fact that such studies have taken minimal percentages as compared to the Asian and European countries. In their review, Asia and Europe have 59% and 23% respectively while Africa has 7% of studies conducted within those areas (Cudjoe, Anim & Nyanyofio, 2015). Hence, extending this study to a developing country like Ghana, which has culture as the underlined bases of life choices, to understand the impediments of mobile banking and the cultural effects, will suitably help to appreciate the maximization of the technology’s acceptance within the Ghanaian banking industry. Again, with the reformation trends of the banking systems by the Bank of Ghana (BoG), such a country-specific study will be appropriate for the tapping of knowledge for the effect of the reformation in a similar context. Against this context and these gaps, this research is driven in attempting to investigate the obstructive constituents and integrating the moderating contribution of cultural dimensions towards the acceptance of mobile banking services in the Ghanaian banking sector. 1.3 Research Purpose The purpose of this study is to understand the factors that obstruct or serve as barriers towards mobile banking acceptance in the Ghanaian banking industry. In addition, the study seeks to examine the moderating effect of cultural dimensions on these factors towards the acceptance of mobile banking. University of Ghana http://ugspace.ug.edu.gh 7 1.4 Research Objectives The specific objectives of the present study are: 1. To examine factors that obstruct the acceptance of mobile banking services among customers in Ghana. 2. To explore the moderating role of culture in mobile banking acceptance among banking customers in Ghana. 1.5 Proposed Research Questions 1. Which factors obstruct the acceptance of mobile banking services among banking customers in Ghana? 2. How does culture moderate the effect of each obstructing factor – mobile banking acceptance relationship? 1.6 Significance of the Study Firstly, this thesis will contribute immensely to the development of the relatively young m- banking literature to stimulate academic study interest in the field of information systems by contributing to the growing literature in mobile banking in the Ghanaian context, especially with the reformation trends of the banking systems by the Bank of Ghana (BoG). Hence, the country-specific study design and findings of this research will be appropriate for other countries that are similar in context. Also, the theorization and model used in this research broadens the m-banking acceptance literature. In lieu of this, future studies will assimilate this study’s model and give thought to designing more discerning research in the field. In furtherance, the moderating effects of culture will bring to bear an additional behavioral pattern in m-banking acceptance. Secondly, the findings of this research will identify the expectations and wants of customers and understanding their motivation for the acceptance and utilisation of mobile banking, University of Ghana http://ugspace.ug.edu.gh 8 which will assist bank managers to develop strategies to improve customer acceptance and satisfaction of such technology beyond Africa. Thirdly, the contribution of this study can inform mobile banking application developers and technical support administrators of banks of the lessons learned to enhance future best practices of mobile service provision. The knowledge and understanding resulting from this research approach will not only help banks target impediments that hinder user acceptance but will also help them to determine the decision-making factors for their services. Lastly, the findings of the study can practically serve as a roadmap for establishing a strategic policy plan for the regulatory environment either by stipulation or improvement of an existing one. 1.7 Chapter Outline The present study has been divided into six (6) chapters which is in line with the procedures of this work. Chapter 1: Introduction: This chapter introduces the work in nature and outlines the research background, problem, purpose, objectives of the study, questions, significance, and the organisation of the research. Chapter 2: Review of Literature: This chapter deals with the review of literature. In this chapter, important studies relating to the overview of m-banking services and its acceptance in the banking sector are exhausted. Chapter 3: Research Framework: This chapter deals with the development of a theoretical framework that will serve as the roadmap for this study. Chapter 4: Research Methodology: The chapter encompasses the research methodology approach for this research on the acceptance of mobile banking in Ghana. University of Ghana http://ugspace.ug.edu.gh 9 Chapter 5: Data Analysis and Discussion: The chapter includes the data presentation and combines the results and its discussions from the findings of the study. Chapter 6: Summary, Conclusions, and Contributions: This chapter summarises the findings of this research, draws conclusions from the findings, and contributes to academia, the banking sector, and other relevant stakeholders in the mobile banking sector. University of Ghana http://ugspace.ug.edu.gh 10 CHAPTER TWO LITERATURE REVIEW 2.1 Chapter Overview The previous chapter discussed the general background, problem statement, main purpose, and the significance of this research. Subsequently, in this section, pertinent literature on mobile banking and its acceptance or obstructions as well as the culture was reviewed. The literature on mobile banking development, mobile banking services, and modes of operation, as well as technologies employed to provide the services, was reviewed. The chapter also empirically reviewed mobile banking research and some foundational technology acceptance models to help deduce the obstruction factors in order to identify the research gaps. Evidence tends to indicate that mobile banking services are increasingly gaining popularity. With the increase in mobile phone penetration, a shoot up in the usage frequency of mobile devices and related services is also anticipated. Currently, five billion people were estimated to be owners of mobile phones around the world by 2019, Mobile phone penetration is projected to appreciate, rounding up to 67 percent by 2019 (Acker & Mbiti, 2010). 60% of Sub-Saharan Africa’s (SSA) population uses mobile phones, with this figure estimated to grow dramatically over the years (Acker & Mbiti, 2010; Asongu, 2018). Unfortunately, mobile banking security threats and acceptance, over the past few years, have increasingly gained traction in terms of frequency and sophistication. In this regard, it becomes prudent to study factors obstructing mobile banking in regions with significant growth to contribute insight and knowledge for other developing countries (Penard, Cliquet, & Shane, 2012). University of Ghana http://ugspace.ug.edu.gh 11 2.2 Development of Mobile Banking M-banking was birthed in the late 1990s when the first service was set forth by Paybox, a German firm, that partnered with Deutsche Bank. It was initially brought into service and tested in Germany, Sweden, Spain, United Kingdom, and Austria, mostly in Europe (Shaikh & Karjaluoto, 2015). In 2007, Kenya pioneered mobile banking among developing countries with a text-based m-banking service, M-Pesa. There were over seven million enlisted users of M-Pesa in Kenya by 2012 (Mbiti & Weil, 2015). According to Veijalainen, Reunamo, and Aljoki (2006), the key compelling force for the swift acceptance and usage of small mobile devices is the capacity of these devices to access services and running applications at any time and place on the go. Studies have referred to mobile banking in various terms such as M-banking (Liu, Min & Ji, 2009), Branchless banking (Ivatury & Mas, 2008; Afshan & Sharif, 2016), and M- payments (Goyal et al., 2012). In spite of the terminology they use, scholars commonly describe m-banking as an m-commerce application that allows customers to access their bank account via mobile devices for transactions such as enquiries about their account balance, transfer of money, payments, or selling stocks (Alafeef, Singh & Ahmed, 2012; Harma & Dubey, 2009; Tam & Oliviera, 2017). Laukkamen and Kiviniemi (2010) define mobile banking as “an interaction in which a customer is connected to a bank via a mobile device such as a cell phone, smartphone, or personal digital assistant”. Additionally, other studies (e.g., Akturan & Tezcan, 2012; Masrek & Khairuddin, 2012) cite m-banking as an innovative communication channel in that the customer interacts with a bank through a portable device. Ultimately, m-banking has caused some differences in the financial terrain and thus has enormous market potential due to its availability and the willingness of customers to bank practically anytime and at any location (Laukkanen & Kiviniemi, 2010). University of Ghana http://ugspace.ug.edu.gh 12 As a technological platform or service, m-banking services have an enormous benefit for both customers and banks. For the majority of the customers in these developing economies, there seem to be an expected convenience advantage over the traditional alternative banking (travelling and queuing at branches or cash-based savings) (Shaikh & Karjaluoto, 2015). According to the review, m-banking consists of customer advantages such as; the ability to inform owners of purchases made with their credit cards, how much was charged for each transaction, customers’ ability to view or check their deposits, withdrawals, balances in real- time, it also has the advantage for the customer to authorize or stop payments and cheque books as well as remind customers of their outstanding loan repayment (Rajesh, 2010; Laukkanen, 2017). Shaikh and Karjaluoto (2015) further added that there is a number of reasons that should, on the other hand, persuade banks in favour of mobile phones. In this stead, mobile banking technology helps to cut down costs for banking, improves value- added services, and makes banking more effective through mobile messaging and other such applications (Shaikh & Karjaluoto, 2015). They help improve the accounts of customer profiling, reduce operational costs, and increase market shares (Goyal, Nagori & Sasmal, 2012). Hence, the use of mobile technology is arguably seen as a middle ground situation for both banks and the bank’s customers. However, these advantages can only be realized if m-banking is accepted by the parties involved in the provision of these services (Makanyeza, 2017). 2.2.1 Mobile Banking Services and Modes of Operations 2.2.2 Mobile Banking Services M-banking is typically an alternative delivery channel (ADC) for different financial/transactional and non-financial/non-transactional services (Cruz, Barreto, Munoz- Gallego & Laukkane,2010) as outlined in Table 2.1. There are additional ADCs such as ATMs, telephone banking, internet banking, etc. University of Ghana http://ugspace.ug.edu.gh 13 Table 2.1. Some services provided through m-banking Transactional services Non-transactional services “Bill” Payment “Balance” inquiry “Peer-to-peer” payment Mini-bank statement Fund transfer “PIN” change Remittance Checkbook request Shopping and donations Due alerts for payment Recharge of m-balance ATMs Location Source: Shaikh et al. (2015) 2.2.3 Modes of Operation by Providers The payment innovation working group (2012), presents three core business understanding for mobile banking: MNO-led Model, Bank-led model, and Independent Model (payment Innovation Working Group, 2012). The alliance for financial inclusion (2013), also gives the business models for mobile banking as; Bank-Based model, Bank-Led Model, Non- Bank-Based Model, and Third-Party Provider. A wide range of ideas for mobile banking is now being developed. Three models have been discovered and developed, and they vary largely from each other depending on who initiated the relationship of account opening, deposit, or withdrawal, borrowing, etc. Thus, a transaction between a bank or a non-bank company and a customer. There are variations in the Bank-Led Model, Bank Focused Model, and Non-Bank-Led Model (Anyasi & Otubu, 2009; Porteous,2011). University of Ghana http://ugspace.ug.edu.gh 14 Figure 1. Mobile Banking Models Source: Tiwari, Buse, and Herstatt (2006) a. Bank –Led Model The Alliance for Financial Inclusion (2013) gives the Bank-Led Model as, one in which the bank leads the marketing, branding, and managing of the customer relationship (Alliance for Financial Inclusion, 2013). This is when, with the aid of trade partners customers perform transactions using their smart phones, which is distinct from the branch-base. This serves as a substitute or proxy for the existing branch-based banking. Usually, this model is established between banks and telecommunications firms as a joint venture contract. This permits the bank to develop and manage the customer-account relationship (Cudjoe, Anim & Nyanyofio, 2015). b. Bank-Focused Model The Bank-Focused Model is one in which, the customer has a contract with the bank and the bank is mandated by the regulator to offer relevant service(s) (Alliance for Financial Inclusion,2013). The bank focus model is when a conventional bank employs distribution platforms that are low-cost, which is a non-traditional banking network for delivering services to customers such as the use of m-banking facilities, automatic teller machines Mobile Banking Models Bank-Led Model Bank- Focus Model Non-Bank- Led Model University of Ghana http://ugspace.ug.edu.gh 15 (ATMs), internet banking, etc. The bank-focus model is fundamentally an add-on and an extension of traditional branch-based banking (Anyasi & Otobu,2009) c. Non-Bank-Led Model Alliance for Financial Inclusion (2013), says, the Non-Bank-Led business model is one in which the non-bank takes the lead in marketing, branding, and managing the client relationship. The non-bank is not involved unless it is appropriate to do so when there is a need for a safe manager of surplus funds, enabling the telecommunications firm to manage all functions. Nonetheless, retail outlets will need to rely on mobile banking services that concentrate on low-income population earners of the population size that are mostly found in the less developed area. Majority of telecom service providers operates through their airtime resellers while banks use bakeries, pharmacies, etc. This can be discovered in some countries like Colombia, for example (Cudjoe et al., 2015) 2.2.4 Technologies Employed to Provide Mobile Banking Services Gaffer (2009), states that browser-based applications, messenger-based applications, and client-based applications are technologies employed in mobile Banking. Mobile banking services could be used as one interface, such as short messaging and downloading applications (Tawari & Buse, 2007). a. SMS-Short Messaging Service According to Gaffar (2009), in message-based applications, bank-customer interactions are done through text messages. This happens when customers interact with their banks through SMS (short messaging service). The short messaging serves (SMS) operates in two ways, and either a pull mode or a push mode may be used. In the push mode, the mobile customer sends the bank a text message containing a service order with a predesignated request code to the specific number of the bank. The bank also responds with SMS carrying the basic details demanded from the bank while the pull mode is when the banks send a text message University of Ghana http://ugspace.ug.edu.gh 16 to the receiver (customer) to remind the customer of a transaction that has just occurred over the account. The message could be in the format of an MMS (Multimedia Message Service) or SMS (Short Message Service), both of which function similarly while SMS use is more prevalent (Cudjoe, Anim & Nyanyofio, 2015). b. Client-Based The requirement of this approach is that customers use software installations that will serve as a user interface, which allows customers to use the mobile device offline to access certain basic transactions before they go online. According to Dilg et al. (2004) cited in Gaffar (2009), client-based applications are alluring, many banking transactions are carried out offline, which means lower internet charges (Gaffer, 2009). Typing information before connecting to the web could minimize costs. A customer-based technology is mostly advantageous because it permits customers to remain offline whiles planning transactions such as account information entry and subsequent data transmission, an offline banking mechanism reduces the time and expense of online connection (Tawari & Buse, 2007) c. Browser-Based Gaffar (2009), says some browser-based banking applications are transactions using WAP. He further states that the major benefit of a browser-based routine is that data processing is done mainly by the server (Gaffar, 2009). In order to use this service, customers must have internet access. The interface is created from the server transferred to the mobile device, allowing the content to be displayed via the browser. This approach is very fast depending on the server the client is linked to, but one of its drawbacks is that the client (customer) is required to stay online throughout the operation process and may result in higher costs for the customers. University of Ghana http://ugspace.ug.edu.gh 17 2.3 The Cultural Dimension in Technology Acceptability Parsons (1965) had imagined “culture as a value-orientated structure that resolved the issue of dual possibility in social structures through its common symbols of orientation to act” (Parsons, Shils & Smelser, 1965). Experts have recorded that sociological systems theory complements the effort of sociological conformists to describe culture to mean a long-held rationalization about the rightness of the choice people make (Douglas 1989, p.89). In terms of what others called “high culture”, which is about the argument of taste (Bourdieu, 1979) or better still, a culture about morals. In sum, culture is regarded as a traditional interpretation of circumstances in which every emphasis has to do with how others are orientated (Becker, 1982). According to Gay (2000) and Scupin (2008) as cited in the works of Al-Jumeily and Hussain (2014), culture is considered a traditional behavior which can be absorbed from the society in which one is born or emotionally attached, and which consists of the traditions, creeds, and customs of an established individual. Culture as a factor variable in technology acceptance was introduced by Hofstede (Hofstede, 1980, 2001) which consisted of five dimensions. Hofstede introduced a cultural model that was based on a study he undertook among employees of IBM’s subsidiaries across 50 countries in the 1960s and 1970s. This research submitted what Hofstede originally designated as four dimensions of national culture: Power Distance (PDI), Individual versus Collectivism (IDV), Masculinity versus Femininity (MAS), and Uncertainty Avoidance (UAI). A fifth dimension, Long-Term versus Short-Term Orientation (LTO), was added following later research accomplished in the Asian countries (Hofstede cited in Sriwindono & Yahya, 2014). In their studies, Srite and Karahana (2006) uncovered that a culture that is more feminine dominated is more likely to be more worried about ease of use of any given technology than a masculine dominated feature. As Sriwindono and Yahya (2014) reported, many factors University of Ghana http://ugspace.ug.edu.gh 18 tend to influence ICT acceptance. In their research, cultural factors play important roles in technology acceptance. Cultural factors are important in explaining IT usage behaviour (ibid). Others also argue that a group's beliefs and values can also affect people's actions when technological changes are introduced (England, 1975). Yet others also argue that culture does not feature significantly in technology acceptance research, at least in developing economies (Sriwindono & Yahya, 2014). In the studies of Sriwindono and Yahya (2014), research works conducted in Indonesia that captured cultural dimensions are limited. Throughout their studies, they examined the cultural aspects as factors affecting a faculty member's acceptance of technology as study samples. Their study adopted Hofstede’s cultural dimension of power distance, individualism or collectivist, uncertainty avoidance, and long-term orientation as variables to perceive usefulness and perceive ease of use, social influence, and facilitating condition in the UTAUT Model. Their study was carried out on 401 respondents, consisting of academicians in Higher Learning Institution in Indonesia. Data collected from questionnaires administered and analysed, using Structure Equation Modelling, showed, that the UTAUT Model was quite appropriate for Indonesia, and the PDI and IDV have a significant influence on some constructs, while UAI had no effect. Contrastingly, Long Term Orientation had the highest effect on all constructs (Sriwindono & Yahya, 2014). While culture may not play a significant role in people’s minds accepting a new technology or not, available studies have investigated the connection between technology acceptance and cultural factors in developing countries, those conducted elsewhere, such as the Arab society reveal otherwise. In his investigations into the cultural dimension and user’s technology acceptance in Arab countries, Hofstede (1997) showed a high uncertainty avoidance among Arab culture, with people avoiding changes in their lives, as they tend to hold out against this kind of uncertainty continually. They believe such new technologies University of Ghana http://ugspace.ug.edu.gh 19 are posing added risks in their already uncertain world. Also contributing to literature, Hill et al. (1998) also found Arabs showing misgivings out of cultural features in which people of Arab descend prefer the traditional ways of communication to using ICT to support their communication. Furthermore, several other studies also corroborated similar findings. In general, it is believed that Arabs tend to be conservative in their habits, traditions, and values in their lives and engagement (Alkadi 2005; Khushman, Patel, Hosein, Lavroni & Cameron, 2009). Regarding the moderating effect of culture again, in their study on the “influence of value, attitude, and culture of the Nigerian youth towards mobile advertising”, Bakare, Owusu and Abdurrahaman (2017), noted that culture moderates between customer attitude and behavior response, however, it failed to moderate between mobile advertising value and behavior response toward mobile advertising. 2.4 Review of M-banking Research A review is of great significance when conducting research. This is because an effective literature review presents a thorough study of the research topic from existing literature, the gaps to be able to justify the research, critique and proposes ways of addressing the research problem as well as help with the planned arrangement of quality research approach, objectives, research questions, and methodologies (Boateng, 2016). This has been similar in most e-banking, specifically, mobile phones and banking studies (Sofiadin, 2014; Boateng, 2016). Current literature shows that vast research within the remits of electronic banking has its focal point on internet banking while on the contrary, research focusing on mobile banking has comparatively received trivial attention (Hanafizadeh, Byron & Khedmatgoza, 2013). The m-banking literature on acceptance was taken into consideration in view of the factors that have obstructed or influenced the acceptance of m-banking. This University of Ghana http://ugspace.ug.edu.gh 20 review was carried out in six parts. This is to better perceive the intended meaning of the obstructions and drivers of mobile banking acceptance among banking customers. Table 2.2 below is a summary of the different types of research papers into the elements that drive or inhibit acceptance, theories used as well as matters in question discovered. In furtherance, the papers were categorized based on the context of developing countries and later also considers the role of cultural dimensions in the acceptance. The studies, as summarised in the table, have different premises on the elements that inhibit or support the acceptance of m-banking among banking customers. These premises, especially with regards to the obstructive factors, will assist in better exploring the study. Table 2.2. Prior Studies on Mobile Banking STUDY/ARTICLE THEORY RESEARCH OBJECTIVE COUNTRY RESEARCH FINDINGS Singhu and Srivastava (2018) Extended TAM, SCT, UTAUT To identify factors that influence the adoption of mobile banking and explain the behavioral intention to access the service in India India In an order of influence, “security, computer self- efficacy, perceived ease of use, financial cost, trust, and social influence” affects the customer’s intention to adopt mobile banking Cudjoe, Nyanyofio and Anim (2015) Extended TAM, IDT Explore the factors that determine the adoption of mobile banking among bank customers in Ghana Ghana Studied determinants are “awareness, perceived usefulness, perceived ease of use, compatibility, social influence perceived credibility perceived self- efficacy and perceived financial cost. Perceived University of Ghana http://ugspace.ug.edu.gh 21 credibility and perceived financial cost” have a stronger effect, yet they are the reason for the negative behavioral patterns towards the acceptance of m-banking services Hanafizadeh, Behboudi, Koshksaray and Tabar (2014) TAM Insight into factors that affect mobile banking in Iran Iran They examine “perceived usefulness, perceived ease of use, need for interaction, perceived risk, perceived cost, compatibility with lifestyle, perceived credibility, and trust” was found that “adaptation with lifestyle and trust” were the most significant antecedents explaining the adoption of m- banking Asante-Gyabaah, Oppong and Idun- Baidoo (2015) Understand the benefits and challenges of e- banking on bankers and their customers in GCB Ghana SMS or mobile banking is the second most used services apart from the ATMs and, time-saving and convenience is considered the major benefit of e- banking among GCB customers. Besides, customer awareness knowledge and electronic banking laws to reduce customer University of Ghana http://ugspace.ug.edu.gh 22 perception of risk have been a challenge. Makanyeza (2017) TAM, IDT, UTAUT, TPB Customer intention to adopt mobile banking service in Zimbabwe Zimbabwe “Perceived usefulness, perceived self- efficacy, social influence, relative advantage, and perceived compatibility” have a positive effect while “perceived risk” has a negative effect on the behavioral intention to accept mobile banking services in Zimbabwe Aboobucker and Bao (2018) TAM and Moderators Pay attention to factors that serve as barriers to internet banking acceptance in Sri Lanka with age and gender as the moderators Sri Lanka “Perceived trust and website usability” are the possible structuring factors while “security and privacy and perceived risk” show insignificance. Afshan and Sharif (2016) UTAUT, TTF, ITM Analysis of the unexploited “behavioral, environmental, and technological dimensions” of mobile banking adoption in Pakistan Pakistan Significant association of the element of task- technology fit, initial trust, and facilitating condition with an intention to adopt m-banking Tam and Oliviera (2017) D&M, TTF Analyzing and synthesizing studies on factors and motivation that influence behavior intention in m-banking Among other findings, their review captured perceived risk (17 studies) and trust (13 studies) as some of the inhibiting determinants of m-banking University of Ghana http://ugspace.ug.edu.gh 23 acceptance. Furthermore, there is a need to expose the phenomenon to national culture values in determining its acceptance. Luo, Li, Zhang, and Shim (2010) UTAUT Examining multi- dimensional trust and multi-faceted risk perception in initial rejection and acceptance of emerging IT artifact USA “Risk perception”, derived from eight different facets (privacy risk, psychological risk, financial risk, social risk, etc.) and “trust” is a significant antecedent to innovative technology acceptance Sinha and Mukerjee (2016) TAM, DOI Examine the reasons for the unacceptability of off branch e- banks in India as compared to advance countries India Bankole, Bankole and Brown (2011) Revised UTAUT Investigating factors that influence the acceptance of mobile banking in Nigeria and determine the adoption from a cultural perspective Nigeria Findings show uncertainty avoidance influences trust and privacy and power distance also influenced behaviour intention. hence, “culture is the most important factor” influence the acceptance behavior of m- banking in Nigeria Mohammadi (2015) TAM, UTAUT Explore the barriers, the mediating role of “usability”, and the moderating effects of Iran Mentioned barriers such as “perceived risk, perceived usefulness, and resistance”. University of Ghana http://ugspace.ug.edu.gh 24 “personal innovativeness and subjective norms” on consumer attitude towards mobile banking in Iran “System compatibility” was the main factor affecting “users’ attitude and resistance” showed a negative effect on both “ease of use and usefulness” Baptista and Oliviera (2015) UTAUT and Culture Understanding m- banking by evaluating the impact of culture. Mozambique In conclusion “performance expectancy, hedonic motivation, and habit” were found to be the most significant antecedents of “behaviour intention”. To explain the mobile banking use behavior the “habit and culture” moderator effects on behaviour intention overuse behaviour were the most important drivers. “Collectivism, uncertainty avoidance, short term, and power distance” were found to be the most significant “cultural moderators” Zhang, Weng and Zhu (2018) UTAUT, Hofstede's’ culture dimensions Investigating national culture influence on consumer behavior toward electronic banking acceptance in China China Individuals pay more attention to “social influence and trust” in high power distance countries; “performance expectancy, effort expectancy, University of Ghana http://ugspace.ug.edu.gh 25 perceived risk” in countries with high individualism; performance expectancy and trust in high uncertainty avoidance countries as well as using the cultural difference to boost user acceptance of e- banking Goularte and Zilbert (2018) UTAUT2 and Hofstede’s Cultural Moderators Evaluating the impact of country culture in the adoption of m- banking services Brazil A replica showed that “cultural dimensions” do not present strong significance in the moderation of the “use of mobile banking”. In fact, out of the five dimensions tested, three were not significant and two showed weak significance; “collectivism and short-term orientation”. Those results, contrasting with that one presented by Baptista and Oliveira (2015), made sense under Ajzen’s theory (1991)- the TPB, leading to the conclusions on “behaviour use” is not applicable. Tam and Oliviera (2018) TTF, UTAUT, Hofstede’s cross- culture dimensions The influence of culture on m- banking use by individuals Southern Europe Confirmed that TTF explains the use of m-banking well as again. TTF and usage explains University of Ghana http://ugspace.ug.edu.gh 26 approximately 72% of the discrepancy in “individual performance” Sharif, Baabdullah, Dutta, Kumar and Dwivedi (2018) GAM model Investigate consumers’ intentions to select mobile banking service delivery channel from “behavioral, technological, social, cultural, and organisational perspectives” for the three distinct stages like static, interaction, and transaction service Bangladesh “Perceived awareness, perceived ability to use, availability of resources, perceived information quality, computer self-efficacy, perceived functional benefit, perceived image, multilingual option, perceived trust, perceived uncertainty, and perceived security” were investigated at the static, interaction, and transactional stages of the services. It was found that “perceived functional benefit (PFB)” and “perceived ability to use (PATU)” are the common driving force of customers. The study has security risk as to the inhibiting factor of the mobile banking services in Bangladesh In recent years, mobile technology and the internet have made banking activities much easier by minimizing the desire to visit a bank. Though mobile banking is trusted to become University of Ghana http://ugspace.ug.edu.gh 27 a most improved way of banking and the advantages of fast transaction and cost- effectiveness, yet the majority of the customers have arguably refused to accept it due to security & privacy, perceived trust, perceived risk, resistance, etc. (Asante-Gyabaah, Oppong, Idun-Baidoo, 2015; Laukkanen & Cruz, 2008; Afshan & Sharif, 2016; Sinha & Kukerjee, 2016; Singhu & Srivastava, 2018). For example, Shareef et al. (2018) in their exploration on consumers’ desire to pick mobile banking service channel in Bangladesh, put forward that; perceived ability to use (PATU) and perceived functional benefit (PFB) were found to be determinants of mobile banking in the static, interactive and transformation stages in the service provision than the other nine factors. They further found that for consumers to accept this service at all stages, they should be familiar with the scope, background, and functions of the mobile mode or avenue which has risks of security. Thus, customers need to have confidence and trust to be able to avail the service. Indeed, Afshan and Sharif (2016) also mentioned trust, among many as the most significant establishments in their analysis of the unexploited dimensions of mobile banking. On this basis, Sharif et al. (2018) concluded that though the opportunity of usage is benefitial to m- banking, vulnerability to security risks may seriously impede its success. Equally, Singhu and Srivastava (2018) also identified elements that determine the acceptance of mobile banking in India using the combinations of the extended technology acceptance model, unified theory of acceptance and use of technology, and social cognitive theory. They surveyed 855 public, private, cooperative, and foreign banking customers and they revealed that amidst elements such as computer self-efficacy, perceived ease of use, financial cost and social influence, security and trust affect the customers’ acceptance of the technology. This is what they argued in their order of influence on mobile banking acceptance. Asante-Gyabaah et al. (2015) surveyed 200 customers and 25 employees using SPSS and Microsoft Excel to analyse the understanding of the benefits and challenges of e-banking on University of Ghana http://ugspace.ug.edu.gh 28 bankers and their customers in GCB, Ghana. The findings from their study disclosed that SMS banking is the second most used service apart from ATMs. Time-saving and convenience are also considered as the major benefit of the channel. They further realised that customers’ awareness knowledge and electronic banking laws to reduce customers' perception of risk, as also asserted by (Makanyeza, 2017), has been the challenge. Cudjoe et al. (2015) studied the determinants of mobile banking adoption with a survey of 150 customers of Access Bank in Ghana. Findings from their study of over ten determinants depicted that perceived credibility and perceived financial cost have a strong effect yet they are the reason for the negative behavioral patterns regarding the acceptance of m-banking services. Besides, in moderating the obstructive factors, Zhang, Wang, and Zhu (2018) used the unified theory of acceptance and use of technology to probe national culture influence on the consumer behavior of e-banking by using Hofstede’s cultural dimensional constructs (uncertainty avoidance, power distance, individualism, feminist, long/short term orientation) in a meta-analysis of 62 articles for 27 countries. According to their findings, people pay more attention to: social influence and trust in high power distance societies; performance expectancy, effort expectancy, perceived risk in societies with high individualism; performance expectancy, and trust in high uncertainty avoidance societies in accepting e-banking services. Finally, Tam and Oliviera (2018) introduced a study on factors and motivations that influence m-banking behavior and took a systematic review of 64 articles on m-banking. Among other findings, their review captured perceived risk and trust as some of the inhibiting determinants and how this phenomenon must be exposed to cultural values in determining the acceptance of mobile banking. The above examples of past studies on University of Ghana http://ugspace.ug.edu.gh 29 mobile banking technology and the various theoretical frameworks used show how extensively researchers have shown interest in this area of study. Prior studies have centered mainly on one or more factors that undermine user acceptance of mobile banking services in the banking sector as depicted in the literature. Though these researches have their focal points on the barriers for mobile banking acceptance, none of these researches have covered an entirety of the perceived security and privacy arena of mobile banking such as security and privacy, risk, trust, and regulatory influence which mostly obstructs customer acceptance of mobile banking. Moreover, research has called to mind the addition of a set of moderators that have not been substantially tested such as culture dimensions by (Behbodi, Granehim & Lundman, 2014) to help appreciate the effects of the connection between the elements and the acceptance of mobile banking at the individual level. 2.4.1 The context of Studying Mobile Banking Innovative technologies have improved the manner banking services are provided in most developed and developing countries. Even though past studies have explored the mobile banking acceptance in various contexts, most of them have been done in developed countries (Laukkanen & Cruz, 2008; Luo, Li, Zhang & Shim, 2010; Zhang, Li & Shim, 2018) and just a number of analyses have addressed developing countries such as Ghana. The banking sector in Ghana is comparatively young relative to other developed countries and some emerging countries in the world and on the African continent. In the opinion of Mohammadi (2015), the developing countries are embracing mobile banking services as every day the customers would likely want to use the m-banking channel. In view of this, previous works have tackled the acceptance of m-banking from speedily developing countries context and as such various contextual approaches have been adopted by researchers on the barriers influencing mobile banking acceptance in the developing countries (Makenyeza, 2017; University of Ghana http://ugspace.ug.edu.gh 30 Mohammadi, 2015; Cudjoe, Anim & Nyanyofio, 2015; Hanafizadeh & Khedmatgozar, 2014). These have been elaborated in the country column of Table 2.2. For example, studies carried out by Makanyeza (2017) used a combination of factors in the technology acceptance model (TAM), innovation diffusion theory (IDT), and unified theory of acceptance and use of technology (UTAUT) to study the consumer intention adoption of mobile banking services in Chinhoyi in Zimbabwe. Mohammadi (2015) to examine the barriers, the mediating and moderating effect of mobile banking did so within the developing country of Iran. Cudjoe et al. (2015) and Asante-Gyabaah et al. (2015), explored the determinants as well as understanding the benefits and challenges of mobile banking services within the banking sector of Ghana. Although studies that were done in Ghana are not limited to the literature, there is a minimum number of research work in mobile banking, which is insufficient to provide meaningful insight into the obstructing factors which influence mobile banking acceptance in Ghana. 2.5 Acceptance Theoretical Models in Mobile Banking The decision of why and how people accept or turn down a technology has been a major area of focus for information systems (IS) researchers. Over the years, researchers have aimed to comprehend, predict and explain the elements that influence the acceptance of technology at the individual as well as the organisational level (Davis, 1989; Venkatesh & Zhang, 2010; Abbasi, Blasey & Fieldman, 2015). In lieu of this, various acceptance theories and models have been developed and employed to study or explain the connection between user beliefs, attitudes, and intentions of mobile banking acceptance. As a result, Momani and Jamous (2017) assert that acceptance models are designed to ascertain the level of acceptance and satisfaction to the individuals against any information system but from a different perspective base on the factors which represent their structure. Some of these foundational models include but not restricted: Technology University of Ghana http://ugspace.ug.edu.gh 31 Acceptance Model (TAM) (Davis, 1989) and its extensions. Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh, Morris, Davis & Davis, 2003). Other models are the Theory of Reasoned Action (TRA) (Fishbein & Ajzen, 1975); and the Theory of Planned Behavior (TPB) (Ajzen.1991). This study’s perceived focus of security and privacy, trust, risk, and regulatory influence are based on the scattered factors in various works of literature which stems from a combination of the acceptance models such as the Theory of Reasoned Action, Theory of \Planned Behavior (TPB) (Ajzen, 1991), Technology Acceptance Model (TAM) (Davis, 1989) and its extensions, Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh, Morris, Davis & Davis, 2003). These 4 major theories are used as the foundational theories because of the behavioural definition and intention characterized in their perspectives. Momani and Jamous (2017) have summarised a maximum number of the constructs in the acceptance theoretical models of which few have been mentioned below. a) The Theory of Reasoned Action (TRA) The Theory of Reasoned Behavior (TRA) argues that an individual’s action is usually prompted by behavioural intent, which is often a feature of an individual’s attitude towards the behavioural and subjective expectations that surround behavioural results. This theory typically suggests that the performance of a particular behaviour of a person is determined by his or her behavioural intent to perform the activity. Therefore, the concept of compatibility and behavioural purpose is motivated by this theory. On the topic of Mobile banking, the more positive the attitude towards Mobile Apps adoption and the greater the perception of social pressure towards the use of mobile banking platforms, the stronger the intention to accept the usage of Mobile banking. Nevertheless, Ajzen (1985) argued that University of Ghana http://ugspace.ug.edu.gh 32 correspondence restricted the theory. In essence, an agreement of attitude and purpose on an action, goal, meaning, time frame, and precision should exist for the theory to predict specific behaviour (Sheppard, Hartwick & Warshaw, 1988). Despite this, TRA's major criticism is that it lacks contextual variables that may affect the relationship between attitude intention – intention – behaviour and are, therefore, ill-equipped to predict circumstances where individuals have a low level of volitional control (Yousafzai, Foxall & Pallister, 2010) b) Theory of Planned Behaviour (TPB) The theory of planned behaviour (TPB) builds on the shortcomings of reasoned action theory (TRA) by broadening the boundary conditions of reasoned action theory to resolve the actions over which individuals have insufficient control of volition via adoption. The theory suggests that an individual’s conduct is influence by behavioural intention where behavioural intentions are a feature of an individual’s attitude to behaviour, the social standards surrounding behavioural success, and the individual’s understanding of the ease with which behavioural intervention can be conducted. Ajzen (1985) indicated that an extra determinant of intention as well as behaviour is the perceived behavioural concept. Consequently, this construct is asserted to be the resource together with possibilities available to an individual that affects the acceptance of a specific behaviour. For example, in the setting of mobile banking, if a person realises that technology is accessible and other basics are available to him and that he decides to use it, there is the possibility of acceptance along with the utilisation of mobile banking technology. The theory of planned behaviour has also shortcomings with some authors criticizing it for disregarding vital elements that may affect intention behavior relationships (Yousafzai et al., 2010). For instance, Eagly and Chaiken (1993) have claimed that perceived moral obligation and self-identity are outcomes that could fore-tell intention in the TRA that TPB refused to address. Yee-loong Chong, University of Ghana http://ugspace.ug.edu.gh 33 Ooi, Lin, and Tan (2010) as well as Taylor and Todd (1995) have criticized the theory by mentioning that, since the theory calls for individuals to be encouraged to perform a particular behaviour, this notion may present a problem when studying consumer acceptance in addition to a similar belief structure amongst respondents when it comes to performing a behaviour. The use of the theory of planned behavior has been successfully tried in the field of electronic banking acceptance behavior and has been seen as a better preference for the theory of reason action. Subsequently, (Makanyeza, 2017) and (Momani & Jamous, 2017) have used this theory to analyse the circumstances that influence the adoption of mobile banking. c) Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) Davis (1989) had developed the Technology Acceptance Model (TAM). The author proposed three user motivating attributes: perceived ease of use, perceived utility, and attitude towards using the program. Davis has indicated that the ability of a person to use a new information system or not is dependent on his or her attitude. This theory, among researchers, is the most commonly used and accepted model because of its applicability according to the authors in (Sharif, Van der Graaf, Nathoe, Valk, Visseren & Westerin, 2018; Singh & Srivastava, 2018) and its usage has captured the intention of researchers in IS. Although the theory has captured the information management community's interest in forecasting user adoption of innovations, Lai (2017) believes that the model has its limitations and cannot be completely exploited to understand factors that determine user acceptance. Consequently, several other TAM models and extensions were proposed in other studies. University of Ghana http://ugspace.ug.edu.gh 34 In the work of Lai (2017), Venkatesh, Morris, Davis, and Davis, (2003) integrated elements from eight prominent Information System (IS) models in addition to some moderators to develop UTAUT. The four key constructs that determine intention and usage, according to this theory, are performance expectance, effort expectance, social influence, and facilitating conditions. The four moderators employed in this model include age, experience, gender, and willingness to use. These influences are known to have a direct consequence on the acceptance of the mobile banking and are also used in emerging economies as basic precedents for unraveling the acceptance of Mobile banking (Luo, Li, Zhang & Shim, 2010; Mohammedi, 2015; Tam & Oliviera, 2018). 2.6 Chapter Summary This chapter gave the details to pertinent literature on mobile banking and its acceptance or obstructions. Details on mobile banking development, mobile banking services, and modes of operation as well as technologies employed to provide the services were also reviewed. Furthermore, this chapter looked at the cultural dimensions towards the acceptance of the technology. There were also some reviews on mobile banking research and some foundational technology acceptance models from which the constructs of this study will be deduced to help understand the individual acceptance of mobile banking. University of Ghana http://ugspace.ug.edu.gh 35 CHAPTER THREE RESEARCH FRAMEWORK 3.1 Chapter Overview The chapter consists of the integration of constructs from various technology acceptance models (TAM) works of literature to design the research model. The model is to investigate and explain the perceived elements (security and privacy, trust, risk, and regulatory influence) that may have come up as some concerns towards mobile banking acceptance in varied works of literature. The chapter further resorts to the cultural moderators (power distance, individualism, and uncertainty avoidance) that may influence the relationship – obstructions, and acceptance of m-banking. Hence, the section discusses the main literature for each construct and the moderators towards the development of this research and further justifies the choice of the model integration and the chosen moderating dimensions. A Research framework gives rise to how research questions are brought about, studies are conducted, data are analysed, comprehension of findings, and results are used based on specific concepts and proposition. Its overall purpose is to make research findings meaningful and generalizable (Alderson, 1998; Boateng, 2016, p. 261). 3.2 Development of the Research Framework 3.2.1 Security and Privacy Security is an important factor to remember when conducting applications for mobile commerce. Confidentiality, authentication, integrity, authorization, and non-repudiation are key factors required for successful mobile financial transactions (Chen & Zao, 2012). Many banking services are currently being provided through the Internet and smart devices, so consumers are more deeply worried about security issues. University of Ghana http://ugspace.ug.edu.gh 36 Security and privacy in the context of mobile banking have not been far from that of the preceding channel, internet banking. It is defined as “a possible loss due to fraud or a hacker undermining the security of an online bank user” (Lee, 2009, p.2). In the same vein, the privacy of information is said to be the desire of an individual to control or have some influence over data about him or her. Advances in IT have raised questions about information privacy and its implications (Crossler & Belanger, 2011; Owusu, Broni & Akakpo, 2019). The main activities of mobile banking include financial transactions. Financial transactions using the internet and mobile devices are vulnerable to consumers being harassed and lost as illegal activities can be performed easily without any physical contact. Consequently, most consumers are reluctant to accept services accessed through the internet and mobile devices because of their security and privacy concerns (Lee, 2009; Raja & Anil, 2016). 3.2.1.1 Security and Privacy in Mobile Banking The problem of security and privacy was deemed as one of the most primal factors influencing consumer adoption of electronic banking and technology based on the various literature studies (Koskosas, 2011; Polasik, Pikkarainen, Karajaluoto & Phanila, 2009; Yoon & Steege, 2013). In this regard, data protection and security concerns have been described as important restraining factors for the acceptance and utilisation of e-banking applications. Thus, user privacy must be protected in mobile commerce applications. Mobile banking has two areas, one is the user's handset and the other is the banking area. Hence, there is the likelihood of a security threat that exists for transactional services using a mobile device (Shaikh & Karjaluoto, 2015). University of Ghana http://ugspace.ug.edu.gh 37 A study by Singhu and Washburn (2010) showed that security issues in the current mobile banking scenario are the main concern. Security is deemed as a prime concern for many mobile banking customers. The study further revealed that in respect with security related issues with m-banking, 31% of customers are prepared to pay more, 63% are prepared to move their account to one with stronger security features and 71% are ready to transfer their funds to banks that will reimburse guaranteed losses (Heggestuen, 2014). Besides, to better understand the privacy concerns, evidenced in a study of 1,200 households in America shows that very rich sets of personal information are stored on the user’s phone. Also, location awareness, specifically with the use of GPS is a significant feature of mobile phones – tracking devices. Mobile banking features and benefits have to do with tracking ATMs and transactions, and this may also imply that users of the service will stand at a similar fate. As with many other tracking technologies, it seems to be designed to operate without the knowledge of the individual (Urban, Li & Hoofnagle, 2012) Again, for example, in mobile banking services, the customer must provide personal contact details and download banking “apps” to enable him/her to access the mobile banking platforms of a bank. These undertakings can open up communications with circles of contacts and unnecessary feedbacks and information to the customer, which can ardently end up with the wrong user (Urban, Li & Hoofnagle, 2012). A summary of some security and privacy threats related to m-banking is found in Table 3.1. University of Ghana http://ugspace.ug.edu.gh 38 Table 3.1. Security Issues Security issues in mobile banking Security Issues Mobile banking and security issues with Wireless Application Protocol (WAP) “Password” or “PIN” for identification Password for identification of the third-party enrollment in a mobile banking application “SMS based” mobile banking Virus Attacks in mobile banking Source: Goyal, Nagori, and Sasmal (2012) In the context of mobile banking, there exist security concerns regarding information. The security of m-banking is more complex due to the differences in mobile devices and platforms (Lee, Zhang & Chen, 2013). Elkhodr, Shahrestani and Kourouche, (2012) believed that the protection and privacy of customers financial information is a key determinant in the acceptance and use of m-banking. Edge and Sampaio (2009), thus, identified that the feeble and fixed authentication issued by signature, “PIN”, “password”, and “Security Code (SC)” in mobile banking has countless defects and loopholes. In lieu of this, privacy and security concerns have been mentioned to be the major sources of dissatisfaction in most electronic banking cases (Oni & Ayo, 2010). On the basis of the literature discussed, it can be posited that: Proposition 1: Security and privacy may be a serious concern for mobile banking among banking customers in Ghana. University of Ghana http://ugspace.ug.edu.gh 39 3.2.2 Perceived Trust Generally, many studies have explored the impact of trust on consumers ' perception of accepting electronic services (Roca, Garcia & Vega, 2009; Yousafzai, Pallister & Foxall, 2009; Chaouali, Helings, Thiel & Karl, 2016) and found that trust considerably influences consumers' perception towards the use of electronic banking services. Mayer, Davis, and Schoorman (1995) defined trust as behavioural, based on one person’s beliefs about the attributes of another person. In the space of explanations, three dimensions of trust were suggested by McKnight (2005): trust disposition, structural assurance, and trust belief. Trust disposition is the general tendency of people to trust others, which can be expressed in the form of the personality trait. Structural assurance is the feeling of confidence in the institutional environment. Trust belief is the idea that the vendor's trustworthiness consists of a collection of clear convictions regarding honesty, benevolence, and competence. In order for a client to have hope in e-banking, the individual must be made to accept that the transactional channel is secure and that no information sent through those channels is intercepted or given to a third party. Consequently, the absence of direct physical contact in an online transaction distorts the trust factor within a transaction (Chaouali, Heling, Thiel & Karl, 2016). 3.2.2.1 Perceived Trust in Mobile Banking The Technology Acceptance Model (TAM) original concepts do not fully give consideration to the impact of technology and usage factors especially in the context of mobile services. Prior research expanded this model by incorporating trust-like constructs (Gefen, Benbasat & Pavlou, 2008). Trust is a significant concern about mobile service acceptance. As we cannot presume that all mobile-trade participants are truthful. The University of Ghana http://ugspace.ug.edu.gh 40 willingness to accept mobile banking services depends on the customers' perceived trust. Thus, technology trust and bank trust are equally significant in securing customer trust. There are no assurances that online shoppers do not act opportunistically at the detriment of the vendors. Concerning mobile banking, trust is the appreciation of the availability of the required legal and technological frameworks and other standards in the wireless internet to ensure financial transactions with a bank are completed successfully (Roca, Garcia, & Vega, 2009). Trust of the customers’ needs to be created to lead to an acceptance of technology, thus, understanding and perceiving the needs of the customer is very useful for the banks in recognizing the obstructions towards acceptance and eliminating them. Kim, Gailite, Moussian, Goette, Frickle, Honeman-Capito, Grubmuller, and Wodarz (2009), reported that when m-banking is considered to be related with a higher risk compared with conventional banking, the individual's initial trust in services is evidenced as the required factor for using m-banking. Furthermore, trust should be a crucial component in an online environment where the customer has no direct influence over the vendor's behavior. The user's trust in an e-service is therefore a significant determinant in evaluating his / her understanding and embracing behaviours relevant to any e-service (Roca, Garcia, & Vega 2009). Therefore, on this premise it can be proposed that: Proposition 2: Perceived trust of customers may influence their acceptance of mobile banking within the banking sector. University of Ghana http://ugspace.ug.edu.gh 41 3.2.3 Perceived Risk Since 1960, risk theory has been proposed to describe the consumer actions and factors that influence their decision-making (Taylor, 1974). Mobile banking and internet banking are subject to common threats. The variation lies in the platform of contact with knowledge. Some researchers also jointly investigate internet banking and mobile banking (Shaikh & Karjaluoto, 2015). Lee (2009, p.2) clarified perceived risk as “the subjectively determined expectation of loss by an online bank user in contemplation in a particular online transaction”. Whereas perceived risk is generally defined as a perception of implicit risk when using the open internet facility to exchange private information in connection with online transactions (Chen, 2013). Perceived risk is a specific perceived financial risk factor, perceived performance risk, perceived time risk, perceived psychological risk and perceived privacy or security risk. Customers assume that the more money involved in the process the greater the risk. In this situation, there will be an increase in their perceived risk and lower their e-banking trust (Yang, Sado, Hirt & Pasco-Viel, 2015). Zhao, Xu, Qian, Lv, Chen, Xie, and Zheng (2008), pointed out that the perceived risk to the acceptance of internet banking services by the Chinese consumer is privacy, finance, security, and performance risk, thus, in turn, prevents the consumer from accessing e-banking. The possible risks can emerge from several springs, such as wireless and internet communication network weakness and banks' technological capability. Perceived risk, to customers, is critical when determining whether to purchase new technology or services. 3.2.3.1 Perceived risk in mobile banking Some e-banking studies, specifically, m-banking research distinguishes perceived risk as a salient factor that influences individual acceptance behaviour (Chen, 2013; Shim, 2010; Bao, 2018; Zhang, Zhu & Liu, 2018). Shim (2010) contended that Jacoby and Kaplan’s risk dimensions model is important and suitable for m-banking study. Hence, this research University of Ghana http://ugspace.ug.edu.gh 42 additionally, extends the perceived risk construct to the study of m-banking and the effect of cultural moderators on it. However, this research sterns on the wholesome in the use of the perceived risk of customers rather than dissecting the factor. The risk component is deemed very paramount in mobile services. On the basis that, due to a distant link, there is a high risk in m-banking than in other fixed devices. As a result of the high likelihood of fraud and theft of a mobile device, the risk related to m-banking is great. The risk related with m-banking is posed in this line of thought from many previous studies (Chen, 2013; Shim, Chung, Nicollete, Zhang, Davis, Zhu, Ira, Lee & Paull, 2010) For example, Wessels and Drennan (2010) examined the impact of m-banking risk on attitude. We concluded that this aspect affects the mindset and use of m-banking significantly. That is, the greater the danger of using modern technology, the more negative the attitude towards it, and the less the willingness to use it. In the breakdown of perceived risk in banking, security/privacy risk, as well as a financial risk; is mostly mentioned (Lee, 2009). Lee (2009) further maintained that there is a primary association between perceived risk and intention to use mobile banking. Consequently, the impact of perceived risk on consumers’ acceptance of electronic services is hard to be ignored from the literature; hence it can be proposed that: Proposition 3: Perceived risk in mobile banking is seen as a major concern among banking customers in Ghana. 3.2.4 Regulatory or Legislative Influence This concept has been added to help in fully understanding the research model as far as issues of susceptibility to mobile banking and security and privacy is a concern. Since there cannot be security issues without a regulatory or legislative body or influence to curb the problems that come with the usage of the electronic services. This is part of what makes this University of Ghana http://ugspace.ug.edu.gh 43 integrated model different as found in (Bao & Aboobucker, 2018). Collectively, literature that has security and privacy often appears in the company of risk or trust as important constructs. However, in the studies of Gyabaah et al. (2015) and Owusu et al. (2019), there has been a challenge of laws or regulations to ensure consumers' safety with regards to their online security and privacy in Ghana. Hence, the need to integrate it as a major concern. Regulatory influence or structures is meant to emphasise legal monitoring, reporting, and compliance which, thus, benefit the financial industry (Schueffel, 2017). Its objective is to enhance transparency, consistency, and standardization of banking as well as to deliver a sound interpretation of ambiguous regulations. Legislative or regulatory influence is usually so much attached to the government of a country - environment (Worku, 2010; Acheampong & Moyaid, 2016). In concern with some amplification on the challenges in developing a regulatory framework, one of the sectors strike by m-commerce includes: financial services, such as customers using their mobile handsets to access their account and payment transactions. Jododwana (2009) noted that, on the positive side, few African governments are in the process of implementing and incorporating regulatory reforms based on the e-commerce model of the United Nations Commission on International Trade Laws (UNCITRAL); which in some ways actually provides a legal structure for online transactions and privacy protection. However, concerns have repeatedly been raised about the effectiveness of the authorities towards the acceptance of any form of e-services. (Jobodwana, 2009) 3.2.4.1 Regulatory Influence in Mobile Banking Countries such as Nigeria, India, South Africa, Ethiopia, and many others who are supportive of mobile banking have put in place many regulations to ensure a technologically safe environment (Worku, 2010; Adewuyi, 2011; Goyal, Nagori & Sasmal, 2012). Examples of these guidelines are: University of Ghana http://ugspace.ug.edu.gh 44 1. Restrictions of m-banking to financial institutions, 2. Transactions can only be carried out in national currency and, 3. The guidelines that also states that mobile banking will be permitted only to those with a valid bank account, etc. However, for most of the literature, some challenges need to be overcome to successfully introduce mobile banking services or platforms to be widely accepted as a mode of banking. For that matter, regulatory framework and extensively accepted principles will be the backbone on which mobile banking services and platforms will be built and used (Klein & Mayer, 2011; Goyal, Nagori & Sasmal, 2010). In furtherance, trade and business communications through electronic means have brought about several legal issues. An example is an agreement of the considered geographical location of a transfer from one place to the other, issues of language and cultural barriers, different national currencies, and security and privacy issues. These examples are very important for consumer protection and the establishment of jurisdiction. This regulatory or legal lapse in some way causes customers reluctance in accepting mobile banking services in the face of their fate if a transaction should suffer from this obstacle (Arner, Barberis & Buckley, 2016). Another example is in Ethiopia where there are numerous obstacles such as high rate of illiteracy, high cost of internet, frequent power outages, and many other found among e- banking in general, amongst them suitable legal and regulatory framewor