Are U.A.E. Consumers Unimpressed With Mobile Banking?

A recent academic journal published in the International Journal of Business Research and Development has aimed to understand mobile banking adoption in the U.A.E. Many developing countries such as the U.A.E., South Africa, Kenya and Botswana have indicated growing acceptance of mobile banking, as both consumers and financial institutions have started to realize the channel’s advantages.

The acknowledgment of mobile banking’s growth has researchers and industry professionals eager to understand what exactly drives consumer motivation. Authors Mohamed Gamel Aboelmaged and Tarek R. Gebba have examined which factors play a role in influencing mobile adoption amongst mobile users in the U.A.E.

In effort to maximize survey participants’ responses, Gamel and Gebba used Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) for structural guidance to predict mobile banking adoption behavior.

Contextual Background

Banks, much like any other business, are constantly seeking new ways to deliver accelerated convenience, expanded channels and consumer benefits. For the purpose of this study, mobile banking refers to consumers using mobile devices, such as smartphones and tablets, to access account information, communication and transactions. Frequent mobile banking activities include money transfers, account balance checks and access to banking products.

Mobile banking is beneficial for both the consumer and bankers as they reduce costs as well as give all parties more immediate and interactive banking services. Mobile banking also allows for increased amounts of data processing that improve banking infrastructure.

The research surveyed 119 U.A.E. respondents that helped explain the study’s hypotheses. Find out what the researchers learned about consumer adoption.

Social Norms Affect Consumer Adoption

The first hypothesis researchers presented was based on the concept that consumer attitude positively influences mobile banking adoption.

It seems that mobile banking adoption is more like a popularity contest. 

TPB states that consumer attitudes are facilitated through subjective norms. These norms are often cultivated through the consumer’s social environment. This means people are typically influenced by friends, family and co-workers when determining which behaviors are most desirable. This hypothesis suggests that if influence is strong, there will be a greater chance of behavior realization and positive attitude.

The survey’s results confirmed that subjective norms have a positive impact on the adoption of mobile banking in the U.A.E. Subjective norm was found to be one of the strongest elements that lead to high intentions for mobile channel adoption.

The research reported that mass adoption in the U.A.E is likely to occur, as a majority of the respondents said they were using at least one form of mobile banking service. The U.A.E is one of the most technically sophisticated countries in the Middle East, and mobile phone concentration is high. This inevitably increases mobile awareness within the U.A.E. social environments.

Consumers Need To Know They Are Capable

The TPB model also suggests that consumers are more likely to adopt technology if they feel they are capable of using the product. If a user believes banking services are easy and controllable, researchers expect the product attitude will be positive. If a product attitude is positive then intention to use will increase.

The respondents confirmed this hypothesis, which means banking institutions must make sure they are fluid with product communication. Consumers need to feel secure and confident that they can successfully use mobile technologies. 

What’s In It For Users?

Another hypothesis presented by researchers was the notion that consumers will have a stronger intent to adopt technology if there is a perceived usefulness. If consumers are aware of the product’s benefits and rewards, they are therefore more likely to engage. Researchers clarify that perceived usefulness means the individuals believes that their banking performances will be enhanced if they use the proposed services. Again, researchers believe it is important for the financial industry to take advantage of marketing in order to clearly portray the benefits of using mobile channels.

In contrast to the researcher’s hypothesis, the survey results proved perceived usefulness had no significant impact on mobile banking adoption. However, the research made an interesting note, and reported that males were more likely to adopt technology based on the product’s usefulness whereas females were more influenced by social norms.