Predicting the Risk Factors Influencing the Behavioral Intention to Adopt Mobile Banking Services: An Exploratory Analysis

  • Nitin Nayak
  • Vikas NathEmail author
  • Nancy SinghalEmail author
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 958)


Mobile Banking is a next big challenge in the technologically dependent era after Mobile Commerce and there are many factors that are influencing the use of M-banking Services, perceived Risk is one of them. Although perceived Risk as a single construct has been studied by many researchers but in this paper, empirical research has been done to find out the actual characteristics of Perceived Risk and the reason for refusing the use of m-banking services by the users in the technologically advanced era. In order to study the reason behind the reluctance in using m-banking services, a more detailed study of attributes of Perceived Risk has been conducted. This research work is intended to examine the six components of Perceived Risk. In this study EFA was applied on various measures of Risk to ascertain the different underlying variables affecting the individual’s Behavioral Intention to adopt m-banking services. After applying EFA researcher has applied SEM in order to investigate the association between the factors. The results of this empirical testing found that out of all the six variables only four variables i.e. Social Risk, Psychological Risk, Time Risk and Financial Risk were statistically significant as per results of this study and these are the main factors affecting the influence of Behavioral Intention towards using m-banking services in the Indian context.


Perceived Risk Factors Adoption of mobile banking Factor analysis SEM 


  1. 1.
    Hoffman, D.L., Novak, T.P., Peralta, M.: Building consumer trust online. Commun. ACM 42, 1–5 (1999)CrossRefGoogle Scholar
  2. 2.
    Jarvenpaa, S., Tractinsky, N.: Consumer trust in an internet store: a cross-cultural validation. J. Comput. Mediat. Commun. 5, 1–35 (1999)Google Scholar
  3. 3.
    Pavlou, P.A.: Consumer acceptance of electronic commerce—integrating trust and risk with the technology acceptance model. Int. J. E-Commer. 7, 69–103 (2003)Google Scholar
  4. 4.
    Cox, D.F., Rich, S.U.: Perceived risk and consumer decision making the case of telephone shopping. J. Mark. Res. 1, 32–39 (1964)Google Scholar
  5. 5.
  6. 6.
    Shaikh, A., Karjaluoto, H., Chinje, N.B.: Continuous mobile banking usage and relationship commitment – a multi-country assessment. J. Financ. Serv. Mark. 20, 208–219 (2015)CrossRefGoogle Scholar
  7. 7.
    Safeena, R., Date, H., Hundewale, N., Kammani, A.: Combination of TAM and TPB in internet banking adoption. Int. J. Comput. Theory Eng. 5, 146–150 (2013). Scholar
  8. 8.
    Lin, Y.H., Hu, S.Y., Chen, M.S.: Managerial optimism and corporate investment: some empirical evidence from Taiwan. Pac.-Basin Financ. J. 13(5), 523–546 (2005)CrossRefGoogle Scholar
  9. 9.
    Peter, J., Ryan, M.: An investigation of perceived risk at the brand level. J. Mark. Res. 13, 184–188 (1976)CrossRefGoogle Scholar
  10. 10.
    Cunningham, S.: The major dimensions of perceived risk. In: Cox, D. (ed.) Risk Taking and Information Handling in Consumer Behaviour. Harvard University Press (1967)Google Scholar
  11. 11.
    Jacoby, J., Kaplan, L.B.: The components of perceived risk. Adv. Consum. Res. 3, 382–383 (1972)Google Scholar
  12. 12.
    Kaplan, L.B., Szybillo, G.J., Jacoby, J.: Components of perceived risk in product purchase: a crossvalidation. J. Appl. Psychol. 59(3), 287 (1974)CrossRefGoogle Scholar
  13. 13.
    Roselius, T.: Consumer rankings of risk reduction methods. J. Mark. 35, 56–61 (1971)CrossRefGoogle Scholar
  14. 14.
    Stone, R.N., Gronhaug, K.: Perceived risk: further considerations for the marketing discipline. Eur. J. Mark. 27, 39–50 (1993)CrossRefGoogle Scholar
  15. 15.
    Jarvenpaa, S.L., Todd, P.A.: Consumer reactions to electronic shopping on the World Wide Web. Int. J. E-Commer. 1, 59–88 (1996)CrossRefGoogle Scholar
  16. 16.
    Comegys, C., Hannula, M., Vaisanen, J.: Effects of consumer trust and risk on online purchase decision-making. Int. J. Manag. 26, 295–308 (2009)Google Scholar
  17. 17.
    Featherman, P.: Predicting e-services adoption: a perceived risk facets perspective. Int. J. Hum.-Comput. Stud. 59, 451–474 (2003)CrossRefGoogle Scholar
  18. 18.
    Scott, N., Batchelor, S., Ridley, J., Jorgensen, B.: The Impact of Mobile Phones in Africa. Prepared for the Commission for Africa (2004)Google Scholar
  19. 19.
    Soroor, J.: Implementation of a secure internet/mobile banking system in Iran. J. Internet Bank. Commer. 10 (2005)Google Scholar
  20. 20.
    Bhatnagar, A., Misra, S., Rao, H.R.: On risk, convenience, and internet shopping behaviour. Commun. ACM 43, 98–105 (2000)CrossRefGoogle Scholar
  21. 21.
    Vijayasarathy, L.R.: Internet taxation, privacy and security: opinions of the taxed and legislated. Q. J. Electron. Commer. 3, 53–71 (2002)Google Scholar
  22. 22.
    Kuisma, T., Laukkanen, T., Hiltunen, M.: Mapping the reasons for resistance to Internet banking: a means-end approach. Int. J. Inf. Manag. 27, 75–85 (2007)CrossRefGoogle Scholar
  23. 23.
    Lee, M.C.: Factors influencing the adoption of internet banking: an integration of TAM and TPB with perceived risk and perceived benefit. E-Commer. Res. Appl. 8, 130–141 (2009)CrossRefGoogle Scholar
  24. 24.
    Lee, M.C.: Predicting behavioral intention to use online banking. In: Proceedings of the 19th International Conference on Information Management (2008)Google Scholar
  25. 25.
    Fain, D., Roberts, M.L.: Technology vs. consumer behaviour: the battle for the financial services customer. J. Direct Mark. 11, 44–54 (1997)CrossRefGoogle Scholar
  26. 26.
    Laforet, S., Li, X.Y.: Consumers’ attitudes towards online and mobile banking in China. Int. J. Bank Mark. 23, 362–380 (2005)CrossRefGoogle Scholar
  27. 27.
    Ram, S., Sheth, J.N.: Consumer resistance to innovations: the marketing problem and its solutions. J. Consum. Mark. 6, 5–14 (1989)CrossRefGoogle Scholar
  28. 28.
    Bestavros, A.: Banking industry walks ‘Tightrope’ in personalization of web services. Bank Syst. Technol. 37, 54–56 (2000)Google Scholar
  29. 29.
    Daniel, E.: Provision of electronic banking in the UK and the Republic of Ireland. Int. J. Bank Mark. 17, 72–82 (1999)CrossRefGoogle Scholar
  30. 30.
    Sathye, M.: Adoption of internet banking by Australian consumers: an empirical investigation. Int. J. Bank Mark. 17, 324–334 (1999)CrossRefGoogle Scholar
  31. 31.
    Chiou, J.S., Shen, C.C.: The antecedents of online financial service adoption: the impact of physical banking services on Internet banking acceptance. Behav. Inf. Technol. 31, 859–871 (2012)CrossRefGoogle Scholar
  32. 32.
    Luarn, P., Lin, H.H.: Toward an understanding of the behavioral intention to use mobile banking. Comput. Hum. Behav. 21, 873–891 (2005)CrossRefGoogle Scholar
  33. 33.
    Cudjoe, A.G., Anim, P.A., Nyanyofio, J.G.N.T.: Determinants of mobile banking adoption in the Ghanaian banking industry: a case of Access Bank Ghana Limited. J. Comput. Commun. 3, 1–19 (2015)CrossRefGoogle Scholar
  34. 34.
    Sekaran, U.: Research Methods For Business A Skill Building Approach, 4th edn. Wiley-India Pvt. Ltd., New Delhi (2006)Google Scholar
  35. 35.
    Hair, J.F., Anderson, R.E., Tatham, L., Black, W.: Multivariate Data Analysis, 5th edn. Prentice Hall, Upper Saddle River (2003)Google Scholar
  36. 36.
    Kothari, C.R.: Research Methodology-Methods and Techniques. New Delhi, Wiley Eastern Limited (1985)Google Scholar
  37. 37.
    Nunnally, J.C.: Psychometric Theory, 2nd edn. McGraw-Hill, New York (1978)Google Scholar
  38. 38.
    Hair Jr., J.F., Anderson, R.E., Tatham, R.L., Black, W.C.: Multivariate Data Analysis, 3rd edn. Macmillan Publishing Company, New York (1995)Google Scholar
  39. 39.
    Grewal, D., Gotlieb, J., Marmorstein, H.: The moderating effects of message framing and source credibility on the price perceived risk relationship. J. Consum. Res. 21(1), 145–153 (1994)CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Bharati Vidhyapeeth Institute of Management and ResearchKolhapurIndia
  2. 2.Bharati Vidhyapeeth Institute of Management and ResearchNew DelhiIndia

Personalised recommendations