Prospects and Challenges of Mobile Financial Services (MFS) in Bangladesh

2022 ◽  
pp. 320-341
Author(s):  
Dhanonjoy Kumar
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Crucial Role ◽  
Development Strategies ◽  
Mobile Banking ◽  
Payment Systems ◽  
Automatic Teller Machine ◽  
Mobile Financial Services ◽  
Online Business ◽  
Financial Transactions

Microelectronic payment systems are speedily replacing the ordinary modes of payment. Electronic payment systems require online financial transactions that utilize some digital financial devices. They have allowed government, businesses, and financial institutions to propose a multiple of payment opportunities to their customers. These payment opportunities include charge account credit, master card, mobile banking, and automatic teller machine and payments bills through the mobile. Mobile financial services (MFS) performed a crucial role within the present online business and other business and financial services performed within the busy and pandemic world. The study is empirical in nature of MFS and its implications in Bangladesh. Finally, the study presents an overview of challenges and prospects of MFS in Bangladesh, focusing on some development strategies for policy holders. Researchers propose how MFS operators solve the MFS-related problems, overcome the challenges, satisfy the customers, and increase their service.

Mobile Financial Services in Emerging Countries

2018 ◽  
pp. 109-128 ◽  
Author(s):  
Joseph Kwame Adjei ◽  
Solomon Odei-Appiah
Keyword(s):  
Developing Countries ◽  
Technology Adoption ◽  
Financial Institutions ◽  
Financial Services ◽  
Emerging Countries ◽  
Major Barrier ◽  
Regulatory Issues ◽  
Bus Driver ◽  
Mobile Financial Services ◽  
Financial Transactions

This chapter describes a recent World Bank report which indicated a sizable percentage of households in developing countries do not have access to formal accounts with financial institutions. The situation has created a major barrier in the quest for a world without poverty due to the exclusion of segments of society from the formal financial system. The phenomenon has resulted in the exclusion of many from traditional financial services, thus the use of other means to conduct informal financial transactions. In Ghana, many households rely on domestic informal forms of remittance to relatives and payments. Such informal mediums of remitting money to and from relatives in Ghana (e.g. via “Bus Driver”) received wide patronage irrespective of the associated risks until mobile financial services were introduced. This chapter discussed Mobile Financial Services (MFS) from the perspective of emerging economy and treats the following topics; technology, adoption and the regulatory issues in MFS.

scholarly journals Factors Influencing Users’ Behavioral Intention to Reuse Mobile Financial Services in Bangladesh

2020 ◽  
Vol 5 (3) ◽  
pp. 155-169
Author(s):  
Md. Rizvi Khan ◽  
Sirion Chaipoopirutana
Keyword(s):  
Behavioral Intention ◽  
Financial Services ◽  
Behavioral Intentions ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Survey Method ◽  
Mobile Banking ◽  
Perceived Ease Of Use ◽  
Factors Influencing ◽  
Mobile Financial Services

Objective – This paper aims to empirically examine the factors influencing the users’ behavioral intention to reuse mobile technology to facilitate their financial services in Bangladesh. Methodology/Technique – A self-administered online survey method was used and 400 responses were collected with Likert-type questions using Google Forms as a medium. A model was developed and proposed based on different technology acceptance models like TAM, UTAUT and similar studies on factors influencing users’ intention to adopt and reuse mobile financial services in Bangladesh. The proposed model was tested by performing simple and multiple linear regression using SPSS software. Findings – The results show that perceived ease of use influences perceived usefulness of mobile financial services but perceived ease of use, perceived usefulness and security have no influence on trust in terms of behavioral intention to reuse mobile financial services in Bangladesh. However, with the exception of trust and perceived financial cost, the remaining variables such as perceived usefulness, perceived ease of use, security, perceived risk, social influence and facilitating conditions significantly influence behavioral intentions to reuse mobile financial services in Bangladesh. Novelty - This study examines crucial factors spotted in literature in the context of Bangladesh. Earlier papers have primarily focused on traditional banking clients’ behavioral intention toward their bank’s mobile banking facilities in Bangladesh. This paper is comprehensively designed to identify influential factors of reusing non-traditional mobile financial services like bKash, Rocket, Nagad etc. at the growth level in the industry of Bangladesh. The researcher tried to identify factors influencing both bank and non-bank users to reuse mobile financial services for their digital transactions. Type of Paper: Empirical. JEL Classification: M31, M39. Keywords: bKash; Bangladesh; Mobile Banking; Behavioral Intentions; Reuse; Mobile Financial Services. Reference to this paper should be made as follows: Khan, M.R; Chaipoopirutana, S. 2020. Factors Influencing Users’ Behavioral Intention to Reuse Mobile Financial Services in Bangladesh, J. Mgt. Mkt. Review 5(3) 155 – 169. https://doi.org/10.35609/jmmr.2020.5.3(4)

Predicting the Attitude toward Mobile Financial Services in Developing Countries

2012 ◽  
pp. 1141-1160
Author(s):  
Prateek Shrivastava
Keyword(s):  
Quality Of Life ◽  
Low Income ◽  
Financial Services ◽  
Group Analysis ◽  
Perceived Usefulness ◽  
Control Group ◽  
Mobile Banking ◽  
Mobile Financial Services ◽  
Working Age

Globally, only about a sixth of the 3 billion poor people of working age currently have access to formal financial services. This translates to 17% coverage of the market, leaving 83% under-served or “unbanked”. Addressing the needs of these people is the “self-sustaining approach” to microfinance. Mobile banking is one of the newest approaches to the provision of financial services made possible by the widespread adoption of mobile phones in low income countries. However, reports show that potential users may not be using these systems despite already being available. This study was conducted in 2008. It extends the Luarn & Lin mobile banking adoption model by adding two additional constructs: “Enhancement of image” and the “enhancement of quality of life by having access to financial service” to test the attitude toward mobile banking. In order to test these constructs, 11 hypotheses are proposed. The chapter successfully applies Luarn & Lin’s model in a new geographic and economic context. Consistent with their study, perceived usefulness, perceived credibility, perceived ease of use and perceived self-efficacy were found to be significant antecedents. Perceived financial costs, however, was found to have a positive relationship with attitude. This finding is diametrically opposite to Luarn & Lin’s study. Perceived enhancement to quality of life showed a strong relationship and Perceived enhanced image showed a weak relationship with the attitude toward mobile banking. The control group analysis showed the previously unbanked group (Mzansi) had the highest expectation of mobile banking and also found the idea most attractive. This study therefore concludes that mobile banking can indeed be a channel to reach out to low income groups.

scholarly journals Consumer Financial Knowledge and the Use of Mobile Banking: Evidence from the 2018 U. S. National Financial Capability Study

2021 ◽  
pp. 1-17
Author(s):  
Fuzhong Chen ◽  
Jian Xiang
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Ordered Probit ◽  
Financial Knowledge ◽  
Estimation Methods ◽  
Mobile Banking ◽  
Probit Regression ◽  
Financial Capability ◽  
The Relationship ◽  
Robustness Check

As a widely used technology in recent years, the use of mobile banking has been addressed by a great deal of extant research, and a large and growing body of literature has investigated its determinants as well. Utilizing data from the 2018 U.S. National Financial Capability Study, this study aims at examining the association between financial knowledge and mobile banking by using the approach of ordered probit regression. Besides, this study conducts a comprehensive robustness check by replacing estimation methods and removing outliers by income. The results indicate that the relationship between financial knowledge and mobile banking is negative. Besides, financial knowledge negatively contributes to the adoption of mobile payment as well as mobile transfer. Also, consumers with more financial knowledge are more likely to use traditional financial ways. Thus, financial institutions are encouraged to focus on the reduction of risks perceived by consumers to promote the penetration of financial services via mobile devices.

Examining Factors Influencing Customers Satisfaction with Mobile Financial Services in Tanzania

2020 ◽  
Vol 3 (2) ◽  
pp. 17-29
Author(s):  
Christine Msafiri ◽  
Evod Rimisho
Keyword(s):  
Financial Services ◽  
Descriptive Analysis ◽  
Financial Service ◽  
Primary Data ◽  
Care Network ◽  
Network Availability ◽  
Factors Influencing ◽  
Customer Care ◽  
Mobile Financial Services ◽  
Financial Transactions

The financial sector is important to any nation for its economic development. The mobile telecommunication technology in Tanzania for instance has changed the way people perform financial transactions. Customers perform financial transactions using their mobile phones at anytime and anywhere provided that the customer is registered and activated into using the Mobile financial service. However, there are still long queues at the banks for doing financial transactions that could be done using mobile financial service. In order to motivate people into using the MFS, it is then important to ensure to customers derive satisfaction from using the service as it is with the formal banking service or beyond. This study aims at examining the factors influencing the customer satisfaction with mobile financial services in Tanzania. To achieve these objectives the study uses mainly primary data from 105 respondents selected using both purposive and non-purposive sampling techniques. The study employs both descriptive analysis and regression analysis. Descriptive analysis shown that, Tigo pesa, M pesa and Airtel Money are the frequently used MFS with Tigo pesa being leading. Majority of customers are satisfied with MFS (70%), and Mobile Network Operators are concentrating on making sure customers are satisfied by educating them on how to use MFS, ensuring network is reliable, lowering transaction charges and improving customer care, among others. The logistic estimates indicate that, Age, Gender, Employment, Customer care, Network availability, Meet needs, and Education are significant factors that influence customer’s satisfaction with frequently used MFS in Tanzania. The probability of a customer to be satisfied with MFS is higher if MFS meet needs of a customer, the customer is employed, gets good customer care, male, and if the network is available. From these findings, it is advised that any strategy targeting to make customers more satisfied with MFS should consider Customer care, Network availability, and needs of the customers. Also policies and programs that enhance employment are vital in making majority of people secure jobs and finally satisfied with MFS.

scholarly journals Jual Beli Model ‘Inah di Lembaga Keuangan Syariah: Tinjauan Konsep, Hukum dan Implementasi

2018 ◽  
Vol 3 (1) ◽  
pp. 67
Author(s):  
Richa Angkita Mulyawisdawati ◽  
Mufti Afif
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Credit Card ◽  
Qualitative Method ◽  
Classic Problem ◽  
Islamic Financial Institutions ◽  
Financial Transactions ◽  
Level Of Risk ◽  
Descriptive Qualitative

The sale and purchase of 'inah and tawarruq is a classic problem that is recognized or not continues to grow and be practiced by individuals and financial institutions to date. Based on the facts on the ground, this type of engineering of sale and purchase occurs in Islamic Financial Institutions (LKS), where Islamic Financial Institutions only serve and serve financial services for its customers who need funds. So much is found that most LKS activities lead to financing through murabahah scheme where the scheme of the contract is considered safe for the LKS because the level of risk is lower than other types of contract. This paper is intended to determine the nature of the concept and legal sale and purchase 'inah and tawarruq according to scholars fiqh classics and how the practices of these two transactions became an issue on financial transactions in LKS. By using descriptive qualitative method, literature approach and history, it is produced that the type of sale of 'Inah and Tawarruq is still debated by the jurists of fiqh jurisprudence and the tendency is forbidden because there is a rift of ribawi transaction in it. While in practice in LKS is still widely applied and growing especially in superior products (murabahah) as in financing business capital, credit card, home financing or home renovation or the like and gold-based financing.

Mobile Financial Services in Developing Countries

2021 ◽  
pp. 521-534
Author(s):  
Gordian Stanslaus Bwemelo
Keyword(s):  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Services ◽  
Mobile Technologies ◽  
New Wave ◽  
Social Lives ◽  
Rapid Spread ◽  
Mobile Financial Services ◽  
Financial Behaviour ◽  
The Impact

This chapter describes how mobile technologies have recently emerged as the new wave in Information Technology revolution and are constantly gaining importance and popularity in nearly every avenue of our working and social lives. One area of mobile technology that has become a focus in recent times is the use of mobile devices particularly the mobile phones for an array of financial services. Mobile financial services and their massive adoption and rapid spread in the developing world, has deepened investments in mobile infrastructure and has further contributed to financial inclusion and economic development. Their adoption, in particular, has had a significant impact on consumer financial behaviour. This chapter builds on a rich body of literature available to highlight the impact of mobile financial services on consumer financial behaviour and the implications for financial institutions.

Predicting the Attitude toward Mobile Financial Services in Developing Countries

2010 ◽  
pp. 112-131 ◽  
Author(s):  
Prateek Shrivastava
Keyword(s):  
Quality Of Life ◽  
Low Income ◽  
Financial Services ◽  
Group Analysis ◽  
Perceived Usefulness ◽  
Control Group ◽  
Mobile Banking ◽  
Mobile Financial Services ◽  
Working Age

Globally, only about a sixth of the 3 billion poor people of working age currently have access to formal financial services. This translates to 17% coverage of the market, leaving 83% under-served or “unbanked”. Addressing the needs of these people is the “self-sustaining approach” to microfinance. Mobile banking is one of the newest approaches to the provision of financial services made possible by the widespread adoption of mobile phones in low income countries. However, reports show that potential users may not be using these systems despite already being available. This study was conducted in 2008. It extends the Luarn & Lin mobile banking adoption model by adding two additional constructs: “Enhancement of image” and the “enhancement of quality of life by having access to financial service” to test the attitude toward mobile banking. In order to test these constructs, 11 hypotheses are proposed. The chapter successfully applies Luarn & Lin’s model in a new geographic and economic context. Consistent with their study, perceived usefulness, perceived credibility, perceived ease of use and perceived self-efficacy were found to be significant antecedents. Perceived financial costs, however, was found to have a positive relationship with attitude. This finding is diametrically opposite to Luarn & Lin’s study. Perceived enhancement to quality of life showed a strong relationship and Perceived enhanced image showed a weak relationship with the attitude toward mobile banking. The control group analysis showed the previously unbanked group (Mzansi) had the highest expectation of mobile banking and also found the idea most attractive. This study therefore concludes that mobile banking can indeed be a channel to reach out to low income groups.

Mobile Financial Services in Developing Countries

2018 ◽  
pp. 47-63
Author(s):  
Gordian Stanslaus Bwemelo
Keyword(s):  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Services ◽  
Mobile Technologies ◽  
New Wave ◽  
Social Lives ◽  
Rapid Spread ◽  
Mobile Financial Services ◽  
Financial Behaviour ◽  
The Impact

This chapter describes how mobile technologies have recently emerged as the new wave in Information Technology revolution and are constantly gaining importance and popularity in nearly every avenue of our working and social lives. One area of mobile technology that has become a focus in recent times is the use of mobile devices particularly the mobile phones for an array of financial services. Mobile financial services and their massive adoption and rapid spread in the developing world, has deepened investments in mobile infrastructure and has further contributed to financial inclusion and economic development. Their adoption, in particular, has had a significant impact on consumer financial behaviour. This chapter builds on a rich body of literature available to highlight the impact of mobile financial services on consumer financial behaviour and the implications for financial institutions.

Build it – Will They Come?

2010 ◽  
Vol 8 (3) ◽  
pp. 1-14 ◽  
Author(s):  
Prateek Shrivastava
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Low Cost ◽  
Financial Resources ◽  
Control Group ◽  
Mobile Banking ◽  
Extended Access ◽  
Mobile Financial Services ◽  
Working Age ◽  
Money Transfers

Globally, only a sixth of the approximately 3 billion impoverished people of working age currently have access to formal financial services, which translates to 17% coverage of the market, leaving 83% under-served. The growth of mobile telephony has been rapid and has extended access well beyond already connected customers in developing countries. This rapid growth offers a new low-cost alternative for financial institutions to make a profit while dealing with small money transfers and payments. Consumers also benefit because they no longer need time and financial resources to travel to distant banks. The successful deployment of financial services via mobile phones has shown willingness from financial service providers to develop and provide such products. However, there are major perceived and real obstacles in the willingness of consumers to adopt these products. Therefore, a need exists to understand customers’ reasons behind adopting these services. In this paper, the author proposes a model that provides a framework to empirically test the attitudes of customers toward mobile financial services via a control group conducted in 2008 using Luarn and Lin’s (2005) mobile banking adoption model.

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