Mobile Banking Adoption, Acceptance, Usage and Diffusion in The Saudi Arabian Context
By gathering data from 330 mobile banking users and using Diffusion of Innovation theory as the baseline to investigate factors that influence the adoption of m-banking in Saudi Arabia, Al-Jabri & Sohail (2012) found that the observability of the systems by users, compatibility of the systems with other technologies, and the advantages the systems offer over others greatly influence their adoption. Contrary to findings of other researchers, complexity of systems and their trialability do not affect their adoption. The study is very important to Saudi Arabia’s banking system as it enables them to develop systems that are adopted easily by users.
Alber (2011) conducted a survey to 6 out of 11 commercial banks in Saudi Arabia in a period of 9 years, from 1998 to 2007, to investigate the effects that expansion of banks would have on profit efficiency. His/her findings indicate that availability of mobile banking, availability of automated teller machines (ATMs), and the number of bank branches affect the profit efficiency of banks. The sample size was very large and could deliver very accurate results, however, the duration taken to complete the research was very long considering that technology changes very fast.
By modifying the Technology Acceptance Model (TAM) to suit customers of banks in Saudi Arabia, Abdullah (2009) found that though improving SMS services of banks can save banks a lot of costs, reduce the need to establish more branch networks, and improve efficiency, banks do not benefit from the services since customers do not adopt m-banking. The results of the study have positively contributed to SMS banking in Saudi Arabia as it has enabled the development of m-banking systems that are easy to use, credible, and compatible.
By utilizing a sample size of 150 users and using questionnaires to collect data to study the adoption of tele-banking technology by customers of banks in Saudi Arabia, Al-Ashban and Burney (2001) found that the experience of use of tele-banking technology determines user adoption; as the experience of users of tele-banking increases, they tend to adopt and use it. In addition, the level of education and income level of Saudi citizens plays a major role in adoption of tele-banking (Al-Ashban & Burney, 2001). The study has greatly contributed to the field of tele-banking and has enabled banks to save costs and provide efficient and timely services to customers.
Reference List
Al-Ashban, A. A. & Burney, M. A 2001, “Customer adoption of tele-banking technology: the case of Saudi Arabia,” International Journal of Bank Marketing, 19 (5), pp. 191-200.
Al-Jabri, I. M., & Sohail, M. S 2012, “Mobile banking adoption: Application of diffusion of innovation theory,” Journal of Electronic Commerce Research, 13(4).
Alber, N 2011, “The effect of banking expansion on profit efficiency of Saudi Arabia commercial banks,” Journal of Global Business and Economics, 3(1), 11-23.
Abdullah, A. S 2009, SMS Banking in Saudi Arabia, Doctoral Dissertation, University Utara Malaysia.
