Mobile Banking and Customer Satisfaction in Australian Banks: A Study

This project proposal outlines a study investigating the impact of mobile banking on customer satisfaction within the Australian financial sector. The research aims to identify major Australian banks utilizing mobile banking, analyze how m-banking enhances customer satisfaction and account security, and recommend strategies for improving mobile banking services. The proposal includes a detailed problem statement, research questions, objectives, and scope, along with a justification for the study and potential research outputs. A conceptual framework is presented, supported by a literature review, and the methodology outlines data collection, analysis, and project organization. The study will utilize secondary data to assess the relationship between mobile banking and customer satisfaction, offering insights for banks to enhance their services and improve customer experiences. The proposal includes a project budget and timeline for the completion of the research.

Running head: PROPOSAL
A Study on Mobile Banking Improves Customer Satisfaction in Australia
Name of Student
Name of University
Author Note

PROPOSAL
Table of Contents
1. Introduction and Background..........................................................................................3
2. Problem Statement...........................................................................................................4
3. Research Aim...................................................................................................................4
4. Research Questions and objectives..................................................................................4
5. Research Scope................................................................................................................5
6. Justification of study........................................................................................................6
7. Potential Research Outputs..............................................................................................6
8. Conceptual Framework....................................................................................................7
8.1. Theoretical Underpinning.............................................................................................8
8.1.1. Mobile Banking.................................................................................................8
8.1.2. Mobile banking and Customers’ Satisfaction....................................................8
8.2. Literature Review.........................................................................................................9
9. Methodology..................................................................................................................10
9.1. Research Methods...................................................................................................10
9.2. Data Collection.......................................................................................................11
9.3. Data Analysis..........................................................................................................12
10. Project Organization....................................................................................................12
11. Project Budget.............................................................................................................13
12. Project Schedule..........................................................................................................14
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13. Conclusion...................................................................................................................15
References..........................................................................................................................17
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PROPOSAL
1. Introduction and Background
Mobile banking is a service that is offered by the financial institution to their customers,
which allows the customers to perform all the needed banking and financial transactions through
their smartphone (Moser, 2015). Mobile banking enables easy and effective monitoring of the
various banking services that include transferring funds, bill payments of locating an ATM. Thus
it is one of the most useful services that majority of the banks across the globe offer to their
customers. This service provide the advantage of performing all the necessary banking related
works from the convenience of their home (Malaquias & Hwang, 2016). Thus, it can be said that
the service of mobile banking (m-banking) increases the satisfaction of the consumer and the
proposed study aims in exploring the process in which m-banking increases and improves
satisfaction level of the consumers in Australia. A proposal is prepared that outlines the process
in which this study will be carried out. The study aims in making use of secondary data to
understand the extent to which customers’ satisfaction is enhanced by mobile banking.
In the following paragraphs, the detailed problem statement, scope and aim of the
proposed research is discussed. The proposal further analyses and provides justification
regarding whether the proposed study is justified or not. The proposal further provides an idea of
the expected outcome of the research by making a choice of appropriate methods to conduct the
research and outlining the conceptual framework to be followed while performing the detailed
research study. The proposal further outlines the structure to be followed in the actual research
and provides a detailed estimation of the budget for the project. A timeline is prepared that
indicates the tasks that are mandatory to be executed in the study along with the minimum time
needed to complete each of those task.
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PROPOSAL
2. Problem Statement
Mobile banking in an essential service that is offered by majority of the banks or
financial institution across the globe (Mortimer et al., 2015). This service is generally provided
to provide the customers the convenience of carrying out the banking services without actually
visiting the bank. However, it becomes necessary to evaluate the process or extent to which
mobile banking enhances customers’ satisfaction (Tam & Oliveira, 2017). It is necessary to
evaluate the extent to which m-banking enhances customers’ satisfaction as on basis of the
research results, the banking services offered by the financial institutions can be improved.
The key problem that the research aims to solve is to appraise the magnitude to which
customers’ satisfaction is affected or enhanced by the banking services provided by the financial
institutions. The analysis of the same is essential for the banks in Australia to improvise the
services offered by banks and to enhance the mobile banking services (Tam & Oliveira, 2017).
The proposed research will be evaluating the key issues in mobile banking services, which can
affect customers’ satisfaction so that those issues can be acknowledged and mitigated. The
research will further appraise the process in which m-banking increases the security of the
customers’ account.
3. Research Aim
The purpose of the proposed research is to evaluate the extent to which m-banking can
improve the satisfaction of the customers. The research is focused on the financial institution of
Australia. Specifically, it will identify the banks in Australia that has adopted mobile banking
services to enhance customers’ satisfaction.
4. Research Questions and objectives
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PROPOSAL
On basis of the identified research aim, the research questions and key objectives are
identified. The research objectives are indicated as follows-
RO1: To identify the major Australian banks that have implemented m-banking feature
RO2: To identify and analyse the process in which mobile making enhances customers’
satisfaction.
RO3: To recommend strategies of improving mobile banking, that Australian Banks can
adopt to enhance customers’ satisfaction.
On basis of the aims and objectives, the following research questions are set for the
proposed study-
RQ1: Which are the major Australian banks that have adopted mobile banking feature till
this day?
RQ2: How does mobile banking help to increase the security of customers account?
RQ3: Has mobile banking improved the satisfaction level of customers of banks in
Australia?
RQ4: How can the mobile banking service be enhanced to further improve customers’
satisfaction of the customers of major Australian Banks.
5. Research Scope
The scope of the proposed study is to analyse the need, necessity and contribution of an
effective m-banking service in improving the level of customer satisfaction. This will further
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PROPOSAL
help in evaluating the business benefit that a bank can realize by offering m-banking services to
the end users.
6. Justification of study
M-banking services are nowadays offered by majority of the Australian banks as a part of
the necessary banking services. This service allows a customer to perform all the essential
banking functions through their smartphone or tablet. Mobile banking has nowadays become a
necessity and hence it is necessary to analyse its effect as well. M-banking facilities are
preferable and are opted by most of the customers as it allows them to perform the necessary
banking services without actually visiting the bank (Mahalakshmi & Kalaiyarasi, 2016). The
proposed study is justified as it aims in analysing the process in which mobile banking can
increase the security of the customers’ account. Along with that the proposed study further
analyses the process by which the mobile banking service increases customers’ satisfaction.
There is no denying the fact that mobile banking services have become a necessity and therefore,
it is necessary to identify which of the major banks in Australia has adapted the mobile banking
service. Thus, the proposed research study is justified as it will recommended strategies with
which the major banks in Australia can enhance customers’ satisfaction.
7. Potential Research Outputs
The proposal provides a framework for execution of a research on the selected topic.
Secondary data will be obtained for the study and will be presented in the final dissertation. A
qualitative data analysis will be performed which will evaluate the link between m-banking
service and increase in satisfaction of the customers.
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PROPOSAL
The successful execution of the proposed research will benefit the major Australian banks
as they will be able to comprehend the key issues that customers’ might be facing with the m-
banking facilities offered. Also, the banks will be able to understand the need of incorporating
mobile banking service to the services offered (Munoz-Leiva, Climent-Climent & Liébana-
Cabanillas, 2017). Since the proposed research will be identifying the major Australian banks
that are making use of m-banking facilities, the research will be helpful and beneficial for those
Australian banks. The research will further benefit the customers as the proposed study will
provide certain recommendations to the bank for improving the customers’ services, which in
turn will enhance the customer satisfaction level as well. It is integral to perform this study to
establish the need of improving m-banking service to enhance the customers’ satisfaction.
8. Conceptual Framework
The conceptual framework on basis of which the proposed study will be carried out is
indicated in the picture below-
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PROPOSAL
Figure 1: Conceptual Framework showing the need of increasing banking efficiency,
mobile banking, slow adoption of mobile banking in Australia and its impact on customer
satisfaction
8.1. Theoretical Underpinning
8.1.1. Mobile Banking
The process of making financial transaction by making use of mobile phone or tablet can
be termed as mobile banking. It provides a convenient way of performing all the banking related
works from the convenience of their home (Jun & Palacios, 2016). There are certain advantages
of mobile banking, which include the providing the ability of the customers to bank anywhere
any time. Although there are certain security concerns associated with mobile banking there are
certain key advantages of mobile banking one of which is improving the security of customers’
account by providing a way of easy monitoring of the account.
8.1.2. Mobile banking and Customers’ Satisfaction
Mobile banking is considered to be one of the most innovative service that is offered by
banks across the globe (Tan & Lau, 2016). Mobile banking generally refers to the requirements
of banking as well as the financial facilities by making use of mobile and telecommunication
devices. Financial services such as fund transfer were originally considered to be complicated
(Bharti, 2016). The use of m-banking services have simplified the basis functionalities of a bank.
Furthermore, mobile banking is a time saving approach that provides an alternative to walking
into the bank to check balance, get payment or transfer money. Thus, providing this particular
service definitely improves customers’ satisfaction (Rizwan et al., 2014). It is a convenient
method that allow tracking of the investments irrespective of the place where a customers is, thus
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increasing customers’ satisfaction. Therefore, absence of m-banking facilities negatively
distresses the satisfaction level of a customer (Thakur, 2014). Thus, it can be said that the mobile
banking services increases the efficiency of the key m-banking operations and further helps in
reducing a large amount of paper works in banks (Yunus, 2014). Therefore, it is necessary to
evaluate which of the banks in Australia are making use of the m-banking services as it has a
direct effect on the customers’ satisfaction.
8.2. Literature Review
According to Talukder, Quazi and Sathye (2014), usage of mobile phones in commercial
transaction has been perceiving a phenomenal progress at an international level, however, its
development in Australia have been considerably slower. M-banking is a service that is
presented by the financial institutions to conduct financial transactions through phone. The key
reason behind increase in mobile banking is its usefulness in performing the necessary banking
functionalities through mobile device. Furthermore, it offers a secure platform to carry on with
the critical banking works including fund transfer.
Although the process of m-banking is lagging in Australia, the service has a large
potential for huge progress in Australia. This is because Australia has a vast local and remote
area which mainly has a restricted access to the banking process. Sampaio, Ladeira and Santini,
(2017), outline the various benefits of mobile banking and the process in which, it can enhance
customers’ satisfaction. The effectiveness of mobile banking services increases customers’
satisfaction, and thus, it becomes a necessity for the major Australian banks to adopt these
services. The use of m-banking processes offer benefit that encompasses enhancement of
security of the customers’ data. According to Shaikh and Karjaluoto (2015), the m-banking
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PROPOSAL
services help in increasing the security of customers’ account. This is possible mainly because
with the presence of m-banking facility, customers’ can easily keep a track of their account
balance and the banking related services. The presence of mobile banking makes it possible to
easily detect any unauthorised activity in a customers’ account thus helping in enhancing
customers’ satisfaction. Adnyasuari and Darma (2017), give an overview of the association
between the key advantages offered by inclusion of m-banking services and the magnitudes of
satisfaction with m-banking. Mobile banking positively affects the customers’ satisfaction level
and therefore this service is adopted my most of the banks (Mullan, Bradley & Loane, 2017).
However, the use of the mobile banking service by the customers requires sound technological
knowledge to recognise the working functionality of m-banking (Baptista & Oliveira, 2015).
However, it becomes necessary for the banks to collect regular feedbacks from the customers
regarding the improvements needed in their banking application to further enhance the
customers’ satisfaction.
9. Methodology
9.1. Research Methods
Broadly, a research method can be divided into two types, which are qualitative research
method and quantitative research method. For the proposed research, qualitative research method
is chosen. The qualitative research methods emphasizes on collection and investigation of data
through the process of in depth interview, focus group, content analysis and case study research.
The gathering of data through qualitative methods are descriptive and therefore, the decision of
this particular method is justified for the research. In this proposed research phenomenology will
be used to focus on the experiences of the customers and the services presented by the major
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PROPOSAL
banks in Australia. The choice of phenomenology is justified for the proposed research mainly
because it helps in understanding the meaning of the live experience of people (Khan, 2014). The
choice of qualitative research method is justified as the research will be collecting secondary data
(Corti, 2018). There will be no use of any statistical data in the proposed study and therefore, the
decision of using this particular technique is justified. Qualitative method is a scientific method
of observing the non-numerical data (Taylor, Bogdan & DeVault, 2015). This research is
associated with identification of the extent to which mobile banking increases customers’
satisfaction and for that only secondary data will be collected. The process in which the
secondary data will be collected for this proposed research are discussed in the following
subsection.
9.2. Data Collection
There different types of data are mainly obtained in an academic study. These are
primary data and secondary data. Primary data is mainly obtained by the researcher from the
first-hand sources including interviews, surveys and experiments. The primary data is necessarily
collected by the investigator to fulfil the identified research aims and objectives.
Secondary data refers to collection of data and information which has been already
collected by someone else in the past. This involves collection of data by performing secondary
research and by evaluation of the newspapers, research journals, articles, company reports and
internet (Lune & Berg, 2016). One of the key advantages of making use of secondary data in a
study is that a large quantity of data can be obtained. However, the process of collection of the
data that will actually be required for the research is a time consuming task as a lot of data are
needed to be evaluated for the same.
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PROPOSAL
The proposed study will make use of secondary data and does not involve collection of
primary data. The secondary data for the study will be obtained by evaluating the previously
published literature and journals. An extensive literature review will help in knowing the
inclination towards adoption of m-banking in Australia and will further help in identifying the
extent to which the presence of m-banking services increases customers, satisfaction. The choice
of use of secondary data is justified as a lot of information can be obtained from the previous
researches and also by accessing the annual reports of some major banks in Australia.
9.3. Data Analysis
There are mainly two process of data analysis, qualitative data analysis and quantitative
data analysis. Quantitative data analysis technique include statistical analysis of collected data
through variable analysis. This technique is mostly associated with finding evidences for
supporting or rejecting an identified research hypothesis. Qualitative data Analysis is a process
that allows analysis of the collected data to represent an understanding or interpretation of the
people and situations (Johnston, 2017).
The proposed study will make use of qualitative data analysis method for analysing the
collected secondary data of the research. Through this method the relationship between
customers’ satisfaction and m-banking will be established. The qualitative data analysis process
will help in understanding the process in which customers’ satisfaction can be enhanced by
adopting the mobile banking services. The proposed method is justified as the qualitative
research helps in capturing the changing attitude within a target group. Here the target group is
the customers of different financial institution in Australia. Furthermore, one key advantage of
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qualitative research method is that it is not bound by limitations that are mainly associated with
the quantitative research methods.
10. Project Organization
The proposed research is organized into six distinct chapters. Each chapter has separate
purpose towards successful completion of proposed research study. The components of each
chapter are briefly discussed as follows-
Chapter 1: This chapter focuses on introducing the aims, objectives and the purpose of
the study to the audiences.
Chapter 2: This chapter will discuss the conceptual framework of the study and will
provide evidences of an extensive literature review.
Chapter 3: The methods chapter will discourse the research techniques and tools to be
used for the study.
Chapter 4: The data examination section will provide evidence to the collection and
analysis of the secondary data
Chapter 5: This chapter will talk over the discoveries of the previous chapter.
Chapter 6: This chapter will talk over the findings of the research study.
11. Project Budget
The budget proposed for execution of the proposed research is $4500. The summary of
the proposed budget is indicated in the following table-
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Task Proposed Budget (in AUD)
Background Study and Proposal Preparation $700
Detailed Literature Review $1000
Secondary Data Collection $1200
Data Analysis $800
Miscellaneous Cost (travel, food expenses) $800
Total $4500
12. Project Schedule
The timeline of the proposed study is indicated as follows-
Figure: Representing the Timeline of the proposed Research
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PROPOSAL
The following figure represents the Gantt chart of the proposed study-
Figure 2: Illustrating the Gantt chart
The two figure above indicate the tasks to be executed in the proposed research and the
minimum duration required for completion of each tasks.
13. Conclusion
The proposal prepared has provided a detailed understanding of the proposed research
study. The undertaken research aims in analysis of relationship between customers’ satisfaction
and m-banking. Literature review indicate that although m-banking has been adopted by various
financial institutions internationally, Australia has been quite slow in adopting the same. The
proposed study will be evaluating the benefits that customers achieve through mobile banking
and its effect in increasing the customers’ satisfaction. The report outlines the objectives and the
research question and further specifies the scope of the proposed study. The proposed research is
justified as it will help the major banks in Australia to design effective strategies for management
of the customers’ needs and enhancing the satisfaction of the customers. A preliminary literature
review has been undertaken to evaluate the link between customers’ satisfaction and use of m-
banking. The report further identifies the methods that will be used in conducting the research.
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The study will be collecting secondary data for the research. The method of data analysis chosen
for the study is qualitative data analysis method. The information for the research will be
obtained from the previously published literature and research papers to understand the link
between m-banking and satisfaction of the customers. The report further provides an idea of time
needed for completion of the research along with the proposed budget.
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PROPOSAL
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