Research Report on Mobile Banking Usage Intentions in Pakistan (MBA)

This research report, submitted by students of Iqra University, investigates the factors influencing the usage intentions of mobile banking, particularly among university students in Pakistan. The study focuses on the impact of perceived ease of use, perceived risk, and trust on students' willingness to adopt mobile banking services. The report includes an introduction outlining the background, problem statement, research questions, objectives, and significance of the study. A comprehensive literature review establishes a theoretical framework based on the Technology Acceptance Model (TAM) and provides empirical evidence from relevant studies. The research methodology details the research purpose, approach, design, sampling techniques, sample size, statistical techniques, and the questionnaire used. Data analysis includes demographic information, reliability tests, and regression analysis to determine the relationships between the variables. The report concludes with a discussion of the findings, implications, and limitations of the study. The abstract highlights the key findings, emphasizing the significant influence of perceived ease of use, risk, and trust on usage intentions. The report aims to contribute to a better understanding of mobile banking adoption and offers insights for both academics and practitioners.

IQRA UNIVERSITY
“The Effect of the Perceived Ease of use, Trust and Risk on Usage Intentions”
A Proposal submitted by
Talha Sajid 11967
Muhammad Danish 14552
Ammar Ahmed 12760
Sami-ul-Haq 12743
To
Department of Business Administration
In partial fulfillment of the requirement for the
Degree of MASTER OF BUSINESS ADMINISTRATION
This proposal has been Accepted by the
Faculty OF BUSINESS ADMINISTRATION
Mrs Nida Shah Advisor
Iqra University Research Facilitation Centre

Research Report 2
Acknowledgements
First of all, we would like to precise our essential gratitude to Almighty Allah for making it
conceivable to complete this effective research report and educated the journey of
implementation of our knowledge within this respective research. At this twinkling of
accomplishment we would like to contribute our sincerest appreciativeness to our research
adviser Miss Nida shah for supporting us with her esteem patience, efficient knowledge and
effective efforts as without her kind guidance efforts and reassurance for report. At the end, we
would like to give our genuine thanks to all peers, classmates, well-wishers and all defendants
who subsidized in dissimilar ways and we are also thankful to Iqra University for all the
managerial help.

Research Report 3
Table of Contents
Acknowledgements..........................................................................................................................2
Chapter One.....................................................................................................................................6
Introduction......................................................................................................................................6
1.1 Background............................................................................................................................7
1.2 Problem Statement.................................................................................................................8
1.3 Research Question..................................................................................................................8
1.4 Research Objective...........................................................................................................9
1.5 Significance of the Study.......................................................................................................9
1.6 Limitations of the Study.........................................................................................................9
1.7 Organization of the Study....................................................................................................10
Chapter 2........................................................................................................................................11
Literature Review..........................................................................................................................11
2.1 Theoretical Framework........................................................................................................12
2.1.1 Perceived Ease of Use...................................................................................................13
2.1.2 Risk................................................................................................................................13
2.1.3 Trust...............................................................................................................................13
2.2 Empirical Studies.................................................................................................................13
2.3 Conceptual Framework........................................................................................................19
2.4 Hypothesis............................................................................................................................19
Chapter 3........................................................................................................................................20
Research Methodology..................................................................................................................20
3.1 Research Purpose.................................................................................................................21
3.2 Research Approach..............................................................................................................21
3.3 Research Design...................................................................................................................21
3.4 Sampling Technique............................................................................................................21
3.5 Target Population.................................................................................................................22
3.6 Sample Size..........................................................................................................................22
3.7 Statistical Technique............................................................................................................22

Research Report 4
3.7.1 Reliability......................................................................................................................22
3.7.2 Factor Analysis..............................................................................................................23
3.7.3 Regression Analysis......................................................................................................23
3.8 Questionnaire and Measurement Instrument.......................................................................23
3.9 Ethical Consideration...........................................................................................................24
Chapter 4........................................................................................................................................25
Data Analysis.................................................................................................................................25
4.1 Data Analysis.......................................................................................................................26
4.2 Demographics......................................................................................................................26
4.3 Reliability Test.....................................................................................................................28
Kaiser - Meyer - Olkin Measure of Sampling Adequacy and Bartlett’s Test of Sphericity......28
Rotation converged in 5 iterations.............................................................................................31
4.4 Regression Analysis.............................................................................................................31
Model Summary.....................................................................................................................31
Correlation Matrixa.....................................................................................................................32
Total Variance Explained...........................................................................................................33
Chapter Five...................................................................................................................................35
Conclusion.....................................................................................................................................35
5.1 Conclusion and Discussion..................................................................................................36
References..................................................................................................................................38
Thank you for your time and cooperation.....................................................................................41

Research Report 5
Abstract
This is an experimental study of Usage Intention (UI) and the determination of this study is to
scrutinize the relationship flanked by Perceived Ease of Use (PU), Risk and Trust on Usage
Intention mainly concerning with the domain of mobile banking in Pakistan. Consequence
dependably has expected a considerable aggregate of devotion from researchers and Practitioners
alike. Numerous work-related scholars have industrialized or subsidized to our considerate of
models describing hypothetical attitudes to a personality’s experience of Usage Intention mainly
concerning with the domain of mobile banking. Even though, the study accompanied in order to
define the “Role of Perceived Ease of Use (PU), Risk and Trust on Usage Intention (UI)”. In
which a examination (questionnaire) took place and there were 50 respondents both from private
and public sector. The study took place under the principles of Iqra University north campus,
Karachi, Pakistan. At the end, consequences displayed the highest impact of Perceived Ease of
Use (PU), Risk and Trust on Usage Intention (UI).
Keywords: Perceived Ease of Use (PU), Risk and Trust on Usage Intention (UI)

Research Report 6
Chapter One
Introduction

Research Report 7
1.1 Background
With the emergence of a highly innovative era of based on the effectual incorporation of
the technology, many inventions are brought frontward in money services especially the
merchandizing banking subdivision. These important changes happened due to several strict
factors together with client satisfaction, corresponding competitive compression, expertise
innovations, usage of Information Technology and communication frequencies. According to the
stand point of the receding literature it has been evaluated that the necessity of time was to
supply price else services to satisfy client desires and not solely satisfy them but conjointly
enhance marketplace scope and advance competitive gain over the remainder of others (Ajzen,
2020).
In addition it has been evaluated that information and communication technology (ICT)
conjointly called self-service technology (SST) permits the client to contend with the electronic
means while not interrelating with any firm’s service personnel. These services embrace
collaborating kiosks, self-scanning grocery checkouts, banking machines (ATMs), smartphone
banking, mobile banking (M-Banking) and electronic funds transfer etc. These technologies type
a conglomerate that is termed Banking system (BIS). This method includes conducting group
action inquiries, portfolio management, insurance ordering, funds transmissions, bill
expenditures, account inquires, master card and loan payments (Si, H., et al., 2020).
The progress of innovation has been observed to have an enormous impact on the
fashionable era of banking sector. The standard distribution of industry was restricted to
corporeal branches that have high fixed charge. The continual improvement of knowledge
technology not solely permits banks to scale back their cost however additionally provides them
the specified potency for international competition. The association of Mobiles corporations and
banking segment has delivered the innovative chance to banks for sparking tomorrow. Now, this

Research Report 8
advanced implement has turned out to be a part of banking sector of Pakistan as well (Cheng,
2019).
This new innovative service of mobile banking additionally obtains in style in low-
income households as well. Time freedom, value saving, quickness, and vantage are the key
consider mobile banking. Banking base additionally has been increased through amplification of
the market whereas victimization mobile banking. Mobile banking is acting like commonplace
use tool. At the present, the unbanked populace might be advanced over and done with mobile
banking services. This works as a good chance for banks. Until September 2015 because of
mobile penetration in state, smartphone subscribers has stretched around one hundred and twenty
million, however solely few Pakistani are operative towards formal banking (Hassan and Wood,
2020).
1.2 Problem Statement
The main concept of mobile banking orientation which contributes perceived ease of use,
perceived risk and trust as intentions to use mobile banking has been scrutinized in multiple
preceding effective studies but not emphases on student’s utilization of mobile banking.
Questions regarding university students who have studied information and communication
technology hold intention that has been affected by elements of mobile banking orientation
including perceived ease of use, perceived risk and trust endured unrequited.
1.3 Research Question
This particular research is performed by investigating the concepts and analysis on the
basis following question;

Research Report 9
Q. How perceived ease of use, perceived risk and trust effect usage intentions among the
university students?
1.4 Research Objective
This respective examination has been achieved with regards of mobile banking. This
specific research intends to recognize the level of usage intention among the students of
university and to recognize the level of effect of perceived ease of use, perceived risk and trust
on usage intention.
1.5 Significance of the Study
This study is offering a noteworthy role usage intention in student’s life by investigative
the manifold interweaved factors such as perceived ease of use, perceived risk and trust. In
addition, this study wills highpoint in-depth critical examination to accomplish the objectives of
the learning in operative manner. The inquiries within the learning will be provided by given that
the comprehensive debate on the foundation of factual concepts regarding perceived ease of use,
perceived risk and trust. Additionally, this research study will be incorporating a wider range of
acquaintance that can be appropriate to those who are interested to be utilizing mobile banking.
The contribution of study is emergent a considerate of the individual usage intention of students.
1.6 Limitations of the Study
Since the study completely emphasizes on the quality of usage intention among the
students. Therefore, examiners are restricted to collect our data from the university students only.

Research Report 10
1.7 Organization of the Study
This study endures as follows. After an evaluation of the literature on perceived ease of
use, perceived risk and trust and usage intentions, the methodology of the research and foremost
outcomes are obtainable. Lastly we close with discussion and conclusion sections.

Research Report 11
Chapter 2
Literature Review

Research Report 12
2.1 Theoretical Framework
The introductory part mainly framed the research all around the complete understanding
of the variables including risk, perceived ease of use and trust. However, in this esteemed thesis,
it has been claimed that risk, perceived ease of use and trust have been experimental to impact
and influence on the usage intentions. In addition, the association more construed by explaining
the risk, perceived ease of use and trust along with interrelations in the middle of them while
depicting “Technology acceptance model and planned behavior theory” to better understanding
risk, perceived ease of use and trust relationships to usage intention (Hassan and Wood, 2020).
A diversity of theoretical frameworks is utilized to elucidate and forecast purchasers’
usage intention with relation to innovation. For instance, the technology acceptance model
(TAM). An intensive review of this fiction assisted guide this study’s application of the
Technology Acceptance Model (TAM), assumed its according responsibility and validity in
mensuration the acceptance of diverse innovative technologies among a spread of cultures and
societies.
The model represents the foremost wide accepted framework for analysis to-date during
this space of study. According to theory, perceived easy use and perceived quality are the key
forecasters of activity intentions and supreme innovation adjustment and practice. However,
extra constructs are projected in different studies to boost the quality of the TAM model together
with risk, trust and other influence. Based mostly upon this background, displays the analysis
model utilized within the current study (Si, H., et al., 2020).
2.1.1 Perceived Ease of Use