Barriers and Drivers to Future Bank Adoption of Mobile Banking: A Stakeholder Perspective

This chapter discusses the future of mobile banking. To date, the majority of banks globally offer some form of mobile banking. Whilst mobile banking offers benefits to both customers and banks, the market has yet to fully mature, despite the availability of technology and customer demand. Changing regulatory regimes, industry consolidation, advancing technology, changing customer preferences, financial crises, increased competition between banks and non-banks and drivers of globalisation have changed the global retail-banking sector landscape. Technology, in particular the Internet, is heralded as the main force initiating change. Due to continued infusion of technology into financial services delivery, banks currently offer a plethora of distribution channels as part of a multi-channel strategy including mobile banking, which represents the next step in the provision of financial services. Diffusion of mobile banking, however, differs between countries and is slower within Europe compared to the rest of the world. Current knowledge in this area is limited. A further debate exists in relation to whether or not mobile banking is considered to be a primary or additional channel and is split between developed and developing countries. Little consensus exists in terms of these arguments. The need therefore to develop the conversation around industry adoption has never been greater.