Journal of Applied Finance & Banking

Financial Inclusion through Mobile Banking: A Case of Bangladesh

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  • Abstract

    Around half of the world’s population is out of formal banking and financial services. On the other hand, in the last few years tremendous growth has been observed in mobile penetration in many countries across the world and specifically in a number of developing countries. With an aim to expand financial inclusion through mobile banking, using innovation diffusion theory and decomposed theory of planned behavior together, this study added a variable, namely perceived financial cost to the combined model to identify and examine the impact of factors influencing behavioral intention to adopt (or continue to use) of mobile banking in Bangladesh. The results of Structural equation modeling (SEM) indicate that Perceived financial cost, Perceived risk and Subjective norm are the most influencing factor that affect people people’s behavioral intention to adopt (or continue to use) mobile banking. Findings of this study have greater significance for the mobile banking service providers and policy makers of Bangladesh to design mobile banking services in such a way so that access and usage of this service can be increased which ultimately will have a positive impact on the country’s financial inclusion campaign.