Impact of mobile banking failure on bank customers' usage behaviour: the mediating role of user satisfaction

Abstract

PurposeThis study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction towards m-banking as mediator between the aforementioned relationship.Design/methodology/approachThis study proposes a Mobile Banking Failure Model (MBFM) by integrating four failure dimensions (functional, system, information and service) based on Tan's failure model and DeLone and Mclean's Information Success model. In this paper, data was gathered from 338 respondents, who were the customers of banks and regular users of m-banking services of their respective banks in India. A survey method was employed to collect data. Structure equation modelling (SEM) was used to analyse the collected data.FindingsThe results suggest that all m-banking failure dimensions (functional, system, information and service) affect the use of m-banking, which in turn affects user satisfaction towards m-banking and customer engagement. Additionally, this study found that user satisfaction towards m-banking acts as a partial mediator between the use of m-banking and customer engagement.Research limitations/implicationsThe banking failure and its use by customers have been examined in the context of mobile banking in India only and thereby limits the generalization of results to other industry and country contexts.Practical implicationsThe results of this paper will guide bank managers and policy planners in implementing MBFM in the Indian banking context, specifically for their m-banking apps.Originality/valueThe use of m-banking, user satisfaction towards m-banking and customer engagement have been added as three supportive variables to the basic Tan's failure model and DeLone and Mclean's Information Success model to examine the impact of m-banking failure on bank customers' usage behaviour. This is a novel addition to the extant literature, as most empirical works in this domain are from industries other than banking (specifically m-banking) and with differing contexts.

Social media adoption behaviour: Consumer innovativeness and participation intention

“…According to Lim (2016Lim ( , p. 1775, 'the selfie is a self-expressive photograph featuring the photographer as the primary individual concerning any secondary products in the background that is consciously created, modified and shared with others to varying degrees, conditional on the dynamic interaction between the personal and situational factors present and facilitated by technology'. Even though the trend of selfies was apparent in the time when polaroid cameras and digital cameras were in fashion but it became more popular after the introduction of smartphones, which in turn led to excessive usage of social media platforms (Kamboj et al, 2021). Social media facilitates the latest mode of social contact via uploading of photographs, which may assist individuals' need for interaction (Eftekhar et al, 2014), and their self-expression.…”

“…The purpose can be calling or messaging, listening to songs, or checking the newest content shared on social media. Kamboj et al (2021) documented that the scope of using smartphones has to turn out to be so enormous that 50% of the mobile device holders consider mobile as their basic survival need without which 'they could not live'.…”

“…The purpose can be calling or messaging, listening to songs, or checking the newest content shared on social media. Kamboj et al (2021) documented that the scope of using smartphones has to turn out to be so enormous that 50% of the mobile device holders consider mobile as their basic survival need without which ‘they could not live’. Despite performing significant function in the consumption economy, still a few questions in smartphone user research remain unanswered such as what kind of connection exists between users and their smartphones?…”

“…Previous research on the subjective norm was mainly used to investigate individuals' intentions in different contexts (Hsu & Lin, 2008; Kamboj et al, 2021). Filieri and Lin (2017) examined the smartphone repurchase intention of young Chinese consumers' and established that subjective norm affects their intentions.…”

Mobile Banking Adoption In Emerging Countries: The Role Of Customer Demographic Characteristics

“…One strategy to innovate is to utilize technology that is currently snowballing in the community, namely the mobile phone (Grossberg, 1991). They use mobile phones for telephone calls and navigation, booking tickets, and reading news (Kamboj et al, 2021). Banks also follow the development of these technologies by presenting banking products in mobile phones owned by the public.…”