Measuring Mobile Banking Adoption in Uganda Using the Technology Acceptance Model (TAM2) and Perceived Risk

Abstract

The purpose of this study is to measure the adoption of mobile banking systems among the citizens of Uganda by analyzing the effect of perceived usefulness, perceived ease of use, and perceived risk on actual usage of mobile banking, with intention to use as a mediating variable. A closed-ended questionnaire was employed to be filled by Uganda citizens. A total of 275 questionnaires were sent out, among which only 245 were useable. A factor analysis test was run in order to establish the construct validity of the questionnaire. After that, Cronbach's alpha was used to measure the reliability of the study, and multiple linear regression analysis, Pearson's correlation, ANOVA table, and process analysis was used to analyze the association between the variables. The findings of our study showed a good and acceptable model fit. Perceived usefulness and perceived ease of use were significantly correlated to actual usage, with intention to use as a positive mediator. Perceived risk had a negative relationship with actual usage of mobile banking where intention to use negatively mediates the relationship. This study can be used by the banking industry of Uganda as well as clients of banks. It poses in detail the advantages and the risks of using mobile banking system. The banking industry can use it to maximize on the advantages while minimizing the risks, and the clients can make use of this study to further gain knowledge about the benefits and risks and make an informed decision on whether to use the mobile banking system or not. The respondents' pool of this study was constricted, employing only the citizens of Uganda. Moreover, this research was conducted on a cross-sectional basis with quantitative and closed-ended questionnaire. Future researchers can employ a diverse pool of respondents to get variable responses. Moreover, the study can be conducted on a longitudinal basis, while also employing the use of open-ended questionnaire to get a better insight regarding mobile banking systems.

Augmenting bank service quality dimensions: moderation of perceived trust and perceived risk

“…Perceived risk in the banking sector connotes customers' apprehensions about safe transmission of user information, concerns about security of financial transactions and leakage of personal information (Cockrill, 2009;Lafraxo et al, 2018;Tam, 2012). Perceived risk has primarily been discussed in context to the Internet banking services and online shopping (Chauhan et al, 2019;Lafraxo et al, 2018;Milly et al, 2021). However, the theory of perceived risk has not been much emphasized in context to bank's automated teller machine (ATM) services and related transactions (Khan and Abdullah, 2019;Narteh, 2015).…”

“…Perceived risk is defined as the perception of consumers regarding uncertainty and adverse consequences (Jayashankar et al , 2018; Jaradat et al , 2018). It represents individuals' viewpoint and might vary depending on his/her taste, judgment and experience (Mutahar et al , 2018; Milly et al , 2021; Ramos et al , 2018). The conceptualization of perceived risk asserts that certain consumer choices may lead to unforeseeable outcomes, and these outcomes might be displeasing (Mutahar et al , 2018; Ramos et al , 2018).…”

“…The concept of trust and risk are of paramount importance (Esmaeili et al , 2021; Jayashankar et al , 2018; Jaradat et al , 2018; Milly et al , 2021), especially in the private sector banks (Lafraxo et al , 2018). The banking industry in India has witnessed several fiascos over the last two decades, which has shattered the faith of customers to some extent (Chauhan et al , 2019; Sharma and Sharma, 2019).…”

The Use of Digital Channels in Omni-Channel Retail—An Empirical Study

“…Ease of usage refers to the degree to which individuals consider a technology easy to use and are drawn to use it to solve job tasks. Applications of TAM2 have shown success in fields including education [39], health [6], and finance [40]. Even with the creation of new models serving similar functions, TAM 1 and TAM 2 continue to be employed in current studies as useful models [27].…”

What drives millennials and zillennials continuously using instant messaging? Perspective from Indonesia

“…Meanwhile, Nguyen and Huynh (2018) found that perceived risk had a negative but not statistically significant effect on trust. According to Milly et al (2021) research, an increase in perceived risk reduces the likelihood of continuing to utilize mobile banking. These findings are backed up by studies by Park et al (2019), Khan et al (2020), andObaid (2021), which found that perceived risk had a negative and substantial impact on continuing usage intention.…”