Predicting Mobile Banking Acceptance and Loyalty in Chinese Bank Customers

Mobile banking (m banking) is the breakthrough technology in banking sector which has significantly improved efficiency of banks and people’s quality of life. Banks seem particularly interested in such systems that provide their customers with better services. However, acceptance of and loyalty to m banking depends on how effectively banks motivate their customers to adopt the technology and retain their continued use. The adoption rate in China is very low and quite a few studies have focused on issues related to m banking. The purpose of this study is to examine factors that affect m banking adoption and usage intentions of Chinese bank customers. The proposed model has extended the technology acceptance model (TAM). Data were collected through a field survey questionnaire and analyzed through partial least square structural equation modeling (PLS-SEM). The results showed that acceptance of and loyalty to m banking among Chinese bank customers was significantly and positively affected by resistance to change, perceived risk and low awareness of services, and perceived benefits. The results will be useful to retain existing users and attract new ones. This study is unlike past studies that merely studied short messaging service (SMS) banking and initial adoption or technological aspects of m banking. This study also provides Chinese banks with applicable strategies to effectively design and implement m banking; thus, it is expected to potentially contribute to prevailing literature, especially in the context of China, where few studies that address m banking acceptance and loyalty exist currently.