Exploring Macro-level Factors in M-banking Adoption for Rural Smes in Bagladesh from the Bank’s Perspective: a Focus Group Study

There is relatively little known about the m-banking use by the rural small and medium enterprises (SMEs) in Bangladesh. This research fills the gap by presenting the key advantages of using mbanking by the rural SMEs that a bank can offer in Bangladesh. The research also reports on the critical country-level factors, organizational success factors and obstacles in m-banking adoption for rural SMEs. A focus group was interviewed and the data were analysed using NVivo9.The findings indicate that improved banking facility, an opportunity to create employment in rural area, easy settlement of trade between SMEs, better cash management are some important advantages of mbanking for the rural SMEs. Technology and human resource capabilities of the banks together with the development of mobile infrastructure are some influential factors in m-banking development in Bangladesh. This paper also identifies engagement with the SMEs as an important organizational factor in m-banking diffusion for rural SME that have been rarely identified in prior literature. However, the major constraints are the operational constraints such as cash management, policy and regulation and administrative obstacles. Recommendation for a business version m-banking, joint advertisement by the banks and mobile telecom organisations and a regional m-banking platform are also new knowledge in m-banking research. This is one of the few papers from the perspective of a bank, since most of the literature approaches the matter from the consumer standpoint. The outcomes and results of this research will be of potential value to the government, banks and mobile telecommunications in accelerating the development of m-banking in Bangladesh and in other developing countries.