A Conceptual Model for Mobile Banking Adoption

Despite the steady growth of Internet banking and mobile banking, only half of adults in the U.S. use online banking, with the other half still visiting physical branches for their banking services (Fox, 2013). For years, studies are being conducted in the IS field using the Technology Acceptance Model (TAM) in order to determine the key factors explaining the adoption of online banking. But, due to the privacy concerns and the psychological barriers often associated with conducting transactions in a virtual world, the TAM has proven to be a limited tool. In this study, we revisited the IS literature on mobile banking adoption along with relevant theories from the areas of marketing and psychology in order to develop a conceptual model that would have a potentially greater explanation power. The proposed model emphasizes the role of subjective norms, technological readiness, trust, and perceived critical mass of users. The model is discussed along with the research propositions it implies. The theoretical and practical implications of the study are also discussed.