International Journal of Business and Social Science

Vol. 2 No. 20; November 2011

Factors Affecting Jordanian Consumers Adoption of Mobile Banking Services

Dr. Hamza Salim Khraim
Chair of Marketing Department
Middle East University, P.O. Box 383
Amman 11610
Jordan
Dr. Younes Ellyan AL Shoubaki
Chair of Accounting Department
Middle East University, P.O. Box 383
Amman 11610
Jordan
Dr. Aymen Salim Khraim
Marketing Department
Applied Science University
Jordan
Abstract
Banking in several developing countries has transcended from a traditional brick-and mortar model of customers
queuing for services in the banks to modern day banking where banks can be reached at any point for their
services. This can be attributed to the tremendous growth in mobile penetration in many countries across the
globe including Jordan. The current exploratory study is an attempt to identify the underlying factors that affects
mobile banking adoption in Jordan. Data for this study have been collected using a questionnaire containing 22
questions. Out of 450 questionnaires that have been distributed, 301 are returned (66.0%). In the survey, factors
that may affect Jordanian mobile phone users' to adopt mobile banking services were examined. The research
findings suggested that all the six factors; self efficacy, trailability, compatibility, complexity, risk and relative
advantage were statistically significant in influencing mobile banking adoption.

Keywords: Mobile marketing services, Banking services, Consumer adoption, Jordan

1. Introduction
Banking today is undergoing a radical transformation. The symptoms are obvious; new products, new players,
new channels are appearing daily. This transformation is taking place across all sectors of the banking industry.
Technology is a major force in this radical transformation that led to breaking the geographical, legal and
industrial barriers and has created new products and services. The escalation and convergence of wireless
telecommunications has created a tremendous potential platform for providing business services. It's estimated
that mobile phone users are approaching the three billion mobile subscriptions mark globally, and advertisers and
operators alike are keenly aware of the opportunity to connect with potential consumers through mobile phones
(Hibberd, 2007). The newly emerged service delivery channels and rapidly increasing penetration rates of mobile
phones are the motivators of this study. Technology has become an increasingly vital element in the competitive
landscape of the financial services industry. Innovations in telecommunications have led to usage of mobile
devices in banking. Keen and Mackintosh (2001) showed that technological features play an important role in the
adoption of mobile value added services. In service use, mobile phones are no longer used as they have typically
been used before. Talking and text messaging (SMS) will remain, but extensive service use is expected to grow.
These facts, in addition to the more personality of mobile phones over PCs Internet and the range of computerlike functionality offered by top-of-the-range devices, are leading some observers to speculate that many people in
the near future will start to see the mobile phone as an alternative to PCs). The opportunity to use advanced
technologies in service delivery have created challenges to developers of financial services; competitive
advantage can be gained in form of costs reduction or customer satisfaction increase or lost investing in wrong
technologies. In order to rise to the challenges service providers are even more interested to enhance their
understanding of consumer behavior patterns.
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Electronic banking, in its diversified forms, represents an innovation in which both intangible service and an
innovative medium of service delivery employing high technology convergence. The term electronic banking
defined by Daniel (1999) as the provision of information and services by a bank to its customers via electronic
wired or wireless channels, for example Internet, telephone, mobile phone or interactive television. Moreover,
rapidly changing technology has reshaped behavioral pattern how consumers interact with their financial
institutions. Consumers are also more technologically savvy than ever, reducing their uneasiness involving
technological innovation. The infusion of new technologies in the services sector is ubiquitous and continues to
increase. Recently emerged wireless delivery channel using mobile phones, Internet-enabled mobile phones and
PDAs for banking services is one step along that path. The starting point in investigating drivers and obstacles of
mobile banking adoption is to give some insights into the mobile technology development in recent years.
In Western Europe the presence of a common GSM standard and the high penetration rates of mobile phones have
raised the expectations in mobile communication development. Mobile devices have become the fastest adopted
consumer product to data (Dholakia et al. 2003). According to Forrester research group (2007), 219 million users
will access the Internet via mobile Phone. The use of mobile phones for the implementation of electronic business
transactions is additionally boosted by increasingly new technologies, such as wireless application protocol
(WAP), Bluetooth, and technological developments are changed daily. Mobile banking services or operations are
still in their immaturity, leaving a great deal of room for development. There is a need, therefore, to understand
users' acceptance and adoption of mobile banking and to identify the factors affecting their intentions to use
mobile banking. This information can assist developers in the building of mobile banking systems that consumers
want to use, or help them to discover why potential users avoid using the existing system.

2. Research Objectives
Generally, this study attempts to study the factors that affect the adoption of mobile banking services. The specific
objective is:
1) To explore what factors that may influence the Jordanian consumers adoption of mobile banking services, and

2. Global Mobile Banking

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural
areas. This aspect of mobile commerce is also popular in countries where most of their population is unbanked. In
most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the
nearest bank. For example, In Iran, Guatemala and Mexico consumers can access mobile banking with local
mobile network. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and
other African countries. Pakistan has also launched a mobile banking solution, in coordination with Taameer
Bank, under the label Easy Paisa, which was begun in Q4 2009. While in India, State Bank of India (SBI)
provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance
facilities to its customers through mobile banking (Thomas, 2010).
In countries as diverse as China, Brazil and Kenya the number of new users of mobile banking soared over 100%
in 12 months, as banks leapfrogged traditional service models and moved directly to mobile. The increases were
not restricted to emerging markets alone though: take-up rates also surged in the UK, USA, Singapore, South
Korea and Sweden where banks offered customers new services via their mobile handset. For instance, the
number of mobile transactions in South Korea rose on a daily average to 287.000 in 2005 up 104%, the number of
registered users by 108% in comparison to 2004 (Korea Times, 2006). Research have established that in Western
Europe exists a noteworthy customer adoption of MFS. For example, Tiwari and Buse (2006) demonstrate that
the real rate of rejection of MFS is with lower than 8%. Moreover, many bank customers are willing to pay
extra for the utilization of MFS. These developments point towards an increasingly positive perception of MFS in
the society. This positive shift in perception can be traced back to mainly following factors (Tiwari et al, 2006):
1) The penetration of the society by mobile phones has reached an all-time high.
2) The integration of world economies is leading to more mobility so that availability of mobile services is no
more a luxury but a necessity for many.
3) The younger generations of the society seem to be fascinated by modern data and telecommunication services.
4) Mobile devices have become more powerful. Data transmission has become faster with the launch of new
standards, such as the Universal Mobile Telecommunications System (UMTS).
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Table 1 show the percentage of increase in mobile banking usage from 2010 to 2011 in selected countries.
Table 1: Percentage increase in mobile banking usage from 2010 to 2011
Percentage of consumers using in
Country

Increase
2010

2011

China

10%

25%

150%

Brazil

10%

21%

110%

Kenya

6%

18%

200%

USA

11%

22%

100%

Source: Ian Mansfield (2011)

Studies on determining the factors affecting adoption of MFS have been concentrated on twelve countries (Table
2). Moreover, maximum number of these studies (seven studies) had been conducted in USA, followed by Korea,
which had five studies. It is clearly evident that there is a serious lack of literature on studies in developing and
under-developed countries.
Table 2: Summary of Studies on adoption of MFS by country
Year

Country
02
03
Australia
China
Finland
1
Germany
1
Japan
Korea
Netherlands
1
Newzeland
South Africa
1
South Korea
Sweden
1
Taiwan
USA
Jordan
Source: Authors compilation

04

05

06
1

07

08

09

10

1
1
2
1

1
1

1
1

1
1

1
1

Total
1
1
3
2
2
5
1
1
1
1
1
2
7
1

3. Theoretical Background
3.1 Mobile Financial Services
Mobile Financial Services (MFS) encompasses a broad range of financial activities that consumers engage in or
access using their mobile phones. MFS can be divided into two distinct categories: mobile banking (m-banking)
and mobile payments (m-payments) (Boyd & Jacob, 2007). Mobile banking is defined as a channel whereby the
customer interacts with a bank via a mobile device, such as a mobile phone or personal digital assistant (PDA)
(Barnes & Corbitt, 2003). Mobile banking can also be considered as the convergence of mobile technology and
financial services (Chung & Kwon, 2009). M-banking is a subset of banking as it allows everyone easy access to
their banking activities via mobile handsets (Yu & Fang, 2009). With the improvement of mobile technologies
and devices, mobile banking has been considered as a salient system because of such attributes of mobile
technologies as ubiquity, convenience and interactivity. Mobile payments on the other hand are defined as the use
of a mobile device to conduct a payment transaction in which money or funds are transferred from a payer to a
receiver via an intermediary, or directly without an intermediary (Niina Mallat, 2006). Mobile devices can be used
in a variety of payment scenarios, such as payment for digital content (e.g., ring tones, news, music, or games),
tickets, parking fees and transport fares, or to access electronic payment services to pay bills and invoices.
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Payments for physical goods are also possible, both at vending and ticketing machines, and at manned point-ofsale (POS) terminals (Mallat et al., 2008). The terms mobile banking and mobile payments describe distinct
but in some cases overlapping sets of products. Some m-banking platforms provide services, such as money
transfers, that are considered forms of mobile payment, while some m-payments products are so closely linked to
bank accounts as the source of funds that they assume m-banking functions (Boyd & Jacob, 2007). MFS refer
collectively to a set of applications that enable people to use their mobile telephones to manipulate their bank
account, store value in an account linked to their handsets, transfer funds, or even access credit or insurance
products (Donner & Tellez, 2008). Ultimately, under-banked consumers may benefit most from platforms that
integrate both m-banking and m-payments features to provide a truly comprehensive financial services solution
(Boyd & Jacob, 2007). However, mere presence of the technology or even enrolling the consumers for the service
may not serve the ultimate cause. There had been cases where even a large number of enrollments had failed to
translate into actual usage (Krugel, et al., 2010).
3.2 Banking and Mobile Sectors in Jordan
Banking Sector. The first beginnings of the Jordanian banking sector go back to the year 1925, when the
Ottoman Bank commenced its operations in the country as the first commercial bank, followed by Arab Bank in
1934 and the British Bank of the Middle East in 1949. The banking sector remained limited to these three banks
until 1955, when three new commercial banks were incorporated during the period 1955 - 1960, namely, Jordan
National Bank, Jordan Bank, Cairo - Amman Bank in addition to Rafidein Bank, which opened its first branch in
Jordan in 1957. The banking sector did not experience any major developments during the period of the 1960s
since no other banks, either local or foreign, emerged. However, with the beginning of 1970s, the banking sector
in Jordan started to undergo a major transformation, both in quality and quantity. Several Jordanian commercial
banks were opened (Jordan Kuwait Bank, Jordan & Gulf Bank, Petra Bank, and Syrian Jordanian Bank). In
addition, several foreign banks opened new branches in the country since then (CitiBank, Chase Manhattan, and
Credit & Commerce Bank). Other financial institutions, specialized banks and investment banks commenced
operations in Jordan, which eventually led to the integration of the Jordanian financial market, in terms of the
variousness of its units and financial tools available.
The development of the Jordanian banking sector passed through different stages, which can be outlined as
follows: First Stage (1925 - 1967) which extended from the starting of the banking sector until 1967, was
characterized by the limitation of the banking sector in terms of number of operating banks, total assets and
functioning in addition to the absence of the Central Bank, which was established in 1964. Second Stage (1968 1973) did not witness any significant developments within the banking sector in Jordan. Third Stage (1974-1981)
was characterized by the major accomplishments achieved by the Jordanian economy in general, and the banking
sector in particular, which witnessed a huge expansion in terms of operating units, total assets and variousness of
financial tools used. The total number of banks increased to 17 banks, with a total of 174 branches. Fourth Stage
(1982-1990) despite the difficult conditions encountered by Jordanian banks during this period, the banking sector
managed to increase total deposits in local and foreign currencies, and increase total credit facilities by the end of
1988. Fifth Stage (1990 - 1993) was dominated by the Gulf crisis and the resulting consequences, deprivation of
Jordan from its traditional markets in Iraq and Gulf states. Sixth Stage (1994 - 2000) the tight fiscal policy
adopted by the Central Bank of Jordan led to a shrinkage in liquidity within the domestic market, which in turn
led to a minor growth of deposits in local currency. Nevertheless, licensed banks in Jordan have managed to
increase their assets, deposits and credit facilities by the end of 1998. By 2008 the total number of banks in Jordan
has increased to 23 banks of which 8 international.
Mobile Sector. The use of mobile technologies is increasingly widespread especially among Asian countries such
as Jordan. Various applications can be observed among the users, which ranged from telephone conversation and
simple text messages (SMS), to multimedia messaging services (MMS) and internet access, depending on the
capability of each mobile phone technology and services rendered. These applications have been made possible
through various developments in the mobile telephone technology such as GPRS, WAP, and the 3G standard. The
3G telephone enables users to access data, voice, and video, as well as internet access through wireless application
protocol (WAP). Jordan is increasingly open to international telecommunication companies, investors and
operators with the introduction of the first Telecommunications Regulatory Act in the region, which allows room
for private sector investment and responsibility for major telecommunication licenses and projects. The
government awarded a third GSM license by the end of 2003 and two licenses for international operators in 2004.
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In the mobile communications market four operators, Zain Jordan, Orange Mobile, and Umniah and they all use
(GSM). Official statistics show that the number of cellular subscriptions in Jordan exceeds the number of
population for the first time in its history by the end of the third quarter of 2009. By 2010, the number of
subscribers of mobile phone services in Jordan has more than six million subscribers and penetration rate of 101%
(Al Rai newspaper 2010).
3.3 Mobile Banking Adoption
During the past decade, a considerable amount of research on mobile finance services has emerged. Majority of
these studies applied research models and frameworks traditionally used within the IS literature (Hoehle & Huff,
2009). Among the different models that have been proposed, the Technology Acceptance Model (TAM) (Davis,
1989), adapted from the Theory of Reasoned Action (TRA) (Ajzen & Fishbein, 1980), appears to be the most
widely accepted among information systems researchers. The TAM posits that a users adoption of a new
information system is determined by that users intention to use the system, which in turn is determined by the
users beliefs about the system. The TAM further suggests that two beliefs perceived usefulness and perceived
ease of use are instrumental in explaining the variance in users intentions.
As Davis (1989) noted, future technology acceptance research must address how other variables affect usefulness,
ease of use and user acceptance. Therefore, perceived ease of use and perceived usefulness may not fully explain
behavioral intentions towards the use of mobile banking, necessitating a search for additional factors that can
better predict the acceptance of mobile banking. Another theory pertains to the adoption of new technology is the
Diffusion of Innovation Theory by Rogers (1983). According to Rogers (2003, p.175), there are five perceived
characteristics of innovation that can be used to form a favourable or unfavourable attitude toward an innovation,
namely: relative advantage, compatibility, complexity, trialability, and observability. Based on that, we will use
Tan and Teo (2000) and Rogers (2003) framework to test the influence of several factors on mobile bank services
adoption. Six factors were included and those factors are:
1) Self efficacy: An individuals self confidence in his or her ability to perform a behavior (Taylor and Tod,
1995)
2) Trailability: The extent users would like an opportunity to experiment with the innovation prior to committing
to its usage (Agarwal and Prasad, 1997)
3) Compatibility: The degree to which an innovation is viewed as being consistent with existing values of users
(Agarwal and Prasad, 1997).
4) Complexity: The degree to which an innovation is considered relatively difficult to understand and use
(Taylor and Tod, 1995).
5) Risk: The perceived sense of risk concerning disclosure of personal and financial information (Tan and Teo,
2000).
6) Relative advantage: The extent to which a person views an innovation as offering an advantage over previous
ways of performing the same task (Taylor and Tod, 1995).
Therefore, based on our earlier discussion, we propose the following hypotheses:
H1: Self efficacy has a direct effect on consumers adoption of mobile banking services
H2: Trailability has a direct effect on consumers adoption of mobile banking services
H3: Compatibility has a direct effect on consumers adoption of mobile banking services
H4: Complexity has a direct effect on consumers adoption of mobile banking services
H5: Risk has a direct effect on consumers adoption of mobile banking services
H6: Realtive advantage has a direct effect on consumers adoption of mobile banking services

4. Methodology
To attain the study objectives, previous research was reviewed to ensure that a comprehensive list of measures
were included. As a result, the measures of relative advantage, compatibility, complexity, and trialability
were adopted from Moore and Benbasat (1991) and the remaining factors were adopted from Brown et al., (2003).
After generating the initial questionnaire for this study, and in order to ensure its validity, market experts and
senior academic lecturers, were consulted to refine the instrument. Market experts and senior academic lecturers
comments enabled the researchers to gauge the clarity of the constructs, access whether the instrument was
capturing the desired phenomena. Some changes and amendments were made to the questionnaire. Feedback
served as a basis for correcting, refining and enhancing the instruments scales.
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The questionnaire consisted of 22 items measuring seven variables. The questionnaire was administered to a
convenience sample from three banks in Amman City, capital of Jordan. Of the 450 surveys distributed for this
study, 301 of them were useable giving a response rate of 66 per cent, which was considered satisfactory for
subsequent analysis.
The sample size decisions were primarily based on cost considerations and in line with studies on consumer
attitude and adoption of electronic banking, where sample sizes used were between 114 to 1,167 respondents. The
Cronbachs alpha of the 22 items was 0.922 as depicted in Table 3, which is considered very high (Nunnally
1978). According to the chosen methodological research approach the quantitative data was analyzed using
statistical methods by SPSS. Statistical descriptive was used to find out the respondents demographics and general
characteristics to provide a descriptive profile of the respondents.
Table 3
Variable
Self efficacy
Trailability
Compatibility
Complexity
Risk
Relative advantage
Mobile banking Adoption

No. of Items
3
3
3
3
3
4
3

Cronbachs alpha
95.7
78.0
89.7
87.7
74.3
84.4
68.1

5. Data Analysis and Results

Table 4 depicts a summation of the studys respondents demographic information. Respondents were generally
representative of the general statistics of the population in Jordan. Table 4 summarizes the demographic profile by
age, sex, educational level, employment and income. The study sample was divided between males by 70.8%
percent while female were 29.2% percent only of the total study sample. Age groups show that youngest category
(18-29) got the highest percentage with 27.9% of the study sample, while the percentage was 22.6% for the age
group between 30-39 years. The third category was for the age group between 40-49 years and those who are
greater than 60 with both getting 16.6% percentage. While the age group between 50-59 years received the lowest
percentage of 16.3%. With regards to occupation, Table 4 shows that 14.8% of the sample is public sector
workers, while the percentage was higher for workers in the private sector with 21.7%.
While for respondents with own business it counted about 25.0% of the respondents and the smallest percentage
goes to students with only 16.1% and retired with 22.1%. For education, the highest percentage was 58.5% for
respondents with a bachelor's degree, and the second category was for respondents with General Certificate of
Secondary Education by 23.9% of the study sample. While respondents with post graduate degree got 17.6%
only. The last category was for income, and the results show that 44.5% of the study sample of those who earn a
monthly income less than 350 received the highest percentage, while the percentage was 26.2% of those whose
income is from 351-700, while the percentage was 15.9% for those whose income is between 701 1000, and
11.3 for those whose income is between 1001-1500, while the lower percentage of 2% for those of income higher
than 1501.
Consumers mobile banking usage is displayed in Table 5. Only 23 percent of the consumers use the mobile for
conducting banking transactions. While the majority 66.0 percent use it for send and receiving calls and 11.3
percent for SMS, which also could be related to banking services. A total of 77.4 percent of the consumers know
what is meant by WAP and about 54.1 percent have mobile phones that are WAP enabled. Almost 61.0 percent of
the consumers are willing to use mobile in banking in future.

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Table 4: Demographic profile of the respondents

Demographics
Gender
Male
Female
Total
Age
18-29 years
30-39 years
40-49 years
50-59 years
60 years and over
Total
Occupation
Public Sector
Private Sector
Own Business
Student
Retired
Total
Education
High school
First Degree
Post Graduate
Total
Household income
Under 350 JD
351-700JD
701-1000JD
1001-1500 JD
More than 1501JD

Frequency
213
88
301

70.8
29.2
100%

84
68
50
49

27.9
22.6
16.6
16.3

50

Total

Percentage

16.6
301

100%

45
66
76
49
67
301

14.8
21.7
25.0
16.1
22.1
100%

72
176
53
301

23.9
58.5
17.6
100%

134
79
48
34
6

44.5
26.2
15.9
11.3
2.0

301

100%

Table 5: Mobile banking usage

What do you use your mobile Phone for?
- Make and receive calls
198 (65.7)
-SMS
34 (11.3)
-Banking
69 (23.0)
Do you know what WAP is?
Is your phone WAP enabled?
Are you willing to use mobile phone in banking?

Yes
233 (77.4)
163 (54.1)
183 (60.7)

No
68 (22.6)
138 (45.8)
118 (39.2)

Table 6 illustrated the arithmetic Grand Mean for the scores of responses for all the study variables statements by
using SPSS package. When this Grand Mean compared with the 5-points scale from 1 to 5, it was found that it is
greater than the agreement point (+3). Results of the respondents categorization of the main study (High >3,
Neutral =3, and Low <3), so, this means it is under the category (High) for each variable.
Table 6
Variable
Self efficacy
Trailability
Compatibility
Complexity
Risk
Relative advantage
Mobile banking Adoption

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No. of Items
3
3
3
3
3
4
3

Grand Mean
3.62
4.04
3.80
4.07
4.01
3.93
4.08

Std. Deviation
1.30
.787
1.08
.868
.693
.775
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6. Hypotheses Testing
Table 7 summarizes the results of hypotheses testing of this study. To test hypothesis 1, Pearson Correlation
coefficient was calculated between self efficacy as independent variable and mobile banking adoption as
dependent variable, and it was equals to r(n=301)=0.786, p.= 0.02, R=0.660, which means 66.0% of the variance
in mobile banking adoption can be explained by self efficacy. In order to test the strengths of the relationship
between self efficacy and mobile banking adoption, both of them were entered into a regression equation. Self
efficacy aspect was significantly related to mobile banking adoption. The standardized regression coefficient is
equal to 0.786. And the T-value is equal to 37.878, which is significant. Therefore, hypothesis 1 is accepted.
Table7:

H1
H2
H3
H4
H5
H6

Independents

Dependent

Self efficacy
Trailability
Compatibility
Complexity
Risk
Relative advantage

Mobile banking adoption

Mobile banking adoption
Mobile banking adoption
Mobile banking adoption
Mobile banking adoption
Mobile banking adoption

Person
Correlation
0.786
0.657
0.668
0.534
0.434
0.674

R2

Result

0.660
0.530
0.540
0.581
0.320
0.730

Accepted
Accepted
Accepted
Accepted
Accepted
Accepted

For the second hypothesis as shown in Table 7, Pearson Correlation coefficient was calculated between
Trailability as an independent variable and mobile banking adoption as dependent variable. There is a significant
positive correlation between trailability and mobile banking adoption which equals to r(n=301)= 0.657, p.= 0.00,
R=0.530, which means that 53.0% of the variance in mobile banking adoption can be explained by trailability.
Both of them were entered into a regression equation, trailability aspect was significantly related to mobile
banking adoption. The standardized regression coefficient is equal to 0.657 and the T-value is equal to 21.122,
which is significant. Therefore, hypothesis 2 is accepted.
While for the third hypothesis as shown in Table 7, Pearson Correlation coefficient was calculated between
compatibility as an independent variable and mobile banking adoption as dependent variable. There is a
significant positive correlation between compatibility and mobile banking adoption which equals to r(n=301)=
0.668, p.= 0.05, R=0.540, which means that 54.0% of the variance in mobile banking adoption can be explained
by compatibility. Both of them were entered into a regression equation, compatibility aspect was significantly
related to mobile banking adoption. The standardized regression coefficient is equal to 0.668. And the T-value is
equal to 28.493, which is significant. Therefore, hypothesis 3 is accepted. By the same method the fourth
hypothesis was tested as shown in Table 7, Pearson Correlation coefficient was calculated between complexity as
an independent variable and mobile banking adoption as dependent variable. There is a significant positive
correlation between complexity and mobile banking adoption which equals to r(n=301)= 0.534, p.= 0.00,
R=0.581, which means that 58.1% of the variance in mobile banking adoption can be explained by complexity.
Both of them were entered into a regression equation, complexity aspect was significantly related to mobile
banking adoption. The standardized regression coefficient is equal to 0.534. And the T-value is equal to 22.893,
which is significant.Therefore, hypothesis 4 is accepted.
As depicted in Table 7, fifth hypothesis was tested by Pearson Correlation coefficient and it was calculated
between risk as an independent variable and mobile banking adoption as dependent variable. There is a significant
positive correlation between complexity and mobile banking adoption which equals to r(n=301)= 0.434, p.= 0.00,
R=0.581, which means that 58.1% of the variance in mobile banking adoption can be explained by complexity.
Both of them were entered into a regression equation, complexity aspect was significantly related to mobile
banking adoption. The standardized regression coefficient is equal to 0.434. And the T-value is equal to 18.154,
which is significant.Therefore, hypothesis 4 is accepted. Relative advantage was the last factor tested in Table 7.
Pearson Correlation coefficient was calculated between relative advantage as an independent variable and mobile
banking adoption as dependent variable. There is a significant positive correlation between relative advantage and
mobile banking adoption which equals to r(n=301)= 0.674, p.= 0.00, R=0.730, which means that 73.0% of the
variance in mobile banking adoption can be explained by relative advantage. Both of them were entered into a
regression equation, relative advantage aspect was significantly related to mobile banking adoption. The
standardized regression coefficient is equal to 0.674. And the T-value is equal to 22.218, which is
significant.Therefore, hypothesis 4 is accepted.
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7. DISCUSSION AND CONCLUSIONS

This study is one of the few, so far, which investigate the factors that affect mobile banking services adoption. In
this research we have defined several factors that act as drivers for mobile banking adoption. Based on the
literature review and the above empirical results, we manage to outline the factors that influence mobile banking
adoption in Jordan. The research findings show that all the six factors; self efficacy, trailability, compatibility,
complexity, risk and relative advantage affect Jordanian consumers adoption of mobile banking services. The
results of this study is supported by many previous studies such as Deans and Gray (2010), who explore the
potential factors that may influence the intention of mobile phone users to adopt mobile marketing services.
Deans and Gray found that seven perceived characteristics play an important roles in determining consumer
decision intention to adopt mobile marketing namely; relative advantage, compatibility, complexity and
trialability, perceived risk, trustworthiness and permissibility.
While Irwin et al., (2003) study on South Africa cosumers show that four factors only affected the mobile banking
adoption namely; trailability, lower perception of risk, customer needs and relative advantage. On the other hand,
the researchers found that compatibility, complexity, mobile phone experience, facilitating conditions, and selfefficacy did not show any influence on mobile banking adoption. Another study support the findings of our study
is Chavidi and Mulabagula (2004) who study the perceived barriers for the adoption of mobile banking services
by the account holders of different banks in Malaysia. They found that the ease of access to relevant information
or service is the most important feature in mobile banking. This goes with our result which show that complexity
can influential factor in mobile banking adoption. Based on that banks need to minimize complicated procedures
and need to enhance ease of use to attract more consumers. Nadim and Noorjahan (2008) study go inline with this
study concerning complexity and risk. They found that perceived usefulness, ease of use, security and privacy,
and customer attitude are significantly and positively related to customer adaptation.
Relative advantage, such as mobility factor was proven to be a very important trigger for mobile banking
adoption. Customers like the idea of being up-to-date in technological advancement and being early adopter
means that they have to tolerate possible initial glitches and invest time and effort in learning. The findings by
Deans and Gray (2010) suggested that relative advantage of mobile marketing is the strongest influence in
building consumers intention decision to adopt mobile marketing. Risk has an effect on consumers mobile
banking adoption and this result is consistent with Wu and Wangs (2005) findings, which can be attributed to
users previous experience with online services which may imply that consumers are more aware of the existence
of potential risk. Ulivieris (2004) argue that a consumer goes on doing something that initially seemed to be risky
or dangerous but little by little she/he becomes more confident; it is a form of basic trust derived from habit and
from the decreasing perceived probability of damage. According to Kim et al., (2008), consumers are often faced
with at least some degree of risk or uncertainty in using mobile technology.
Based on the above findings, we may put forward the following suggestions about incorporating innovative
solutions in the banking sector, particularly by utilizing mobile services:
1) Due to changing customer needs, its important to adapt new innovative solutions in banking services with
those new needs.
2) In order to improve the bank public image, innovative mobile banking services can be a very important tool in
achieving this target, particularly when the firm actively engages in shaping standards for emerging technologies.
3) Banks can use mobile services as a positive competitive advantage as well as differentiation strategy with
rivals.
4) Banks offering mobile services may use this service as an attraction tool for prospective customers;
5) Finally, innovative mobile services are expected to open up a new distribution channel for banks to enforce
their multi-channel strategy; for technology-providers they open a new channel of revenue.
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