Journal of Xi'an University of Architecture & Technology ISSN No : 1006-7930

USE AND ADOPTION OF MOBILE BANKING IN RURAL AREAS OF : A DESCRIPTIVE STUDY ON EMERGENCE OF E-BANKING

Bhagyalakshmi Burra

Research Scholar, Carrer Point University

Dr.K V Ramana Murthy Research Supervisor, Career point University

ABSTRACT

Rural banking is the oxygen producer, since it provides food for urban use. Digital convergence has been a voice in the worldwide banking sector. The term digital inclusion enables citizens to take part in the information ecosystem with the skills of base technology that contributed to an improved macro-economic efficiency. Initialized drive for exclusion by Indian Government (GOI). Financial inclusion fosters development. Mobile banking is a significant and developing tool for carrying out banking transactions. In a developing world like India, it has immense potential. Payments and programs are offered to rural communities at reasonable rates. Latest Telecoms advances have proved to provide mobile banking and clients with boon: one of them is Mobile Banking, which provides clients with services such as short messaging, transfers to funds, account information, check book issues etc. with a 's contact through mobile telephones. Today, nearly all across the world are offering mobile banking services to their clients. This paper analyzes mobile banking use and acceptance in rural areas of India.

Keywords:

I. INTRODUCTION

In our lives, the influence of technology is pervasive and a world without it cannot be visualized. Innovations in various places across the world have made our lives very simple and relaxed. The spread of technology is extremely deep and rapid in every area of our lives, for example in any part of the globe, including every established and emerging country like India, there have been tremendous growth in the telecommunications industry. India's banking industry enjoys a 23% annual growth rate that contributes almost 6% of GDP and about 7,4 million workers and the world's biggest bank indices have outperformed, at 36,76%, with the largest return on shareholders. A significant step in the growth of the banking sector is the current economic agenda. The report from the offered the Indian banking sector a new path and several international banks were in line to invest in Indian banking. The two directions between market conditions and the growth of the

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banking industry have been defined by Kumbhar. He also talked regarding the new millennium's metamorphic development in banking.

Emergence of E-Banking

First in the 80's, began. In the late 1980s the word internet was renowned. During its development, internet banking involved use of computers, keyboards and TV (or monitor) with the purpose of utilizing a telephone line to approach the banking system. The internet systems began in New York in 1981 when the videocontrolling scheme provided domestic banking services to four major banks (Citibank, Chase Manhattan, Chemical and Hanover manufacturers). In France it was later popularized the idea of video-text. In the UK, the Nottingham Building Society (NBS) launched the first domestic online banking services in 1983. It was based on the Prestel method in the UK and was connected to the phone system and TV set by a computer, such as the BBC Micro or keyboard (Tandata). It provides consumers with the opportunity to pay their accounts and accounts to other banks for petrol, power and telecommunications companies.

Globally, IT has developed from a mere method for automating existing functions to an essential tool in decision making and to a major factor in offering customer care. In the banking sector, e-banking was seen as an unfolding revolution. For example, 20 years ago 70% of all consumer financial transactions were carried out in the banking industry of developing countries around the world through a bank office of brick-and-mortar structures. Nowadays, a subsidiary or the lobby of the office works under fewer than 30% of the same customer financial transactions. E-banking provides new enterprise contacts, evaluating new goods and services, and carrying out business analysis and other enquiry with reduced financial and other expenses, from diverse multinational enterprise partnerships.

Mobile Banking

Mobile banking also names m-banking, SMS banking, and so on, according to Tiwari and Buse (2007). Mobile banking is the concept used for mobile computers such as a portable computer, such as aniPad, mobile phone, for the operation of account transfers and tests on balance and applications. Mobile banking is a facility that financial and banking organizations deliver to customers using smartphones like mobile telephones and other devices.

Mobile banking in India began in 2003 with the HDFC bank. The Reserve has taken many measures to promote and expand the use of payments through mobile banking. The central bank has taken the decision to abolish the Indian Rupees 50,000 transaction cap and the bankers have been allowed to establish their own transaction limits. “A survey in India has shown that over 43,7 million cell phone consumers use mobile banking services. The Bank of ICICI first has connections to mobile banking by 17.75 million people. The second most significant is the 9.1 million-user HDFC subscribers, led by 6.13 million subscribers.

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Mobile banking has reduced the physical barrier between consumers and banks, which has rendered banks more available. Various financial transfers will now be carried out independently of time and location.

Mobile banking has the potential to be transformational because:

 It may be cheaper than conventional banking, if the offering is competitive.

 It uses existing mobile communications infrastructure which already reaches unbanked people It may be driven by new players, such as telcos with different target markets from traditional banks

 It may harness the power of new distribution networks for cash transactions, such as airtime merchants, beyond the conventional merchant POS or ATM networks of banks.

II. REVIEW OF LITERATURE

Yang & Ahmed (2009) presented a case study of underdeveloped nation about the major issues and challenges that can rectify for the improvement in e-banking. The researchers examined the application of e-banking that can help their local banks to reduce the operating costs and provide a better and fast service to their customers in less developed nations. The study also focused on the current trends of online banking and suggested managerial insights for the banks of underdeveloped nations. This study was an empirical study based on data collected from Bangladesh an underdeveloped nation. The further research can be conducted to find out the reason of unsatisfactory growth in online banking in rural banks in India.

Thulani et al. (2009) Three functional layers of knowledge, communicative and transactional Internet banking defined. At an information stage, the marketing information of the bank's goods and services was listed by the banks on a standalone server. The danger is very limited as database systems may not provide a link between the server and the internal network of the bank. Online banking communicative degree allows for contact between the networks of the bank and the consumer. It is confined to e-mail, account questions, credit queries, static file changes and no movement of funds. Internet banking activity volume enables bank customers to electronically move money, pay bills and make other on-line banking transfers to/from their accounts.” In contrast to two other levels, there are greater levels of danger in the trade.

Vinayagamoorthy and Sankar, (2012) “Mobile Banking, also known as M-Banking, can perform various functions like mini statement, checking of account history, SMS alerts, access to card statement, balance check, mobile recharge etc. via mobile phones”. Banks want to reach each and every consumer and want to increase their customer base that’s why they are constantly doing technological upgradation. MB offers so many advantages such as people who are living in the rural or remote areas can also get an easy access to mobile banking whenever they require.

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Miss. R. Elavarasi and Dr. S. T. Surulivel (2014) Defined the different e-banking services available to customers and the customers degree of Internet banking satisfaction. Data analyzes indicate that the customer's age, academic qualification, profession, sales level are essential determinants of the use in the field of analysis of different banks' e-banking services.

Laforet and Li (2015) “Investigated the barriers to the Chinese consumers’ online banking adoption”. They found that the most important factor that motivates the people to adopt the service is, Security. “The perceived credibility the people are having in the system, to conclude the transactions securely and to maintain the privacy of their personal information that in turn affects the voluntary acceptance of the mobile banking.

Datta, (2017) After the demonetization, India drastically decreased cash dependence. This illustrates the progress of the empowering cashless scheme. According to information reported since demonetization, cashless transactions have been successfully boosted and measures by different government departments that push citizens into cashless transactions.

III. OBJECTIVES OF THE STUDY

The main Objectives of the study are stated as follows:

1. To understand the concept of E-banking and M-banking.

2. To analyze the awareness of Mobile Banking Apps in Rural Consumers of Banks

3. To analyze the reasons of Rural consumers for not adapting Mobile Banking

IV. RESEARCH METHODOLOGY

This analysis is written on the basis of secondary and primary data and. The key data was obtained from 65 respondents via a standardized questionnaire. There were agricultural respondents. The secondary data was taken from on-line and offline libraries, journals, posts, newsagents, websites etc. The findings are based on primary details.

V. ANALYSIS AND INTERPRETATIONS

The analysis is stated below based on the Primary Data:

5.1 DEMOGRAPHICS OF THE STUDY

Particulars No of Respondents Gender Female 29 Male 36 Age Less than 24 -35 years 48 36-46 years 17 Students 16 Profession Employees 17

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Farming 32

Among the 65 Respondents, 29 were female and 36 were males. 48 of them were 24-35 years old and 17 were 36-46 years old. This study is focused on primary and secondary data and. The primary knowledge was gathered via a structured questionnaire from 65 respondents. There were farmers consulted. Online and online libraries, newsletters, posts, newsagents and blogs, etc., have gathered secondary knowledge. The results are based on simple data.

5.2 AWARENESS AMONG RESPONDENTS

5.2.1 Awareness regarding M-Banking available in India

Particulars Frequency % Not Aware 7 10.8 Aware 58 89.2 Total 65 100.0

It is depicted that awareness of mobile banking app available in 89.2 % and 10.8% respondents are not known about this.

5.2.2 Usage of M-Banking App

Particulars Frequency % No 10 15.4 Yes 55 84.6 Total 65 100.0

The above table shows that 84.6% are aware of the M-banking app of their bank and 15.4% are not.

5.2.3 M-Banking App Operation

Particulars Frequency % Does Not Operate 40 61.5 Do Operate 25 38.5 Total 65 100.0

From the above table 61.5% respondents are not using M-banking app. Only 38.5% are using mobile banking app.

5.2.3 Usage Timeline

Particulars Frequency % Not using 30 46.2 More than one year 10 15.4 Last one year 14 21.5 Last Six Months 11 16.9 Total 65 100.0

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Above table showed that there is a highest % of not using mobile banking app 46.2% followed by 21.5% respondents are using from the last one year.

5.2.4 M-Banking App Usage Frequency

Particulars Frequency % Not Using 36 55.4 More than 20 Times 3 4.6 11-20 Times 6 9.2 6-10 Times 10 15.4 Up to 5 times 10 15.4 Total 65 100.0

According to above table maximum % of the people do not using m-banking app. 15.4% are using in a month up to 5 and 6-10 time in a month.

5.2.5 Willingness for M-Banking App Training

Particulars Frequency % Not Willing 39 60.0 Willing 26 40.0 Total 65 100.0

60 % respondents are not willing to take training of m-banking app.

5.2.6 Need for M-Banking App Training

Particulars Frequency % Not Needed 40 61.5 Needed 25 38.5 Total 65 100.0

61.5% respondents do not need to get the training of m-banking app.

5.2.7 M-Banking App Training Performance Rating

Particulars Frequency % Do not know 24 36.9 Better 17 26.2 OK 5 7.7 Good 16 24.6 Bad 3 4.6 Total 65 100.0

The m-mobile banking app is Better 26.2% followed by Good 24.6 %. 36.9 % of the respondents not responded.

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5.2.8 M-Banking App Usage Importance in Life

Particulars Frequency % No Idea 11 16.9 Is important 54 83.1 Total 65 100.0

83.1% of the people feels the M-banking app is important in daily life

5.2.8 M-Banking App Knowledge Source

Particulars % T.V. Advertise 20.0 Bank Brochure 18.5 Radio 1.5 Newspaper Advertise 10.8 Internet 32.3 Family and Friend 33.8 Others 4.6 No Idea 16.9

Many People came to know about m-banking app through family and friend 33.8 % then through internet 32.3%. The % of T.V advertise and bank broacher is 20.0 % and 18.5 % resp.

5.2.9 M-Banking App: Reasons for not Adapting

Particulars % Not Interested 26.2 Do not know how to operate 41.5 Slow Network 20.0 Operation Difficulty 35.4 Language Issues 18.5 App Downloading Difficulty 12.3 Operation of Mobile 13.8 Hanging of Mobile 12.3 Security Issues 27.7 Trust Issues 30.8

From the above table it is depicted that 41.5% peoples do not know how to use mobile banking app. 35.4% for difficult to operate and 30.8% of the people have no trust on these transactions.

VI. CONCLUSION

The future of financial transfers is cell phones, but not all citizens realize that yet. The result was that mobile banking provides banks with the ability to maintain their technologically knowledgeable, established client base while delivering creative and value-added services

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that draw prospective clients. We just have to ensure that we educate rural customers and provide them with ample resources to allow their usage understandable. Mobile banking has been highlighted in many surveys as the largest disruption in modern years, and has changed banking transaction handling processes and in several situations. However, a great many efforts are still required to realize the promise of mobile banking in rural India. Drivers and workers constructs are classified to support government and business prioritize considerations. In India, a rapid growth in online banking and mobile banking transactions has been seen after the 's 2016 demonetization initiative. The Government has taken numerous steps to facilitate the performance of the financial sector in terms of cashless payment and non-trading banking.” In this situation, the service providers are responsible for maintaining and educating the healthy use of mobile banking services as conventional banking, underlining to their treasurable customers the ease of mobil banking use.

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