Modified UTAUT Model to Study the Factors Affecting the Adoption of Mobile Banking in Jordan

Abstract

Mobile banking allows bank customers to conduct bank transactions at anytime from any place. The usage of mobile banking services is still in early stage compared to other services conducted by the banks sector. This study is important for the banking industry since it will provide practical recommendations to the banking industry in Jordan as a developing country. This study achieves three main goals: first; we developed a modified model by adding and removing new factors to the Unified Theory of Acceptance and Use of Technology (UTAUT) model; which is considered as one of the most powerful models in investigating the factors that affect the technology adoption decision of mobile banking services. The modifications on the UTAUT model were in two directions, the first direction was by adding new moderator factor called the influence of education. The second direction was by adding the Reliability, Design Issues, and Security as a three technology related factors to the UTAUT model. Second; we studied and investigated the factors that affect the technology adoption decision of mobile banking services in Jordan. We also explored if those factors are moderated by the proposed moderator factors or not. For this purpose we proposed 21 hypothesis, then we designed a questionnaire that is distributed to figure out the customer believes and intention to adopt mobile banking services. The questionnaire was distributed to 174 persons; from this number we approved 162 questionnaires for the purposes of research and analysis. We tested our proposed hypothesis using PLS Path Modeling. Third; we validated the modified model using the Varimax procedure; in which the loading factor values were more than 0.6, Kaiser-Mayer-Olkin (KMO) values were more than 0.5, and the Eigen values were more than one. The results shows our proposed model is valid, and that the Security factor plays the most significant factor on the intention to adopt m-bank services, and