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Impact of mobile banking failure on bank customers' usage behaviour: the mediating role of user satisfaction

Shampy Kamboj (Department of Management Studies, National Institute of Technology, Hamirpur, India)
Manika Sharma (Amity School of Business, Amity University, Noida, India)
Bijoylaxmi Sarmah (North Eastern Regional Institute of Science and Technology, Nirjuli, India)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 29 September 2021

Issue publication date: 1 February 2022

2630

Abstract

Purpose

This study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction towards m-banking as mediator between the aforementioned relationship.

Design/methodology/approach

This study proposes a Mobile Banking Failure Model (MBFM) by integrating four failure dimensions (functional, system, information and service) based on Tan's failure model and DeLone and Mclean's Information Success model. In this paper, data was gathered from 338 respondents, who were the customers of banks and regular users of m-banking services of their respective banks in India. A survey method was employed to collect data. Structure equation modelling (SEM) was used to analyse the collected data.

Findings

The results suggest that all m-banking failure dimensions (functional, system, information and service) affect the use of m-banking, which in turn affects user satisfaction towards m-banking and customer engagement. Additionally, this study found that user satisfaction towards m-banking acts as a partial mediator between the use of m-banking and customer engagement.

Research limitations/implications

The banking failure and its use by customers have been examined in the context of mobile banking in India only and thereby limits the generalization of results to other industry and country contexts.

Practical implications

The results of this paper will guide bank managers and policy planners in implementing MBFM in the Indian banking context, specifically for their m-banking apps.

Originality/value

The use of m-banking, user satisfaction towards m-banking and customer engagement have been added as three supportive variables to the basic Tan's failure model and DeLone and Mclean's Information Success model to examine the impact of m-banking failure on bank customers' usage behaviour. This is a novel addition to the extant literature, as most empirical works in this domain are from industries other than banking (specifically m-banking) and with differing contexts.

Keywords

Acknowledgements

The authors thank the editor and anonymous referees for their valuable comments and suggestions. In addition, the First and corresponding author would like to acknowledge National Institute of Technology, Hamirpur, Himachal Pradesh, India for their support.

Citation

Kamboj, S., Sharma, M. and Sarmah, B. (2022), "Impact of mobile banking failure on bank customers' usage behaviour: the mediating role of user satisfaction", International Journal of Bank Marketing, Vol. 40 No. 1, pp. 128-153. https://doi.org/10.1108/IJBM-10-2020-0534

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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