Impact Of Mobile Banking On Customer Retention And Business Performance

Benefits of Mobile Banking process

Questions:

How Has The Trend Of Mobile Banking Influenced The Customers Worldwide?

How The Financial Companies Can Retain Their Customers And Improve The Business Process By Implementing Mobile Banking Facilities?

What Are The Major Significances Of Developing Advanced Technicalities Like Mobile Banking?

How The Business Managers Keep Track To The Online Transactions Occur During The Mobile Banking Process?

What Are The Major Challenges The Companies Might Face To Implement The Mobile Banking Method?

What Preferable Strategies Are Needed To Be Undertaken For Resolving The Issues With The Mobile Banking?

The technological advancements have brought the drastic changes in the organizational functionalities. Mobile banking is one of those advanced technicalities that have the clear influence on human lives as well as the business practices (Yadav and Rai 2015). The current observation on the business scenario implies that the customers are more likely identifying the smart process of dealing with their financial aspects with the help of the internet (Shaikh and Karjaluoto 2015). They are therefore using the mobile banking methods by operating their smart phones or computers. The previous assignment explores the impact of Mobile Banking process in retaining the customers and improving the business performance. In this section of the study, the appropriate methodology will be discussed to identify the systematic way of conducting the research. In addition to this, the study would provide the appropriate justification of the information used in this research. The gaps and the limitations would also be identified in this paper.

• To explore the conceptual insight about the mobile banking process
• To critically analyze the impact of the mobile banking on customer retention and business performance
• To provide suitable recommendations for improving the mobile banking services to retain more customers and increase business performance level

The project describes the emerging era of the advanced technologies by exploring the mobile banking process. Moreover, the study also highlights the considerable impacts of mobile banking in retaining the potential customers and improving the business performance level. The obtained ideas from this research study are expected to be implemented in the real business scenario that would be beneficial enough for the future prospects. The technological advancements have been ensuring more sophistication in current scenario (Joshi et al. 2017). The extensive research conducted for generating the knowledgeable insights regarding this subject area would help the business marketers to earn more profitability in future.

The literature study explores the conceptual analysis of the subject area. The current advancements in the technological field are quite significant in making the sophisticated approaches in using internet. This sophistication has influenced the customers much remarkably. They simply use their smart phones or computers to transact their money from one bank to another. Many of the financial companies have adopted this method to minimize the time and efforts require for transacting the money (Liébana-Cabanillas et al. 2017). The previous assignment has explored the conceptual background of this financial transaction process through the mobile phones and computers that has created impact on the customers. It is stated that the mobile banking process is available for 24 hours, which is quite beneficial for the users to transact their money via using internet at any point of time (Chuah, Marimuthu andRamayah 2014). In emergency cases, this method is much convenient as well. In fact, the companies even can make the adjustments with the amount of money that are reserved in their account.   

Challenges of Mobile Banking process

Another benefits availed from the financial banking process is the application facilities to download the transaction statement or the information. User may require the mini bank statement at any point of time for their use. The mobile banking process eases their process since they do not have to visit the bank personally and can download their required statement through mobile banking apps. On the other hand, the users can pay their bills check their account balance, and transfer funds during their needs (Kaura, Durga Prasad and Sharma 2015) These services are useful for both the bank companies and the users. Therefore, it can be considered that the mobile banking has the significant impact on the daily lives of the people who are quite fond of using the advanced technological method to save their times and efforts. The most beneficial services provided to the users lead towards huge customer retention rate. The companies are likely finding out the best application facilities that can make the use o the mobile banking process easier to the customers (Kandampully, Zhang and Bilgihan, 2015). Moreover, the easier approaches and lesser time consuming technologies are fruitful for the business companies to deliver the project schedule quite easily. Hence, it is observed that the company is able to retain their users and improve the business process as well.

In spite of these benefits availed from the mobile baking process; it has been observed that the literature failed to show the disadvantages precisely. While surfing internet or transacting the money from one source to another via internet, the users need to put their confidential banking details. If the banking company cannot provide the enough security in transacting money, the users’ detail might get hacked. The literature study failed to address such issues and the method resolving these issues. If the issue persists, it might lead to customer dissatisfaction and they might switch to another banking company. The security concern is much necessary aspect while dealing with the mobile internet banking. The literature study is thus considered to be quite limited in such aspect.

Research methodology is the systematic approach that indentifies the sequential development of a research study. It consists of the appropriate design, approach, philosophy and data collection method that would develop an informative paper exploring the subject matter clearly. The study focuses on the usefulness of mobile banking process on customer retention and improvement of business performance. The research is based on mixed method process in which both the qualitative and the quantitative data would be collected. The use of the positivism philosophy would be used in extracting the underlying truth by gathering responses from the people who have been experiencing the issues in their real life (Mertens 2014). The use of the deductive approach would also be helpful in this study to develop hypothesis for the detailed information. The descriptive design would also be used in this research process for analyzing the responses of the respondents associated with the data collection process.

Strategies to Resolve Mobile Banking Issues

The mixed method research is developed by gathering the information from both the primary and the secondary sources. The secondary information is already collected from the secondary sources like journals, books, articles, newspapers and assembled in the literature review. On the other hand, the primary research would be conducted by developing two method of data collection, such as quantitative data collection and qualitative data collection. The data collection process would be developed by taking some aspects into consideration and these aspects are discussed further.

• Qualitative Research

The qualitative research is developed by gathering the responses of the limited amount of people who have the clear knowledge regarding a particular concept (McCusker and Gunaydin 2015). The managers would provide their insight regarding the use of mobile banking and the method of dealing with their potential clients. The qualitative data collection process would be developed by arranging telephonic interviews with the managers who are associated with the mobile banking process. The interpreter and the recorder would be available to record the entire conversation and memorize the entire information received from the managers while interviewing them about the subject. The authentic bank managers would participate in this data collection process to reveal their experience while dealing with the clients’ demands. The researcher would not persuade the managers if they do not feel comfortable enough to share their strategic vision of the company. The maintenance of the ethical parameter is quite necessary in such case.

• Quantitative Data Collection Process

The quantitative data collection process is the method of collecting a number of data from quite a large number of the population (Palinkas et al. 2015). The quantitative data collection process would be developed by conducting the online survey among the people who have been using the mobile banking apps. The questionnaire would contain the multiple choice question from which the respondents have to choose their option. The responses collected from this data collection process would be analyzed by using the software tool called MS Excel. The entire responses would be collected and analyzed within the valid date.

• Sampling Technique and Sampling Size

In this study the usefulness of the mobile banking is analyzed in a clarified way. Hence, the qualitative research would be developed by arranging an interview session with 3 managers from the different financial banking companies that are offering mobile banking apps for their customer use. The telephonic interview will be conducted by using the non-probability, convenient sampling technique. On the other hand, the quantitative data would be gathered by distributing questionnaires to 50 customers who have been using the mobile baking apps and are quite accustomed with the internet banking process. The Probability, simple random technique would be used in this case to gather responses from the respondents.

Research Methodology

The research provides the insightful knowledge about the use of mobile banking in retaining customers and improving the business process. However, the biasness of the respondents in both the qualitative and quantitative data collection process has made the research quite limited. Moreover, the lack of updated information in the literature study has limited the information since it does not notify the current business practices. In fact, the researcher does not have any source to identify the authentication of the data. These drawbacks have made the research quite limited.

Table 1: Time Schedule

(Source: Created by the Author)

Conclusion

The study develops the appropriate research methodology used for analyzing the research based on the impact of mobile banking on customer retention and improvement of business process. The literature study failed to address the method of mitigating the issues occurred due to the security concerns of the customers while providing their confidential banking details over the internet. The development of the project scope and objectives has provided the idea of the underlying conceptual formulation of the subject matter. The mixed method research is developed in this study. The analysis of the gathered data from the quantitative and qualitative research would initiate the ideas about the perceptive values of the people who have been experiencing the real life scenario by using this mobile banking process. The biased responses of the respondents might create the research limitations.

References

Arcand, M., PromTep, S., Brun, I. and Rajaobelina, L., 2017. Mobile banking service quality and customer relationships. International Journal of Bank Marketing, 35(7), pp.1068-1089.

Chuah, H. W., Marimuthu, M., andRamayah, T. (2014) ‘The effect of perceived value on the loyalty of Generation Y mobile internet subscribers: A proposed conceptual framework’, Procedia-Social and Behavioral Sciences, 130, pp. 532-541.

Joshi, S., Bhatia, S., Raikar, K. and Pall, H., 2017. Customer experience and associated customer behaviour in end user devices and technologies (smartphones, mobile internet, mobile financial services). International Journal of High Performance Computing and management, 10(1-2), pp.118-126.

Kandampully, J., Zhang, T., andBilgihan, A. (2015) ‘Customer loyalty: a review and future directions with a special focus on the hospitality industry’, International Journal of Contemporary Hospitality Management, 27(3), pp. 379-414.

Kaura, V., Durga Prasad, C. S., and Sharma, S. (2015) ‘Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction’, International Journal of Bank Marketing, 33(4), pp. 404-422.

Liébana-Cabanillas, F., Alonso-Dos-Santos, M., Soto-Fuentes, Y. and Valderrama-Palma, V.A., 2017. Unobserved heterogeneity and the importance of customer loyalty in mobile banking. Technology Analysis & Strategic Management, 29(9), pp.1015-1032.

McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30(7), pp.537-542.

Mertens, D.M., 2014. Research and evaluation in education and psychology: Integrating diversity with quantitative, qualitative, and mixed methods. Sage publications.

Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K., 2015. Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), pp.533-544.

Shaikh, A.A. and Karjaluoto, H., 2015. Mobile banking adoption: A literature review. Telematics and Informatics, 32(1), pp.129-142.

Yadav, M.K. and Rai, A.K., 2015. Exploring the Relational Impact of Service Quality on Customer Satisfication. Ushus-Journal of Business Management, 14(4), pp.17-31.

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