A Market Research onConsumer awareness and usage of MOBILE

BANKING

BY GROUP - 14

M - Banking

Mobile banking - used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device

Apple's success with iPhone and the rapid growth of phones based on Google's Android have led to an increased use of special client programs, called apps, downloaded to the mobile device.

Change in the Telecom Sector

Trends in the

Telecom Industry

Trends in the

Telecom Industry

Mobile subscribers reaching an 800 million mark.

Of total population of 1210 million, approx 295 million is Urban population.

Out of that only 43 million are mobile banking users.

Wireless Subscribers to reach 893 million by 2012/13

Methodology

Universe of the Study• Urban Mobile users in India• Assumption – Internet Access in all mobile

phonesLocale of the Study • Urban Mobile users having bank accounts

Sample of the Study • Convenient sampling – friends and relatives• Respondents were approached through a

questionnaire• 48 people responded

Description of the Sample

46

2

Bank Account

YesNo

19-25 26-352223242526

2523

Age Group25 23

38

10

Gender

MaleFemale

Public

Sec

tor

Privat

e Sec

tor

Self E

mpl

oyed

Stude

nt

05

10152025

6

20

0

22

Occupation

47

1Have a Mobile

Phone

Yes

No

Description of the Sample

39

9

Mobile Internet Service

Yes No

13

35

M-Banking Service

Yes No

Reasons for Not Using M-Banking Service

Perciev

ed C

ost

secu

rity ris

k

serv

ice av

aila

bilit

y ris

k

Difficul

t to

use/No

know

ledg

e

Applic

atio

ns in

com

patib

le w

ith th

e cu

rren

t han

dset

Limit

on m

axim

um a

mou

nt th

at can

be tran

sfer

red

Any o

ther

05

101520253035

Preference 7Preference 6Preference 5Preference 4Preference 3Preference 2Preference 1

Population with Bank Account

According to statistics, 70 % of urban population has bank accounts.

96%

4%

Have Bank Account

No Bank Account

Hypothesis: Population with Bank Account

p = 0.70 (70 % of urban population has bank accounts.)

n = 48, þ^ =0.96

α = 0.05

H₀: þ = 0.70 ; Ha: þ > 0.70 (single tail)

Z from table = 1.645

Z observed value = 3.9

Mean

1.04 (1 being yes and 2 being no)

Variance 0.04

Standard Deviation 0.20

Rejection RegionNon - Rejection Region

3.9

Minitab output

Test of p = 0.7 vs p > 0.7 95% Lower ExactSample X N Sample p Bound P-Value1 46 48 0.958333 0.874586 0.000

Therefore we reject the null hypotheses. Percentage of urban population having bank account is more than 70%.

Population using M-Banking

According to statistics, 43 million out of 310 million urban population use mobile banking i.e. 15%

27%

73%

Use Mobile Banking

Do not Use M-Bank-ing

Hypothesis: Population using M-Banking

p = 0.15

n =48, þ^ = 0.27

α = 0.05

H₀: þ = 0.15, Ha: þ ≠ 0.15 (double tail)

Z from table = 1.96

Z observed value is 2.32

Mean 1.729167 (1 being yes and 2 being no)

Standard Deviation 0.449093

Sample Variance 0.201684

Rejection RegionNon - Rejection Region

Rejection Region

2.32

Minitab outputTest and CI for One Proportion

Test of p = 0.15 vs p not = 0.15

ExactSample X N Sample p 95% CI P-Value1 13 48 0.270833 (0.152782, 0.418456)

0.040

Here we see that population proportion is very close to the confidence interval starting from .152. therefore we do not reject the null hypothesis.

Female Population using M-Banking

According to statistics, 15 % of 43 million active mobile banking urban population is female.

20%

80%

Use M-Banking

Do Not Use M-Banking

Hypothesis: Female Population using M-Banking

p = 0.15

n =10, þ^ = 0.20

α = 0.05

H₀: þ = 0.15; Ha: þ ≠ 0.15 (double tail)

Z from table = 1.96

Z observed value is 0.44

Rejection RegionNon - Rejection Region

Rejection Region

0.44

Minitab outputTest and CI for One Proportion

Test of p = 0.15 vs p not = 0.15

ExactSample X N Sample p 95% CI P-Value1 2 10 0.200000 (0.025211, 0.556095) 1.000

Therefore we do reject the null hypotheses. Percentage of urban population having bank account and is female is 15%.

Primary Service

According to statistics, 90% of 43 million active mobile banking urban population primarily use it to check their account balance.

21%

79%

Use Mobile Bank-ing

Do Not Mobile Banking

Hypothesis: Primary Service

p = 0.90

n =48, þ^ = 0.85

α = 0.05

H₀: þ = 0.90, Ha: þ ≠ 0.90 (double tail)

Z from table = 1.96

Z observed value is -1.155

Rejection RegionNon - Rejection Region

Rejection Region

-1.155

Minitab output

Test and CI for One Proportion

Test of p = 0.9 vs p not = 0.9

ExactSample X N Sample p 95% CI P-Value1 41 48 0.854167 (0.722362, 0.939296) 0.329

Therefore we do not reject the null hypotheses. 90% of urban mobile banking users use it to check their account balance.

Two Sample Test

We conducted a separate survey on usage of mobile banking primarily from people in Chandigarh. We got 33 responses with following results.

21%

79%

Use Mobile Banking

Do Not Mobile Banking

Hypothesis: Two Sample TestH₀: þ1 – p2 = 0; Ha: þ1 – p2 ≠ 0 (Double tail)

α = 0.05

Z from table = 1.96

27.48

13

13

48

ˆ1

1

1

p

Xn

21.33

7

7

33

ˆ2

2

2

p

Xn

245.3348

93.696.1221

21

nnXXP

61.0

331

481

754.245.

021.27.

11

21

2121ˆˆ

nn

PPpp

QP

Z

Two Sample TestTest and CI for Two Proportions

Sample X N Sample p1 13 48 0.2708332 7 33 0.212121

Difference = p (1) - p (2)Estimate for difference: 0.058712195% CI for difference: (-0.129063, 0.246487)Test for difference = 0 (vs not = 0): Z = 0.61 P-Value = 0.540

As p value is greater than α = 0.05 therefore do not reject the null hypothesis. Both the samples satisfy the null hypothesis.

Confidence Interval to Estimate P1 - P2

We get:

Which is same as given by Minitab Solution i.e.95% CI for difference: (-0.129063, 0.246487)

nqp

nqp

ppPPnqp

nqp

pp ZZ2

22

1

11

21212

22

1

11

21

ˆˆˆˆˆˆ

ˆˆˆˆˆˆ

245.0126.021 PP

Limitations of the study

Drawing descriptive or inferential conclusions from sample data about a larger group.

The study has limitation as the data were collected only form urban customers so the results cannot be generalized to pan India population.

The data has mainly been collected from respondents from age groups of 19 to 35 years and cannot be generalised for whole population.

Responses did not cover all banks providing the survey which may result in not revealing the true picture.

Further Scope of the study

The sample size could be increased to give more accurate results.

A cross-regional research could be done to cover Pan India which would help in achieving a better picture.

Data from all age groups can be collected.

Data covering all banks providing the service can be included in the research.

In depth analysis can be done by including more parameters in research earlier constrained due to time limitation.

Thank you