Final Report Moible Banking

Service Quality Of Mobile Banking
Abstract
The main purpose of this research is to study the service quality perceptions and measuring
their impact customers trustworthiness on mobile banking. In order to do this a hierarchical
service quality has been developed in this research and furthermore it confirms that PLS path
modeling can be used to estimate the parameters of a higher order construct and its
association with subsequent consequential latent variables in a network. The findings of this
research represent that service quality is a third-order, reflective construct model with strong
positive effects on customers trustworthiness. Moreover implications and further research
indication of hierarchical service quality model is discussed later.
Acknowledgment
The research on Service quality of mobile banking is prepared to fulfill the partial
requirement of BBA program. Regarding the outcome of this thesis I would like to express
my sincere gratitude profound thankfulness, deep appreciation and indebtedness to the
respondents who helped expressing their valuable opinion by filling up questionnaire survey.
Most importantly, I am very much thankful to my respectable faculty, Dr. Mohammad
Alamgir Hossain for skilled proper guidance, keen supervision, continuous encouragement
and advice, stainless supervision during the preparation of this paper.
I am also acknowledging the co-operation and support that I received from many employees
of Trust Bank Limited, especially Mr. Kamal Hossain (Credit & Foreign exchange manager),
Mr. Riad Hossain (foreign exchange in charge) and Umme Kulshum Lipi (SOD) from Trust
Bank Ltd.
While doing this research, I have encountered some difficulties to collect data and
information. However, despite those difficulties I have completed the paper in time I tried my
best to make it a complete despite my sincere effort, there may some shortcomings. I regret
for those conscious and unconscious mistakes. Finally, I would like to thank my friends:
Omar Sakib Ahmed, Iqbal Aziz Muttake, Habib, Shovon Shajhan, Farhat Anjoom, Tanvir
Showan, and Adnan Hossain Nipu for their continuous encouragement while I am doing this
research.
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Table of Contents
Abstract................................................................................................................. 1
Acknowledgment................................................................................................... 1
Part- A (Organizational Part).................................................................................. 4
Overview of Trust Bank Limited..................................................................................... 5
Vision & Mission of Trust Bank...................................................................................... 5
Vision:.................................................................................................................. 5
Mission:................................................................................................................ 5
Positioning statement:............................................................................................... 6
Companys Value:.................................................................................................... 6
Performance of the Bank............................................................................................... 6
Branches................................................................................................................... 6
Organogram of Trust Bank Limited, Principal Branch...........................................................7
Corporate Information of the Trust Bank Limited.................................................................9
Legal Form............................................................................................................ 9
Initial Public Offering............................................................................................... 9
Product & Schedule of Retail Banking On Trust Bank Limited..............................................10
Any Purpose Loan:.......................................................................................... 10
Car Loan:...................................................................................................... 10
House Hold Durable Scheme Loan:......................................................................11
Apon Nibash Loan:.......................................................................................... 12
Doctors Loan:................................................................................................ 13
Marriage Loan:............................................................................................... 13
Education Loan:.............................................................................................. 14
Travel Loan:................................................................................................... 14
Hospitalization Loan:........................................................................................ 14
Credit Cards............................................................................................................ 15
For Defense Persons............................................................................................... 15
Any Purpose Loan........................................................................................... 15
House Hold Durable Scheme Loan:......................................................................16
Trust bank Mobile Banking (TBLMB)............................................................................ 16
Features of Trust Bank Mobile Money...................................................................17
Service Availability.......................................................................................... 17
TBMM services can be access through:.................................................................17
General Services of TBMM................................................................................ 17
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Registration Process......................................................................................... 18
Requirements Documents.................................................................................. 18
Part B (Research Part)...................................................................................... 19
Introduction:........................................................................................................ 20
Objectives of the study:....................................................................................... 21
Research Model................................................................................................... 21
Hypothesis........................................................................................................... 22
Methodology........................................................................................................ 24
Sampling.......................................................................................................... 24
Measurement Instruments and Data Analysis Strategy.......................................24
Partial Least Square (PLS) Procedures..............................................................26
Measurement model assessment.....................................................................26
Structural Model Assessment.................................................................................... 27
Data Analysis of the Research Model................................................................28
Demographic profile of the respondents..........................................................28
Significance of the study:..................................................................................... 37
Implications to theory:......................................................................................... 37
Implications to practices:..................................................................................... 37
Limitations of the study....................................................................................... 38
Future Research directions.................................................................................. 38
Recommendations............................................................................................... 39
Conclusion.............................................................................................................. 39
References.............................................................................................................. 40
Appendix................................................................................................................ 41
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Part- A
(Organizational
Part)
Page 4 of 44
Overview of Trust Bank Limited

Trust Bank Limited is one of the leading private commercial banks having a spread network
of 53 branches and 7 SME center across Bangladesh and plans to open few more branches to
cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2010.
The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country.
With a wide range of modern corporate and consumer financial products Trust Bank has been
operating in Bangladesh since 1999 and has achieved public confidence as a sound and stable
bank.
In 2001, the bank introduced automated branch banking system to increase efficiency and
improve customer service. In the year 2005, the bank moved one step further and introduced
ATM services for its customers.
Since banks business volume increased over the years and the demands of the customers
enlarged in manifold, our technology has been upgraded to manage the growth of the bank
and meet the demands of our customers.
In January 2007, Trust Bank successfully launched Online Banking Services which facilitate
Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to
all customers. Customers can now deposit or withdraw money from any Branch of Trust
Bank nationwide without needing to open multiple accounts in multiple Branches.
Via Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve
24x7 hours Account information such as account balance checkup through mini-statements
and cash withdrawals.
Trust Bank has successfully introduced Visa Credit Cards to serve its existing and potential
valued customers. Credits cards can now be used at shops & restaurants all around
Bangladesh and even internationally. Trust Bank is a customer oriented financial institution.
It remains dedicated to meet up with the ever growing expectations of the customer because
at Trust Bank, customer is always at the center.
Vision & Mission of Trust Bank

Vision:
We aim to provide financial services to meet customer expectations so that customers feel we
are always there when they need us, and can refer us to their friends with confidence. We
want to be a preferred bank of choice with a distinctive identity.
Mission:
Our mission is to make banking easy for our customers by implementing one-stop service
concept and provide innovative and attractive products & services through our technology
and qualified human resources. We always look out to benefit the local community through
supporting entrepreneurship, social responsibility and economic development of the country.
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Positioning statement:
Trust Bank is a contemporary, upbeat brand of distinctive quality of service and solution that
offers a rewarding banking experience as preferred choice of banking partner every time,
everywhere.
Companys Value:
1) Trustworthy
2) Dependable
3) Reliable
4) Professional
5) Dynamic
6) Financial inclusion
Performance of the Bank

TBL a blend of expertise and technological excellence is in place to meet varied needs of
modern customers. The bank aims at mobilizing untapped money of the country and prudent
deployment for productive activities in the form of lending at a competitive interest rates/loan
pricing. Towards attainment of its goals and objectives, the bank pursues diversified credit
policies and strategic planning in credit management. To name a few, the bank has extended
micro credit, consumers durable scheme loans, house building loans etc. to cater to the needs
of the individuals, which in turn has helped thousands of families. The bank also extends loan
in the form of trade finance, industrial finance, project finance, export & import finance etc.
The banks credit policies aimed at balanced growth and harmonious development of all the
sectors of the countrys economy with top most priority to ensure quality of lending by
averting growth of non-performing assets.
Branches
Trust Bank Limited now continues its operation with 53 branches and 7 SME center across
the country. The management is feeling that they need more branches all over the Bangladesh
to provided ardent services to more clients. In association of this view, TBL has taken up a
program to expand its branches in commercially important areas within the country in near
future.
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Organogram of Trust Bank Limited, Principal Branch
MANAGER
SUB-MANAGER
Credit Division
FCAD
SME
Card Division
Remittance
Cash-In-Charge
Account Opening
Clearing
Islamic Banking
Figure 1 Working Division of Trust Bank Ltd. FDR
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Chairman
Vice-Chairman
Top Level
Board of Director
Company Secretary
Managing Director (MD)
Deputy Managing Director (DMD)
Executive Vice-President (EVP)
Senior Vice-President (SVP)
Executive Level Management

Vice-President (VP)
Senior Assistant Vice-President

(SAVP)
Assistant Vice-President (AVP)
Senior Executive Officer (SEO)
Executive Officer (EO)
Principal Officer (PO)

Mid Level
Senior Officer (SO)
Management Trainee Officer (MTO)
Junior Officer (JO)

Low Level Management
Figure 2 Management of Trust Bank Ltd.
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Corporate Information of the Trust Bank Limited

Legal Form
The company was incorporated on 17 June 1999 under the Companies Act 1994 as a public
company limited by shares for carrying out all kinds of banking activities.
Table 1 Legal Form Of Trust Bank Ltd.
Registration Number & Date C-37960(2260)/99,
17 June 1999
Sponsor Shareholders Army Welfare Trust
Certificate of Incorporation Received on 17 June 1999
Certificate of Commencement of Business Received on 17 June 1999
Banking Licenses Received on 15 July 1999
First Branch Licenses Received on 9 August 1999
Formal Inauguration on 29 November 1999
Corporate Web Site www.trustbank.com.bd
Email info@trustbanklimited.com
Initial Public Offering

Table 2 Initial Public Offering Information of TBL
Publication of prospectus 17 May 2007
Subscription Opening 15 July 2007
Subscription Closing 19 July 2007
Listed With Dhaka Stock Exchange (DSE) on 25 September 2007
Listed With Chittagong Stock Exchange (CSE) on 24 September 2007
Commencement of Trading of Shares at DSE 01 October 2007
Commencement of Trading of Shares at CSE 01 October 2007
Product & Schedule of Retail Banking On Trust Bank Limited

There are mainly 12 products in retail banking on Trust Bank. These are given below:-
Any Purpose Loan
Car Loan
House Hold Durables
Apon Nibash Loan
Doctors Loan
Marriage Loan
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Education Loan
Travel Loan
Hospitalization Loan
Credit Card
Loan against Trust Money Double Scheme.
Any Purpose Loan:

TBL have so many needs, some are attainable with our means & standing and some are
unattainable. The unattainable needs can be met by TBL. "Any Purpose Loan'
Eligibility for Any Purpose Loan:

Confirmed employee of the Govt. Organizations/ Semi-Government Organizations /
Autonomous Bodies / Multinational Companies / Banks /Insurance companies /
Educational Institutions / Corporate Bodies
Supportive cash flow to repay the loan
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can relax the
age limit up to any age depending on the merit of the case.
Table 3 Any Purpose Loan details

For Any Purpose Loan
Loan Limit: Tk. 0.5 lac -5.00 lac
Interest Rates (%) 17%
Down Payment / Equity N/A
Loan Period / Tenor 1 4 years
Risk Fund Nil
Car Loan:
Now a car is no longer luxury but necessity. Moreover, a car is more than a symbol of
prestige. TBL offers you to materialize your dream of owning a car through TBL car loan
facility.
Eligibility for Car Loan applied by the Employees of:
For New and Reconditioned Car

Confirmed Service holders, Businessman, Professionals
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For Microbus, Minibus & Truck

Corporate bodies
Individual(s) with supportive cash flow to repay the loan
Table 4 Car New & Reconditioned Car) Loan details
For New & Reconditioned Car

Loan Limit: Tk.2.00-20.00 Lac
Interest Rates (%) 15%(New),
16%
(Reconditioned)
Down Payment / Equity 20%
Risk Fund Nil
Table 5 Car (Microbus, Minibus & Trucks ) Loan details

For Microbus , Minibus & Trucks
Loan Limit Tk.2.00-15.00 Lac(Microbus),
Tk.2.00 50.00 Lac(Minibus & Trucks)
Loan Period / Tenor 1 3 years(Microbus) ,
1 5 years(Minibus & Trucks)
Risk Fund Nil
House Hold Durable Scheme Loan:

Need are constantly changing phenomena in human life to improve the standard of living.
Sometimes your saving is not good enough to meet your requirements. At, the Trust Bank, we
take care of your financing needs and you can trust on us as your financial partner indeed.
Eligibility for House Hold Durable Scheme Loan applied by the Employees of:
Confirmed Service holders, Businessman, Professionals
Government/Semi Government/Autonomous bodies
Sector Corporation
Non-Government organizations
Multi-national companies
Banks/Financial institutions
Educational institutions
Table 6 House Hold Durable Scheme Loan
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For House Hold Durable Scheme Loan

Risk Fund Nil
Apon Nibash Loan:

TBL offers Apon Nibash (House Finance) with easy repayment schedule matching your
affordability. It have unlimited options of choosing your home with limited means and
standing. Here, TBL Apon Nibash helps to match long cherished dream.
ELIGIBILITY FOR APON NIBASH (HOME FINANCE) LOAN :

Maximum age limit of the borrower 60 yrs in exceptional case, MD can relax the age limit up to any
age depending on the merit of the case.
Employees:
Confirmed employees of govt./Autonomous body
Confirmed employees of financial institution
Confirmed employees of different Public Limited Company/Private Limited company
having Corporate Structure
Teachers of any school/college/university
Professionals
Doctors /Medical Professionals
Engineers
Accountants
IT Professionals
Management Consultant
Self Employed
Businessman (in business at least for five years)
Table 7: Apon Nibash Loan
For Apon Nibash Loan

Loan Limit: Tk.upto 75.00 lac
Down Payment / Equity 40% (for Construction)
30%(for New apartment)
Loan Period / Tenor Up to 20 years
Risk Fund Nil
Doctors Loan:
Medical is a noble profession which is evolving fast. In a country like ours it is important to
be a part of those changes as we cannot afford to be lag behind. Keeping that in mind and
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with a vision to support and promote health services, TBL is at your side with our Doctors'
Loan.
Eligibility For Doctors Loan applied by the Employees of:
General Practitioner, FCPS & MBBS Doctors/dentists or Specialist Doctors having a
Post-graduate degree and specialization in a particular area of treatment such as
Medicine Specialist, Eye Specialist, ENT Specialist, cardiac surgeon/specialist etc.
having 5 years experience as specialist.
Table 8 : Doctors Loan
For Doctors Loan

Loan Limit Tk. 1.0 lac -5.00 lac (General Practitioner MBBS/BDS),
10 lac (Specialized Doctor)
Down Payment / Equity Nil
Risk Fund Nil
Marriage Loan:
Tying the marital knot is an event of a life time and its celebration and memories should last
forever. TBL "Marriage Loan" will help you to arrange celebrate the marriage in style.
Eligibility for Marriage Loan:
Employees of confirmed service holders, Businessman, Professionals
This Loan is applicable for first marriage
This Loan may be availed by the guardian and/or Applicant as the case
maybe
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can
relax the age limit up to any age depending on the merit of the case.
Table 9 Marriage Loan

For Marriage Loan
Loan Limit: Tk.0.6 lac - 3.00 lac
Risk Fund 1%
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Education Loan:
A substantial amount of finance is required to give your child the best education or to get a
higher degree either at home or abroad.TBL, "Education Loan" relief you from this burden
and ensure uninterrupted study through steady flow of cash.
Eligibility for Education Loan applied by the Employees of:
Adequate cash flow to repay the loan
Maximum age limit of the borrower 60 yrs; in exceptional case, MD can
relax the age limit up to any age depending on the merit of the case.
Table 9 Education Loan
For Education Loan

Risk Fund Nil
Travel Loan:
When you plan to travel local or global exotic location, financing is the key issue. Don't be
worried; TBL Travel loan is ready to provide instant financial support.
Eligibility For Travel loan:

Adequate cash flow to repay the loan
Table 10 Travel loan

For Travel Loan
Risk Fund 1%
Hospitalization Loan:
Crisis comes at any time and wellbeing comes at a price. When the urgency comes for
medical treatment of your family, there can never be compromised. At any urgency if you
feel, please remember us to provide financial support through our "Hospitalization Loan"
scheme.
Eligibility For Hospitalization Loan:

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Table 11 Hospitalization Loan
For Hospitalization l Loan

Risk Fund Nil
Credit Cards
Credit Cards forms of clean lending with a maximum limit of Tk. 500,000/- to a single
borrower. Supplementary credit cards shall be considered part of the principal borrower for
this purpose. The limits exceeding Tk. 500,000/- shall be secured appropriately by the banks.
Corporate Card will not fall under this category and shall be regulated by exiting
guideline/regulations for lending.
For Charge Cards, pre-set spending limits generated by the standardized systems, as in the
global practice, shall be allowed.
Table 12 types of Credit Cards:
Sl Types of cards Limit Service Charge

1 Visa Domestic Classic (VDC) 20,000 to less than 1.00 lac Tk. 500 plus 15% VAT
2 Visa Domestic Gold (VDG) More than 1.00 lac to 5.00 lac Tk.1500 plus 15% VAT
3 Visa Domestic Gold (VDG) SAARC country: US$1,500 US $30 plus 15% VAT
Out of SAARC country: US
$5,000
4 Visa International Classic (VIC) SAARC country: $1,500 US $60 plus 15% VAT
Out of SAARC country: $5,000
For Defense Persons

Any Purpose Loan
Any purpose loan is a terminating facility offered by retail Banking Unit of the Bank for
customizing the need of Defense Officer. This product is designed for confirmed defense
officers having certain years of unexpired service with supporting cash flow to repay the loan
installment. It is a secured Loan in the sense that defense officers have to take NOC from our
Bank to get service benefits.
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Eligibility for Any Purpose Loan applied by the Defense Officer OF:
Confirmed and active in service Defense Officers with 3 years of service ahead and
having supportive cash flow to repay the installment.
Maximum age limit of the borrower 21 yrs;
Table 13 Any purpose loan for (defense person )

FOR ANY PURPOSE LOAN
LOAN LIMIT: Tk 3.00 lac
INTEREST RATES (%) 13%
DOWN PAYMENT / EQUITY N/A
LOAN PERIOD / TENOR 1 2 years
RISK FUND Nil
House Hold Durable Scheme Loan:

Household Durable Loan is a loan is designed to facilitate Defense Officers to purchase
different household items such as Motorcycle, Television, Refrigerator, Air-Conditioners,
Washing machine, Computers and other household furniture etc. for personal use. Under this
scheme, the consumer durable product is hypothecated to the bank.
Eligibility For House Hold Durable Scheme Loan:

Any confirmed and active in service Defense Officers with 4 years of service ahead
who have the means and capacity to repay bank loan.
Maximum age limit of the borrower 21 yrs;

Table 14 House Hold Durable Scheme Loan (Defense Person)
For House Hold Durable Scheme Loan

Loan Limit: Tk. 5.00 lac
Interest Rates (%) 13 %
Risk Fund Nil
Trust bank Mobile Banking (TBLMB)

Trust Bank Mobile Money is a prepaid account facility where Customer can do transactions
from anywhere through mobile phone with 24 hours banking facility. Customer will be able
to fund Transfer, Deposit and Withdraw money from the accredited Pay-points by using
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Mobile. Customers also will be able to send remittance faster to the remote place of
Bangladesh by availing this product.
Features of Trust Bank Mobile Money
o A Bank led model for the Banked and un-Banked citizen of Bangladesh
o TBL can provide all services of Trust Bank Mobile Money to all subscriber using
Short Code (160201) and Long Code (+8801199016201).
o Cash Deposit, Withdrawals & Fund Transfer facilities.
o Any registered subscriber can avail the service through mobile.
o Real time updates balance of the account.
o All transactions are secured as they pass directly through Bank Accounts.
o Every transaction has been verified by user provided PIN & mobile no.
o Convenient, Reliable & Fast Electronic Fund Transfer and Payment System.
o Accommodate Multibank and Multi-Electronic Communication Channels.
o The solution is technically capable of interoperating with the Bangladesh National

payment System.
o Very Affordable, widely Available throughout the Country.
o Simple Account Opening & Operation Process just by using a Mobile Phone or
Internet.
o All the customers account lies with the Bank since it is a bank led model.
o TBMM is device independent, supported on ALL cell phones from low to high-end.
o Open ended solution where smart card and other transactional instrument can be
integrated.
o Interest is provided at the rate of Savings Account in TBMM
o Settlement bank in case of multibank mobile payment platform
Service Availability
o Branch: All Branches & SME centers of Trust Bank.
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o Paypoint: TBL accredited all paypoints, UISC, Teletalk outlet & Citycell outlet.
o Merchant: Shurjomukhi, Arena etc.
TBMM services can be access through:
o Mobile
o Internet
General Services of TBMM
o Account Registration
o Cash Deposit & Withdraw
o Account to Account Money Transfer(P2P)
o Person to Business Payment(P2B)
o Business to person payments(B2P)
o Government to Person Payments(G2P)
o Top up(Airtime recharge)
o Utility Bill Payment
o Metlife Alico Insurance premium payment
o Balance Inquiry
o PIN Change
o Transaction History
Registration Process
o Customer comes to Branch / Paypoint
o Customer fill up the TBMM registration & KYC form (Mandatory)
o Submits the form to the designated branch / Paypoint personnel
o The branch personnel will check all the information & supporting documents to
ensure these are properly given.
o The authorized person will give entry to the Mobile Banking application through
Mobile or Internet
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o Customer will receive a registration confirmation SMS containing PIN number.
o Customer will preserve his/her PIN number.
Requirements Documents
o Nominee form and photograph of nominee(s) (signature attested by the account

holder). In case of minor nominee, copy of the birth certificate and photograph
required; nominees national ID cards photocopy.
o Photocopy of Citizenship Certificate / Passport / National I.D. Card/ Driving License.
o Photocopy of SIM registration form
o Two copies of recent passport size photograph
o To fill-up the TBMM form properly.
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Part B
(Research Part)
Introduction:
Today, firms in financial sector are competing to increase their profit share in the market.
Among these firms, banks have radically shifted from traditional banking to branchless mode
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of banking. Adoption of latest technology has enabled banks to extend their customer base,
where electronic banking has proved to be the chief advancement. Mobile banking can be
categorized as the latest advancement in electronic banking, which has widened customers
access to bank accounts through wireless channels. Mobile banking is a financial service
where the bank customers perform balance inquiry, credit transfer, and other businesses
according to instruction sent through the mobile phone. From customers perspective
adopting mobile banking services benefit in terms of convenience to perform banking
transactions anytime and anywhere, with ease to use. Security is ensured, as banking
transactions are encrypted and password-protected. (Rashid, 2011)
Bangladesh has a successfully growing economy as its telecommunication industry has

advanced tremendously in the recent years. Bangladesh's mobile technology, which had
started to grow strongly over the last few year. The mobile population has been increasing at
a remarkable rate. People belonging to all income groups are using this technology as a result
of foreign investment in Bangladesh and reduced telecommunication rates. The encouraging
prospect of mobile usage has led banks of Bangladesh to provide mobile banking services to
customers in the country. Numerous local banks have intended to initiate this service for their
customers. The literature review suggests that there exists a gap in the analysis of new
technology adoption in the area of ecommerce in Bangladeshi banks. As customers are yet
novice to the new technology so there is a lot more for banks to exploit before offering the
advance features of this technology (Bhattacherjee, 2001). The study is significant because of
the need for research on mobile banking and the impact of technology adoption on customer
satisfaction. Especially in Bangladesh mobile banking is a new area and there exists a need to
analyze the critical aspects of technology adoption. Furthermore, customer satisfaction has
not been studied specifically for banking sector firms with respect to technology adoption.
The study is significant at this initial stage when Bangladesh Bank has also released orders to
all the banks to adopt the technology. Drawing on the relevant literature and empirical
implications of the study, the author proposes the research question as follows: What are the
dimension/factors affecting service quality of mobile banking and creating trustworthiness
among the customers. This study intends to measure service quality and quality identify
trustworthiness of banks perceived by the customers.
This paper is organized as follows: the next section presents the theoretical background that
includes overall SQ and SQ in mobile banking, and the consequents of SQ. the subsequent
section describes research methodology which is followed by the empirical analysis and
findings. Finally, the interpretation of the findings and both theoretical and practical
implications are described. This paper concludes with the research limitations, future research
direction and recommendation.
Objectives of the study:

Research researchers objectives are
To develop a hierarchical service quality model in the context of Mobile banking
services.
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To explore the service quality dimensions of the Mobile banking industry.

To explore the antecedents of customers trust on using Mobile banking services.
To test the relationship between service quality and customers trust.
To show that PLS path modeling can be used to estimate the parameters of a higher
order model.
Research Model
Customer satisfaction measures how well a product or a service supplied by a firm meets
customer expectation. Ease of use, security, low transaction costs, and wide applicability of
the solutions increase perceived customer value and should be managed by mobile payment
solution provider (Mallat., 2002). Numerous researchers have investigated perceived
usefulness and perceived ease of use as a valid construct to measure customer satisfaction
level. Mobile banking is adapted by the banks as means to provide customers swift and easy
access to their bank accounts. Customers adopt a technology when they find it easy to
understand and implement. According to (H. Amin, 2007), perceived usefulness has a
positive effect on the behavioral intention to use mobile banking.
The study identifies service quality as a notion of customers perception on mobile bankings
overall excellence or superiority which is consistent with the generic definitions in service
literature (Brady and Cronin, 2001). In order to develop the dimensions of SQ model this
study focuses on customers perceived service quality of Mobile banking services in
Bangladesh. In fact, the qualitative study mainly focused on the SQ dimensions
A third order hierarchical service quality model has been developed. Here service quality has
been divided into three primary dimensions: system quality, interaction quality and outcome
quality. Again these primary dimensions have been divided into a total of eleven sub-
dimensions. The three primary dimensions are:
I. System Quality: Quality of service delivery system in terms of system reliability,

system availability, system privacy, system security, system efficacy, system
complexity.
II. Interaction Quality: Quality of service delivery system in terms of responsiveness and
empathy.
III. Outcome Quality: This represents the functional benefit, financial benefit and self-
efficiency.
System Quality
System quality refers users perception regarding technical level and technology of the
system. In this findings there are six constructs of system quality: system reliability, system
availability, system privacy, system complexity, system Security, system efficiency. System
reliability refers to the accurateness and reliant of the system. System availability is about the
accessibility of the system for example instant accessibility, access form any place or anytime
etc. System privacy refers to secureness of the customers information (transaction
information, mobile member or any other information). System security talks about the
protection of customers money, transaction of fund etc. System complexity refers to difficulty
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of the system to the user and finally, system efficiency refers to the effectiveness and
competent of the system.
Interaction Quality
Interaction Quality is the quality of the interaction between the employees and the customers.
It comprises of the two sub-dimensions for mobile banking: responsiveness and empathy.
Here, responsiveness is the willingness to help customers and provide prompt service and
empathy refers to the emotional aspect of service.
Outcome Quality
Outcomes are the ultimate services that a customer intent to receive; it refers to the services a
bank offer with a mortgage, for instance (Powpaka, 1996). However, Dagger et al. (2007)
argue that outcome does not refer to ultimate result but rather to the outcomes experienced
over a series of service encounters. Here, outcome consist of three constructs: operational
benefit, financial benefit, and self-efficiency. Operational benefit refers to this services
worthiness and facilities. Financial benefit talks about how customers is being benefited
financially using this service for example interest on saving, low service charges and fees etc.
and finally, self-efficiency is whether customers are capable of using the service
spontaneously without facing difficulties and prior training.
Hypothesis
The research is about measuring service quality of mobile banking and its onward effect to
the customers. Trust is an important factor which mostly depends on the service quality
(Lewis, 1991). If the offered service is not trustworthy, customer will not be satisfied and at
the same time there will be less customer retention or continuance. From the previous
research regarding trustworthiness and service quality, it has been seen that several factors are
responsible to create trustworthiness for customers like security, reliability, responsiveness
etc. In this research to three main dimensions: system quality, interaction quality and
outcome quality have been design to measure service quality and customers trustworthiness.
To embed the hierarchical service quality model in mobile banking, outcome constructs has
been framed such as operational benefit (OPB), financial benefit (FIB), self-efficiency (SEF)
and finally basing on the service quality we will justify trustworthiness of customers on the
service.
H1: Service quality has a significant positive impact on creating customers trustworthiness
on the service.
Figure 1 shows the hierarchical multi-dimensional SQ variables and their relationship with
the other relevant variables by a visual representation with boxes and arrows.
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Self- Efficiency
ServiceQuality
Interaction Trust
Quality
Operational Benefit
Outcome
Quality
Figure 1 Research model and hypotheses
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Self-efficiency
Methodology
This research adopted positivist epistemology. A research can be called positivist if there is
evidence of formal propositions, quantifiable measures of variables, formulation of
hypothesis, hypothesis testing, and drawing of inferences about a phenomenon from the
sample to a stated population (Orlikowski and Baroudi, 1991). However, this research was
completed using both primary and secondary data. Primary data was collected from a
questionnaire survey. For the secondary research, the information from the journals, books
and intranet of Trust Bank (Practicing mobile baking) network has been taken. Also the
banks official website and sites like Google and Wikipedia provided important information.
Sampling
The sample was drawn from the mobile banking users in Bangladesh. Nowadays, there were
great advances in the techniques and technologies utilized in survey research, from
systematic sampling methods to enhanced questionnaire design and computerized data
analysis (Mathur, 2007). The field of survey research became much more scientific. Recently,
online survey has become very popular. There are some advantage of online survey like
faster, cheaper, more accurate, quick to analyze etc. However, there are also some
disadvantage of online survey like double entry, error message etc. If conducted properly,
online surveys have significant advantages over other formats. It is imperative that the
potential weaknesses of online surveys be mitigated and that online surveys only be used
when appropriate. (Wilson, 2003). In this study both two method of survey (face to face and
online) were used. There was in total 120 samples. There was total 46 questions into the
questionnaire. 80 samples data were collected using online method. A questionnaire was first
created using google form and the link was sent to the targeted mobile banking users through
Facebook, and Email. Rest of the 40 samples were collect via face to face survey.
The questionnaire was separated into three sections; first section containing demographics of
the respondent; the second one measured the effects of service quality determinants upon
customer satisfaction and their loyalty; and finally the third one was regarding any
complaints they had or any suggestion they wanted to give.
Measurement Instruments and Data Analysis Strategy

The measurement items have been taken from prior studies. Few of the items have been
adapted from the SERVQUAL model (Parasuraman, Zeithaml, & Malhotra, 2005) under
interaction quality. Survey was conducted using Liker based questionnaire ranging from 1=
Strongly Disagree to 5= Strongly Agree. This was convenient for the customers as they
could easily quantify their happiness rather than the confusing question-answers. The
questionnaire consisted of 46 statements among which all were positively worded other than
just the last statement.
Table 1 The variables of the current study from existing literature in mobile banking
Constructs Dimensions Items

System System SR1 Mobile Banking platform works smoothly.
Quality Reliability SR2 Mobile Banking system are reliably.
SR3 Mobile Banking system are dependable.
SR4 Mobile Banking system performs accurately.
Page 25 of 44
System SA1 Mobile Banking system are available from any place.
Availability SA2 Mobile Banking system are available at any time.
SA3 I can receive Mobile Banking system right away.
SA4 Mobile Banking system is available from any mobile operator.
System SP1 Mobile Banking system does not forward malicious SMS from other
Privacy companies.
SP2 Mobile Banking system does not share personal information of customers
SP3 Mobile Baking system protects information about my personal problems.
SP4 I can change my PIN whenever i want.
System SC1 My interaction with Mobile Banking system is clear.
Complexity SC2 The system interface is user friendly.
SC3 Mobile Banking system does not require a lot of effort.
SC4 Overall, I perceive that Mobile Banking system is easy to use
System SS1 The Mobile Banking system is safe to make transaction.
Security SS2 Mobile Banking system uses secured PIN encryption system
SS3 Customer identification and authentications are accurate
SS4 Overall, I believe Mobile Banking system is entirely Secured.
System SE1 Mobile Banking system works swiftly
Efficiency SE2 This system can be adapted to meet variety of needs.
SE3 Mobile banking system is versatile in addressing needs as they arise.
SE4 Mobile Banking system Can flexibly adjust to new condition.
Responsivenes RE1 Helpline staff provides prompt service
s RE2 Information regarding this service is easily obtainable.
RE3 The Helpline staff are always willing to help me.
Interactio RE4 The Helpline staff happily replay any query
n Quality Empathy EM1 The Helpline staff pays personal attention to the customers.
EM2 The Helpline staff are polite/courteous.
EM3 The Helpline staff are put effort to understand my query.
EM4 The staff handle a problem in a caring way.
Operational OPB
Benefit 1 Mobile Banking offered wide range of services
OPB
2 Services from Mobile Banking are worthwhile.
OPB
3 Mobile Banking helps to pay regular bills (electric bill, mobile flexi load).
Financial FIB1 Mobile Banking provides attractive interest on mobile deposit.
Outcome Benefit FIB2 The service charges/fees are competitive/reasonable.
Quality FIB3 The transaction costs (e.g., sending money from one account to another) are
reasonable.
Self-Efficiency SEF1 I could use Mobile Banking service if someone first showed me how to use
it.
SEF2 I can perform my transactions using Mobile Banking services even if there
is no one to help me if I get stuck.
SEF3 I can perform transactions in Mobile Banking service if I am allowed
adequate time to complete the job.
Trust TRS1 I trust Mobile Banking services.
TRS2 I would trust Mobile Banking services for reliable transactions
TRS3 I would trust Mobile Banking services promises and commitment to satisfy
my financial transactions
Page 26 of 44
TRS4 I would trust Mobile Banking services behavior to meet my expectations
Table 2 Highlight of the survey

The aim of the research To evaluate service quality of mobile banking and customers trustworthiness on it.
Approach Quantitative
The source of data Mobile banking customers
Instrument Questionnaire
Number of respondents 120
Location Bangladesh
Online data collection https://www.facebook.com/groups/jobsfornsuers/
(Facebook group) https://www.facebook.com/groups/NSU.FCR/
Period January April, 2013
The research used a quantitative study. SPSS technique was used for demographic data
analysis and PLS was used for model testing. PLS was suitable for the study as it can be used
well for explaining and prediction purpose. As service quality is a third order reflective
construct, PLS path modeling used repeated measures for estimating the parameters of the
model. The manifest variables were used repeatedly for first order variables (sub-dimension),
second order variables (primary dimensions) and for the third order variable (service quality).
The structural parameter had been estimated for the overall model.
Partial Least Square (PLS) Procedures

The research model has been tested and evaluated using this software PLS which is based
on SEM (structural Equation Modeling) technique. Both the measurement model and the
structural model of the overall research model have been evaluated using PLS and the
procedure of how this evaluation is carried out is mentioned below.
Measurement model assessment

Here, the relationship between the observed variables and the constructs are evaluated. It is
evaluated by examining individual item reliability, internal consistency and discriminant
validity (Igbaria, Guimaraes, & Davis, 1995).
Item Reliability
To test the convergent reliability of the model, the item reliability needs to be examined first.
Item reliability assessment refers to an analysis of estimating the amount of variance in each
individual items measure that is due to the construct (Barclay, Thompson, & Higgins, 1995).
Individual item reliability is measured by inspecting the item loadings, or simple correlations
of the indicator with their respective latent variables. This correlation with respective
constructs leads to an item loading in PLS. A widely accepted rule of thumb to accept an
indicator as a constituent of a construct is that the manifest variable should have a loading of
at least 0.6 or preferably 0.7. However, several researchers think this rule should not be so
strict. Even lower loadings are acceptable sometimes. It is advised that items with lower
loadings should be dropped as it would improve the item reliability and would lead to
Page 27 of 44
improved estimate of the relationship between the constructs. This study accepted items that
had a loading equal to or more than 0.6.
Internal Consistency
Another measure of the convergent reliability is the internal consistency. It measures the
reliability of the constructs (Fornell, Claes, & Larcker, 1981). It can be measured by assessing
the Average Variance Extracted (AVE) for each of the reflective constructs. The amount of
variance that is shared between a construct and its measures is indicated by AVE. AVE values
should be equal to or greater than 0.5 which means that 50% or more of the indicator variance
should be accounted for. The higher the value of AVE, the higher is the reliability.
Discriminant Validity
Finally, discriminant validity indicates the extent to which a given construct differs from
other constructs that is the degree to which constructs differ with each other in the same
model. In rare cases, an item might share more variance with other construct than its
respective one and discriminant validity checks for this error. To assess discriminant validity,
according to Fornell and Larcker, the AVE should be greater than the variance between the
construct and other constructs in the model (Fornell, Claes, & Larcker, 1981). The cross
loading analysis needs to be done in PLS and the results put in a table format. The square root
of the AVE should then be compared with the inter construct correlation and to prove
discriminant validity, an item should not load more on other constructs than on its own.
Structural Model Assessment

The two key ways to assess the structural model are by the amount of variance explained or R
square (R2) and Path coefficient ().
Amount of variance explained or R square (R2)

The R2 value represents the extent to which the dependent constructs are explained by the
independent constructs. R2 has the capability of predictive power for the research model. The
bootstrap method in PLS produces values of R2. A value greater than 0.1 is acceptable (Teo,
Wei et al.2003).
Path coefficient () and T-statistics

The relationship of the constructs needs to be examined as the hypotheses mentioned. In
order to estimate the precision of the PLS estimates, nonparametric techniques of re-sampling
should be used and one common approach is bootstrapping which provides path coefficient
and t-statistics of the parameters. The t-statistics can be used to evaluate the significance of
the structural paths.
Page 28 of 44
Data Analysis of the Research Model

PLS Graph 3.0 has been used to evaluate the research model. First, the third order reflective
hierarchical model has been created. There are three Dimensions of service quality at the 2 nd
order model (System Quality, Interaction Quality, and Outcome Quality). In each dimension
there are few sub-dimensions: system reliability (SR1-SR4), system availability (SA1-SA4),
system privacy (SP1-SP4), system complexity (SC1-SC4), system Security (SS1-SS4), system
efficiency (SE1-SE4), responsiveness (RE1-RE4), empathy (EM1-EM4), operational benefit
(OPB1-OPB3), financial benefit FIB1-FIB3), Self-efficacy (SEF1-SEF3), Trust (TRS1-TRS4).
Constructs are shown into the graph. Respondences aggregate their evaluations of the
constructs to form their perceptions of mobile banking service quality on each of the three
primary dimensions. Those perceptions then lead to an over-all service quality perception.
However, after conducting survey, the raw data file (contacting all survey data) was made and
linked with PLS for the calculation.
Demographic profile of the respondents

From the below table 3, it can be observed that majority of the respondents are male. Out of
120 respondents there is 87 male respondents which represents 72.5% and rest of them are
female. It clearly shows that male users of mobile banking are higher than the female users.
Table 3 Demographic data of respondents (Gender)
Valid Cumulative
Gender Frequency Percent
Percent Percent
Male 87 72.5 72.5 72.5
Female 33 27.5 27.5 100
Total 120 100 100
Gender
28% 1
2
73%
Figure 2 Exhibits a pie chart illustrating the gender distribution of the respondents
The demographic data in blew Table 4 shows that almost 64% of the respondents are between
age 18 to 30. Approximately 28 percentage of respondents are between age 31 to 50 and rest
of them are more than 50 years old. From this chart we can see that tendency of using mobile
banking is higher between young people.
Page 29 of 44
Table 4 Demographic data of respondents (Age)

Freque Cumulativ
Age Percent
ncy e Percent
18-30 77 64.17 64.17
31-50 34 28.33 92.50
Above 50 9 7.50 100.00
Total 120 100.00
Age
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
77.00
18-30 34.00
31-50 9.0050
Above
Figure 3 exhibits a bar chart illustrating the age distribution of the respondents.
From Table 5, it is observed that the highest numbers approximately 79% of the respondent
are students. Second largest respondents are service holder. 4.17% respondents are
businessman and finally the lowest percentage people are no job category. The chart represent
that there is a higher tendency of using mobile banking.
Table 5 Demographic data of respondents (Profession)
Frequenc Cumulative
Profession Percent
y Percent
Business 5 4.17 4.17
Service 18 15.00 19.17
Student 95 79.17 98.33
No Job 2 1.67 100.00
Total 120 100.00
Page 30 of 44
Profession
100 95
90
80
70
60
50
40
30
18
20
10 5 2 3 2 4
1
0
1 2 3 4
Figure 4 exhibits a bar chart illustrating the profession of the respondents
Table 6 shows that the income shares are distributed from 84.17% for customers with less
than 20,000Tk income per month, 12.50% customers with more than 20,000Tk and less or
equal to 40,000. 2.5% customers income is between 40,001Tk to 60,000Tk and the lowest
0.83% customers income is more than 80,000Tk. Since most of the respondent was students
their income level is below 20,000Tk
Table 6 Demographic data of respondents (Income Level)
Cumulative
Income level Frequency Percent
Percent
Below 20,000 101 84.17 84.17
20,001-40,000 15 12.50 96.67
40,001-80,000 3 2.50 99.17
Above 80,001+ 1 0.83 100.00
Total 120 100.00
Income Level
Above 80,000+1
40,000-80,0003
15
20,000-40,000
Below 20,000 101
0 20 40 60 80 100 120
Figure 5 exhibits a bar chart illustrating the income distribution of the respondents.
Page 31 of 44
Measurement Model assessment

There were total 120 cases. Non parametric technique, bootstrapping was applied to those
cases. The model was assessed for the convergent reliability that is individual item reliability,
internal consistency and discriminant validity by using the confirmatory factor analysis
(CFA) of PLS.
Item Reliability
All the items needed to load equal to or higher than 0.6 for the model to be satisfactory.
However, at the outset of this study, four items (SA4, SE3, RE1, OPB3) failed to meet this
cut-off point 0.6 and was removed from the indicator list of the individual constructs. PLS
was again run without these four items and then again one item (SE4) failed to meet the
requirement of minimum loading 0.6. Then this item was removed. However, PLS was run
again and now all the items loaded higher than 0.6 which was a good acceptable cut-off point
for our research proving that all the individual items used are reliable.
Internal Consistency
The average variance extracted (AVE) and composite reliability (CR) was checked to assess
the internal consistency of the model. In this research, all the values of AVE exceeded 0.5.
System efficiency (SE) has the highest AVE (0.787) and at the same time Trust (TRS) has
highest CR (0.934). On the other hand it was also observed that system reliability (SR) has
the lowest AVE (0.592) and Responsiveness (RE) has the lowest CR (0.846). The lowest
value of CR was 0.846 which even exceeded the 0.7 cut-off value.
Table 7 Results of psychometric properties for first order constructs

Loadin
Constructs Dimensions Items g CR AVE
System Quality System Reliability SR1 0.6502 0.852 0.592
SR2 0.8422
SR3 0.8068
SR4 0.7648
System Availability SA1 0.8372 0.874 0.699
SA2 0.8768
SA3 0.7912
SA4 0.5512
System Privacy SP1 0.8689 0.907 0.709
SP2 0.8864
SP3 0.8325
SP4 0.7758
System Complexity SC1 0.7611 0.87 0.627
SC2 0.7638
SC3 0.7867
SC4 0.8512
System Security SS1 0.8705 0.904 0.701
Page 32 of 44
SS2 0.7913
SS3 0.8293
SS4 0.8557
System Efficiency SE1 0.8994 0.881 0.787
SE2 0.8749
SE3 0.5972
SE4 0.5932
Ineraction Quality Responsiveness RE1 0.4653 0.846 0.648
RE2 0.8548
RE3 0.7254
RE4 0.8287
Empathy EM1 0.7533 0.885 0.658
EM2 0.8279
EM3 0.8533
EM4 0.8075
Outcome Quality Operational Benefit OPB1 0.8976 0.889 0.8
OPB2 0.8918
OPB3 0.5226
Financial Benefit FIB1 0.8578 0.901 0.753
FIB2 0.8738
FIB3 0.8711
Self-Efficiency SEF1 0.7745 0.861 0.674
SEF2 0.8083
SEF3 0.8761
Trust TRS1 0.8758 0.934 0.779
TRS2 0.9056
TRS3 0.8859
TRS4 0.8616
Page 33 of 44
To check the discriminant validity, Table 8 has been prepared. The diagonal values of the table are the square root of the AVE of the constructs.
These values are compared to the inter-construct correlations (the off-diagonal values). From the table, we can see that the square root of AVE
for each construct is higher than the variance shared between a construct and other constructs in the model which confirms discriminant validity
(Chin, 2010a).
Table 8 Inter-correlations of the first order constructs
SR SA SP SC SS SE RE EM OPB FIB SEF TRS

0.76941
System Relibility (SR) 5
System Accessibility (SA) 0.524 0.836062
System Privacy (SP) 0.481 0.623 0.842021
system Complexity (SC) 0.363 0.471 0.512 0.791833
System Security (SS) 0.618 0.539 0.656 0.69 0.837257
System Efficiency (SE) 0.447 0.428 0.61 0.521 0.745 0.88713
Responsiveness (RE) 0.489 0.426 0.441 0.56 0.588 0.466 0.804984
Empathy (EM) 0.461 0.405 0.59 0.597 0.645 0.565 0.685 0.811172
Operational Benefit (OPB) 0.479 0.505 0.606 0.453 0.626 0.65 0.609 0.724 0.894427
Financial Benefit (FIB) 0.371 0.416 0.506 0.381 0.461 0.309 0.561 0.5 0.544 0.867756
Self-efficiency (SEF) 0.187 0.415 0.572 0.323 0.368 0.491 0.157 0.249 0.447 0.502 0.820975
Trust (TRS) 0.51 0.46 0.541 0.659 0.705 0.527 0.398 0.645 0.555 0.316 0.37 0.88261
* Bold diagonal values are square root of AVE of relevant construct
Page 34 of 44
So, it was justified that the measurement model was considered satisfactory as all the criteria
met properly. Now the model was ready for testing the hypotheses and research model
validation. The next phase examines the higher order model and then the PLS analysis
conducts the assessment of the structural model.
Assessment of the higher order model

The model of this study has been presented as a hierarchical third order reflective model.
After removing the low loading items, the third-order constructs consist of 40 items among
which 21 items reflect system quality, 7 items reflect interaction quality and 8 items reflect
outcome quality. Each of these second order constructs again reflect their first order
constructs. Figure 6 on the next page shows that the amount of variance explained of the
third order construct (service quality) is reflected in the second order dimensions: system
quality (96.0%), interaction quality (85.1%) and outcome quality (90.7%). The second order
constructs amount of variance is explained in the first order constructs for example the R 2 of
station quality is reflected in system reliability (72.6%), system accessibility (72.2%), system
privacy (82.7%), system security (90.7%), system complexity (75.1%), and system efficiency
(78.4%). Similarly, the amount of variance explained of interaction quality and outcome
quality are also reflected in their corresponding first order constructs. Fig 6 provides a
detailed diagram. Moreover, all the path coefficients and t-values from service quality to
second-order and first-order constructs are significant at p<0.01 (Appendix A). Also, in Table
4, the results show that the CRs and AVEs of the second or third-order model are greater than
0.60 and 0.50 respectively, which provides evidence of reliable higher order measures.
Table 9 Reliability of higher-order constructs
Model Construct CR AVE

System quality 0.938 0.424
Second order Interaction quality 0.895 0.551
Outcome quality 0.881 0.484
Third order Service quality 0.955 0.377
Page 35 of 44
0.726
0.722
Service
Quality
0.827
0.751
0.907
0.96
Interaction Quality (0.725)
0.784
0.85
0.884
0.943
Empathy (0.890)
0.761
Responsiveness (0.782) 0.80
0.876
0.778
Figure 6 Service Quality hierarchical model for Mobile Banking (including Path Coefficient
and T-vale of Hierarchical Model)
Page 36 of 44
Outcome
Quality (0.65
Table 10 Path Coefficient and T-vale of Hierarchical Model
Hierarchical Model Path Coefficient () t-value

system quality to SR 0.726 15.3638*
system quality to SA 0.722 17.2803*
system quality to SP 0.827 29.1251*
system quality to SC 0.751 16.0679
system quality to SS 0.907 52.0466
system quality to SE 0.784 16.7031
Interaction quality to RE 0.884 39.9759
Interaction quality to EM 0.943 94.9202
Outcome to OPB 0.761 13.7116
Outcome to FIB 0.876 25.446
Outcome to SEF 0.778 13.763
Service quality to system quality 0.96 104.0824
Service quality to interaction quality 0.851 30.9954
Service quality to outcome quality 0.807 19.3098
Structural Model
Service quality to Trust 0.719 13.4058
*p<0.001 significance level
Table 11Evaluation of the structural model and research hypothesis
Path Coefficient
Hypothesis t-value Result
()
Service quality has a
significant positive impact
H1 on creating customers 0.719 13.4058 Supported
trustworthiness on the
service.
Hypothesis H1: From the above table 11 it is proved that service quality has a significant
positive impact on creating trust on customers mind regarding this service (=0.719 and
t=13.4058). The study proves that as long as there is excellent quality of service, the
customers trust on the service will be increased. Customers trust is a very important factor
for business especially for the financial institutions. Service quality creates trust on the
customers mind. If service quality increases customers will consider the service trustable.
R square (R2): The amount of variance explained by the model in term of R 2 is 0.517 for trust
on mobile banking which means that the model explained 51.7% of the variances in
customers trust on service which satisfies the acceptable cut off value 0.10.
Page 37 of 44
Analysis of the Open-ended Question

There was an open-ended question included in section B into the questionnaire. The question
was about any suggestion or complaints respondents want to make regarding Mobile banking.
Majority of the respondents skipped that question. However few of the respondents shared
their opinion. Some people said the user interface is not updated compared to other banks in
foreign countries. Mobile banking should concentrate on satisfactory user interface of the
customers. Some other people talked about the charges and Fees. They expected to have
lowers charges for text message since for conducting every transaction customers need to
send SMS.
Significance of the study:

This is a study that will try to find out the difference between customers expectation and
perception of mobile banking service quality. Bank management is always much more aware
about cost rather quality of their service. They always try to provide service in an economic
way that will maximize their economic return. Thats why most of the time customers found
huge gap perceived service quality and promised service quality. So it is really an important
factor from management point of view that is they able to provide committed service. This
study will help management practitioners to set the service quality range based on service
criteria as well as it will help the customer for getting better and reliable service.
Implications to theory:
This study prolonged existing service quality theory in the context of Mobile banking
services by capturing users insight on three primary dimensions (platform quality,
interaction quality, outcome quality) and eleven sub-dimensions (system reliability, system
availability, system efficiency, system privacy, system security, system complexity
responsiveness, empathy, operational benefit, financial benefit and self-efficiency ).
Moreover, it added uniqueness in theory by modeling the association between service quality
and outcome constructs trust (TRS), which has not been examined before. It is believed that
the proposed theoretical framework of this study can make significant contribution to
knowledge
Implications to practices:
The implications of this research are highly relevant to all banks which are providing mobile
banking service. The findings propose that customer evaluate service quality of mobile
banking basing on three dimensions: system quality, interaction quality and outcome quality.
This study will help the managers to understand the perception of the customers. It suggests
managers that mobile banking platform should be focused more for improving the quality of
the services. For a developing country like Bangladesh where mobile banking is basically a
newly practiced concept, Managers should concentrate mostly on system availability and
system efficiency which can affect service quality positively. The proposed service quality
model provides managers with a tool for conducting an integrated analysis and design of
service delivery systems. Moreover, having only a good technological platform is not enough
to deliver the desired levels of service quality. Thus, managers also need to concentrate on
interaction quality as responsiveness and empathy, and outcome quality such as operational
benefit, financial benefit and self-efficiency associated with the service platform. These
Page 38 of 44
findings provide a useful road map for making interventions in the service delivery systems
targeting the improvement of a particular quality dimension at different levels. The findings
of this study support the importance of service quality as a decision making variable in
creating trustworthiness among the customers. It is proved that if service quality improves
customers trustworthiness will also be increased. So, these findings suggest that managers
should consider service quality as important strategic objectives to gather trustworthiness
from the customers. Thus. This proposed service quality model can help the banks which
have mobile banking service.
Limitations of the study

The study has several limitations those pushed to cross the scope and capability of the
findings.
The information regarding Mobile banking was collected by sharing survey
questionnaire online and although most of the respondents did not practically use
Mobile banking. They filled up the questionnaire from their assumption.
Although this research attempted to explore extensively underlying key attributes of
mobile banking service quality and captured a total of 11 quality dimensions in the
areas of mobile banking system quality, interaction quality and outcome quality, there
may be still exist the possibility of missing key dimension since customers
compliments and complaints tend to provide the information about the extremes of
satisfactory and dissatisfactory experiences (Johnston, 1995).
In some cases customers were not willing to take part on the survey as well as few
customers were confused or did not understand some questions whereas, it was not
possible to describe their confusion, since majority portion of the survey was
conducted via internet.
It was not easy to find out the perfect and knowledgeable customer to do proper
survey.
The time constraint was another limitation factor; time was not that much for
conducting such an important research.
The sample scale was also too small to go for the maximum possibility method that is
accepted now as a better technique for connecting model testing.
Future Research directions

The proposed service quality model of mobile banking has been prepared basing on very poor
sample size and the survey was conducted via internet. In regard to suggestions for future
studies, firstly the identified 11 dimensions need to be validated by analyzing the data directly
collected from the mobile banking customers. Again interview should be taken to add some
quality data into the survey. Secondly, the sample (120 cases) size of this study was very
small indeed to measure service quality and trust on the service. Another study may be
designed with a larger sample size which may represent most reliable result.
Page 39 of 44
Recommendations
Considering all the findings and data the following recommendations can be considered.
Mobile banking should perform the promised service dependably and accurately.
The above dimensions tend to have strong impacts on either customers satisfaction,
dissatisfaction or trust depending on the quality performance of those dimensions. So,
company should mostly focus on the service quality.
The way of communication with the customer should be improved.
Mobile banking system should be upgraded with the passage of time considering
customers satisfaction.
Conclusion
This research was about measuring service quality of mobile banking and at the same time
finding out how service quality effects customers trust on the service. Previously, lots of
research had been conducted on service quality. In this research the proposed service quality
model is believed to be helpful for the mobile banking industry. This study attempted to
examine a contribution of various dimensions of service quality. The advantage of such
surveys is that it presents not only a clearer picture of the customers perceived value but also
portrays the area where the company needs to improve.
Page 40 of 44
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Page 41 of 44
Appendix
QUESTIONNAIRE
Gender This is Male
a survey regardingFemalethe Evaluation of Service Quality Mobile Banking in
Age Bangladesh
18 to 30 The information
30 to 50 provided will
Abovebe
50 kept confidential and will only be
Profession used for academic purpose.
Business Service Student No Job
Income/month Below 20,001 40,001 Above
20,000 -40,000 80,000 80,000
Please rate the following statements under 1-5 point scale where 1 refers to the lowest
degree of agreement and 5 refers to the highest degree of agreement.
Strongly Disagree (SD)Disagree (D) Neutral (N) Agree (A) Strongly Agree (SA)
1 2 3 4 5
Put a tick () or circle your choice of answer.
SN. Questionnaire S D N A S
D A
System Reliability
1 Mobile Banking platform works smoothly. 1 2 3 4 5
2 Mobile Banking system are reliably. 1 2 3 4 5
3 Mobile Banking system are dependable. 1 2 3 4 5
4 Mobile Banking system performs accurately. 1 2 3 4 5
System Availability
5 Mobile Banking system are available from any place. 1 2 3 4 5
6 Mobile Banking system are available at any time. 1 2 3 4 5
7 I can receive Mobile Banking system right away. 1 2 3 4 5
8 Mobile Banking system is available from any mobile operator . 1 2 3 4 5
System Privacy
9 Mobile Banking system does not forward malicious SMS from other 1 2 3 4 5
companies.
10 Mobile Banking system does not share personal information of 1 2 3 4 5
customers
11 Mobile Baking system protects information about my personal 1 2 3 4 5
Page 42 of 44
problems.
12 I can change my PIN whenever I want. 1 2 3 4 5
System Complexity
13 My interaction with Mobile Banking system is clear. 1 2 3 4 5
14 The system interface is user friendly. 1 2 3 4 5
15 Mobile Banking system does not require a lot of effort. 1 2 3 4 5
16 Overall, I perceive that Mobile Banking system is easy to use 1 2 3 4 5
System Security
17 The Mobile Banking system is safe to make transaction. 1 2 3 4 5
18 Mobile Banking system uses secured PIN encryption system 1 2 3 4 5
19 Customer identification and authentications are accurate 1 2 3 4 5
20 Overall, I believe Mobile Banking system is entirely Secured. 1 2 3 4 5
System Efficiency
21 Mobile Banking system works swiftly 1 2 3 4 5
22 This system can be adapted to meet variety of needs. 1 2 3 4 5
23 Mobile banking system is versatile in addressing needs as they arise. 1 2 3 4 5
24 Mobile Banking system Can flexibly adjust to new condition. 1 2 3 4 5
Responsiveness
25 Helpline staff provides prompt service 1 2 3 4 5
26 Information regarding this service is easily obtainable. 1 2 3 4 5
27 The Helpline staff are always willing to help me. 1 2 3 4 5
28 The Helpline staff happily replay any query 1 2 3 4 5
Empathy
29 The Helpline staff pays personal attention to the customers. 1 2 3 4 5
30 The Helpline staff are polite/courteous. 1 2 3 4 5
31 The Helpline staff are put effort to understand my query. 1 2 3 4 5
32 The staff handle a problem in a caring way. 1 2 3 4 5
Operational benefit
33 Mobile Banking offered wide range of services 1 2 3 4 5
34 Services from Mobile Banking are worthwhile. 1 2 3 4 5
35 Mobile Banking helps to pay regular bills (electric bill, mobile flexi 1 2 3 4 5
load).
Operational Benefit
36 Mobile Banking provides attractive interest on mobile deposit. 1 2 3 4 5
37 The service charges/fees are competitive/reasonable. 1 2 3 4 5
38 The transaction costs (e.g., sending money from one account to 1 2 3 4 5
another) are reasonable.
Self-Efficiency
39 I could use Mobile Banking service if someone first showed me how 1 2 3 4 5
to use it.
40 I can perform my transactions using Mobile Banking services even 1 2 3 4 5
if there is no one to help me if I get stuck.
41 I can perform transactions in Mobile Banking service if I am 1 2 3 4 5
allowed adequate time to complete the job.
42 I trust Mobile Banking services. 1 2 3 4 5

43 I would trust Mobile Banking services for reliable transactions 1 2 3 4 5
Page 43 of 44
44 I would trust Mobile Banking services promises and commitment 1 2 3 4 5

to satisfy my financial transactions
45 I would trust Mobile Banking services behavior to meet my 1 2 3 4 5
expectations
46 Q. Do you have any specific complains or recommendations that you would like to
Share regarding Mobile Banking?
Page 44 of 44

Final Report Moible Banking

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Final Report Moible Banking

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Service Quality Of Mobile Banking

Overview of Trust Bank Limited

Vision & Mission of Trust Bank

Performance of the Bank

Organogram of Trust Bank Limited, Principal Branch

Figure 1 Working Division of Trust Bank Ltd. FDR

Managing Director (MD)

Deputy Managing Director (DMD)

Executive Vice-President (EVP)

Senior Vice-President (SVP)

Executive Level Management

Senior Assistant Vice-President

Senior Executive Officer (SEO)

Executive Officer (EO)

Principal Officer (PO)

Senior Officer (SO)

Management Trainee Officer (MTO)

Junior Officer (JO)

Figure 2 Management of Trust Bank Ltd.

Corporate Information of the Trust Bank Limited

Initial Public Offering

Product & Schedule of Retail Banking On Trust Bank Limited

Any Purpose Loan:

Eligibility for Any Purpose Loan:

Supportive cash flow to repay the loan

Table 3 Any Purpose Loan details

For New and Reconditioned Car

For Microbus, Minibus & Truck

Table 4 Car New & Reconditioned Car) Loan details

For New & Reconditioned Car

Table 5 Car (Microbus, Minibus & Trucks ) Loan details

House Hold Durable Scheme Loan:

Table 6 House Hold Durable Scheme Loan

For House Hold Durable Scheme Loan

Apon Nibash Loan:

ELIGIBILITY FOR APON NIBASH (HOME FINANCE) LOAN :

Table 7: Apon Nibash Loan

For Apon Nibash Loan

Table 8 : Doctors Loan

For Doctors Loan

Table 9 Marriage Loan

Table 9 Education Loan

For Education Loan

Eligibility For Travel loan:

Table 10 Travel loan

Eligibility For Hospitalization Loan:

Table 11 Hospitalization Loan

For Hospitalization l Loan

Table 12 types of Credit Cards:

Sl Types of cards Limit Service Charge

For Defense Persons

Table 13 Any purpose loan for (defense person )

House Hold Durable Scheme Loan:

Eligibility For House Hold Durable Scheme Loan:

For House Hold Durable Scheme Loan

Trust bank Mobile Banking (TBLMB)

Features of Trust Bank Mobile Money

o Cash Deposit, Withdrawals & Fund Transfer facilities.

o Any registered subscriber can avail the service through mobile.

o Real time updates balance of the account.

o Accommodate Multibank and Multi-Electronic Communication Channels.

o The solution is technically capable of interoperating with the Bangladesh National

o Very Affordable, widely Available throughout the Country.