General objective

• The general objective of this study is to evaluate the factors that influence the use of the mobile
banking service in Albania especially, with the following specific objectives.

Specific objectives are to:

• Examine the effect of the perceived ease of use of the mobile banking service .

• Determine the effect of perceived usefulness of using the mobile banking service.

• Assessment of the relationship of perceived risk related to the use of the mobile banking
service.

• To examine the possibilities of using the mobile banking service by customers on their mobile
phones.

• Understanding the impact of the relative benefits of using mobile banking services by
customers.

• To assess the effect of perceived trust on the use of mobile banking services.

• To determine the impact of the understanding of the use of the mobile banking service.

1.4. Research questions and hypothesis

1.4.1. Research questions

Based on the above statement of the problem, the research question is formulated as follows:

• What are the factors that influence the use of the mobile banking service by customers in
Albania?

• What are the factors for the adaptation of mobile banking in Albania?

1.4.2. Hypothesis

The study is based on the following hypotheses which are derived from the specific objectives
and tested in this study.

H1: Relative advantage has a positive effect on the use of mobile banking services.

H2: Suitability has a positive effect on the use of mobile banking services.

H3: Perceived usefulness has a positive effect on the use of mobile banking services.
H4: The perceived ease of use of mobile banking services has a positive effect on their use.

H5: Perceived risk has a negative effect on the use of mobile banking services.

H6: Customer trust in the overall mobile banking service has a positive effect on the use of
mobile banking services.

H7: Awareness about mobile banking services has a positive effect on their use.

2.9.4. Technology Acceptance Model (TAM)

The technology acceptance model (TAM) was developed by Fred Davis in his doctoral
dissertation (Davis, 1989 cited in Mathieson et al., 2001). This theoretical model is an extension
of the theory of reasoned action (TRA). The model is a theory of information systems to evaluate
how users accept and use a technology. The purpose of TAM is to predict the acceptability of a
certain behavior and to identify the main factors that influence, positively or negatively, the
realization of that behavior (Mathieson et al., 2001).

The TAM model identifies two main factors that influence individual behavior in terms of
technology acceptance: 1- perceived ease of use (PEOU – perceived ease of use) and 2-
perceived usefulness (PU – perceived usefulness). Perceived ease of use will mean a person's
degree of belief that the new technology will be easy to use and consistent with their attitudes.
Meanwhile, perceived usefulness refers to the degree to which an individual believes that the use
of a new technology will positively or negatively affect his work (Davis, 1989 cited in Mathieson
et al., 2001).

The study concludes that there is a relationship between the two main elements and based on the
findings it is estimated that PEOU affects PU (figure 4). According to the theory, even if an
individual does not have a positive attitude towards a certain technology, if he/she will positively
affect his/her work, then the new technology will be accepted. A third element included in the
model is attitude toward system use (Davis, 1985 cited in Mathieson et al., 2001). This variable
tends to express an individual's intention to use or not the new system, which is influenced by the
two variables mentioned above. Perceived usefulness directly affects the intention to use the
technological system, while perceived ease of use indirectly affects the perceived usefulness and
the intention to use the system. Such a connection is verified in many studies in the literature. In
this way, the intention in use is a measure of an individual's willingness or degree of effort
towards changing a certain behavior.

Figure 4: The original model of technology acceptance, Davis (1986)

This model has been tested in various research works (Yen et al, 2010). In the literature, he
identifies several studies that have used this model as a theoretical model; for example: the study
of the acceptability of personal computers (Igbaria et al., 1995 cited in Yen et al, 2010), the study
of the acceptability of services through the Internet, the study of the acceptance of technology in
medicine through the telephone (Chau and Hu, 2001). An advantage of the TAM model is that it
has been tested and verified in many studies, giving the possibility of evaluating suggestions for
its modification or adaptation (Yen et al., 2010). The model presented by Davis (1989 cited in
Yen et al, 2010), as well as models others in the literature, focus on the perceptions of
individuals. Therefore, questionnaires and observations are the two methods that can be used to
study the behavior of individuals according to the research model. Questions should be short and
direct, leaving no room for misinterpretation.

2.9.5 Theoretical Framework and Conceptual framework

The origins of technology acceptance research have been identified over the years 1980. Many
companies are investing in information technology to improve efficiency in business operations.
These developments have encouraged the need to study the behavior of individuals towards the
acceptance of new technologies.

In relation to the present study, many theories have been developed to study consumer behavior
towards the acceptance of new technologies. In the analysis, a certain number of widely accepted
theories regarding the acceptance of innovations have been selected. The two main theories are
the theory of reasoned action (TRA) and the technology acceptance model (TAM). The TRA
model assumes that an individual's behavior is influenced by his intentions to perform this
behavior. The intention to perform a behavior is related to attitudes towards that behavior, as
well as social norms.Intentions are a function of beliefs. In this way, a person who believes that a
certain behavior will bring positive results, then he will have a positive attitude towards the
realization of that behavior; as well as the opposite. Thus, the TRA model assumes that an
individual's intentions to perform a behavior are influenced by his/her beliefs about possible
consequences and about expected outcomes.

Whereas, the TAM model assumes that the two main factors that influence the formation of an
individual's trust are: perceived usefulness and perceived ease of use. Perceived usefulness
means an individual's perspective that the behavior performed or the use of a certain system will
affect obtaining positive results or obtaining the necessary data. Whereas, the perceived ease of
use expresses the degree of ease of use of the system. The first variable (perceived usefulness) is
important because it assesses an individual's belief that the system used will help them in
performing various processes. However, even though the usefulness of a system may be high, if
the person judges that it is difficult to use, then the system will not be accepted. Therefore, the
TAM model assumes that an individual's intention to perform a behavior or to use a system is
influenced by his belief in the usefulness of the behavior and the ease of use of the system.
Meanwhile, the TAM model does not include 'social norms' as a variable due to difficulties in
understanding it in testing the TRA model.

2.10. Conceptual framework of the study

Based on existing theories and ideas in the literature, the study has formulated a comprehensive
research framework (Figure 5). This framework illustrates the interaction between independent
variables and dependent variables as a direct relationship.
 Figure 5: Proposed research model or conceptual framework

1. Relative advantages (RA)

2. Perceived usefulness (PU)

3. Perceived ease of use (PEU) Use of banking services from

4. Eligibility (COM) mobile phones by customers

5. Perceived Trust (PT)

6. Awareness (AW)

7. Perceived Risk (PR)

CHAPTER 3: METHODOLOGY

3.1 Design of the study

The general objective of this study is to examine the factors that influence the adoption of the use
of mobile banking services in Albania. This study has adopted a quantitative research approach,
using a primary source of data. The quantitative approach uses statistical methods in describing
patterns of behavior and generalizes findings from samples to the target population, and uses
study strategies such as experiments and surveys (Creswell 2003). To answer the problem
statement and meet the objectives of the study, the study design is descriptive and explanatory.
Descriptive research studies are those studies that are designed to describe the characteristics of a
particular individual, or a group. The main characteristic of this method is that the researcher has
no control over the variables; he can only report what has happened or what is happening
(Kothari, 2004). Explanatory research tries to establish cause-and-effect relationships. The main
purpose of explanatory study design is to determine how events occur and what may influence
particular outcomes (Dawson & Bob 2006). Explanatory studies are characterized by a study
hypothesis that specifies the nature and direction of relationships between or among the variables
being studied.

Therefore, this study has used both descriptive and explanatory methods in order to explain the
factors that influence the adoption of the use of banking services via mobile in Albania. The
study used structured questionnaire as a primary data collection instrument to gather information.

3.2 Sample

In this study, the target population is composed of customers of commercial banks in Albania. In
particular, I set criteria to select commercial banks in which mobile banking technology has
already been introduced, and is used by consumers. Specifically, there are 3 banks in Durres
where the survey was used, targeting in a special way the customers of these banks to better
understand their use or non-use of mobile banking.In these banks the questionaires were
distributed as a handout. Questionnaires were also distributed online in Tirana. The total number
of customers in each bank was unknown at the time of the study with a 95% confidence level.
From 195 questionaires collected, only 176 were valid to conduct the study.

3.3 Questionnaire

Hair (2005) argued that multiple regression analysis can be applied to analyze the relationship
between a dependent variable and several independent variables. For this reason, multiple
regression analysis is an appropriate way to check the relationship between the independent
variables and the dependent variable in this study. The literature reviewed in the previous chapter
has identified the main factors that influence the use of banking services via mobile and a model
that would help to study the relationship between the main factors and the use of mobile banking
has been designed.

I used the multiple linear regression line based on the previous model designed by (Rokibul
2013) modified using the variables from the above conceptual framework which is as follows:

UMB = 0 + 1 RA+ 2 PU + 3 PEU + 4 PR + 5 PT + 6 COM + 7 AW

where,
UMB = Use of Mobile Banking

0 = Use of Mobile Banking in the absence of variables of relative advantage, perceived

usefulness, perceived ease of use, perceived risk, perceived trust, suitability and awareness.

1 = a fractional change in mobile banking usage due to a one unit change in relative advantage,
while other variables remain constant.

2 = a partial change in the use of Mobile Banking due to a change in the perceived usefulness
variable, while other variables remain constant.

3 = a partial change in Mobile Banking usage due to a change in the perceived ease of use
variable, other things remaining constant.

4 = of the partial change in the use of Mobile Banking due to a unit change in the perceived risk
variable, while other variables remain constant.

5 = a partial change in the use of Mobile Banking due to a change in the perceived trust variable,
while other variables remain constant.

6 = a partial change in the use of Mobile Banking due to a change in the suitability variable,
while other variables remain constant.

7 = a partial change in Mobile Banking usage due to a change in the awareness variable, other
things remaining constant.

A questionnaire was applied for customers of Albanian banks that have adapted mobile banking
technology in Albania. The questionnaire was based on previous empirical literature and its
reliability was tested using Cronbach Alpha. All the ways related to the measurement of the
constructs were adapted from previous studies and reformulated carefully to adapt to the
adoption of the use of banking services via mobile phone in Albania. Closed questions were
developed using a five-point Likert scale ranging from 5 (strongly agree) to 1 (strongly
disagree). The questionnaire begins with an introductory statement, which specifies the purpose
of the study as purely academic. Respondents were encouraged to be objective in their responses
as they were assured that confidentiality was taken into account.

Items
 RA Mobile banking is faster than going to the bank or making a phone call to the
bank..
RA Mobile banking is more an available service than other banking services (eg: going
to the bank and making phone calls to the bank).

Items
PU I think that using mobile banking enables me to complete banking operations faster
and easier.
PU I find mobile banking useful for my banking needs.
PU There is no limit to using my bank account and bank information.

Items
PEU I think learning to use mobile banking will be easy.
PEU I find it easy to use mobile banking to fulfill my banking requirements.
PEU It will take me a long time to learn to use mobile banking services.

Items
PR Mobile banking may not be implemented properly and may experience problems
during transactions due to network connectivity issues.
PR When and if problems occur during transactions, I can receive compensation
from the bank.
PR I am concerned about using mobile banking because other people may have
access to my account.
PR I am sure that if I decide to use mobile banking and any problem occurs while
making transactions, my family, friends and colleagues will think negatively.
PR It will take me a long time to learn how to use mobile banking services.

Items
 PT I think mobile banking service providers and banks are reliable.

PT I believe in using mobile banking.

Items
COM The use of mobile banking is adapted to the management and control of
transactions.
COM I use current banking services (phone banking and internet banking) because they
are part of everyday life now.

Items
AW I am aware that my bank offers mobile banking.
AW I am aware of the many services that mobile banking offers.

3.4 Data analysis

Data analysis was done with the help of statistical software of the Statistical Package for Social
Sciences SPSS (Version 20). The data collected from the field were checked for completeness,
for any errors and omissions and summarized in tables. Also, the data obtained from the study
were entered into the computer and were statistically using the Statistical Package for Social
Sciences (SPSS), as well as the validity test was performed as for descriptive statistics according
to percentages, figures and tables were generated by the software to determine relationship
between variables.

The identification of such variables can help to increase the possibilities of greatly increasing the
rate of use of these services, by deepening the knowledge about the variables that facilitate or
hinder the use of this technology. Therefore, the finding of the study is believed to help the bank
management by providing them information on how they can increase the use of mobile banking
service to increase the benefit they will get from providing this service. The study may pave the
way for further examination and details for future researchers of the banking system and
information technology. The table below presents Person’s correlations coefficients strength of
association.
Strength of association between variables Range of correlation coeficients
Very strong 0.8-1.0
Strong 0.6-0.79
Moderate/avarage 0.4-0.59
Weak 0.2-0.39
Very weak 0-0.19
CHAPTER 4

RESULTS

This chapter elaborates the results based on the outcomes of statistical analysis of collected data.
First of all descriptive statistcs of the study measured that elaborated the general profile of the
respondents of respective study. After that other descriptive (mean, median, mode, sum, average
etc.) were calculated and then reliabilty of data collection tool was analyzed through Cronbach
Alpha test. For acceptance or rejection of hypothesis Pearson’s correlation was find out among
the variables and on basis of results of correlation hypotheses were validated or rejected.

4.1 Descriptive Statistics

In descriptive statistics, gender, age, occupation of respondents, bank account information and
usage of E-banking was analyzed.

a) Gender of Respondents
Out of total respondents (N=201), 116 (58%) were females and rest 85 (42%) were male
respondents as shown in table 4.1 and figure 4.1
Table 4.1 Gender of the Respondents

GENDER Frequency Percentage

Female 116 57.7%

Male 85 42.3%
 Gender of Respondents
140

120

100
Female
80 Male

60

40

20

0
1

Figure 4.1: Gender of the Respondents

b) Age of Respondents
Respondents of the respective study belonged to different age groups. About respondents
47% were younger than 25 years (N= 95), 16% (N=33) were between age group of 25 to
35 years, age of 20% (N=39) respondents varied between 36 and 45 years, age of 13%
(N=27) respondents varied between 46 and 55 years and rest of 4% (N=7) respondents
were older than 55 years. Major chunk of respondents was younger than 25 years. Ages
with their frequencies are shown in table 4.2 and figure 4.2.
Table 4.2: Age of the respondents

AGE Frequency Percentage

< 25 95 47.3%

25- 35 33 16.4%

36-45 39 19.4%

46- 55 27 13.4%

>55 7 3.5%
 Age of Respondents
100
90
80
< 25
70
25- 35
60 36-45
50 46- 55
>55
40
30
20
10
0
Frequency

Figure 4.2: Age of the respondents

c) Occupation of Respondents
From table 4.3, it is evident that most of the respondents (44%; N=89) were employed
somewhere about 14% (N=27) were self employed, 34% (N=69) of total sample were
students and remaining 8% (N=16) respondents were unemployed.

Table 4.3: Occupation of Respondents

OCCUPATION Frequency Percentage

Employed 89 44.3%

Self-employed 27 13.4%

Student 69 34.3%

Unemployed 16 8%
 Occpation of Respondents
100
90
80
70 Employed
Self-employed
60
Student
50 Unemployed
40
30
20
10
0
Frequency

Figure 4.3: Occupation of Respondents

d) Bank Account Information

On inquiry about possession of bank accounts, 178 (89%) respondents said they have bank
account while 23 respondents (11%) said they have not any bank account, Table 4.4 and figure
4.4.

Table 4.4: Possession of Bank account

Bank account Frequency Percentage

Yes 178 88.6%

No 23 11.4%
 Bank Account
200
180
160
140
Yes
120
No
100
80
60
40
20
0
Frequency

Figure 4.4: Possession of Bank account

e) Usage of E-Banking Application

In accordance with table 4.5, 64% (N=128) respondents were using e-bank account
application and the other 36% (N=73) were not using E-bank account application.
Table 4.5: Usage of E-Bank Application

E-banking app Frequency Percentage

Yes 128 63.7%

No 73 36.3%
 E-Banking APP
140

120

100
Yes
80 No

60

40

20

0
Frequency

Figure 4.5: Usage of E-Bank Application

4.2 Other descriptive statistics

Other descriptive statistics such as mean, standard error of the mean, median, mode, standard
daviation, variance, skewness, standard error of the skewness, standard error of the kurtosis,
kurtosis, range, minimum, maximum, sum and percentiles, were also calculated for the variables
of this study. These statistcs are described below in table 4.6.
 Table 4.6: Descriptive Statistics of Variables

RA PU PEU PR PT COM AW

N Valid 201 201 201 201 201 201 201

Missing 0 0 0 0 0 0 0

Mean 7.73 11.6 10.0 15.8 7.36 7.35 7.50

Std. Error of Mean 0.111 0.163 0.115 0.213 0.105 0.136 0.156

Median 8.00 12.00 10.00 15.00 8.00 8.00 8.00

Mode 8.0 12.0 10.0 15.0 8.0 8.0 10.0

Std. Deviation 1.58 2.31 1.63 3.03 1.50 1.92 2.21

Variance 2.49 5.35 2.68 9.19 2.25 3.72 4.90

Skewness -0.163 -0.193 0.697 0.548 -0.325 -0.210 -0.443

Std. Error of Skewness 0.172 0.172 0.172 0.172 0.172 0.172 0.172

Kurtosis -0.693 -0.677 1.28 0.947 -0.249 -0.916 -1.04

Std. Error of Kurtosis 0.341 0.341 0.341 0.341 0.341 0.341 0.341

Range 6.00 9.00 9.00 19.00 6.00 7.00 8.00

Minimum 4.00 6.00 6.00 6.00 4.00 3.00 2.00

Maximum 10.0 15.0 15.0 25.0 10.0 10.0 10.0

Sum 1554 2351 2015 3195 1481 1479 1508

Percentiles 25 6.00 10.00 9.00 14.00 6.00 6.00 6.00

50 8.00 12.00 10.00 15.00 8.00 8.00 8.00

75 9.00 13.00 11.00 18.00 8.00 9.00 10.00

4.3 Reliability Test

Reliability test is conducted to check the suitability of scale to measure the phenomenon uder
study. Reliability can be assessed through many techniques but Cronbach Alpha is widely used
to assess the reliability of tool. Values near to 1 indicates the strength of reliability and for a
questionnaire to be considered as reliable Cronbach’s alpha must be above 0.7 In order to test if
the questionnaire was suitable and reliable to be used in this study, the reliability analysis was
conducted. And in this study the value of Cronbach’s alpha was 0.817 (as shown in table 4.7), so
it can be interpreted that this questionnaire was reliable enough to be used in this study.

Table 4.7: Reliability Statistics of Questionnaire

Cronbach’s Alpha N of Items

0.817 19
4.4 Testing hypotheses

To answer the research objectives, seven hypothesis were formulated after reviewing the
literature. The basis of all hypotheses was to assess the relationship and direction of relationship
between independent and dependent variables under study. To find out the association between
variables and Pearson Correlation was used for this purpose. As Pearson's correlation helps in
determining the association and direction of association between two variables. But before using
Pearson’s correlation, three assumptions should be satisfied. Thsese assumptions are:

i. Data should be normally distributed. In accordance with the central limit theorem if
respondents are more than thirty ( N>30) then data is assumed normal, in this
study,number of respondents was 201 (N=201), so data was considered normal.
Moreover, normality of data was also assessed through histogram. Values of mean
and standard deviation in Figure 4.6 shows that data was normal and no error was
evident in data.

Figure 4.6: Histogram of Data

 ii. Second assumption is that no outliers should be detected in the data. Outliers were
assessed through the boxplot. In figure 4.7, it can be seen that only two extreme cases
are being detected but these cases can be ignored as data set consists of 201
respondents, so these outliers are of no importance.

Figure 4.7: Boxplot of Data

iii. Data should be interval. Data was interval as is evident from the questionnaire
utilized to collect data.
 All of three assumptions are satisfied in accordance with statistical analysis done above. So,
Pearsom’s correlation can incorporated to find out associations and direction of associations
between independent and dependent variables.

The table above presents all the possible bivariate correlations between the variables in this
study. As it can be seen most of the correlations are significant at the level 0.01 and few at the
level 0.05. Another finding is that mostly the Pearson’s correlation coefficient are avarage and
above avarage, but on the other hand there are also a few correlations below avarage. All the
bivariate correlations are positive, with only few very weak and negative associations between
variables.

Relative advantage has a very strong relationship with perceived usefulness (r=0.851, p=0.00),
strong relationship with perceived use of ease (r=0.656, p=0.00), suitability (r=0.725, p=0.00)
and awareness (r=0.663, p=0.00). On the other hand, relative advantage has a very weak
relationship with perceived trust (r=0.121, p=0.110) which is not statistically significant, as well
as very weak and negative relationship with perceived risk (r=-0.193, p=0.010).

Perceived usefulness has a strong association with perceived ease of use (r=0.686, p=0.00),
suitability (r=0.773, p=0.00) and awareness (r=0.673, p=0.00). There is no association between
perceived usefulness and perceived trust (r=0.016, p=0.424) which is not supported statistically.
Moreover, has a negative, very weak relationship with perceived risk (r=-0.160, p=0.033).

Perceived ease of use has a strong and positive relationship with suitability (r=0.632, p=0.00)
and and positive, moderate association with awareness (r=0.527, p=0.00). It has a negative and
very weak relationship with perceived trust (r=0.196, p=0.009). On the other side, it has an
extremely weak relationship with perceived risk, but not statistically important (r=0.060,
p=0.432).

Perceived trust has a very weak relationship with perceived risk (r=0.159, p=0.035) and a weak
relationship with awareness (r=0.228, p=0.002). In addition, it has no statistically significant
relationship with suitability, the relationship of these variables is tremendously weak (r=0.048,
p=0.529). Perceived risk has negative and immensely weak association with suitability (r=-0.94,
p=0.214) and awareness (r=-0.049, p=0.519), but not significant statistically.

Suitability has a strong and positive association with awareness (r=0.741, p=0.00). Use of mobile
banking services has a very strong relationship with relative advantage (r=0.829, p=0.00),
perceived usefulness (r=0.861, p=0.00), suitability (r=0.850, p=0.00), and awareness (r=0.835,
p=0.00). It has a strong assciation with perceived ease of use (r=0.790, p=0.00). Additionally,
has a weak relationship with perceived trust (r=0.300, p=0.00) and an overly waek association
with perceived risk (r=0.155, p=0.00).

H1: Relative advantage has a positive effect on the use of mobile banking services.

1. 2.

1. Relative advantage 1 0.829**

2. Use of Mobile Banking 1

In the second hypothesis from Pearson correlation coefficient (r=0.829, p=0.00) it can be seen
that both variables are associated with one another. The relationship between both is positive and
very strong. When one variable increases and the same increase happen to the other variable.
This hypothesis is approved.

The same results was confirmed in previous literature (MekKloski, 2006; Rogers 2003 and Lin
2011) that when the user perceives the relative advantage of a new technology over an old one,
they tend to adopt it. This suggests that if bank customers perceive that mobile banking has a
relative advantage over branch banking services, in accessing accounts from any place and at any
time, and offering greater control and flexibility in account management. theirs, they can adopt
and use it.

H2: Suitability has a positive effect on the use of mobile banking services.

1. 2.

1. Suitability 1 0.850**

2. Use of Mobile Banking 1

In the second hypothesis from Pearson correlation coefficient (r=0.850, p=0.00) it can be seen
that both variables are associated with one another. The relationship between both is positive and
very strong. When one variable increases and the same increase happen to the other variable.
Therefore the hypothesis is approved.

This result also confirms previous studies by (Koenig-Lewis 2010; Lin 2011) that considered
appropriateness to be influential in the adoption of mobile payments and the use of mobile
banking. This finding may indicate that when consumers perceive mobile banking compatible
with their existing beliefs, values, lifestyle and past experience, they will be more likely to use
these services.

H3: Perceived usefulness has a positive effect on the use of mobile banking services.

1. 2.

1. Perceived usefulness 1 0.861**

 2. Use of Mobile Banking 1

In the third hypothesis from Pearson correlation coefficient (r=0.861, p=0.00) it can be seen that
both variables are associated with one another. The relationship between both is positive and
very strong. When one variable increases and the same increase happen to the other variable.
Therefore the hypothesis is approved.

This result was consistent with (Luarn and Lin, 2005) finding that levels of perceived usefulness
have a positive impact on the use of mobile banking. The possible reason for the significant
positive relationship may be that most customers choose to adopt mobile banking services
because they understand the benefits they can have and also the convenience and access anytime
anywhere.

H4: The perceived ease of use of mobile banking services has a positive effect on their use.

1. 2.

1. Perceived ease of use 1 0.790**

2. Use of Mobile Banking 1

In the fourth hypothesis from Pearson correlation coefficient (r=0.790, p=0.00) it can be seen
that both variables are associated with one another. The relationship between both is positive and
very strong. When one variable increases and the same increase happen to the other variable.
Therefore the hypothesis is approved.

This finding is similiar to the results from (Khalifa and Shenit 2008, Kim et al 2009; Wei et al
2009) which states in previous empirical studies that perceived ease of use has a positive impact
on the use of mobile banking. A possible explanation for this finding may be due to respondents'
familiarity with mobile phones that may increase their expectations of service usefulness and
influencing their attitudes toward service convenience.

H5: Perceived risk has a negative effect on the use of mobile banking services.

1. 2.
 1. Perceived risk 1 0.155*

2. Use of Mobile Banking 1

In the fifth hypothesis from Pearson correlation coefficient (r=0.155, p=0.40) it can be seen that
both variables are associated with one another. The relationship between both is positive and
very weak. When one variable increases and the same increase happen to the other variable.
Therefore the hypothesis is approved.

Significantly, this finding was consistent with Luo et al. (2010); Mitchell (1999), Safeena, et al,
(2011). Laforet and Li, (2005); Luarn and Lin, (2005); Mallat, (2007) and Gu, et al., (2009) who
all perceive risk as one of the critical factors to be taken into account, during the design and
development of a mobile banking service. The significant negative result may mean that the
bank's customers are not confident in mobile banking services. Consumers are security seekers
and they want to keep risks at bay. This is because electronic banking services are inherently
risky due to the lack of personal contact, evaluation of physical products, guarantees, or
contracts, and consumers usually have difficulty in claiming compensation when erroneous
transactions occur. So this may explain why many consumers are hesitant to use mobile banking
services.

H6: Customer trust in the overall mobile banking service has a positive effect on the use of
mobile banking services.

1. 2.

1. Perceived trust 1 0.300**

2. Use of Mobile Banking 1

In the sixth hypothesis from Pearson correlation coefficient (r=0.300, p=0.40) it can be seen that
both variables are associated with one another. The relationship between both is positive and
weak. When one variable increases and the same increase happen to the other variable. Therefore
the hypothesis is approved.

This result is consistent with the findings of (Gu, Lee & Suh, 2009; Lee et al, 2007) that showed
high levels of trust in a service provider will lead to a greater intention on the part of the user to
to engage in transactions through mobile banking. This negative relationship between perceived
trust and mobile banking is also shown in table 11 where the consumer answered that he does not
trust mobile banking service providers, as well as the mobile banking system is reflected again
on the regression result. The possible reason for the negative effect of trust in the use of mobile
banking can be attributed to the fact that consumers lack trust in mobile network service
providers and mobile banking technology.

H7: Awareness about mobile banking services has a positive effect on the use of mobile banking
services.

1. 2.

1. Awareness 1 0.835**

2. Use of Mobile Banking 1

In the seventh hypothesis from Pearson correlation coefficient (r=0.835, p=0.00) it can be seen
that both variables are associated with one another. The relationship between both is positive and
weak. When one variable increases and the same increase happen to the other variable. Therefore
the hypothesis is approved.

This means that there is a significant relationship between awareness and the use of mobile
banking, which the findings align with the previous studies of (Laforet and Li 2005) that showed
that awareness significantly affects the consumer's use of online and mobile banking services.
banking. This result can be explained by the fact that most bank customers think that they have
the right information needed for using mobile banking. This suggests that this variable is an
essential factor in influencing the use of mobile banking in the case of Albania.

CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

The sample of participants based on gender were divides as female (n=101) are 57% of the
sample and male (n=75) are 43% of the sample. This study had more female participants than
males.
About he age, the results are as follows most users are <25 years old (n=78) 44% and the lowest
numbers of users are >55 years old are (n=8) 5% of the sample. The other ages have a
distribution as follows 25-35 years old (n=27) 15%, 36-45 years old (n=34) 19% and 46-55 years
old (n=29) 17%.

Most of the sample participants are employed (n=79) 45%, followed by students (n=55) 31%.
Unemployed are n=17 participants or 10% and lastly self-employed are n=25 or 14%.

84% or n=147 of the sample has a bank account and 16% or n=29 of the sample do not have a
bank account. 61% or n=107 of the sample use the e-banking app and 39% or n=69 of the sample
does not use e-banking app. These findings shows as that e-banking it is still new in the Albanian
context since we still have individuals who don’t use the bank’s app. On the other hand, we still
notice people who don’t have a bank account.

Relative advantage has a very strong relationship with perceived usefulness (r=0.851, p=0.00),
strong relationship with perceived use of ease (r=0.656, p=0.00), suitability (r=0.725, p=0.00)
and awareness (r=0.663, p=0.00). On the other hand, relative advantage has a very weak
relationship with perceived trust (r=0.121, p=0.110) which is not statistically significant, as well
as very weak and negative relationship with perceived risk (r=-0.193, p=0.010).

Relative advantage is also found to have a significant and positive effect on customers' use of
mobile banking, this suggests that if bank customers perceive that mobile banking has a relative
advantage over branch services in accessing accounts in any location and at any time and offers
greater control and flexibility in managing their accounts, they will use it. Practically, users are
more likely to adopt mobile banking if they believe that by using mobile banking they will gain
more advantages compared to other traditional banking channels such as ATM or non-mobile
internet banking. Therefore, the higher the relative advantage perceived by users, the higher the
possibility to use mobile banking services.

Perceived usefulness has a strong association with perceived ease of use (r=0.686, p=0.00),
suitability (r=0.773, p=0.00) and awareness (r=0.673, p=0.00). There is no association between
perceived usefulness and perceived trust (r=0.016, p=0.424) which is not supported statistically.
Moreover, has a negative, very weak relationship with perceived risk (r=-0.160, p=0.033).
Perceived usefulness was found to have a significant and positive influence on the use of mobile
banking. This result shows that for mobile banking technology to be accepted by users, they
must perceive it as a useful and faster way to do banking transactions compared to the traditional
banking system. Therefore; it can be concluded that people will adopt mobile banking services
when the value and usefulness of mobile banking is evident.

Perceived ease of use has a strong and positive relationship with suitability (r=0.632, p=0.00)
and and positive, moderate association with awareness (r=0.527, p=0.00). It has a negative and
very weak relationship with perceived trust (r=0.196, p=0.009). On the other side, it has an
extremely weak relationship with perceived risk, but not statistically important (r=0.060,
p=0.432).

Perceived ease of use has emerged in this study with an significant impact on the use of mobile
banking, it contradicts the idea that a system perceived to be easy to use will facilitate the use of
the system more and has more more likely to be accepted by users. This may mean that when
customers are familiar with mobile phones they are more concerned with the usefulness of the
service whether it is convenient or not.

Perceived trust has a very weak relationship with perceived risk (r=0.159, p=0.035) and a weak
relationship with awareness (r=0.228, p=0.002). In addition, it has no statistically significant
relationship with suitability, the relationship of these variables is tremendously weak (r=0.048,
p=0.529). Perceived risk has negative and immensely weak association with suitability (r=-0.94,
p=0.214) and awareness (r=-0.049, p=0.519), but not significant statistically.

This means that when consumers do not have confidence in the mobile banking service and in
the service providers, it will lead to a decrease in the willingness to use mobile banking.
Therefore trust will have a positive impact on mobile banking usage when mobile banking
service providers (both banks and mobile network providers) are perceived to be trustworthy.

Perceived risk was found to have a significant impact on the use of mobile banking. This implies
that if individuals perceive higher risks and uncertainties such as issues of loss and theft of
financial information due to a weak system, this will discourage the adoption of mobile banking
by consumers because they want to avoid risks. From this it can be concluded that the risk
involved in the use of mobile banking encourages people to be reluctant to use such tools for
banking services. Therefore, it is important for banks and service providers to design higher
security when providing mobile banking services in order to ensure consumer acceptance as
much as possible. On the other hand, perceived trust was found to have a significant impact on
the use of mobile banking.

Suitability has a strong and positive association with awareness (r=0.741, p=0.00). Use of mobile
banking services has a very strong relationship with relative advantage (r=0.829, p=0.00),
perceived usefulness (r=0.861, p=0.00), suitability (r=0.850, p=0.00), and awareness (r=0.835,
p=0.00). It has a strong assciation with perceived ease of use (r=0.790, p=0.00). Additionally,
has a weak relationship with perceived trust (r=0.300, p=0.00) and an overly waek association
with perceived risk (r=0.155, p=0.00).

Suitability is also found to have a significant positive relationship with mobile banking usage.
The implication of this result is that if consumers perceive mobile banking in accordance with
their existing beliefs, values, lifestyle and past experience, they are more likely to use these
services. Therefore, it can be concluded that when mobile banking is consistent with the existing
values, past experiences and needs of potential users, then the use of mobile banking will
increase. Awareness was found to have an significant and positive influence on the use of
mobile banking. The level of awareness for the use of mobile banking does not have a significant
impact on consumers for the use of mobile banking in Albania.

5.2 Recommendations

Based on the above findings, the following suggestions to improve the use of mobile banking by
consumers are presented to commercial banks for the provision or planning of mobile banking
services in Albania.

• Banking institutions may consider benefiting from value-added features of mobile banking in
promoting perceived usefulness. In addition, they should continue to innovate and invest in
mobile banking services that allow users to have more options and to get more value from
mobile banking services.

• Banks should highlight the benefits that customers will receive in terms of cost savings,
convenience, flexibility and mobility while using mobile banking services. Finally, banks can try
to educate users about the benefits of using mobile banking services through promotional
combinations such as personal selling, advertising, promotional sales and public relations.
• During the design of their mobile banking services and products, they should emphasize that
their service adapts to the consumers' lifestyle, culture and language.

• Banks can invest in campaigns and organize informative sessions to demonstrate the
characteristics of mobile banking services and the benefits they bring compared to traditional
channels.

• In relation to the perceived risk, it is important for banks and service providers to design high
security when offering mobile banking services in order to prioritize customer acceptance. In
fact, banks and service providers must constantly innovate and provide higher security and
reliable applications to increase user confidence in mobile banking services.

• To change the consumer's perception of risk and trust issues, banks can use a well-structured
advertisement and staff interaction to make them understand that the service is safe to use. . This
will help consumers understand the advantages and disadvantages associated with the service
and as a result, they can weigh the costs and benefits of using the service which in turn will
reduce unnecessary worry and anxiety.

5.3 Further studies

The following are areas that may be considered for future research:

The contribution of demographic factors such as age and gender towards the adoption of mobile
banking services was not of any substantial importance in this study; future researchers may
examine the impact of demographic factors on consumer adoption of mobile banking services.
Furthermore, this study was conducted in Tirana. Further studies can consider the selection of
surveys from other cities, as well as the incorporation of additional factors to understand the
intention to adopt mobile banking services.

ANNEX

SPSS TABLES