Before the existence of electronic devices, money was saved, transferred, and withdrawn physically from banks using traditional banking operations. However, with innovations in banking technology, people can now carry out basic banking transactions such as cash deposit, withdrawals and money transfers from any part of the world without any physical contact. According to empirical studies, it has been observed that; the rise in money banking operations has an increased likelihood to phase out the existence of traditional banking operations in most countries.
It is on this premise that this research sought to examine the influence of mobile banking systems on the survival of traditional banks in Cameroon. A quantitative research method was used to test four hypotheses. Primary data was collected using structured questionnaires involving 400 participants engaged in both mobile and traditional banking operations within the Yaounde metropolis of the center region of Cameroon. Findings from the study revealed that remote account access has a significant positive statistical influence on the survival of traditional banking operations in Yaounde [ µ = 0.00, r = 0.244]. In addition, the study posits that the availability of digital bank information has a positive statistical significant influence on the survival of traditional banks within the Yaounde metropolis [ µ = 0.00, r = 0.161].
This research concluded that the integration of mobile banking technologies and services has an increased likelihood to enhance the sustainability of the traditional banking system in the Yaounde metropolis of Cameroon. In effect, for traditional banks to remain sustainable, they must integrate mobile banking technologies in order to increase their market share and revenues likewise, traditional banks without mobile banking services are more likely to phase out due to intense market competition. The study, therefore, recommends that all financial institutions should include mobile banking services, especially remote access to the account and online availability of account information
Table of Contents
CHAPTER ONE: GENERAL INTRODUCTION
1.1 BACKGROUND OF STUDY
1.1.1 HISTORICAL BACKGROUND
1.1.2 THEORETICAL BACKGROUND
1.1.3 CONCEPTUAL BACKGROUND
1.1.4 CONTEXT BACKGROUND
1.2 STATEMENT OF PROBLEM
1.3 AIM OF STUDY
1.4 RESEARCH QUESTIONS
1.4.1 SPECIFIC RESEARCH QUESTIONS
1.5 OBJECTIVES OF STUDY
1.5.1 GENERAL OBJECTIVES
1.5.2 SPECIFIC OBJECTIVES
1.6 HYPOTHESIS
1.7 SCOPE AND LIMITATIONS OF STUDY
1.7.1 GEOGRAPHICAL SCOPE
1.7.2 TIME SCOPE
1.8 DEFINITION OF KEY FACTORS
1.8.1 BANK
1.8.2 MOBILE BANKING
1.8.3 TRADITIONAL BANKING
1.8.4 SUSTAINABILITY
1.8.5 ELECTRONIC BANKING (E-BANKING )
1.8.5 ONLINE PAYMENTS
1.8.6 MOBILE PAYMENTS
1.9 SIGNIFICANCE OF STUDY
CHAPTER TWO: LITERATURE REVIEW
2.1 THEORETICAL REVIEW
2.1.1 TECHNOLOGY ACCEPTANCE MODEL (FURTHER -TAM) BY DEVIS 1986
2.1.2 DIFFUSION OF INNOVATION THEORY BY E.M. ROGERS IN 1962
2.1.3 PROSPECT THEORY
2.2 EMPIRICAL REVIEW
2.2.1 MOBILE BANKING VS TRADITIONAL BANKING
2.2.2 EVOLUTION OF MOBILE BANKING IN CAMEROON
2.2.3 EXPLAINING ELECTRONIC BANKING, INTERNET BANKING, AND MOBILE BANKING
2.2.4 VARIATIONS OF MOBILE BANKING
2.2.5 LIMITATIONS OF MOBILE BANKING
2.2.6 ADVANTAGES OF THE TRADITIONAL BANKING SECTOR
2.3 CONCEPTUAL REVIEW
2.3.1 AVAILABLE TECHNOLOGY USED IN EBANKING
2.3.3 MOBILE MONEY: THEORY AND EVIDENCE
2.3.4 THE IMPACT OF MOBILE MONEY ON HOMES AND BUSINESSES
2.3.5 THE ECONOMICS OF MOBILE MONEY: THE MICRO-VIEW
2.3.6 REGULATION AND TAXATION
2.3.7 CLASSIFICATION OF ELECTRONIC PAYMENT METHODS
2.3 HYPOTHESES DEVELOPMENT
2.3.1 REMOTE ACCOUNT ACCESS
2.3.2 Online Availability of Bank Information
2.3.3 MOBILE PAYMENTS
2.3.4 MOBILE BANKING OPERATORS
2.4 CONCEPTUAL FRAMEWORK
2.4 CONCEPTUAL MODELS
2.4.1 Conceptual model of the operation of mobile banking
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2 RESEARCH PHILOSOPHY
3.3 RESEARCH DESIGN
3.4 RESEARCH METHODS
3.5 THE RESEARCH PROCESS
3.6 STUDY POPULATION
3.7 SAMPLING
3.7.1 SAMPLE UNIT
3.7.2 SAMPLING TECHNIQUES
3.7.3 SAMPLE SIZE DETERMINATION
3.8 DATA COLLECTION AND ANALYSIS
3.8.1 DATA COLLECTION
3.8.2DATA COLLECTION PHASES
3.8.3 DATA ANALYSIS
3.8.4CONCLUSION
3.9 OPERATIONALIZED RESEARCH VARIABLES
3.10 VALIDITY AND RELIABILITY
3.11 LIMITATIONS OF THE STUDY
3.12 ETHICAL CONSIDERATIONS
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION OF RESULTS
4.0 INTRODUCTION
4.1 QUESTIONNAIRES RESPONSE RATE
4.1.1 DISTRIBUTIONS OF BACKGROUND CHARACTERISTICS
4.2.1 DISTRIBUTION OF RESPONDENTS BY GENDER CONSIDERATION
4.1.5 DISTRIBUTION OO PARTICIPANTS BY MODE OF CONDUCTING BANKING ACTIVITIES
4.2.2 DISTRIBUTION OF RESPONDENTS BY AGE CONSIDERATION
4.2.1 DISTRIBUTION OF RESPONDENTS BY EDUCATION CONSIDERATION
4.3 DATA MANAGEMENT AND THE TEST OF CONSTRUCT VALIDITY
4.3.1 DATA CLEANING AND MANAGEMENT PROCESSES
4.3.2 MISSING DATA ANALYSIS
5.2.2 DIMENSION REDUCTION- EXPLORATORY FACTOR ANALYSIS [INDEPENDENT VARIABLE]
5.2.3 EXPLORATORY FACTOR ANALYSIS FOR REMOTE ACCOUNT ACCESS [RAA]
5.2.3 EXPLORATORY FACTOR ANALYSIS FOR AVAILABILITY OF BANK INFORMATION [ABI]
5.2.3 EXPLORATORY FACTOR ANALYSIS FOR MULTIPLE BANKING AGENTS [MBO = 5]
5.2.3 COMBINED EXPLORATORY FACTOR ANALYSIS
5.2.3 EXPLORATORY FACTOR ANALYSIS SURVIVAL OF TRADITIONAL BANKS [STB = 6]
4.2.3 VALIDITY AND RELIABILITY MEASUREMENT (VRM)
4.2.5 CONFIRMATORY FACTOR ANALYSIS [FURTHER DATA CLEANING PROCESS]
4.2.6 CONFIRMATORY FACTOR ANALYSIS FOR RETAINED CONSTRUCT UNDER EFA
4.3 PARAMETRIC ASSUMPTIONS
4.3.1 OUTLIER IDENTIFICATION AND TREATMENT
4.3.3 MULTIVARATE NORMALITY TEST
4.3.2 MULTICOLLINEARITY
4.3.4 HOMOGENEITY OF VARIANCE
4.4 STRUCTURAL EQUATION MODELLING AND SPECIFICATION PARAMETERS
CHAPTER FIVE
DISCUSSION OF FINDINGS, CONCLUSION, RECOMMENDATION
5.1 DISCUSSION OF FINDINGS
5.2 CONCLUSION
5.3 LIMITATIONS OF STUDY
5.4 RECOMMENDATION
Research Objectives and Core Topics
This study aims to examine the influence of mobile banking systems on the survival of traditional banking institutions within the Yaounde metropolis of Cameroon, investigating whether the rapid adoption of digital financial services threatens the continued existence of conventional brick-and-mortar banks.
- Impact of mobile banking systems on traditional bank survival and market share
- Role of remote account access in reducing physical bank visits and queues
- Significance of online availability of bank information and transaction transparency
- Effect of online payments and digital transactions on consumer banking behavior
- Influence of multiple mobile banking operators and telecommunication companies
- Quantitative evaluation using structural equation modeling and empirical data from 414 respondents
Excerpt from the Book
1.1.1 Historical Background
In recent years, authors like Cleveland, (2016), Khan & Ejike, (2017) Mallat et al, (2004), and Severino et al, (2015) have written a lot on Mobile banking and they mostly had similar views, with some minor variations. Most of the authors endorsed the application and use of mobile banking. However, traditional banking was the origin and remains the most trusted system of banking as compared to mobile banking since it is secured (Severino et al, 2015). In recent years, the mobile banking system has occupied a great portion of banking activities in today’s economy (Ondiege, 2010). With mobile banking systems, transactions can be carried out at any location, provided clients have the necessary devices (Mallat et al, 2004). This method is fast gaining recognition and acceptance because of its benefits (Vyas, 2012). Generally, the younger generation and computer literate will be more prone to its acceptance and use, as compared to the less technologically savvy.
Mobile banking is a fast-evolving sector, it started when details about clients account which could be sent to their mobile phones as short message services (further- SMS). With time, it evolved to the point where it tries to eliminate the physical presence of clients at financial institutions (Mallat et al, 2004). The coming of Information and communication technology (Further- ICT) has changed the way most, if not all businesses operate. ICT is applicable in every sector of a business, be it small or big, profit-making or not (Mbuh et al, 2020). The industrial revolution gave birth to ICT where work done by hand was carried out by machines. The advantages of using ICT in various businesses can never be over-emphasized. A lot of authors have written about the benefit of ICT (Mbuh et al, 2020), (Mallat et al., 2004) and how modern-day businesses cannot survive without it (Petrova, 2002). Its application in every sector produces positive results; the banking sector is not left out.
Mobile banking has gained quick recognition because it covers all areas, both urban and rural areas (Ondiege, 2010). A vast majority of banks are situated in urban areas, leaving those in rural areas financially excluded (Severino et al, 2015). However, the traditional banking system of physical presence had a lot of benefits like; physical interactions, it is easy to operate by the old and illiterate, it is secure and has a valid paper trail. Mobile banking is dominating the field of banking thereby overtaking physical (traditional) banking.
Summary of Chapters
CHAPTER ONE: GENERAL INTRODUCTION: Introduces the research background, problem statement, research questions, hypotheses, and scope regarding the impact of mobile banking on traditional banks.
CHAPTER TWO: LITERATURE REVIEW: Reviews theoretical frameworks such as TAM, DOI, and Prospect Theory, alongside empirical studies on electronic and mobile banking developments.
CHAPTER THREE: RESEARCH METHODOLOGY: Details the quantitative research design, sampling techniques, data collection methods, and variable operationalization used in the study.
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION OF RESULTS: Presents demographic distributions, missing data analysis, exploratory and confirmatory factor analysis, and CB-SEM hypothesis testing.
CHAPTER FIVE: DISCUSSION OF FINDINGS, CONCLUSION, RECOMMENDATION: Discusses research findings, draws final conclusions on bank survival, highlights limitations, and offers strategic recommendations.
Keywords
Mobile banking system, Traditional banking operation, Remote account access, Online availability of bank information, Online payments, Multiple mobile banking operators, Financial inclusion, Structural equation modeling, Digital transformation, Cameroon banking sector, Consumer behavior
Frequently Asked Questions
What is the primary focus of this research work?
The research investigates the influence and effects of mobile banking systems on the survival and long-term sustainability of traditional, brick-and-mortar banking institutions in Cameroon.
What are the core thematic areas covered in the book?
The main themes include mobile banking evolution, remote account access, digital bank information availability, online payments, multiple mobile operators, and the competitive threat faced by conventional banks.
What is the primary research objective or question?
The study aims to determine to what extent mobile banking systems (such as remote account access and digital information availability) influence the survival of traditional banks in the Yaounde metropolis.
What scientific methodology is utilized in the study?
A quantitative research approach is employed, utilizing structured questionnaires administered to 400 participants, followed by exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and Covariance-Based Structural Equation Modeling (CB-SEM).
What topics are analyzed in the main body of the work?
The main body covers theoretical frameworks (TAM, Diffusion of Innovation, Prospect Theory), empirical comparisons between mobile and traditional banking, available e-banking technologies, mobile money operations, regulatory frameworks, and research methodology.
Which keywords best characterize the publication?
Key terms include mobile banking system, traditional banking operation, remote account access, online payment, financial inclusion, structural equation modeling, and banking sustainability.
How does mobile banking threaten traditional banking operations according to the study?
Mobile banking eliminates the necessity of physical presence, offers greater convenience and lower transaction costs, and attracts unbanked populations, potentially rendering traditional branch-based services obsolete if banks fail to adapt.
What specific role do telecommunication companies play in the Cameroonian banking landscape?
Telecom operators like MTN and Orange act as major competitors by providing mobile money services that allow users to save, withdraw, and transfer funds without maintaining a traditional bank account.
What were the key statistical findings regarding hypothesis testing?
The study found that remote account access and the online availability of bank information have statistically significant positive relationships with the survival of traditional banks, leading to the rejection of the respective null hypotheses.
What key recommendation is provided for traditional financial institutions?
The author recommends that traditional banks must integrate mobile banking technologies—specifically remote account access and digital information services—into their operations to maintain market share and survive intense market competition.
- Citation du texte
- Dr Penn Emmanuel Mbuh (Auteur), 2022, The Effect of Mobile Banking Systems on The Survival of Traditional Banks in Cameroon, Munich, GRIN Verlag, https://www.grin.com/document/1737356
