A Comparative Study on Mobile Banking Services in Bangladesh: Customers Perception and Satisfaction in Bangladesh
A Comparative Study on Mobile Banking Services in Bangladesh: Customer Perception and Satisfaction in Bangladesh
Course Title: Management of Banks and Financial Institutions
Course Code: PAGS
324
Submitted To:
Tanjil
Ahmed
Assistant
Professor
Dept.
of Public Administration and Governance Studies
Jatiya
Kabi Kazi Nazrul Islam University
Trishal,
Mymensingh
Submitted By:
Group
C
Session:
2020-21
3rd
Year, 2nd Semester
Dept.
of Public Administration and Governance Studies
Contents
|
Serial No. |
Name
of the Chapters |
Page
No |
|
01. |
Abstract |
1 |
|
02. |
Introduction |
2 |
|
03. |
Aims
and objectives |
3 |
|
04. |
Literature Review |
4 |
|
05. |
Methodology |
6 |
|
06. |
Findings of
the study |
7 |
|
07. |
Discussion |
27 |
|
08. |
Challenges |
30 |
|
09. |
Recommendations |
32 |
|
10. |
Conclusion |
32 |
|
11. |
References |
33 |
Abstract
This study explores Bangladesh's
mobile banking market with an emphasis on consumer views and satisfaction
levels. Mobile banking is a key component in the banking industry's digital
transition, providing users with unmatched ease and accessibility. The
introduction of mobile banking offers Bangladesh, where a sizable section of
the populace is still underbanked or unbanked, a special chance to increase
financial inclusion and reach unexplored markets. In order to investigate the
variables impacting consumer acceptance and satisfaction with mobile banking,
the study uses a comparative methodology. The research intends to provide
useful insights into the dynamics of mobile banking in Bangladesh by analyzing
the preferences, choices, and considerations of young people, who are the key
demographic pushing the adoption of mobile banking. The study aims to assess
customer satisfaction levels and the efficacy of mobile banking services
provided by different providers using a mixed-methods approach that combines
quantitative surveys and qualitative interviews. The study also looks into the
chances and difficulties banks have when trying to promote mobile banking
services, especially in rural areas with weak financial infrastructure. The
study's key findings could help financial institutions and policymakers
establish strategies that improve customer happiness, encourage adoption, and
advance the growth of the banking industry in Bangladesh as a whole. The
study's ultimate goal is to advance innovation and advancement in Bangladesh's
banking sector by adding to the current conversation about mobile banking
services.
Keywords: Mobile banking, Financial inclusion, Adoption, Preferences, Digital transition.
1. Introduction
Mobile banking has become a game-changer, transforming the
banking industry by offering unprecedented accessibility and convenience.
Millions in Bangladesh, a nation experiencing a mobile phone boom, can now
leverage their devices for financial transactions. This surge in mobile banking
use presents both exciting opportunities and significant challenges for the
Bangladeshi banking sector
One of the most impactful contributions of mobile banking is
its ability to boost financial inclusion. By reaching those previously excluded
from traditional banking channels, mobile banking empowers a wider segment of
the population. This translates to more people being able to conduct safe and
convenient banking transactions. However, as mobile banking adoption soars,
banks need to shift their focus towards keeping their customers happy and
fostering long-term loyalty
Understanding the factors influencing customer satisfaction
with mobile banking services is crucial for developing effective marketing
strategies and cultivating enduring customer relationships. This study delves
into the opinions and satisfaction levels of young Bangladeshi consumers
regarding mobile banking. By analyzing the preferences, choices, and
considerations of this key demographic driving mobile banking adoption, the
research aims to offer valuable insights into the dynamics of Bangladesh's
mobile banking landscape
Currently, mobile banking in Bangladesh facilitates a wide
range of services accessible via mobile devices, including financial transfers,
investments, bill payments, and account management. The Bangladesh Bank has
played a pivotal role in fostering the growth and advancement of mobile banking
by authorizing transactions and promoting market expansion. Despite the early success
and rapid growth of prominent mobile banking platforms like bKash and Dutch
Bangla Bank Limited (DBBL), challenges remain in expanding mobile banking
penetration rates and reaching the vast, unbanked population residing in rural
areas
Bangladesh's banking sector holds immense potential for
further expansion and innovation, but only a fraction of the population
currently utilizes mobile banking services. To fully capitalize on this
potential, banks must address the factors impacting customer adoption of mobile
banking. This study aims to pinpoint these crucial variables to empower mobile
financial institutions (MFIs) to enhance their services, raise public awareness
about mobile banking, and contribute to the overall growth of Bangladesh's
banking industry
In essence, this comparative analysis of mobile banking
services in Bangladesh seeks to illuminate customer perceptions and
satisfaction levels. The goal is to utilize this knowledge to inform future
strategies that effectively address the evolving needs and expectations of
mobile banking customers. By examining the nuances of mobile banking usage and
satisfaction, this research aims to spark innovation and propel the Bangladeshi
banking sector towards a brighter future
2. Aim and Objectives
This
assignment wants to look deeply into mobile banking in Bangladesh. There are
four main things it wants to do. First, it wants to find out what makes people
think certain things about mobile banking. Second, it wants to know why people
in Bangladesh like or don't like mobile banking. Third, it wants to see what
makes it hard for people to use different mobile banking services. Finally, it
wants to give ideas on how to make people happier with mobile banking and make
it better in Bangladesh. This assignment wants to help people who work in
mobile banking, the government, and tech companies. The goal is to make mobile
banking better and help more people in Bangladesh use it.
The
primary objectives are:
§ To
identify factors affecting customer perception of mobile banking.
§ To
find out the factors affecting Customer satisfaction with mobile banking in
Bangladesh.
§ To
investigate the challenges of using different mobile banking services in
Bangladesh.
§ To
recommend strategies to improve the mobile banking services in ensuring
customer satisfaction in Bangladesh.
3. Literature Review
The survey done by
Akter sought to evaluate user views and satisfaction with mobile banking
services in Bangladesh. The study's primary goal was to better understand the
elements that influence customer satisfaction, specifically in terms of service
quality aspects such as security, user interface, and dependability. The study
used a mixed-methodologies approach, combining qualitative and quantitative
methods, to gather data from mobile banking users in order to get insight into
their perspectives and experiences. The study found substantial relationships
between service quality parameters and customer satisfaction levels. However,
the study's shortcomings were sample size limits and potential biases in
self-reported data. Nonetheless, the study provided useful insights into Bangladesh's
mobile banking market, including recommendations for improving service quality
and increasing user happiness. Despite its focus on consumer views and
happiness, the research did not explicitly address the comparative comparison
of different mobile banking platforms or demographic groupings, which departs
from the suggested assignment's objectives.
Amin's study sought to
investigate the association between mobile banking services and customer
satisfaction in different demographic groups in Bangladesh. It aimed to
determine how factors such as service prices and local issues influence
consumer perceptions and satisfaction with mobile banking. The study discovered
that delivering dependable, quick, and efficient service is critical to
guaranteeing consumer satisfaction in the context of mobile banking. Despite
the focus on service quality and its impact on happiness, there is still a lack
of understanding about how customers perceive these aspects and how their views
influence their total satisfaction. This gap emphasises the importance of
conducting a comparison research in Bangladesh to evaluate user views and
satisfaction across different platforms and demographic groupings. Such study
may give significant information for targeted marketing, user-centric service
design, and regulatory initiatives aimed at improving the mobile banking
experience for all users in Bangladesh.
Parvin's assessment
digs into worldwide patterns in mobile banking adoption, highlighting
successful cooperation between banks and mobile carriers that have driven
development in countries such as India, Malaysia, and Sri Lanka. These patterns
reveal possible problems and possibilities for Bangladesh, including budgetary
constraints and security concerns. Finnish research provides a more
comprehensive framework for analysing mobile banking uptake, taking into
account criteria such as relative benefit and compatibility. However, despite
this global perspective, there is still a significant gap in understanding
consumer perceptions and their impact on satisfaction in Bangladesh. While
present research focuses on service quality, there is a need for comparison
study into customer perceptions across platforms and demographics. Such
information might guide targeted marketing and regulatory initiatives,
therefore improving the mobile banking experience for all Bangladesh users.
The analysis identifies
an increasing trend of mobile banking use in Bangladesh, fueled by reasons such
as relative advantage and ease. However, obstacles such as ineffective
marketing and security concerns continue to exist, emphasising the significance
of specialised organisations in tackling them. Despite excellent insights from
previous research, there is a significant vacuum in understanding generational
disparities in mobile banking preferences, particularly among young users aged
15 to 34. To close this gap, future research might evaluate mobile banking
services for this group based on factors such as usability, security, and
speed. Understanding their individual expectations and behaviours will help to
drive tailored marketing techniques, which are critical for increasing customer
happiness and loyalty among young people in Bangladesh. The available research
emphasises the necessity of knowing consumer perceptions and how they affect
satisfaction in Bangladesh's diversified mobile banking market. While existing
research focuses on service quality, there is a need for a comparison study
that investigates customer impressions across platforms and demographics.
Research on these areas can influence targeted marketing, user-centric service
design, and regulatory initiatives to improve the mobile banking experience in
Bangladesh.
While research explores mobile banking adoption and service quality in Bangladesh, a critical gap exists in understanding customer perceptions and their influence on satisfaction. Current studies focus on service quality itself, but how users perceive these features (security, user interface, etc.) can significantly impact satisfaction. Bangladesh's diverse mobile banking landscape and growing young user base further necessitate a comparative study. By investigating user perceptions and satisfaction across different platforms and demographics, this research can inform targeted marketing, user-centric service design, and regulations for a more inclusive and satisfying mobile banking experience in Bangladesh.
4. Methodology
In
order to provide a thorough grasp of its impact, our study on the adoption of
mobile banking used a mixed-methods approach, combining quantitative and
qualitative data collection techniques. In order to gather quantifiable data,
comprehensive questionnaires encompassing several facets of mobile banking
utilization and satisfaction were given to specialists, mobile bank employees,
and clients. Both in-person interviews and questionnaires were used to collect
data, providing a range of answers and quantitative insights into the usage
trends of mobile banking.
Concurrently,
we employed a qualitative methodology by scrutinizing pertinent literature,
reports, and additional sources to acquire more profound understanding of the
dynamics of mobile banking in Bangladesh. This qualitative study provided
context, highlighting the benefits, drawbacks, and areas for future development
in mobile banking.
With the help of our mixed-methods
approach, which combined quantitative data from surveys with qualitative
insights from interviews and literature review, it was possible to conduct a
thorough analysis of the adoption of mobile banking. This integration offered a
comprehensive picture of Bangladesh's current mobile banking situation and its
effects on financial services. An in-depth analysis of mobile banking usage and
its effects on the banking industry was made possible by the combination of
quantitative data and qualitative observations.
|
Study
Approach |
Study
Sample Design |
Study
Area |
Respondents
Criteria |
Total
Respondents |
|
|
Quantitative |
Survey |
Mymengshing, Trishal |
Designation |
Number |
110 |
|
User |
100 |
||||
|
Qualitative |
Interview |
Mymengshing, Trishal |
User |
10 |
|
Table:
Sampling
5. Findings of the study
We distributed our survey on mobile banking services in Bangladesh to 150 people. We interviewed people who were actively using mobile banking services at the time of the study among them. We were able to learn more about the comparative analysis of the various mobile banking services available in the nation thanks to this methodology. Through a combination of survey results and in-person interviews, our goal was to get insight into the subtleties and preferences of Bangladeshi mobile banking consumers. We aimed to offer a thorough analysis of mobile banking services and their effects on Bangladesh's banking industry using this mixed-methods approach.
5.1. Demographic information about respondents
5.1.1. Gender of the respondents
Figure
1: Gender of the respondents (Field Survey, 2024)
Out
of the 150 participants we questioned for our poll, 50.7% were women and 49.3%
were men. This gender mix enabled us to include both male and female viewpoints
in our study of mobile banking services in Bangladesh. We hoped to gain a
thorough picture of mobile banking usage patterns and preferences across
demographic groups by including varied voices.
5.1.2 Age range of the respondents
Figure 2: Age range of the respondents (Field Survey, 2024)
In our survey, age distribution varied among participants. Below 18 years old accounted for 8%, while 18-25 years constituted 40%, showing a strong interest among young adults. Ages 26-35 represented 16.7%, 36-45 years comprised 14.7%, and 46-55 years accounted for 13.3%. Those aged 56 years and above constituted 7.3%. This diverse range allowed for insights into mobile banking usage across different age groups in Bangladesh.
5.1.3. Educational qualification of the respondents
Figure 3: Educational qualification of the respondents (Field Survey, 2024)
In our study on mobile banking services in Bangladesh, we examined the education levels of the 150 respondents. Among them, 14% had completed primary school education, while 27.3% had attended secondary school. A significant portion, 39.3%, had completed higher secondary education (college). Additionally, 14% held a bachelor's degree, and another 27.3% had attained a master's degree or above. These findings reflect a diverse educational background among participants, indicating a range of perspectives and experiences regarding mobile banking utilization.
5.1.4.
Occupation
Figure 4: Occupation (Field Survey, 2024)
In our examination of mobile banking services in Bangladesh,
we looked at the vocations of the 150 respondents. 14% of them were full-time employees,
while 20% worked part-time. A considerable proportion, 37.3%, were involved in
business operations. Furthermore, 11.3% classified as students, while 12.7%
were unemployed. Additionally, 7% of respondents were day laborers. These
findings highlight the participants' broad employment backgrounds, offering
insight on the many viewpoints and experiences with mobile banking usage in
Bangladesh.
5.1.5.
Utilization
Figure 5: Utilization (Field Survey, 2024)
In our survey of mobile banking services in Bangladesh, we inquired about the frequency of usage among the 150 respondents. The responses revealed that 24% utilized mobile banking services multiple times daily, indicating frequent usage. Additionally, 29.3% reported using these services once or twice a week, while 22% utilized them once or twice a month. A notable portion, 24.7%, stated that they used mobile banking occasionally but not regularly. These findings provide insights into the varying degrees of engagement with mobile banking services among individuals in Bangladesh.
5.1.6.
Which platform is being used more
Figure
6: Platform (Field Survey, 2024)
We looked at the present preferences of 150 respondents in Bangladesh who participated in our survey on the use of mobile banking platforms. The findings showed that 32% of individuals prefer Nagad, whereas 9.3% of participants choose Bkash. Rocket was the most widely used option, as indicated by 52% of respondents. Moreover, a smaller subset of participants—2.7%—reported using U-Pay, whereas 4% chose Sure Cash. These results highlight Rocket as the top option among the questioned population and offer insights into the spread of mobile banking platform usage among individuals in Bangladesh.
5.2. Factors affecting customer perception of mobile banking.
5.2.1. User Interface and Ease of Navigation Satisfaction
Figure 7: User Interface and Ease of Navigation Satisfaction (Field Survey, 2024)
Among
the 150 respondents, 10% expressed being very dissatisfied, while 8% were
dissatisfied. However, the majority, comprising 62.7%, remained neutral, with
16.7% reporting satisfaction, and 3.3% expressing very satisfied sentiments.
5.2.2.
Security Measures Opinion
Figure 8: Security Measures Opinion (Field Survey, 2024)
Regarding security measures, 8% of respondents perceived them as highly secure, with 10% considering them secure. However, 38.7% rated them as average, while 39.3% expressed insecurity. A minimal percentage of 6% found them highly insecure.
5.2.3.
Reliability and Consistency Rating
Figure 9: Reliability and Consistency Rating (Field Survey, 2024)
When rating the reliability and consistency of mobile banking services, 12.7% deemed them excellent, while 7.3% considered them good. However, 26.7% rated them fair, and a majority of 53.3% regarded them as poor.
5.2.4.
Transaction Fees Evaluation
Figure 10: Transaction Fees Evaluation (Field Survey, 2024)
Regarding transaction fees, 10% of respondents found them very reasonable and transparent, with 22% considering them reasonable and transparent. Nevertheless, 30% remained neutral, while 33.3% deemed them unreasonable and opaque. A minor fraction of 4.7% considered them very unreasonable and opaque.
5.2.5.
Customer Support Response
Figure 11: Customer Support Response (Field Survey, 2024)
Evaluating customer support, 8% found it extremely responsive and helpful, while 14.7% regarded it as responsive and helpful. In contrast, 34% remained neutral, and 42% considered it unresponsive and unhelpful. A negligible percentage of 1.3% found it extremely unresponsive and unhelpful.
5.2.6.
User-Friendliness of the App or Website
Figure 12: User-Friendliness of the App or Website (Field Survey, 2024)
Assessing the user-friendliness of mobile banking applications or websites, 9.3% considered them very user-friendly and intuitive, with 20% regarding them as user-friendly and intuitive. However, 22.7% remained neutral, while a substantial 44.7% found them not very user-friendly and intuitive, and 3.3% considered them not at all user-friendly and intuitive.
5.2.7.
Importance of Additional Services
Figure 13: Importance of Additional Services (Field Survey, 2024)
Regarding
the importance of additional services, such as bill payments and fund
transfers, 21.3% regarded them as extremely important, with 10% considering
them important. Conversely, 17.3% remained neutral, while 50% deemed them not
important, and 1.3% considered them not at all important.
The
major finding of the survey is that Bkash emerged as the most widely used and
preferred service among respondents. Despite this, Rocket captured a
substantial user base, with over half (52%) of participants identifying it as
their go-to option. Nagad, Upay, and Sure Cash followed in terms of user
preference.
The study also delved into the demographic profile of respondents. The data revealed a balanced gender distribution and a strong focus on young adults, with 40% falling within the 18-25 age range. This highlights the importance of targeted marketing strategies for this demographic segment. Educational backgrounds were diverse, ranging from primary school education to postgraduate degrees, indicating a variety of perspectives on mobile banking adoption. Similarly, the survey included participants from various occupations, encompassing full-time employment, part-time work, business operations, students, unemployed individuals, and day laborers. This diversity provides a well-rounded picture of mobile banking usage across different segments of the Bangladeshi population.
The research identified several factors that influence customer perception of mobile banking services. User interface, security measures, transaction fees, and reliability were highlighted as key considerations. While a majority of respondents expressed neutrality or satisfaction with these aspects, security and fees remained areas of concern. A significant portion rated these aspects as average or below average, suggesting potential areas for improvement.Usability emerged as a concern for some users, underscoring the need for better UI design and user experience optimization.
While a portion of respondents felt secure, a significant number remained neutral or dissatisfied with current security features. This emphasizes the importance of robust security measures and user education on best practices. A considerable portion of the population rated the reliability and consistency of mobile banking services as fair or poor, indicating room for improvement in service stability. Transparency and fairness regarding transaction fees were a concern for some users. Mobile banking providers should clearly outline fees, provide real-time cost notifications, and consider offering fee waivers or discounts to enhance customer satisfaction.While some users found customer support responsive and helpful, a substantial portion considered it unresponsive and unhelpful. Improvements in response times, personalized assistance, and user-friendly self-service options are crucial.
The survey also explored the perceived importance of additional services like bill payments and fund transfers. While a noteworthy portion considered them important, a significant number found them less valuable. This suggests that prioritizing core functionalities might be more beneficial than focusing on a wide range of additional features. The study further assessed factors influencing customer satisfaction with mobile banking services in Bangladesh. While some users found the mobile banking apps user-friendly, a significant portion considered them fair or not very user-friendly. Enhancing app usability can significantly improve customer satisfaction.Similar to the previous finding, security aspects remained a concern for a considerable portion of users. Implementing robust security measures and user education is essential to address these concerns.
The range of services offered through mobile banking apps was perceived as inadequate by a considerable portion of respondents. Expanding service offerings to cater to evolving customer needs is crucial.Transaction speed and responsiveness were a concern for some users. Optimizing systems for faster processing can significantly improve customer experience. A significant majority of respondents expressed dissatisfaction with overall customer service. Addressing this issue requires improvements in response times, personalized assistance, user education on navigating features, and offering clear explanations regarding fees and charges. Transparency in communication from customer service representatives remains a concern. Clear and concise communication regarding fees, services, and troubleshooting procedures is essential.
Similar to overall customer service satisfaction, the experience with customer service representatives was rated poorly by a large portion of respondents. Implementing effective training programs and focusing on customer-centric communication can improve this aspect. Dissatisfaction with the range of services and features offered by mobile banking apps was prevalent. Expanding service offerings and ensuring user-friendliness are key areas for improvement. The study also identified challenges faced by mobile banking users in Bangladesh. Limited network coverage, technical glitches, complex user interfaces, long transaction processing times, and security concerns were identified as primary challenges users face during transactions. Difficulty understanding features, language barriers, unreliable service during peak hours, limited accessibility in rural areas, and delays in receiving transaction notifications were also reported as challenges.
To improve customer satisfaction, the study suggests implementing features like faster transaction processing, a wider range of services, improved user interface, enhanced security measures, and better customer support.Regarding security, two-factor authentication, regular security audits, comprehensive fraud detection mechanisms, user education on security best practices, and secure data encryption were recommended. For improved accessibility, establishing more agent banking outlets, expanding network infrastructure, introducing offline transaction capabilities, and conducting mobile banking awareness campaigns in rural areas were suggested. Additionally, partnerships with local businesses and NGOs were recommended. Enhancing the customer service experience could involve implementing multilingual support, extending customer service hours, improving response times for inquiries, offering personalized assistance, and providing user-friendly self-service options. Simplifying the registration and onboarding process could be achieved through streamlined account creation procedures, clear instructions for account setup, reduced.
7. Conclusion
In conclusion, the study on mobile banking services in Bangladesh has provided valuable insights into the demographic profile, usage patterns, challenges, and potential solutions in the mobile banking landscape. The findings underscore the significance of mobile banking as a key driver of financial inclusion and digital transformation in Bangladesh, particularly among young adults and diverse socio-economic groups. The balanced representation of gender and varied age distribution among respondents highlights the widespread adoption of mobile banking across different demographic segments. Moreover, the study revealed a diverse mix of educational backgrounds and employment statuses among participants, indicating the broad appeal and accessibility of mobile banking services in Bangladesh. However, despite the growing popularity of mobile banking, several challenges persist, including limited network coverage, technical glitches, security concerns, and accessibility issues in rural areas. These challenges underscore the need for concerted efforts from stakeholders, including financial institutions, regulators, and technology providers, to address infrastructure gaps, enhance security measures, and improve user experiences. To overcome these challenges, the study proposes a range of solutions, including infrastructure development, technology upgrades, user interface enhancements, and policy adaptations. By implementing these solutions collaboratively, stakeholders can create a more inclusive, efficient, and secure mobile banking ecosystem that meets the evolving needs of the population. In essence, mobile banking has the potential to revolutionize the banking industry in Bangladesh by expanding access to financial services, empowering individuals, and driving economic growth. By leveraging technology, fostering innovation, and prioritizing customer satisfaction, Bangladesh can unlock the full potential of mobile banking and pave the way for a more financially inclusive and prosperous future.
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