ECONOMIC CONSEQUENCES AND VARIABLES INFLUENCING THE UPTAKE OF MOBILE FINANCIAL SERVICE IN UNBANKING POPULATION LIKE PAKISTAN

  • Zara Younus University of Karachi, Pakistan
  • Sohaib Uz Zaman University of Karachi, Pakistan
Keywords: Mobile Financial Services, Adoption, Economic Impact, Pakistan.

Abstract

The growth of digital mobile devices enables the world to integrate and enables the masses to access and use services with optimism, speed and efficiency. These developments are on the rise in Pakistan. Market opportunities for digital financial services in Pakistan are projected to exceed $ 36 billion by 2025, which will increase GDP by 7%, create four million new jobs and generate $ 263 billion in new deposits. This power can only be achieved through a robust and efficient DFS environment. Although Pakistan has a DFS environment, it is unfortunate that so far no research has been done to determine and analyze the economic impact of mobile banking services as well as factors affecting their use in developing countries like Pakistan, to this end, the methodology part will be divided into two parts: the first part will focus on the secondary data to analyze and determine the impact of mobile banking activity on GDP, employment, government taxes for support to reduce non-banking figures in Pakistan. The second part will focus on the primary data that will be used to investigate the influencing variables on the usage of mobile banking services. A self-administered questionnaire has been developed with 250 respondents, which will be distributed to mobile money users to get their ideas on mobile banking services. Its results will be evaluated using the Pearson correlation and multiple regressions. Affective factors are assessed under five factors: risk, perceived trust, cost-effectiveness, accessibility and reliability using biometric analysis method in mobile banking. The study revealed that mobile financial services had positive impact on the economic indicators whereas factors like perceived trust, convenience and perceived risk had a significant influence on the adoption of mobile banking services but perceived cost and reliability were said to have insignificant influence on its adoption.

Author Biographies

Zara Younus, University of Karachi, Pakistan

MBA in Finance, Karachi University Business School, University of Karachi, Pakistan

Sohaib Uz Zaman, University of Karachi, Pakistan

Assistant Professor, Karachi University Business School, University of Karachi, Pakistan

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Published
2021-11-01
How to Cite
Younus, Z., & Zaman, S. U. (2021). ECONOMIC CONSEQUENCES AND VARIABLES INFLUENCING THE UPTAKE OF MOBILE FINANCIAL SERVICE IN UNBANKING POPULATION LIKE PAKISTAN. Asian Finance & Banking Review, 5(1), 38-53. https://doi.org/10.46281/asfbr.v5i1.1414
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper