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Working paper

Mobile Banking Adoption in Russia: What Incentives Matter?

Mobile banking has followed the appearance of high tech mobile devices. However, rates of payments made through mobile banking apps are still much lower than through other channels. This paper observes the main incentives to use mobile banking in Russia by users of smartphones and tablets. The empirical model modifies authors’ previous one [Belousova & Chichkanov, 2015] to find the relationship between the intention to use mobile banking and new factors, such as the perceived financial costs and social influence and the indirect influences of self-efficacy and compatibility with lifestyle. Following the baseline study, Partial Least Squares Structural Equation Modelling (PLS-SEM) is used to check the existence of such relations. The paper finds that the most powerful chain of incentives is “self-efficacy”-“perceived efforts”-“perceived usefulness”-“intention to use”. The influence of perceived financial costs are also meaningful. However, the perceived risks, compatibility with lifestyle and social influence do not have any significant relationship with the intention to use mobile banking. The lack of generalizability may be driven by the chosen focus groups. In addition, the distinction between the dependent variable “intention to use” and real usage might also be considered as a limitation of the study. However, these results can be used by financial institutions that develop a strategy for improving mobile banking services.