M-Banking Adoption Barriers and How To Reduce Them

The major barriers to m-banking adoption by small- and medium-sized enterprises (SMEs) are the operational constraints such as cash management, policy and regulation, and administrative obstacles.

→ Strengths and Weaknesses of SMEs

What factors do influence the intention of SME managers to adopt an m-banking service?

Naturally, modern SMEs want mobile-based banking that helps them run their businesses smarter.

→ Benefits of e-Business

→ ICT Trends: Market Shifts

Education is a very important factor that is associated with m-banking adoption. Though many SME managers have mobile phones and know about the m-banking service, a higher rate of awareness and education obviously will facilitate m-banking adoption. Especially people from a lower educational background may not understand the usefulness of m-banking.

→ Sell Benefits

SME owners/managers need low cost accounts to take advantage of small savings and micro credit opportunities. They would adopt a technology if the technology has a use and is affordable to buy and maintain.

Many SME's managers/employees, especially rural ones, are reticent to divulge banking information online. Therefore, proper education and training should be given to reduce the effect.

Voice recognition based m-banking is especially suitable for illiterate people. Interoperability of m-banking between the mobile networks is important as multiple SIM usage is common.

And finally, engagement with the SMEs is an important organizational factor in m-banking diffusion, especially for rural SMEs.