Volume: 19 Issue-01 (January-June) 2024

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MOBILE BANKING IN RURAL GUJARAT- ROLE OF PERFORMANCE AND EFFORT EXPECTANCY

ABSTRACT

This research explores mobile banking adoption in rural Gujarat which focuses on the roles of the performance expectancy and effort expectancy. The research is grounded in the Technology Acceptance Model where it explores user perceptions and behaviors. The insights from diverse settings in the literature review emphasizes the importance of aligning technology with users' needs and considering socio-economic factors. The research utilized a quantitative approach with the Confirmatory Factor Analysis and Structural Equation Model which acknowledge the measurement model's effectiveness. Findings highlight the mediating influence of socio-economic factors between effort expectancy and performance expectancy which impacts the users' perceptions and adoption. This study contributes insights for promoting inclusive financial solutions in regions with diverse socio-economic backgrounds, urging future research to explore qualitative methodologies and additional contextual factors. Objective: To explore user adoption of mobile banking in rural Gujarat, specifically focusing on the impact of the performance expectancy and effort expectancy, with the aim of providing valuable insights for promoting financial inclusion in the region. Findings and Implications: The findings of the study suggest that as individuals in rural Gujarat experience enhanced socio-economic conditions, they are more likely to perceive mobile banking as user-friendly and capable of meeting their financial needs. These insights emphasize the crucial role of addressing socio-economic factors in promoting favorable attitudes toward mobile banking adoption in regions with unique challenges and opportunities. The implications emphasize the need for specific strategies and inclusive financial solutions in diverse socio-economic backgrounds to enhance mobile banking adoption. Originality/Value: The uniqueness of the study lies in its focused exploration of mobile banking adoption in rural Gujarat by highlighting on the unique socio-economic and cultural factors that influence user perceptions. By emphasizing the mediating role of socio-economic factors this research provides valuable insights into the dynamics of user behaviour in a specific regional context. The study subsidises to the existing literature by addressing research gaps and presenting practical implications for promoting inclusive mobile banking solutions which makes it a valuable resource for financial institutions seeking to enhance financial inclusion in diverse regions.

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