Mobile Banking Adoption by Senior Citizens in Australia by Using TAM

Assignment instructions

Most literature reviews adhere to the following general format.

Introduction: Introduce the topic/problem and the context (academic literature) within which it is found. What problem(s) will you be investigating and why?

Body: Critically examine past research in the area highlighting methodological and/or theoretical developments, areas of agreement, contentious areas, important studies, and so forth. What do we know and why? What don’t we know and why? If different studies reach different conclusions what are the most logical explanations? Focus on your area of research interest and identify gaps or unsolved problems/issues in the research that your own investigation will attempt to address. State clearly how your work builds on/extends or responds to earlier work.

Conclusion: Summarise what has emerged from the critical review of literature and reiterate conclusions. The literature review should provide a clear understanding to readers about the justification for your own study.

Marking criteria

In your literature review, you will demonstrate evidence of

  • critical thinking
  • sound academic skills – active writing
  • ability to analyse the literature in a coherent way
  • capacity to adhere consistently to a referencing system i.e. APA or other appropriate system.


The 21st century has been characterized by advancements in technology that saw the rise of mobile services, particularly due to the availability and affordability of smartphones among the people. The mobile technologies are increasingly becoming common in our everyday life, and this has contributed to the expansion of services in various industries, using the mobile phone technology as the primary platform for delivery. According to Zhou (2011), the use of third-generation (3G) can be attributed to the rapid development of mobile commerce services. These sentiments are in line with the reviews by Riquelme and Rios (2010), that consumers and financial institutions are increasingly taking advantage of developments in technology. Additionally, the usage of mobile technologies has reduced the cost of financial transactions compared to the use of brick and motor banking services, while also offering a more convenient approach to the customers.  Koenig‐Lewis, Palmer, and Moll (2010) state that the internet has had noteworthy effects on the banking sector by allowing customers to access various banking services at anytime and anywhere, allowing banks to cut operational costs while increasing efficiency. The intent of this study is to determine the adoption of mobile banking among senior citizens in Australia by using TAM.

Literature Review

Mobile Banking

There is increased use of mobile services across the globe, but it is estimated only half of the existing users engage in internet banking. Improved internet services and affordable and available internet enabled devices have increased the use of internet banking. Nevertheless, this is not evident among the senior citizens who portray resistance to adoption of new technology. Kang, Lee, and Lee (2012) allude that the popularity of mobile commerce across different industries is expected to induce more advanced services compared to the simple traditional uses of the mobile phones. Talukder, Quazi, and Sathyen (2014) confirm these statements stating that the utilization of mobile gadgets in banking operations has not been widely accepted. In the same context, Talukder, Quazi, and Sathyen (2014) state that despite the fact that Australians adoption of technology has tried to match with the international trend, there has been the little adoption of mobile phones for commercial transactions. The limited use of mobile banking in the Asia-Pacific region is accredited to the little knowledge the customers have on mobile banking. Kang et al., (2012) state that advanced mobile services as a platform for engaging in financial transactions present huge market potential, making it imperative to understand the factors that interact to facilitate success in MB. Laukkanen, Sinkkonen, Kivijärvi, and Laukkanen (2007) argue that developing countries are experiencing significant demographic changes as the older adults are contributing to a large portion of their population. In this light, the increase in life expectancy and high birth rates the 1940s and 1960s has led to a high population of senior citizens. Subsequently, they form a considerable part of the banking consumers. Increasing awareness of mobile banking among this group can increase the profitability and competitiveness of financial institutions.

The use of mobile banking entails the users using mobile terminals to engage in banking activities that include balance inquiry, financial transactions, paying bills, and others at any place and time (Zhou, 2011). According to Talukder, Quazi, and Sathyen (2014), there is a large opportunity for increased growth in the use of MB in Australia due to the huge regional and remote areas that have traditionally faced challenges due to limited access to brick and motor banking services. There is no doubt that the acceptance of mobile banking among the senior citizens can be beneficial for them as the need to access distant banking facilities is eliminated. Additionally, the banking service providers face challenges such as high costs in the establishment of brick and mortar branches, which has discouraged expansion in some areas (Talukder et al., 2014).

Global Mobile Banking

Zhou (2011) reviews that developments in technology have presented mobile services such as prompt message delivery, internet searching, and entertainment that have become popular among various groups of consumers. Notably, most of the mobile services are related to messaging, information sharing and multimedia services. The author alludes that only a small percentage of the people have embraced mobile banking. For instance, only 7.1 percent of the people in China have ever used mobile banking. The difference between generations in the usage of mobile banking reduces the customer engagement and limits the need for the banking sector to target specific age groups and increase profitability through mobile banking. Laukkanen and Kiviniemi (2010) state that resistance to technological solutions and individuals who oppose change often lack adequate attention. In this light, the authors recommend that the decision of a consumer not to buy is a major issue in product consumption. Understanding the factors behind such behaviors is essential for effective advancement, execution, and marketing of technological products (Pavithran, Varaprasad, Sridharan, & Unnithan, 2014). Furthermore, Laukkanen and Kiviniemi (2010) review that the process of adoption only begins when consumers have overcome the initial resistance to change. Addressing the factors that limit the senior citizens from engaging with innovative products in Australia is instrumental in establishing the framework for effective mobile banking among the financial institutions and identifying areas of creating competitive advantage.

In developed countries, MB is widely used with US, Spain, and France, registering 32%, 34%, and 26% respectively (Infogalactic, 2015). The high rates of MB in developing countries can be attributed to the fact the mobile network service providers have direct links with the customers. At the same time, MB adoption is still low in the developed countries. Harris et al. (2016) state that age is a demographic variable that influences technology adoption. The changing population demographics in developing countries have an impact on the MB adoption due to high numbers of bank customers among the elderly population. Additionally, the authors review that various researchers have found negative relationships between increasing age and the intention of an individual to accept using new technologies. Nevertheless, there is no guarantee that these findings can be generalized across all age cohorts. Subsequently, this makes it important for this research to investigate the adoption levels among the senior citizens. Fundamentally, it will provide a clear explanation of the trends and aspects that influence adoption of technology. The physical age of an individual and their experience has been found to impact the use of technology. Further review of Harris et al. (2016) work shows that the differences between generations make it difficult to apply previous studies on technology adoption among consumers, as well as future consumers. In this light, the factors that determine the attitudes in the adoption of technology are important in formulating the implementation and success of technology among different individuals.

Reasons for using MB

Laukkanen et al. (2007) review that managing the senior citizens as consumers in the banking industry is important in the modern day business environment. On the same note, the author states that older adults are becoming familiar with technology, including the use of computers, the internet, and smartphones. Nevertheless, observations show that mature consumers have different incentives to try a new product compared to the younger consumers. In this context, Laukkanen et al. (2007) reviews that accepting innovation among the elderly is based on the fact that it meets specific personal needs rather than from the perspective of the technology being trendy. According to Chen (2013), there is a high probability for the success and high achievement of mobile banking because it follows the success of online banking. The MB entails the integration of mobile communication and other technologies that diversify the banking and financial services (Barnes & Corbitt, 2003). Subsequently, the integration of communication and banking services make MB flexible, and banking services can be expanded without much time, cost, or space challenges. According to Laukkanen et al. (2007), the banking sector needs to show that their products and services can meet the different needs and expectations of elder customers through the flexible opportunities available in MB. Fundamentally, the reviews by Laukkanen et al. (2007) and Talukder et al. (2014) show that for organizations and governments to serve better and improve banking services for the elderly, there is need to understand the interaction the aging population has with the innovative products and services. 

MB use in Australia

There has been a gradual increase in the use of MB in the country, following adoption by financial institutions and the difficulties of locating physical banks by the consumers. Recent improvements in Australia are evident in the financial allocation made by the government in increasing internet availability throughout the country including the rural area. The potential for increased mobile banking in Australia can also be attributed to the fact that the country is among the leaders in mobile phone ownership across the globe. From this context, MB would not only help meet the challenges faced by the elderly in banking, but would also reduce the operating costs of banking organizations in the country. Additionally, the innovativeness that is available in the use of technology offers an opportunity for organizations to create competitive advantage, increasing the quality of products available for the consumers

The use of MB among the elderly in Australia offers an opportunity for freeing them from attitudinal and sequential challenges and allows them to engage in effective mobile transactions. Despite the increased convenience of the users, there are many risks associated with MB. Arguably, these risks might be attributed to the trends in the adoption of MB among the Australian population. Empirical studies reviewed in this paper converge on the fact that the people have highly accepted other mobile services, but there is evidence of slow adoption when it comes to MB (Harris et al., 2016; Talukder et al., 2014; Zhou, 2011). The virtual nature and the lack of control in mobile banking leads to varying perceptions and attitudes among users (Liao, Shao, Wang, & Chen, 1999). Subsequently, there is the need to develop trust among the users and the service providers of mobile banking to be successful. According to Laukkanen et al. (2007) the process of developing trust beings when users use mobile banking for the first time. Nevertheless, trust must be sustained, and the issues faced in mobile banking such as poor quality services, system failure, and cyber security increase the risks associated with the innovation (Kim, Shin, & Lee, 2009). Additionally, the lack of experience further aggravates the situation, making it difficult for people of all ages to accept using mobile banking for the first time. According to Arvidsson (2014), the relative advantages associated with innovative products and services compared to the existing brick and motor banking services is among the essential factors that determine the level of adoption. Factors such as prices, quality, performance, the convenience of time and location also contribute significantly to the adoption process.

Research gap

Despite the increased application of mobile banking (MB), Harris, Cox, Musgrove, and

Ernstberger (2016) review that various studies show that there is an adverse connection between the adoption of innovative solutions and the age of users. On the same note, the authors allude that the use of technology relates to the physical consequences of aging. There is a projected growth in the use of mobile banking in the foreseeable future, but there exist some barriers that need to be mitigated (Harris et al., 2016). Estimates show that there will be a 32% increase in mobile banking between 2014 and 2019, which represents an increase from 800 million to 1.75 million mobile banking users (Juniper Research, 2014). Australia has an MB adoption rate of about 27%, which is relatively close to the global estimates (Infogalactic, 2015). The difference between the use if MB services between the young and old generation of consumers shows that there is low customer engagement in the service, because only the young ones are using mobile banking willingly. Consequently, it is difficult for banks to engage in different practices that will attract a particular age group without compromising the loyalty of the others. Considering that a significant number of bank customers are the older people, the rate of technology adoption in the banking sectors is compromised in Australia.  Despite the numerous research on the use of mobile banking across various regions and dimensions, there is a gap in knowledge on the use of MB among senior citizens aged 60 and above in Australia, considering that there is a significant number of people using MB services in Australia. Literature shows that age can impact the adoption of technology, but research has not addressed MB adoption among the senior citizens in the country. Investigating the adoption of MB among the senior citizens is imperative in determining customer perceptions in the use of technology. Subsequently, the findings of this research will be imperative in evidence-based management practices in the banking sector and in promoting the use of MB among the senior citizens by identifying the challenges associated with the innovation. The research will help to identify opportunities for improvement among Australian banks to promote the engagement of older adults.

Theoretical Framework


Mobile Banking is an innovative venture that lies in the information technology sector. The adoption of IT solutions has been largely researched in the sector of information systems. According to Venkatesh and Davis (2000), despite the increased improvements in hardware and software development, some innovative products remain underutilized. The underutilization of these systems has been identified as a huge setback in increasing productivity and performance, compromising the organizational investment in the technology. In this context, developing an environment where the people embrace information systems has been an issue of high concern among researchers. Over the years, there has been significant progress in determining user acceptance of IT. Venkatesh and Davis (2000) allude that there is significant theoretical and empirical evidence that support the Technology Acceptance Model (TAM). TAM is the proposed model for engaging in this research because it offers consistency in explanation of the inconsistency in usage intention and behavior. Additionally, TAM has been favorably compared to other models such as the Theory of Reasoned Action (TRA) and Theory of Planned Behavior (TPB).  The ideology behind TAM is based on two concepts that include perceived ease of use and the perceived usefulness (Koenig‐Lewis et al., 2010; Venkatesh & Davis, 2000).


Koenig‐Lewis, Palmer, and Moll (2010) reviews that TAM offers adaptation of the TRA through the adaptation that the behavior exhibited by the people is as result of their intentions. In this light, the use of TAM in this research study is appropriate due to the fact situation presented by the availability of technology such as the internet and smart phones, compelling individuals to engage in internet and MB. A theoretical approach of TAM shows that the behavioral intentions of an individual are influenced by the user’s attitudes towards the technology. These attitudes rely on the perceived usefulness of the innovative product as well as its ease of use. The usefulness of MB among the senior citizens in Australia entails the capability of the system to facilitate the users to achieve their desired banking goals. In this light, the systems under investigation are required to meet the basic banking operations such as depositing, withdrawing, and processing bills. The ease of use will include the key features expected in the service such as availability, customer care services, and easy navigation through the service, which in turn contributes to the autonomy of the user in engaging in MB services. Koenig‐Lewis, Palmer, and Moll (2010) note that various studies have identified usefulness as a key aspect in the acceptance of service related to mobile technology, but there is some criticism of the model due to its deterministic approach in the acceptance or rejection of the new technology. In this context, the authors argue that the decision to engage in a particular technology has often been studied as an outcome variable of the intention to use the innovative product instead of the actual behavior experienced in adopting the technology. From these insights, this research will focus on the individual behaviors presented by the research participants to ensure that it addresses the behavioral changes experienced, rather than the factors that drive users to use MB banking.

Why It Is Extended

Venkatesh & Davis (2000) allude that empirical tests of TAM conducted to determine the usage intentions following perceived usefulness have been identified as key aspects in the model. Nevertheless, TAM’s other determinant, perceived ease of use for intention to use a particular technology shows less consistent effects on various studies. Venkatesh & Davis (2000) add that the determinants of the perceived usefulness are also relatively overlooked. Subsequently, there is a need for a better understating of the aspects that determine the perceived usefulness to facilitate development of organizational interventions that would increase the adoption of new technologies. Subsequently, research extends TAM to include various aspects that are key is the adoption and increasing the user experience.


TAM and the Innovation Diffusion Theory (IDT) are regarded as complementary theories in forecasting the adoption of a particular technology. Koenig‐Lewis, Palmer, and Moll (2010) allude that the two models lack significant engagement in literature that address MB services. Sentiments expressed by the IDT model show that the adoption of technology is not generally straightforward. These sentiments are in line with those theorized in the TAM model, which shows that innovations should be perceived as a solution that offers more advantages and less complexities in the adoption of technology. These factors suggest that the adoption rate of the innovative technology is deemed to increase. Nevertheless, the review by Koenig‐Lewis, Palmer, and Moll (2010) also points out that some studies show that only the relative advantage, complexity, and compatibility of the technology has significant influence on the adoption of the innovative product in the application of the IDT model. Another model that would be applicable is the unified theory of acceptance and use of technology (UTAUT). The UTAUT model entails analyzing the performance expectancy, effort expectancy, social influence, and facilitating conditions. Nevertheless, the user’s belief can be impacted by their experiences (Harris, Cox, Musgrove, and Ernstberger, 2016). Subsequently, TAM is more appropriate for the study because it eliminates the different beliefs that exist between generations of different ages because they are subjected to the same conditions such as the type of technology, motivation to use the technology, and availability of the technology. Subsequently, the use of TAM in this research will be appropriate because the relative advantage in IDT associated with the MB’s perceived usefulness of the technology, while the complexities entail the aspects of the perceived ease of use. The TAM model will facilitate addressing the user’s existing values, beliefs, and experiences, especially in the use of online banking, which according to Laukkanen et al. (2007) contributes to faster adoption of MB. Additionally, in the ease of use, the TAM model allows the research to address the lifestyle of the user based on their experience with similar technologies, which leads to faster adoption of MB. Fundamentally, the reviews show that the application of TAM addresses the compatibility of the technology with the existing systems in the perceived ease of use factors that contributes to the user’s engagement in using the new technology. The ideology is supported by the review by Koenig‐Lewis, Palmer, and Moll (2010) that experienced users have a higher opportunity to identify the value of the innovation and accept it compared to those who lack technological awareness. Notably, Talukder, Quazi, and Sathyen (2014) alludes that the limited use of MB in the Asia-Pacific region can be attributed to the lack of sufficient knowledge about the technology among the bank customers.


The literature review raises the following hypothesis in the adoption of MB among the senior citizens in Australia:

Perceived Price

In this context, the perceived price is attributed to the fact that the adoption of new technologies in the banking sector should be with the aim of reducing operational costs, as well as changes for the consumer. Additionally, this aspect entails the capacity of MB to eliminate other costs associated with banking such as the expenses of travel to banks.

Hypothesis 1. The perceived prices have the positive impacts on the adoption of mobile banking among senior citizens in Australia.

Perceived Quality

For consumers to accept a new technology, it is expected to improve the services being offered. Issues that emerge that compromise the security or efficiency of banking activities might jeopardize the acceptance of the technology among consumers. In this light, issues associated with MB such as security and network failure might limit adoption among the senior citizens.

Hypothesis 2. The alleged quality of service has a positive impact on the mobile banking adoption among senior citizens in Australia.

Perceived Convenience

From the TAM perspective, the perceived convenience denotes the time and effort required by the user to engage in MB. The convenience determines the level of control and efficiency that attract consumers to use MB services.

Hypothesis 3. The alleged convenience of service has a positive impact on mobile banking adoption among senior citizens in Australia.


The use of TAM by Arvidsson (2014) shows that the key important factors that explain whether or not consumers are likely to engage in mobile payments is the ease of use. Additionally, the study shows that trust, low security risks, higher age, and low income were linked to positive perceptions of adopting the service. These factors correlate to the factors addressed in this study, including quality, price, and convenience. These factors are also evident in promoting MB adoption in Chen’s (1999) study, that shows the analytical results indicating that there is different behavioral patterns and perceptions in innovation benefits and risks. Subsequently, brand awareness that is associated with the quality and convenience of the MB services are key factors that determine the attitude and intentions to use MB. Koenig‐Lewis, Palmer, and Moll (2010) also found that compatibility, perceived usefulness, and risks are key factors that determine the adoption of MB. Fundamentally, these findings confirm that the aspects hypothesized in this research are critical in determining the adoption rate of MB services in Australia.

Research Questions

The study will focus on obtaining answers to the research questions below:

  1. mobile banking among the senior citizens in Australia?
  2. mobile banking among senior citizens in Australia?


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