Exploring customer’s mobile banking experiences and expectations among generations X, Y and Z

Abstract

Customer’s adoption of mobile banking portrays tremendous growth in developing countries. However, it seems that there is a lack of studies about customer’s experiences and expectations on mobile banking services, and more research is needed considering generational differences between mobile banking customers in Iran. The purpose of this study is to explore the customer’s mobile banking experiences and expectations among generations X, Y, and Z in a developing country context, Iran. Twenty-seven in-depth interviews were conducted from active users of mobile banking services with a generational split in Iran. A qualitative content analysis was employed to understand customer’s mobile banking experiences and expectations. This study identified specific features of different generations regarding their experiences and expectations of mobile banking services. Each generation displayed distinct characteristics of mobile banking. Generation X customers perceive mobile banking as complicated; generation Y customers prefer to use mobile banking for quick payments, while generation Z customers want to have more customized services and ranked mobile banking as a spontaneous solution. Every generation expects different features to focus on: generation X expects to have more user-friendly functions; generation Y prefers to have an online transaction tracker while generation Z appeals to have enhanced the user interface. This study offers a detailed strategic starting point for management to tailor dynamic customer expectations among different generations.

This is a preview of subscription content, log in to check access.

References

  1. Aboelmaged, M., and T.R. Gebba. 2013. Mobile banking adoption: An examination of technology acceptance model and theory of planned behavior. International Journal of Business Research and Development 2(1): 35–55.

    Article  Google Scholar 

  2. Agarwal, R., S. Rastogi, and A. Mehrotra. 2009. Customers’ perspectives regarding e-banking in an emerging economy. Journal of Retailing and Consumer Services 16(5): 340–351.

    Article  Google Scholar 

  3. Alalwan, A., Y.K. Dwivedi, and N.P. Rana. 2017. Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust. International Journal of Information Management 37(3): 99–110.

    Article  Google Scholar 

  4. Amin, H., M.R.A. Hamid, G.H. Tanakinjal, and S. Lada. 2006. Undergraduate attitudes and expectations for mobile banking. Journal of Internet Banking and Commerce 11(3): 1–10.

    Google Scholar 

  5. Anderson, J. 2010. M-banking in developing markets: Competitive and regulatory implications. Info 12(1): 18–25.

    Article  Google Scholar 

  6. Bassiouni, D.H., and C. Hackley. 2014. Generation Z’children’s adaptation to digital consumer culture: A critical literature review. Journal of Customer Behaviour 13(2): 113–133.

    Article  Google Scholar 

  7. Beiginia, A.R., A.S. Besheli, M.E. Soluklu, and M. Ahmadi. 2011. Assessing the mobile banking adoption based on the decomposed theory of planned behavior. European Journal of Economics, Finance, and Administrative Sciences 28(1): 7–15.

    Google Scholar 

  8. Berraies, S., K. Ben Yahia, and M. Hannachi. 2017. Identifying the effects of perceived values of mobile banking applications on customers: Comparative study between baby boomers, generation X and generation Y. International Journal of Bank Marketing 35(6): 1018–1038.

    Article  Google Scholar 

  9. Boonsiritomachai, W. and K. Pitchayadejanant. 2017. Determinants affecting mobile banking adoption by generation Y based on the unified theory of acceptance and use of technology model modified by the technology acceptance model concept. Kasetsart Journal of Social Sciences 38(3): 1–10.

  10. Boor, P., P. Oliveira, and F. Veloso. 2014. Users as innovators in developing countries: The global sources of innovation and diffusion in mobile banking services. Research Policy 43(9): 1594–1607.

    Article  Google Scholar 

  11. Bowen, G.A. 2008. Naturalistic inquiry and the saturation concept: A research note. Qualitative Research 8(1): 137–152.

    Article  Google Scholar 

  12. Claessens, S., T. Glaessner, and D. Klingebiel. 2002. Electronic finance: Reshaping the financial landscape around the world. Journal of Financial Services Research 22(1–2): 29–61.

    Article  Google Scholar 

  13. Chang, C.T., J. Hajiyev, and C.R. Su. 2017. Examining the students’ behavioral intention to use e-learning in Azerbaijan? The general extended technology acceptance model for e-learning approach. Computers & Education 111(August): 128–143.

    Article  Google Scholar 

  14. Chaffey, D., and F. Ellis-Chadwick. 2017. Digital marketing, 6th ed. London: Pearson Education Ltd.

    Google Scholar 

  15. Chawla, D., and H. Joshi. 2017. Consumer perspectives about mobile banking adoption in India—A cluster analysis. International Journal of Bank Marketing 35(4): 616–636.

    Article  Google Scholar 

  16. Chitungo, S.K., and S. Munongo. 2013. Extending the technology acceptance model to mobile banking adoption in rural Zimbabwe. Journal of Business Administration and Education 3(1): 51–79.

    Google Scholar 

  17. Chung, N., and S.J. Kwon. 2009. The effect of customers’ mobile experience and technical support on the intention to use mobile banking. Cyber Psychology and Behavior 12(5): 539–543.

    Article  Google Scholar 

  18. Cozby, P.C. 2007. Methods in behavioral research. London: McGraw-Hill.

    Google Scholar 

  19. Dandapani, K., Lawrence, E. R. and J. Rodriguez. 2018. Determinants of transactional internet banking. Journal of Financial Services Research 54(2): 243–267

    Article  Google Scholar 

  20. Danyali, A . A. 2018. Factors influencing customers’ change of behaviors from online banking to mobile banking in Tejarat Bank, Iran. Journal of Organizational Change Management 31(6): 1226–1233.

    Article  Google Scholar 

  21. Daymon, C., and I. Holloway. 2011. Qualitative research methods in public relations and marketing communications, 2nd ed. London: Routledge.

    Google Scholar 

  22. Deb, M., and A. Agrawal. 2017. Factors impacting the adoption of m-banking: Understanding brand India’s potential for financial inclusion. Journal of Asia Business Studies 11(1): 22–40.

    Article  Google Scholar 

  23. Deventer, M., N. Klerk, and A. Bevan-Dye. 2017. Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students. Banks and Bank Systems 12(2): 78–90.

    Article  Google Scholar 

  24. Easterby-Smith, M., R. Thorpe, and P.R. Jackson. 2008. Management research”, 3rd edn. London: Sage. In Daymon, C. and Holloway. I. 2011. Qualitative research methods in public relations and marketing communication, Second Edition. Routledge.

  25. Farah, M., M. Hasni, and A. Abbas. 2018. Mobile-banking adoption: Empirical evidence from the banking sector in Pakistan. International Journal of Bank Marketing 36(7): 1386–1413.

    Article  Google Scholar 

  26. Flick, U. 2002. An introduction to qualitative research. London: Sage.

    Google Scholar 

  27. Glavee-Geo, R., A.A. Shaikh, and H. Karjaluoto. 2017. Mobile banking services adoption in Pakistan: are there gender differences? International Journal of Bank Marketing 35(7): 1090–1114.

    Article  Google Scholar 

  28. Hajiyev, J., and C.-T. Chang. 2017. Gen Y members’ mobile banking adoption intention and actual use in Azerbaijan and Turkey: The technology acceptance model and social cognitive theory approach. Journal of Internet Banking and Commerce 22(7): 1–33.

    Google Scholar 

  29. Hanafizadeh, P., M. Behboudi, A. Khoshksaray, and M. Shirkhani Tabar. 2014. Mobile-banking adoption by Iranian bank clients. Telematics and Informatics 31(1): 62–78.

    Article  Google Scholar 

  30. Hassan, H.E., and V.R. Wood. 2020. Does country culture influence consumers’ perceptions toward mobile banking? A comparison between Egypt and the United States. Telematics and Informatics 46: 101312.

    Article  Google Scholar 

  31. Hsiao, C.H., J.J. Chang, and K.Y. Tang. 2016. Exploring the influential factors in continuance usage of mobile social apps: Satisfaction, habit, and customer value perspectives. Telematics and Informatics 33(2): 342–355.

    Article  Google Scholar 

  32. Hung, K., F. Gu, and C. Yim. 2007. A social institutional approach to identifying generation cohorts in China with a comparison with American consumers. Journal of International Business Studies 38(5): 836–853.

    Article  Google Scholar 

  33. Komulainen, H., and H. Makkonen. 2018. Customer experience in omni-channel banking services. Journal of Financial Services Marketing 23(3–4): 190–199.

    Article  Google Scholar 

  34. Komulainen, H., S. Saraniemi, and P. Ulkuniemi. 2019. Engaging non-active consumers to use mobile financial services—A developed country perspective. In Marketing and mobile financial services—A global perspective on digital banking consumer behavior, ed. A. Shaikh and H. Karjaluoto. London: Routledge.

    Google Scholar 

  35. Kamrava, M. 2001. The civil society discourse in Iran. British Journal of Middle Eastern Studies 28(2): 165–185.

    Article  Google Scholar 

  36. Kashif, M., and M. Abdur Rehman. 2014. Expected service quality of utility stores in Pakistan. International Journal of Quality and Service Sciences 6(4): 309–325.

    Article  Google Scholar 

  37. Kim, S.C., D. Yoon, and E.K. Han. 2016. Antecedents of mobile app usage among smartphone users. Journal of Marketing Communications 22(6): 653–670.

    Article  Google Scholar 

  38. Kleijnen, M., M. Wetzelsm, and K.D. Ruyter. 2004. Consumer acceptance of wireless finance. Journal of Financial Services Marketing 8(3): 206–217.

    Article  Google Scholar 

  39. Koksal, M.H. 2016. The intentions of Lebanese consumers to adopt mobile banking. International Journal of Bank Marketing 34(3): 327–346.

    Article  Google Scholar 

  40. Kumar, A., and H. Lim. 2008. Age differences in mobile service perceptions: Comparison of Generation Y and Baby Boomers. Journal of Services Marketing 22(7): 568–577.

    Article  Google Scholar 

  41. LaSalle, D., and T.A. Britton. 2003. Priceless: Turning ordinary products into extraordinary experiences. Boston, MA: Harvard Business School Press.

    Google Scholar 

  42. Laukkanen, T., and V. Kiviniemi. 2010. The role of information in mobile banking resistance. International Journal of Bank Marketing 28(5): 372–388.

    Article  Google Scholar 

  43. Laukkanen, T. 2007. Internet vs mobile banking: Comparing customer value perceptions. Business Process Management Journal 13(6): 788–797.

    Article  Google Scholar 

  44. Lee, Y., J. Park, N. Chung, and A. Blakeney. 2011. A unified perspective on the factors influencing usage intention toward mobile financial services. Journal of Business Research 65(11): 1590–1599.

    Article  Google Scholar 

  45. Lewis, N.K., A. Palmer, and A. Moll. 2010. Predicting young consumers’ take up of mobile banking services. International Journal of Bank Marketing 28(5): 410–432.

    Article  Google Scholar 

  46. Lissitsa, S. and O. Kol. 2019. Four generational cohorts and hedonic m-shopping: association between personality traits and purchase intention. Electronic Commerce Research 19(3): 1–26

    Google Scholar 

  47. Luo, X., H. Li, J. Zhang, and J.P. Shim. 2010. Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services. Decision Support Systems 49(2): 222–234.

    Article  Google Scholar 

  48. Luarn, P., and H.-H. Lin. 2005. Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior 21(6): 873–891.

    Article  Google Scholar 

  49. Martin, J., G. Mortimer, and L. Andrews. 2015. Re-examining online customer experience to include purchase frequency and perceived risk. Journal of Retailing and Consumer Services 25(7): 81–95.

    Article  Google Scholar 

  50. McLean, G., K. Al-Nabhani, and A. Wilson. 2018. Developing a mobile application customer experience model (MACE)—Implications for retailers. Journal of Business Research 85(April): 325–336.

    Article  Google Scholar 

  51. Mclean, G., and A. Wilson. 2016. Evolving the online customer experience … is there a role for online customer support? Computers in Human Behavior 60(July): 602–610.

    Article  Google Scholar 

  52. Meyer, C., and A. Schwager. 2007. Understanding customer experience. Harvard Business Review 85(2): 116–126.

    Google Scholar 

  53. Mohammadi, H. 2015. A study of mobile banking usage in Iran. International Journal of Bank Marketing 33(6): 733–759.

    Article  Google Scholar 

  54. Morris, M.G., and V. Venkatesh. 2000. Age differences in technology adoption decisions: Implications for a changing workforce. Personnel Psychology 53(2): 375–403.

    Article  Google Scholar 

  55. Moser, F. 2015. Mobile banking. International Journal of Bank Marketing 33(2): 162–177.

    Article  Google Scholar 

  56. Moutinho, L., and A. Smith. 2000. Modelling bank customer satisfaction through mediation of attitudes towards human and automated banking. International Journal of Bank Marketing 18(3): 124–134.

    Article  Google Scholar 

  57. Ono, A., A. Nakamura, A. Okuno, and M. Sumikawa. 2012. Consumer motivations in browsing online stores mobile devices. International Journal of Electronic Commerce 16(4): 153–178.

    Article  Google Scholar 

  58. Polit, D.F., and C.T. Beck. 2010. Generalization in quantitative and qualitative research: Myths and strategies. International Journal of Nursing Studies 47: 1451–1458.

    Article  Google Scholar 

  59. Recker, J. 2013. “Scientific research in information systems”, A beginner’s GUIDE. Berlin: Springer.

    Google Scholar 

  60. Reisenwitz, T.H., and R. Iyer. 2009. Differences in Generation X and Generation Y: Implications for the organization and marketers. The Marketing Management Journal 19(2): 91–103.

    Google Scholar 

  61. Roig, J.C.F., J.S. Garcia, M.A.M. Tena, and J.L. Monzonis. 2006. Customer perceived value in banking services. International Journal of Bank Marketing 24(5): 266–283.

    Article  Google Scholar 

  62. Sadeghi, T., and K. Heidarzadeh Hanzaee. 2010. Customer satisfaction factors (CSFs) with online banking services in an Islamic country: IR Iran. Journal of Islamic Marketing 1(3): 249–267.

    Article  Google Scholar 

  63. Sampaio, C.H., W.J. Ladeira, and F.D.O. Santini. 2017. Apps for mobile banking and customer satisfaction: A cross-cultural study. International Journal of Bank Marketing 35(7): 1133–1153.

    Article  Google Scholar 

  64. Sangle, P.S., and P. Awasthi. 2011. Consumer’s expectations from mobile CRM services: A banking context. Business Process Management Journal 17(6): 898–918.

    Article  Google Scholar 

  65. Shaikh, A.A., and H. Karjaluoto. 2015. Mobile banking adoption: A literature review. Telematics and Informatics 32(1): 129–142.

    Article  Google Scholar 

  66. Shannak, R.O. 2013. Key issues in e-banking strengths and weaknesses: The case of two Jordanian banks. European Scientific Journal 9(7): 239–263.

    Google Scholar 

  67. Shareef, M.A., A. Baabdullah, S. Dutta, V. Kumar, and Y.K. Dwivedi. 2018. Consumer adoption of mobile banking services: An empirical examination of factors according to adoption stages. Journal of Retailing and Consumer Services 43: 54–67.

    Article  Google Scholar 

  68. Singh, S., and R.K. Srivastava. 2018. Predicting the intention to use mobile banking in India. International Journal of Bank Marketing 36(2): 357–378.

    Article  Google Scholar 

  69. Sitbon, E. 2015. Addressing competition bottlenecks in digital financial ecosystems. Journal of Payments Strategy & Systems 9(3): 351–365.

    Google Scholar 

  70. Strauss, W., and N. Howe. 1991. Generations: The history of American’s future, 1584–2069. New York, NY: Quill.

    Google Scholar 

  71. Suoranta, M. 2003. “Adoption of mobile banking in Finland”, Jyväskylä Studies in Business and Economics 28. Finland: Jyväskylä.

    Google Scholar 

  72. Tan, E., and J. Leby Lau. 2016. Behavioural intention to adopt mobile banking among the millennial generation. Young Consumers 17(1): 18–31.

    Article  Google Scholar 

  73. Yang, K. 2005. Exploring factors affecting the adoption of mobile commerce in Singapore. Telematics and Informatics 22(3): 257–277.

    Article  Google Scholar 

  74. Yang, J., L. Cheng, and X. Luo. 2009. A comparative study on e-banking services between China and USA. International Journal of Electronic Finance 3(3): 235–252.

    Article  Google Scholar 

  75. Yu, T.K., and K. Fang. 2009. Measuring the post-adoption customer perception of mobile banking services. Cyber Psychology and Behavior 12(1): 33–35.

    Article  Google Scholar 

  76. Pourebrahimi, N., Kordnaeij, A., Hosseini, H. K., and Azar, A. 2018. Developing A Digital Banking Framework in the Iranian Banks: Prerequisites and Facilitators. International Journal of E-Business Research, 14(4): 65–77

    Article  Google Scholar 

  77. Choudrie, J., Zamani, E., and Al-Bulushi, A. 2017. Are online social networks, leading to a ‘better world in the Omani public sector? A qualitative study. In International Conference on Social Implications of Computers in Developing Countries (pp. 669–680). Springer, Cham

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Mohsin Abdur Rehman.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Shams, G., Rehman, M.A., Samad, S. et al. Exploring customer’s mobile banking experiences and expectations among generations X, Y and Z. J Financ Serv Mark 25, 1–13 (2020). https://doi.org/10.1057/s41264-020-00071-z

Download citation

Keywords

  • Mobile banking
  • Customer experiences
  • Customer expectations
  • Generational theory