The Effect of Financial Risk Tolerance on Adoption of Mobile Banking in India : A Study of Mobile Banking Users

The use of technology has changed the way people communicate and interact with each other within their social circle. This has created opportunities for financial services companies to meet customer expectations through various alternative channels. Mobile banking is one of the channels which offers various multiple services to the customers in order to bypass the traditional branch-based retail banking. However, sharing personal financial information and payment information through mobile banking proves an obvious risk to the consumer. The amount of financial risk associated with the individuals varies from person to person as per their tolerance level. The aim of the present paper is to assess the effect of different levels of Financial Risk Tolerance (FRT) on adoption of mobile banking in India. The paper identifies the FRT levels of mobile banking users of India and then studies the effect of different levels of FRT (high, moderate, low) of users on adoption of mobile banking services. The findings of the paper are of help to the financial marketers to develop and offer various realistic options to the adopters as per their FRT levels