Abstract for: Revenue Structure of Mobile Banking

Technology advancements during recent years have created new opportunities for offering new banking services which might have great impacts on decreasing banks’ costs and increasing their non-interest income earned from the fees of banking services. But, banks have always been wondering if these new services would be adopted or accepted by the customers? Public adoption of a new technology often takes years and depends on its success in the development and continuous use by people. This research intends to employ a system approach to analyzing the dynamics of developing new banking services focusing specifically on mobile banking. Here, a model is developed and simulated by System Dynamics approach considering related theories extracted from the research literature, identified factors, and influencing feedback relations for better understanding the existent mechanisms. The simulation results of four scenarios are presented. Results showed that increasing advertisement and R&D budget would not be useful enough for the sustainable growth of mobile banking transactions and their revenue in long term. In fact, improving the set of factors influencing the customers’ intention of using the technology can most likely make people accept the technology and increase its use and the revenue earned from banking fees and other charges.