Short Messaging Services (SMS) and banking

Abstract

As a direct marketing tool, electronic Short Message Services (SMS) is likely to surpass internet-based advertising before the end of 2006. Younger consumers higher in social class are the most willing to accept SMS direct advertising text and respond favourably to SMS-TV integrated marketing communications (Trappey III & Woodside, 2005). On the same note, online banking is starting to gain its momentum via the internet. Nonetheless, effort has been made to ensure online banking flexibility walks hand in hand with the convenience factor, therefore introducing banking via mobile phone (with GPRS interface). Understanding how companies should interact with their customers and deliver services in electronic environments is of decisive importance (Parasuraman and Zinkhan 2002). Nevertheless, despite these advantages, the consumer uses mobile devices mainly for simple services, such as voice services and text messaging. Based on this factor, it is important to understand the driving forces of consumers’ intentions to use mobile services and to adapt the services to fulfil consumers’ motives for using them (Nysveen, Pedersen, & Thorbjornsen. 2005). Objective of the study The general purpose of this study is to explore Short Messaging Service (SMS) potential as a vehicle of banking services by understanding consumers’ attitude, motivation and behavior towards wireless application channel. Significance of the study The contributions of the study may include: a. For the service providers or network companies, the study will be able to contribute additional information regarding consumer preference toward SMS messages on mobile banking; and b. For the marketers, especially those involved in the banking industry, this research will help understand the approach of wireless application technology.