Article Details
  • Published Online:
    February  2026
  • Product Name:
    The IUP Journal of Bank Management
  • Product Type:
    Article
  • Product Code:
    IJBM030226
  • DOI:
    10.71329/IUPJBM/2026.25.1.54-75
  • Author Name:
    Umakanth N, Sakinah S, Tham J and Ali K
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    54-75
Volume 25, Issue 1, January-March 2026
Mobile Banking in Developing Countries: A Critical Review of Adoption Models
Abstract

Mobile banking, also known as m-banking, is an increasingly popular concept that has changed the face of banking and finance, especially in developing countries like Sri Lanka. Though technological advancement and increased technological infrastructure can be seen in countries like Sri Lanka, it is not the same in terms of m-banking adoption, especially in comparison to low- and middle-income countries. The present study comprehensively examines the conceptual validity and applicability of the most popular technology adoption theories, i.e., Diffusion of Innovation Theory, Theory of Reasoned Action, Theory of Planned Behavior, Technology Acceptance Model, and Unified Theory of Acceptance and Use of Technology (UTAUT), in explaining m-banking adoption in developing countries. The study identifies some of the limitations of existing literature, i.e., the gap between theory and practice, low contextual specificity, and lack of integration of trust, resistance, and cultural variables. It advocates for a more integrated and contextualized approach to capture user interactions within emerging markets. Building on reviewed theories and recent empirical findings, a hybrid framework comprising psychological, technological, institutional and behavioral components concerning the adoption of m-banking is presented. This framework highlights the constructs of trust, perceived risk, habit, and digital literacy as mediating/moderating constructs in relation to intention and use behavi

Introduction

In recent years, the banking sector has experienced extensive changes driven by rapid technological advancements. Of these innovations, one of the most disruptive channels is mobile banking (m-banking), where users can manage their financial transactions through their smartphones and tablets (Fernando & Disanayaka, 2024).