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Institutional Trust and Affordability on Mobile Banking Adoption in Ghana: A System Dynamic Approach

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  • Laud Ammah
  • Alexander Kriebitz
  • Luetge Christoph

Abstract

Trust between mobile applications and humans is critical for a successful adoption in our society. This study aims to investigate mobile-banking (m-banking) adoption from an institutional trust (ICT performance and Fraud) and affordable mobile broad band point of view and their impact on m-banking adoption in Ghana. In this paper, we extended the Bass diffusion model using system dynamic approach and incorporated fraud, ICT performance and affordability of m-banking services and their effects on m-banking adoption in Ghana. The model is built using system dynamic methodologies (stock and flows), validated to confirm a real-life m-banking adoption behaviour, and simulated to analyse m-banking adoption response under different scenarios. The result shows that improving ICT infrastructure development, preventing cybercrime and reducing the cost of mobile data have a positive impact on m-banking adoption. However, affordability is the primary determinant of m-banking adoption in Ghana, although it can also be enhanced through tax incentives and policy schemes related to mobile communication technologies. The model currently relies on monetary aspects of ICT infrastructure, cybercrime, and broadband data pricing. However, to enhance the model’s reliability, it could be beneficial to expand its scope to include non-monetary factors and other relevant economic variables.

Suggested Citation

  • Laud Ammah & Alexander Kriebitz & Luetge Christoph, 2025. "Institutional Trust and Affordability on Mobile Banking Adoption in Ghana: A System Dynamic Approach," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 15(1), pages 1-1, June.
    • Handle: RePEc:ibn:jmsjnl:v:15:y:2025:i:1:p:1
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    References listed on IDEAS

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    1. Rakesh Kumar & Rubee Singh & Kishore Kumar & Shahbaz Khan & Vincenzo Corvello, 2023. "How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    2. Eric Osei-Assibey, 2015. "What drives behavioral intention of mobile money adoption? The case of ancient susu saving operations in Ghana," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(11), pages 962-979, November.
    3. Eusebio Scornavacca & Hartmut Hoehle, 2007. "Mobile banking in Germany: a strategic perspective," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 1(3), pages 304-320.
    4. Eric Osei-Assibey, 2015. "What drives behavioral intention of mobile money adoption? The case of ancient susu saving operations in Ghana," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(11), pages 962-979, November.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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