Adoption of mobile banking in rural China: Impact of information dissemination channel

There is a significant divide in financial accessibility between urban and rural areas in China. This gap can in part be mitigated by diffusion of existing technology innovations including mobile banking. A binary probit model was used to estimate the impact of three information dissemination channels and the availability of financial services on the adoption of mobile banking by rural residents in six provinces of China. Results indicate mass and interpersonal communication channels have a greater impact than those organizational. Residents with a local banking facility and those using a state-owned bank, females, and those younger and more educated, proficient with mobile devices, working other than in agriculture, and living farther from the nearest road have a higher probability of adoption. Adoption is inversely related to level of regional financial development. To develop mobile banking in rural areas, this paper suggests making use of more diversified communication channels to promote mobile banking, better tailoring mobile banking for rural users, and targeting promotion. Policy should be considered that helps mitigate constraints on the availability of financial infrastructure and financial products in the rural financial environment.