ADOPTION OF INTERNET BANKING BY SRI LANKAN CUSTOMERS: AN EMPIRICAL INVESTIGATION

Abstract

With the recent advances, consumers have increasing access to innovative financial services such as automated teller machines (ATMs), smart cards and computer banking. Using these innovative services, consumers can conduct fast and convenient financial transactions and obtain account information without visiting banks. However, the vast majority of products and services, which are launched every year fail at considerable cost to those involved. In Sri Lanka also, the adoption rate of Internet banking is not adequate according to the bank sources. Thus, banks need to enhance their understanding of why some people adopt an innovation and others do not and the factors that may influence the adoption decision which is of considerable practical value. Thus, the objective of this paper is to investigate the factors affecting the adoption of Internet banking by Sri Lankan consumers. The findings revealed that the knowledge of IB among customers, benefits perceived and trust of the service provider are the key predictive factors of adoption of IB in Sri Lanka. Further, access to Internet, perceived compatibility, easy to use, trainability, and observability also have an impact on the decision of adoption of Internet banking. The study further discovered that non-adopters significantly differ on the said factors than the adopters. However, the desire for human interactions, reliability and security concerns of IB are not significant barriers according to the survey findings.

Keywords: Internet, Electronic, Banking, Technologies, Adoption

For full Paper: fmscresearch@sjp.ac.lk