Comparative study between online banking facilities offered by Islamic and conventional financial institutions in Sri Lanka

Abstract

The new type of service provided by the banks with the help of internet technology is called “Online Banking”. Online Banking can be characterized as a financial transaction over the internet through a bank’s website. Online banking became an essential service of financial Institution of this digital era since people all over the world are involved in e-commerce e-business and the like. The purpose of this study is to compare the digital banking services offered by Islamic and Conventional Financial Institutions in Sri Lanka. This study was done by choosing two Institutions from each Islamic and conventional financial institution. The qualitative method was employed in this research where both primary and secondary data were utilized. Officers who are representing Islamic and Conventional financial institutions in Sri Lanka was selected and obtained primary data from semi-structuredd interviews. Secondary data were collected from banks' websites, annual reports, research papers, and internet articles. This study found that both conventional and Islamic financial institutions have digital banking services. Both financial institutions have primary online services in order to convene the customers on their essential banking services. However, conventional financial institutions have a variety of services that Islamic financial intuitions are offered. Further, the study has found some practical challenges on current online banking facilities.