Abstract:
The main objective of this paper is to identify why bank customers are
reluctant to use Internet Banking (IB) and to identify factors that
contribute for non-usage of IB in Manmunai North (MN) Divisional
Secretarial (D.S) of Batticaloa even though bank customers have
Internet access and basic Information and Communication Technology
(ICT) knowledge. In order to achieve these objectives of this study, data
were collected from 150 bank customers who are not using IB through
questionnaire. Interview was also conducted among eighteen bank
customers and four bank officers in the study area. Findings for the first
objective showed that high cost, security problem, less awareness, less
knowledge, no needs, lack of IB related technical knowledge and having
possibility to do banking transactions through others at bank branches
are the main reasons for non-usage of IB. The factor analysis results for
the second objective revealed that bank customer's perception towards
IB (negative perception), position of branch banking (BB) in the
customer's mind (strong position of BB), technical and transactional
difficulties, banks interest towards IB (less interest toward IB), cost
(customer view IB as a costly one), customer's knowledge of IB (less
technical and operational knowledge towards IB), substitute for IB
(more substitute for IB), nuisance (some form of inconvenience), and
banking through others (as a strong practices among customers) are
major factors which are contributing to non usage of IB in MN D.S of
Batticaloa.
