Sri Lankan customers’ behavioural intention to use mobile banking: a structural equation modelling approach

Abstract

The purpose of this paper is to propose and empirically test a model that delineates the factors that influence banking customers’ behavioural intention to use mobile banking (m-banking) services in Sri Lanka. Factors namely Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) were based on popular Technology Acceptance Model (TAM) and Perceived Compatibility (PC) and Perceived Trust (PT) were adopted from literature since they appeared to be more contextual. Quantitative study based on questionnaire survey was adopted. Out of the 800 structured questionnaires administered using convenient sampling, 703 were returned and 695 were considered complete. Structural Equation Modelling was conducted to see the insights of the data collected from banking customers in Sri Lanka. The data collected excellently fitted the model proposed and the structural model confirmed that PU, PEOU, PC and PT, while PT being the strongest, significantly influence Sri Lankan banking customers’ behavioural intention to use m-banking services. While TAM factors are known to influence behavioural intention to use any technology, in Sri Lankan context, PT and PC have been empirically proved to influence customers’ intention to use m-banking services. Actual adoption behaviour and more factors including demographic controlling determinants could have been added to see more comprehensive insights. Although a plethora of works have already done to see intention to use and actual adoption of m-banking services, less is known in the case of Sri Lanka specifically attending to see Compatibility and Trust factors’ influence on such intention. Hence, this study has attempted to bridge this gap incorporating these factors together with TAM factors and by empirically studying in Sri Lankan banking customers’ context.