A study on effectiveness of E-Banking in State Banks special reference to the Banks in Batticaloa District

Abstract

In the present world, nothing captures more attention of an audience than the technology innovation and fundamental deviation of marketing concepts. E-Banking means delivering of banking service, through the use of electronic channels like Computers, Mobiles, ATMs, Television, and other Electronic devices. The primary goal of any bank is to reduce costs, increase efficiency and profitability through the introduction of e-banking. The electronic banking system has become an important practice among commercial banks in Sri Lanka. State banks are the leading banks in customer base and the banking history in Sri Lanka. According to the present business environment and requirements day to day it concerns with its services to delight its customers. In addition to the traditional business services it never fails to add values of IT in its services in order to compete with private banks. Even in Sri Lanka, State banks as the e-banking service providers and customers as the beneficiaries, are still not making real use of e-banking adequately. It was in line with this that the study aims at examining the effectiveness of E-banking in Sri Lankan State banks. In order to examine the Effectiveness of E-Banking six dimensions were considered which are Tangibility/Feature availability/Design, Accessibility, Convenience, Assurance, Fees and charges/Cost saved, and Security & privacy. The questionnaire was issued to collect the primary data for this study from 300 respondents based on the purposive sampling method. Collected data were analyzed by using SPSS and outcome discussed in percentage, Univariate, Bivariate, and multivariate analysis. By using the framework the present level of e-banking effectiveness is assessed. This leads to the development of some necessary recommendations for improving and advancing the e-banking service in Sri Lankan State banks. Further, this study helps the banks to “understand how. the effectiveness cf e-banking helps towards its performance of the bank. The findings of this study are significant for the sustainable development of e-banking services in Sri Lankan state banks.