Abstract:
This study aims to examine the factors influencing the customer usage of online
banking of commercial banks in Batticaloa district. As per deduction approach,
Technology Acceptance Model (TAM) and Theory of Reasoned Action (TRA)
was used to carry out the study. Self-administered questionnaires were distributed
among 180 online banking users to collect information. A quota sampling
technique was performed in order to collect the data. The demographic variables
were measured using descriptive statistics. Correlation and multiple regression
analysis were applied to recognize the influencing factors on online banking.
Results revealed that there was a strong positive correlation between usage of
online banking and independent variables viz Usefulness, Ease of Use, Security,
Compatibility and Information Quality. The findings of simple linear regression
showed that the significant impact between online banking usage and independent
variables such as Usefulness, Ease of use, Security, Compatibility and
Information Quality. Multiple Regression Analysis revealed that the overall
model applied is significantly good enough in predicting the usage of online
banking. Further, results depicted out of five variables, Usefulness, Ease of use,
Compatibility, and Information quality, were highly significant with the usage of
online banking. However, security is not contributing much to the model. The
model exhibited an adjusted R square value of 0.89, which shows around 89% of
the variation of the dependent variable of online banking usage is explained by
independent variables. The results concluded that the Usefulness was the best
predictor of online banking usage of commercial banks in Batticaloa district,
followed by Ease of use, Information Quality, and Compatibility. Findings help
bank managers and system analysts, and customers for making better decisions.
