Abstract:
Nexus between quality of smart phone online banking application
and customer retention is still obscure as per the previous finding, particularly
in Matale district. Objectives of the study have three folds, first, to identify the
extent of quality of the smartphone online banking application as well as
customer retention, second, to examine the impact of smartphone online
banking application on customer retention and third, to examine whether quality
of the smartphone online banking application varies among demographic
factors of customers in selected banks. The study was undertaken by collecting
the data from two hundred banking app users of selected banks in Matale via
structured questionnaire (Google Form). Univariate, bivariate analysis
(correlation and regression) and ANOVA and Independent Sample T test were
applied to analyze the data with SPSS. Results showed that, perceived
usefulness, perceived ease of use and perceived trust are very high level though
the perceived risk is very low level. Further, perceived usefulness, perceived
ease of use and perceived trust are positively and significantly associated with
customer retention while it has a negative insignificant relationship with
perceived risk. Finally, it is concluded that perceived usefulness, perceived ease
of use, perceived trust positively and significantly impacts on customer
retention, whereas perceived risk insignificant negative impacts on customer
retention. Moreover, perceived quality of the smartphone online banking
application varies among types of occupation of customers while perceived ease
of use is varied among educational level. Findings of the study would be helpful
to software designers and managers of banks to further enrich the applications
to retain the customers.
