Abstract:
This research tries to explain the factors that influence Islamic and conventional
bank customers' use of online internet banking services in Sri Lanka. This study
employs Rogers' Diffusion of Innovation, which includes awareness and
understanding, compatibility, relative advantage, complexity, uncertainty,
observability, and service quality to examine related hypotheses stated. The study
took a quantitative approach, with data collected from 321 clients of Islamic and
conventional banks in Sri Lanka using a self-administered questionnaire.
According to the data, bank clients' knowledge of several Islamic banking
principles were below average. This study contributes to the current information
about the adoption of internet Islamic banking. The researchers predicted that
awareness and understanding, complexity, relative advantage, uncertainty,
service quality and observability had a positive impact on the adoption of online
Islamic banking services, while compatibility had a negative impact on the
adoption of Islamic banking services, using Partial Least Square Modelling as the
data analysis method. In terms of application, particularly this paper gives Islamic
banks' management advice and strategies for encouraging their consumers to
adopt online internet banking.
