Abstract:
Technological revolution enables organizations to rethink their strategies
in delivering their products, services to customers, and business as a whole. Internet
plays very vital role in all aspects of business and personal life. Businesses increasingly
adopt internet related technologies to their business operations. Banks are no exception
to this phenomenon. Online Banking is an emerging technology that permits conduct of
banking transactions through the Internet. By providing these services, banks can get
notable cost savings, reduce their branch networks, and downsize the number of their
service staff. However, banks are interested in knowing what factors influence
customers in adopting Online banking facilities since the adoption rate varies to country
to country and the different factors have influence in different countries towards using
online banking.
The purpose of this research is to identify the factors that influence bank
customers in the adoption of Online banking services in Sri Lanka. The hypotheses
were developed from the literature review to study the adoption of Online banking in
the context of Sri Lanka. Technology Acceptance Model (TAM) is the primary basis for
the study since this model was used in the earlier studies for the same purpose and other
context. The survey was done by using a pre developed and tested questionnaire for the
same purpose. The sample consisted of ISO bank customers from five banks in the
Colombo Metropolitan area. The data were subject to statistical analysis with the help
of SPSS 13.0 version. Factor analysis, regression analysis, and correlation analysis were
done. The results revealed that the factor 'Awareness of Online Banking* was the most
influencing factor among the other factor such as 'Perceived Usefulness1, 'Perceived
Ease of Use*, and 'Security and Privacy*. The research model was significant (0.611).
Further, the results revealed that Age and Income of background variables have positive
relationship with the adoption of online banking. Eventually, one hypothesis was
accepted among the four.
