Factors Affecting the Adoption of Digital Banking – Context of Sri Lankan Customers

Despite the banking industry’s attempts to provide digital banking services to users, many consumers remain unwilling to use digital banking services provided by banks. This research investigates the factors affecting Sri Lanka’s adoption of digital banking services. Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) were derived from the well-known Technology Acceptance Model (TAM), but Perceived Risk (PR) and Internet Experience (IE) were derived from the literature since they looked to be more contextual. A quantitative research based on an online questionnaire survey was employed, and 108 answers from banking clients were collected using the convenience sample method. Cronbach’s Alpha was used to examine the reliability of the survey questions, which revealed a good consistency. To get insight from the data acquired from Sri Lankan banking clients, descriptive analysis, correlation coefficient, and regression analysis were performed. The obtained data matched the suggested model very well, and correlation coefficient and regression analysis indicated that PU, PEOU, PR, and IE strongly affect Sri Lankan banking customers’ propensity to adopt digital banking services, with PU, PEOU, and IE being the most influential. While TAM elements are known to impact behavioral intention to use any technology, PR and IE have been statistically shown to influence consumers’ intention to utilize digital banking services in the Sri Lankan context. Actual adoption behavior and other elements, such as demographic regulating determinants, might have been incorporated to provide a deeper understanding. Although a multitude of research has been conducted on the intention to use and actual adoption of digital banking services, little is known about the effect of Risk and Internet Experience on such intention in Sri Lanka. Incorporating these aspects with TAM factors and doing empirical research in the context of Sri Lankan banking clients, this study aimed to overcome this gap.