Digital Banking Adaptation of Customers

Abstract

Introduction - This research study is carried out to determine the factors affecting Digital Banking adaptation towards the customers in the Sri Lankan context and in order to examine the gap of the expectation of the banks’ accepted level of digital banking adaptation and the actual digital banking adaptation. Design/Methodology/Approach - This study has developed a conceptual framework based on the Technology Acceptance Model (TAM) which illustrates the relationship between selected factors affecting Digital Banking adaptation of customers. Perceived usefulness, perceived ease of use, perceived security were the independent variables whilst the Digital Banking Adaptation was the dependent variable. 196 digital banking users are used to collect data through a structured questionnaire. A multiple regression analysis was used to analyse the collected data. Findings - The study found a positive relationship of Perceived Usefulness, Perceived Ease of Use and Perceived Security towards Digital Banking Adaptation. Females more tend to use digital banking platforms than men. Level of education and digital banking usage has a positive relationship whilst profession and monthly income does not state a clear relationship. Digital banking was more popular in younger generation than the older. Conclusion - The final result emphasizes even though the digital banking is popular among the younger generation and mostly in female party still there is a vacuum in banking industry in using digital products due to various reasons. As the further research areas, the reasons for less adaptation for digital banking products could be suggested.