Impact of Social Media Content and Exposure on Consumer Perceptions, Trust, and Banking Decisions in Sri Lanka: A Systematic Literature Review on the Moderating Roles of Demographics and Digital Literacy

Abstract

The rapid proliferation of social media (SM) platforms has transformed how banks engage with customers, particularly in emerging markets like Sri Lanka. This systematic literature review, guided by PRISMA guidelines, synthesizes findings from 37 peer-reviewed studies to evaluate the impact of SM content and exposure on consumer perceptions, trust, and banking decisions in Sri Lanka, while exploring the moderating roles of demographics and digital literacy. Key findings reveal that SM marketing activities, customer feedback (e.g., eWOM), information quality, user engagement patterns, and perceived usefulness of SM significantly shape banking decisions by fostering brand trust, transparency, and financial literacy. Notably, demographic factors (age, gender) and digital literacy levels critically moderate these relationships, with younger, tech-savvy demographics showing higher SM-driven engagement. The study identifies gaps in understanding localized SM dynamics in Sri Lanka, emphasizing its unique cultural and digital divides. Practical insights suggest that financial institutions must adopt tailored SM strategies such as localized content, influencer collaborations, and digital literacy initiatives to enhance customer engagement and service adoption. Future research should explore AI-driven SM tools, longitudinal behavioral shifts, and regional variations to refine digital banking strategies in evolving markets.