THE EFFECT OF CUSTOMER-EXPERIENCE FEATURES AND DIGITAL-BANKING ADOPTION AMONG SRI LANKAN MILLENNIALS IN WESTERN PROVINCE, SRI LANKA

Abstract

The banking industry plays a vital role in a country's economic growth by fostering personal and organisational development. With the rise of digital technology in service delivery, digital adoption in banking has become an essential way to improve customer experience. Therefore, this study focuses on the banking industry in Sri Lanka to identify the effect of customer experience features and digital banking adoption among millennials. The study adopted positivism following a deductive research approach; a survey-based quantitative study was conducted, involving a sample of 384 participants from the millennial customer group who were selected from the western province following a stratified random sampling method to identify the relationship between the features of customer experience and adoption of digital banking applications. Multiple linear regression is employed for analysis. Based on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2/TAM) related literature, the self-administered questionnaire was developed using the 5-point Likert scale. The findings of User Interface/User Experience (UI/UX), Social Media integration is considered to have a highly significant positive relationship, while Mobile responsiveness depicted a significant positive while security features denoted a highly negative relationship. The personalisation and demographics were denoted as non-significant predictors. Further, it is recommended to adopt policy measures to enhance digital adoption, focus on user interface and design, community engagement and social media assistance, biometric authentication, two-factor authentication, and encryption technologies to increase customer experience in digital banking adoption.