Factors Effect on the Customer Perspective towards the Usage of Online Banking in Sri Lanka

Abstract

The evolution of information technology has brought extensive changes in the means of service delivery in the banking sector as internet is the thrust behind online banking that conducts and process transactions in one click. Competition among rivals and compatible with the revolutionary components of the electronic marketplace, Sri Lankan banks have actively developed online banking services recently in Sri Lanka. The customers are not substantially perceive any increment in use of online banking respectively to the development of online banking services by the banks. Thereby the study is increasingly interested in finding the factors effect on the customer‘s attitudes towards the usage of online banking in Sri Lanka. The study consists of eight hypotheses that developed on the basis of attitudes of trust, usefulness and ease to use towards online banking. The target population of the study was consist of customers who have bank account for last year in Colombo district of Western Province, Sri Lanka. The study selected 250 customers by random sampling technique from Homagama divisional secretariat included to Colombo district. Questionnaires were used to collect data. Descriptive analysis, and chi-square analysis were used to analyze data. The results indicated that daily usage of online banking of females are higher than the male customers while majority of female and male are using their personal computers and smart phones to use online banking services respectively. All the customers are aware about the facilities such as balance inquiry, viewing transaction history, bill payments, and managing credit cards online while some customers are not aware about opening a fixed deposit, and opening savings accounts, and make investments by online. The study concludes that privacy, security and the responsiveness from the bank are the most significant factors towards usage of online banking while convenience and service quality included to the attitude of usefulness towards online banking as well as accessibility and speed included to the attitude of ease to use are also plays a significant role. However the impact of bank performance, image and user friendliness of the website is negligible.