Relationship between Perceived Security of E-Services and Adoption of E-Banking in the Context of Private Commercial Banks in Sri Lanka

Abstract

Sturdy macroeconomic performance is vital for an economic growth and development alongside challenging technology advancements. Within the service sector of the economy, one of the broadly studied areas of technological transformation is the retail financial services which includes consumer banking activities. Electronic banking enables customers to experience in a vast array of financial services through e-banking websites. Nevertheless, in practice; this phenomenon varies depending on the particular context. Hence, this research addresses the relationship of adoption dimensions and perceived security of e-services towards adoption of consumer e-banking in the specified context. Sample was drawn from the students of the Kelaniya University those who are participating for the week-end study programs. The students of the Doctor of Business Administration attached to the university were selected as enumerators for data collection. Data collected through self-administered questionnaires from the respondents. Initially 225 questionnaires were distributed and 155 duly completed questionnaires were considered for the final analysis. Herein relational study, TAM has been extended using the perceived security of e-services and dimensions of the variables were measured by five-point Likert scale. Reliability analysis was conducted to measure internal consistencies using Cronbach’s alpha. In order to test the hypotheses correlation analysis followed by multiple regression analysis using hierarchical method along with diagnosis tests for outliers, residuals, influential cases performed whilst supplementary statistical tests were also used for further analysis. The empirical evidence supported two hypotheses indicating the positive relationships of perceived security of e-services characteristics and adoption dimensions towards adoption of e-banking. Furthermore, it was revealed that there are differences between demographic variables. In conclusion, researcher has presented several suggestions for e-banking facilitators towards developing marketing strategies in considering perceived adoption dimensions as a strategic tool.