IT Driven Banking Services in Sri Lanka: Customer Acceptance and Service Quality

Abstract

This research investigates the factors associated with the customer acceptance of information technology driven banking services (ITDBS) in Sri Lanka. Structured and unstructured interviews with over 180 customers and 23 bank managers and a questionnaire survey were employed as primary data collection methods in this study. The results indicate that although ATM services are extensively used, the usage of other IT driven services such as online banking, mobile banking, internet payment gateway and telephone banking is almost insignificant. Although this study was initially conceptualized with the view to developing a model that explains the customer adoption of ITDBS, the aim of research was later altered to examine the factors behind non-acceptance of these services (apart from the ATMs). Accordingly a comprehensive model that identifies the factors behind the customer reluctance to use ITDBS in Sri Lanka is developed. This customer reluctance model demonstrates that there are number of significant factors for Sri Lankan customers to refrain from using such ITDBS. Some of them can be attributed to customer behaviour ad perception, on one side, and to the banks as the service provider, on the other. However, the service providers have the ultimate responsibility to get the support of customers to adopt a service that they initiate. This model may be an eye opener for banking professionals who design, develop and market new IT driven banking services. Researchers can use the model to further investigate and understand issues related to adoption of these very important IT applications in Sri Lanka