Predicting young consumers' take up of mobile banking services in Sri Lanka

Abstract

The internet has had a significant impact on financial institutions, allowing consumers to access many bank facilities 24 hours a day, while allowing banks to significantly cut their costs. Research has shown that online banking is the cheapest delivery channel for many banking services (Robinson, 2009; Sathye, 1999). A number of studies have identified advantages to bank customers, including cost and time savings as well as spatial independence benefits (Howcroft et al., 2002; Polatoglu and Ekin, 2001). Uptake of online banking has been particularly great among young people (Calisir and Gumussoy, 2008). Banking was at the forefront of the services sectors that sought to migrate customers from face-to-face transactions to computer-mediated transactions. With the development of m-commerce, similar expectations have been held out that much banking activity that is currently carried out online through fixed line internet terminals willmigrate to mobile devices. M-banking enables customers to access their bank accounts through mobile devices to check their balance or to conduct financial transactions. The range of services that can be undertaken while mobile is likely to increase, and mobile phones are likely to evolve as ubiquitous payment devices (Wilcox, 2009a). The object of this research topic investigating the barriers for adopting mobile banking services in Sri Lanka. The research problem is how predicting young consumers take up of mobile banking service. And also understanding of the primary concerns of a customer when they use mobile banking services and identify factors that can be used for making better mobile customer relationship management (mobile CRM) services in banking. The Technology Acceptance Model (TAM), and Innovation Diffusion Theory and to test a model that is better able to predict consumers' intention to use mobile banking.