Abstract:
Banking industry in Sri Lanka plays a vigorous role in managing financials assets of the
country. This conventional type of banking consumed a considerable amount of time of the
customers as well as the bank. The cost involved in conventional banking is much higher than
the digital banking. Internet banking is now catching the banking industry at a rapid phase by
eliminating and transforming the conventional banking activities to a web based online
system. The increased of competitive gravities and the speed of the technology changers are
leading to a speedy growth of internet banking. As to face the competitiveness of the bank, it
introduced customer’s internet banking service. However, adoption of internet banking shows
a low user rate. The objective of the study was to identify key factors that effecting customer
adoption of internet banking and the relationship between each of the factors. Through
literature review five factors identified they are customer perception and conduct, technology
readiness marketing and promotions, service quality and risk. Due to several limitations
research was conducted among the internal and external customers users and nonusers of the
internet banking. To cover the entire country Colombo region, North region, Greater
Colombo, Central Colombo, Southern regions were selected. 100 questionaire was posted and
60 complete response were gathered from the above region. The method used for the study is
the quantitative method questionnaire survey was posted. The finding done through a
structured questionnaire and results were analyzed through SPSS software. The results shows
that customer perception and technology readiness were not significant and it had a weak
relationship with internet banking marketing promotions, service quality have moderate
positive relationship with internet banking and risk had moderate negative relationship. Banks
should make more attention to improve customer perception and conduct and technology
readiness to have a relationship with internet banking, awareness programmers should be
introduced for customer about the benefits of internet banking, bank should implement proper
customer inquiries promptly, security plays a major role in internet banking and dual password
should be introduced. The study further revels when the risk is low adoption of internet
banking is high because it had a negative relationship.
