Abstract:
Technology affects the life of every individual at present age. Internet banking
has also become one of the technologies which is getting recognition around
the world. Internet banking plays a major role in banking sector. There are a
lot of customers around the world who are adopting this technology very
quickly but in developing countries like Sri Lanka the adoption ratio is very
low. Another strategic challenge faced by the banks today is the growing and
changing needs and anticipations of consumers with increased education
levels and growing wealth. The current study examines the factors influencing
the adoption of internet banking services in Sri Lanka. Primary data was
collected from 202 respondents through a structured questionnaire. Regression
analyses and descriptive statistic technique were used to study the relationship.
The adoption/ non-adoption decision is highly influenced by factors namely
Usefulness, Ease of use, Security and privacy, Trust. It was also revealed that
age, gender and occupation are significantly related with internet banking
adoption. Finally, this paper recommends that understanding the factors
influencing the adoption of internet banking is very significant to the
commercial banks and Bank managers can make use of this information to
advance appropriate strategies to attract new customers to use Internet banking
in future.
