Factors Affecting on Adoption of E- Banking Services in Sri Lanka with Special Reference to the Commercial Banking Sector

Abstract

This study examines the influence of perceived behavioral control, subjective norms, perceived usefulness, and perceived ease of use on the adoption of e-banking in the Sri Lankan commercial banking industry. The sample comprised individuals who use commercial banks' e-banking services. Initially, 500 questionnaires were distributed, with 385 appropriately completed responses utilized for the final data analysis. The investigation employed a theoretical framework based on the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB) to explore the factors influencing the adoption of e-banking services and their effects. Hypotheses were tested using correlation analysis, multiple regression analysis employing a hierarchical approach, and diagnostic tests for outliers, residuals, and influential cases. Additional statistical tests, including trend analysis and contrast tests of ANOVA, were conducted to analyze demographic characteristics, particularly focusing on respondents' income levels. The study validated four primary hypotheses, demonstrating significant correlations between e-banking adoption and perceived usefulness, subjective norms, perceived behavioral control, and perceived ease of use. It was also found that variations exist in e-banking adoption concerning several demographic factors. Limitations of the study include time constraints and a restricted sample selection. However, the novelty of the research lies in the extension of TAM and TPB within the context of the current research setting.