Factors Effecting on Internet Banking Adoption: A Case Study
Keywords:
Adoption, Convenience, Factor Analysis, Internet Banking, Perceived Risk, Security PerceptionAbstract
Customer satisfaction is the key to market Internet Banking (IB) services and the banks in Sri Lanka by targeting the unique needs of customers to succeed in providing IB services. The purpose of this study is to determine the factors that influence the adoption of IB services for the benefits of the management. A theoretical model was first developed that conceptualizes the links between four types of different sections: demographic, convenience, risk and security and the adoption of IB.  Two stage purposive random sampling method was adopted to acquire information through a structered questionaire. The attributes related to demographic gender, age, educational level, and monthly income were significantly influential vaiaibles on IB. More than 75% strongly agreed that convenience, risk and security directly influence  on adoption of IB confirming our theorotical model is correct. The attributes related to convenience,  “bank administrationâ€Â and “easy banking†were found to be significant on the adoption of IB. The attributes related to risk, “reliability†and “confidential†were found to be significant on the adoption of IB. “Trust†and “instructions†were found as influential factors among the attributes in security. An understanding of the identified factors are more beneficial than attributes alone to improve the efficient of IB in the Commercial Bank of Ceylon PLC. Results are useful to the practitioners who plan and promote new forms of banking in the current competitive market. The statistical methodlogy applied in this study can be used to any other banks as well.
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