Factors contributing to the adoption of mobile banking in Sri Lanka: special reference to Sampath Bank in Ampara district

Abstract

The banking system in recent decades is moving fast towards capitalizing on new technologies and offering better customer services. Banks are moving out of the traditional brick-and-mortal operating style, extending their reach to the customers by M-commerce. This transition increases efficiency of banks financial transactions, removing geographical and time limitations. Despite the latest developments in information and communication technology, the demand for Internet banking in Sri Lanka is limited. This research study examines the factors that affect Mobile banking adoption in Sri Lankan context and the relationship between these factors. 275 self-administrative questionnaires were distributed among the respondents of Sampath banks in Ampara district and 189 have been identified as Mobile banking users. Descriptive analysis, Correlation analysis and Regression analysis have been used to analyze,how Perceive Usefulness (PU), Perceived Easy to Use (PEU), Cost (CT), Trust (TR) and Perceive Risk (PR) are influencing in Mobile Banking adoption. The study revealed that the key determinants are having positive and significant influencein the adoption of Mobile Banking. The R squared value of the model was 0.631. It illustrates that the dependent variable is described by 63% through independent variables. The findings of this study would assist to the stakeholders with a better understanding of customer perceptions of Mobile banking services. Furthermore, the findings of this study would help them in marketing new strategies in promoting the Mobile banking services in the area of study.