Users’ Perceptions on the Effectiveness of e-banking: A reference to the State Banks in Batticaloa, Sri Lanka

Abstract

. The electronic banking system has become more prevalent in all commercial banks in Sri Lanka. The primary goal of the introduction of e-banking is to reduce costs, increase efficiency and profitability and fulfil the banking needs of customers who want ubiquitous banking services. The research was undertaken to study the perceptions of the customers of state banks about the factors influencing the effective use of e-bank. The analysis of primary data collected through a questionnaire survey from e-banking customers showed that e-banking was mostly used to check account details, pay utility bills and transfer funds. Although the six factors such as accessibility, convenience, reliability, security, design and charges were found to have a significant impact on the effective use of e-banking, the e-banking users perceived three factors, such as security, accessibility and reliability, as vital to their effective use of e-banking. This study is beneficial to bankers in understanding customers ' perception of e-banking effectiveness since the research predicted factors that have a greater impact on the use of e-banking facilities.