Factors influencing on customer usage of online banking: from the perspective of technology acceptance and theory of reasoned action models

Abstract

This study aims to examine the factors influencing the customer usage of online banking of commercial banks in Batticaloa district. As per deduction approach, Technology Acceptance Model (TAM) and Theory of Reasoned Action (TRA) was used to carry out the study. Self-administered questionnaires were distributed among 180 online banking users to collect information. A quota sampling technique was performed in order to collect the data. The demographic variables were measured using descriptive statistics. Correlation and multiple regression analysis were applied to recognize the influencing factors on online banking. Results revealed that there was a strong positive correlation between usage of online banking and independent variables viz Usefulness, Ease of Use, Security, Compatibility and Information Quality. The findings of simple linear regression showed that the significant impact between online banking usage and independent variables such as Usefulness, Ease of use, Security, Compatibility and Information Quality. Multiple Regression Analysis revealed that the overall model applied is significantly good enough in predicting the usage of online banking. Further, results depicted out of five variables, Usefulness, Ease of use, Compatibility, and Information quality, were highly significant with the usage of online banking. However, security is not contributing much to the model. The model exhibited an adjusted R square value of 0.89, which shows around 89% of the variation of the dependent variable of online banking usage is explained by independent variables. The results concluded that the Usefulness was the best predictor of online banking usage of commercial banks in Batticaloa district, followed by Ease of use, Information Quality, and Compatibility. Findings help bank managers and system analysts, and customers for making better decisions.