Customer perception on usage of internet banking in Batticaloa district.

Abstract

The Internet is the most important distribution channels for financial service sector in this current era. Financial institutions are finding ways to utilize internet technologies to launch internet banking services, an important issue is to understand what factors will impact the decisions of customers in adopting the service. However, there is still a need to more fully understand to customer use of banking via the Internet. Therefore the aim of the study is investigating the perceptions of customers on the usage of internet banking systems in Batticaloa district. Primary data was collected using a self - structured questionnaire from commercial bank customers. A total of 100 questionnaires were randomly administered to customers from various employment background and bankers. Study revealed that there is high level of perception experienced by the customers to adapt the Internet banking from anywhere at any time. Especially in terms of usefulness, security and ease of use has exhibited higher level of perception and concern trust and privacy comparatively influence less than the other three variables of perception. Implications for banks are that they need to put much effort not only into making a user-friendly internet bank, but also into explaining to their customers how the internet bank is useful to them.