Abstract:
Internet banking plays an important role in the banking sector and almost all the banks in Sri Lanka provide this service. But in Sri Lanka, the number of people using internet banking was still low. This study examines the elements impacting the customer adoption of internet banking in Sammanthurai. Objectives of this research are to identify the elements influencing the adoption of internet banking, investigate the impact of relative advantage, the experience of utilizing the internet, complexity, and risk on acceptance of online banking, and explore the impact of those four elements on acceptance of internet banking. A quantitative approach was used in this study and in order to gather data questionnaires were administered from the sample of 150 randomly chosen banking customers who used the internet in both urban and rural areas of Sammanthurai. The data were examined using SPSS (Statistical Packages for Social Sciences). To strengthen the investigation, descriptive analysis was carried out which revealed despite the fact that most customers were aware of internet banking, it was not widely used. Regression analysis was conducted to test the five hypotheses. Results revealed that relative advantage and experience of using the internet had a positive significant effect on the adoption of online banking. Complexity and risk had a negative significant impact on the acceptance of internet banking. Altogether these four variables had a significant impact on the adoption of internet banking. Further, this study gives ideas for additional research and addresses the study's consequences.
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