Islamic banking customers’ intention to use mobile banking services: a Sri Lankan study

Abstract

The purpose of this investigation was to delineate the factors influencing Islamic Bank customers’ behavioural intention to use mobile banking services in Sri Lanka. The study used a model based on popular Unified Theory of Acceptance and Use of Technology (UTAUT 2) model. Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation and Habit were the predictor variables and Behavioural Intention to Use was the predicted variable. Age, Gender and Experience were the moderators. Quantitative method with questionnaire survey was used. Items of the instrument were adapted from previous literature. Seven-point Likert scale was used to capture the responses. The population of this study was customers of Islamic Banking products in Sri Lanka. We received 589 responses and 576 were considered for analysis. Data were analysed using Partial Least Square Structural Equation modelling was deployed using SmartPLS 3 to see the insights. The analysis revealed that all variables have significant impact on Islamic Banking customers’ intention to use m-banking services as proposed hypotheses and all moderators played a significant role. Due to its pioneering nature and unique contribution in Sri Lankan contexts, this study provides a direction for the decision makers to consider the findings of this study when re-engineering their m-banking applications in future and promoting them to the customers. According to published literature, this is the first study attempting to investigate Islamic Banking customers’ intention to use m-banking services in Sri Lanka. Hence, it makes a pioneering and unique contribution to the literature by validating the UTAUT 2 model for m-banking technology acceptance in Islamic Banking sector in Sri Lankan context.