What factors affect customer adoption towards virtual banking? Study based on western province, Sri Lanka

Abstract

In the present competitive market, the banking sector plays a significant role by managing the financial assets of the people, whereas highlights as one of the momentous economic segments. Technological development has wayforward the virtual banking, including Teller cards, credit and debit cards, Telebanking facilities, and banking via the internet. These virtual banking facilities highly facilitate the smooth functioning of the transaction while maintaining a secure platform and speed. With the adoption of ICT, the banking sector in Sri Lanka has been rapidly transformed into a virtual facilitator. The current study identifies the factors affecting the virtual banking adoption by the customers' end, referring to the banking customers in Western Province, Sri Lanka. Survey method was administered and a stratified Random Sampling method was adopted to select a sample of 400 virtual banking customers. With respect to inferential, Exploratory Factor Analysis was adopted to identify the most significant determinants that are influential for virtual banking adoption. As the analysis tool, SPSS has been used. Findings highlight the most influential 11 factors for adoption of the virtual banking by the customers. As for recommendations, enhancing the service quality and eradicate the service barriers will enhance the competitiveness among the banking service, and motivation towards virtual banking adaptation by the customers was highlighted.