The Factors Impact on Internet Banking Adoption with Special Reference to Kurunegla District

The emerging technology has made a phenomenal growth of the Internet which has changed the pattern of organizations performing their business with customers. The banking industry could not survive without accepting the growth in technology. In order to gain competitive advantage, the banks have introduced internet banking services. However, the customers have not adopted this concept as the banks expected. Literature available in that issue shows a wide range of variations in the understanding of internet banking adoption in different context confirming the inherent nature of such behavioural issues. In the Sri Lankan context as well such variations is available and a shortage of knowledge is available on the impact of factors affecting the internet banking adoption by bank customers. Consequently, the purpose of this study is to identify the factors which impact on internet banking adoption in Kurunegala district having the third largest population density in Sri Lanka. Available research in the Sri Lankan context in this regard is mainly focused on western province. A conceptual model was developed with the support of available literature. Structured questionnaire was administered to collect data from 200 Internet banking customers in Kurunegala district through convenience sampling. Descriptive statistics, correlation analysis and regression analysis are used in the data analysis. This study found that perceived ease of use, perceived usefulness, security, perceived risk and social influence have impact on internet banking adoption in Kurunegala district. Further results of multiple regression analysis reveal that most significant predictor was social influence. This study recommends that banks should use awareness programs to increase social influence and provide knowledge to the customers regarding the usefulness of internet banking service than using other banking channels such as mobile and traditional banking.