Factors Affecting Internet Banking Usage Behaviour of Urban Youth in Kandy Factors Affecting

Abstract

After the internet revolution, commercial banks in Sri Lanka introduced online banking services in 1998 for their customers. Now both private and state banks provide a greater service through internet banking facilities. Internet banking has been evolved very recently and it has a problem of usage and adaption to it by customers. Even though various strategies were used by financial institutions to promote internet banking with the hope of increasing the number of usages, internet banking is facing a situation of lack of usage. Therefore, the main objective of the study is to identify the factors affecting internet banking usage behaviour of the young customers in Kandy urban area. As population, youth in Kandy urban area was taken. A structured questionnaire with five-point Likert scale was used to collect data. The independent variables are self-efficacy, perceived risk, social influence, attitude towards the use of internet banking usage and the dependent variable was internet banking behaviour. Descriptive and inferential statistics were used in the data analysis with multiple regression model under 0.05 significance level. The result revealed that perceived risk and social influence were statistically significant in 95 percent confident level having a positive relationship with internet banking behavior. Commercial banks need to upgrade the internet baking services and should initiate strategies in such a way that it changes customers’ attitudes and improves customers’ self-efficacy towards using internet banking services while lowering risk involved with internet banking services to make it more advantageous.