Factors influencing mobile banking adoption in Kurunegala district

Abstract

Many banks in Sri Lanka are starting to offer banking services through mobile phones. However, not many studies investigate the factors that may help the bankers to design mobile services, which are suitable for and adoptable by bank customers. This study fills this gap and examines a number of factors affecting the mobile banking adoption. Using Diffusion of Innovation as a baseline theory, a convenient sample of 40 actual mobile banking customers was selected from four commercial banks in Kurunegala District. Data are obtained by using self-administrated questionnaire and analyzed with the use of SPSS V 21. It is found that perceived usefulness, perceived risk, and compatibility have impact on M-banking adoption. Contrary to the findings in extant literature, social influences have no significant effect on adoption. The findings of this study will have practical implications for banking industry in Sri Lanka. It is recommended that, commercial banks should demonstrate to their customers the advantage they are bound to have by adopting and using mobile banking over using conservative banking methods. It is also advisable to examine the effects of mobile banking on profitability of commercial banks in Sri Lanka.