Consumer Intention Towards Self-Banking Services in Sri Lanka: A Study Based on Peoples’ Bank

Abstract

Bankers in Sri Lanka recently introduced new self-banking technologies including automated teller machines, cash/cheque deposit machines and bill payment machines where customers can directly engage with banking services without employing service people. As per the exploratory study, the researchers found that the usage rate of Self-Banking Services (SBS) in Sri Lanka is invariably low. Therefore, the research was carried out to identify the factors affecting consumer intention towards SBS in Sri Lanka and to identify the most important factor to promote SBS in Sri Lanka. The conceptual model was developed using the existing theories such as the Technology Acceptance Model, Diffusion of Innovations Theory, and Theory of Planned Behaviour. Accordingly, perceived security (PS), perceived ease of use (PEU), perceived trust (PT), perceived usefulness (PU) and perceived risk (PR) were identified as independent variables, whereas attitudes towards SBS and intention to use SBS were identified as mediating and dependent variables, respectively. An online questionnaire survey and a printed questionnaire survey were conducted to collect data and 252 full responses were obtained in return. As per the multiple regression analysis and sobel test, attitude mediates the impact of all independent variables, while PU was identified as the most important factor to promote SBS. Finally, by understanding the consumers’ perspective towards SBS, this study will assist bankers to plan and implement appropriate strategies to promote SBS in Sri Lanka.