Abstract:
In the current era, banking sector plays a vital role when providing financial services and
managing financial assets. Due to the development of technological advancements, the
invention of internet banking helps deliver traditional banking products in a more
advanced way. The banking sector in Sri Lanka has undergone a rapid transformation
with the adoption of Information Communication Technology (ICT) based banking
solutions. However, no many studies investigated the factors that may help the bankers to
design virtual banking services which are suitable for and adoptable by virtual banking
customers. This study fills this gap and examines several factors affecting virtual banking
adoption by customers. It is very clear that the potential value of web-based service
adoption by customers depends not only on the benefits but also on overcoming several
barriers. The present study is focused to find the determinants that influence the customer
adoption of virtual banking in the western province. 400 questionnaires were
administrated to collect primary data. Stratified random sampling method was used to
select the sample size. Both descriptive and inferential techniques were used. With
respect to inferential, Exploratory factor fnalysis was used to find the most significant
determinant that influence on virtual banking adoption. SPSS was used to analyze the
data. Results indicated the demographic profile of virtual banking users and the most
significant factors that influence virtual banking adoption. According to the results of the
study some valuable suggestions and management implications provided to the virtual
banking service providers for gaining competitive advantage by enhancing the service
quality and eradicating the service barriers that can promote or motivate banking users to
adopt technology-based virtual banking facilities.
Keywords: Virtual banking, Adoption, Technology, Financial, Customer
