Popularity of e-banking in Sri Lanka

Abstract

As a wave of new technology, internet provides banks a substantial opportunity to expand their customers reach beyond traditional boundaries across national boarders. Increased competitive pressures and the speed of technological changes are leading to rapid expansion of electronic banking (e-banking).This research is carried out with the objective of measuring the availability of ebanking facilities in Sri Lanka. Further this provides an analysis as to the extent to which e-banking facilities have been used by customers. Data were collected using questionnaire survey. The initial sample comprised of hundred and fifty customers who were randomly selected from five different areas in Colombo district. Majority of the customers in the country were aware about e-banking facilities but most of them had not been tried those facilities by them selves. They still pay their bills, withdraw money, check balances and deposit cheques at their bank counters, much as the traditional way. Specially in state banks, usage of e-banking facilities was not to a very greater extent. Further this study has identified some of the factors which inhibit the usage of those facilities such as confusions and delays in the system, accessing problems and security problems etc.