Mr.S.Srisethuparan, Mr.S.Vijeev
Abstract:
Virtual banking has revolutionized the global financial sector, offering unparalleled convenience and efficiency. However, despite rapid infrastructural developments, customer adoption in the Northern Province remains below potential. This study investigates the key determinants influencing the adoption of virtual banking in this specific region. The research objective was to evaluate the impact of Technological, Economical, Personal, and Social factors on the level of customer adoption. Adopting a quantitative methodology, primary data were gathered via structured questionnaires from a random sample of 181 customers of Bank of Ceylon, People’s Bank, Commercial Bank, and Hatton National Bank across five districts. The data were analyzed using SPSS, utilizing Pearson Correlation and Multiple Regression analysis. The results indicate a strong positive relationship (r=0.809) between the determinants and adoption. The regression model confirms that these factors collectively explain 65.4% of the variance in adoption behavior (R Square =0.654). Crucially, the study reveals that Social Factors are the most significant predictor (B=3.091), explaining 55.0% of the variation individually, followed by Personal and Economical factors. Surprisingly, Technological factors, while statistically significant, demonstrated the lowest impact (B=2.337). This suggests that adoption decisions are driven more by peer influence and societal norms than by system features alone. The study concludes that to enhance adoption rates, banks must shift focus from purely technical upgrades to social marketing strategies that leverage community trust. These insights provide a strategic framework for banking institutions to formulate effective promotional policies.
