Determinants of E-Service Quality of Internet Banking on Consumer Adoption and Usage Behaviour in The Sri Lankan Banking Industry

Abstract

Background: In the digital era, internet banking plays a vital role in enhancing the effectiveness and efficiency of banking operations, benefiting both customers and banks. Despite these advantages, a considerable proportion of customers in Sri Lanka continue to rely on traditional banking methods due to concerns related to trust, security, and system reliability.

Objective: In this context, the present study aims to identify the key determinants of e-service quality that influence consumer adoption and usage behaviour of internet banking in Sri Lanka.

Methodology: The study adopts a quantitative research approach using primary data collected through a structured questionnaire administered to 400 internet banking users of various commercial banks across Sri Lanka. Stratified sampling with quotas and snowball sampling techniques were employed to ensure representation across different bank types and geographical regions; however, reliance on snowball sampling may limit the generalizability of the findings. Data were analyzed using correlation and regression analysis to examine the impact of e-service quality dimensions on consumer adoption and usage behaviour.

Key Findings: The findings reveal that content quality, e-trust, and e convenience are significant determinants of internet banking adoption and usage behaviour (p < 0.05), supported by statistically significant correlation and regression results. In contrast, web design and e- responsiveness do not exhibit a statistically significant influence on adoption and usage behaviour. These results indicate that trust-related and convenience-oriented aspects of e- service quality are more critical than aesthetic or responsiveness factors in encouraging internet banking usage.

Conclusion / Implication: The study provides valuable empirical evidence on the determinants of internet banking adoption in Sri Lanka and contributes to the limited literature on e-service quality in developing economy contexts. The findings suggest that banks should prioritize enhancing content quality, security, trust, and convenience, while policymakers and regulators should promote digital literacy initiatives and establish minimum standards for secure and user- friendly digital banking platforms.