Drivers of Intention to Use Internet Banking: Unified Theory of Acceptance and Use of Technology Perspective

Abstract

Most of the financial institutions in Sri Lankan context invest substantially on Internet Banking to provide efficient service to customers while achieving competitive edge in the industry. However, use of online banking remains low in comparison to certain emerging and developed nations. Thus, the purpose of this study is to investigate the factors that influence consumers' intentions to use Internet Banking using the Unified Theory of Acceptance and Use of Technology model (UTAUT-2). This study used a survey technique to collect data from 272 clients of National Savings Bank (NSB). The hypotheses were tested using multiple regression analysis. Six variables out of eight, performance expectancy, facilitating conditions, social influence, price value, habit, and trust, were shown to be relevant in influencing intention to use IB services. It also shown that the UTAUT-2 paradigm can be adapted to developing countries with various degrees of explaining power. An understanding of the determinants of Internet Baking use is important for managers of the financial firms as they can pursue strategic intervention to enhance the level of IB adoption. Further, the firms intending to launch IB services would be benefited with the precise understanding of the significant drivers determining the IB adoption behavior. This paper adds to the empirical literature on consumer IB adoption behavior, particularly in a developing nation like Sri Lanka.