Abstract:
This study investigates the factors influencing the intention to use digital banking
among Generation Y and Z commercial bank users in the Kurunegala district of Sri
Lanka. With the rapid advancement of technology, digital banking has become a crucial
component of the banking sector, providing customers with enhanced convenience and
accessibility. Despite the numerous benefits of digital banking, its adoption among
younger demographics continues to be a critical area of interest and concern for banks
aiming to leverage digitalization. Grounded in the Technology Acceptance Model
(TAM) and relevant literature, this research examines the effects of perceived
usefulness, perceived ease of use, perceived risk, trust, and convenience on the intention
to use digital banking platforms. A quantitative research approach is employed, using a
structured questionnaire to collect data from Generation Y and Z commercial bank users
in the Kurunegala district. The collected data arc analyzed using statistical techniques,
including regression analysis, to ascertain the significance of the relationships between
the variables. The results of this study offer both theoretical and practical implications
for banks and policymakers. Moreover, the study delivers valuable recommendations
for commercial banks to refine their digital banking strategies and services, ensuring
they better cater to the needs of younger customers. This, in turn, is expected to enhance
the accessibility and usage of digital banking services in Sri Lanka. The finding
highlight the importance of addressing factors such as perceived risk and trust, which
are critical in fostering a favorable environment for digital banking adoption among the
younger population. Through these insights, banks can more effectively encourage the
utilization of digital banking platforms, ultimately contributing to the broader goals of
financial inclusion and digital transformation in the banking sector. The study reveals
that all tested variables significantly impact the Intention to Use. Perceived Ease of Use
has the strongest positive influence, followed closely by Perceived Usefulness, Trust,
and Convenience, each showing strong positive relationships. Additionally, Perceived
Risk also positively impacts the Intention to Use, though to a slightly lesser extent. All
variables demonstrate significant positive correlations, indicating their importance in
influencing the intention to use.
