Impact of E-service Quality on Customer Adoption of Virtual Banking Services in Sri Lanka

Virtual banking is a service that has been introduced by banks aiming to help their customers to perform most of the traditional banking services with limited physical interactions. But still a smaller number of bank customers are seen adapting to these services in Sri Lanka. The main aim of this study is to identify the e-service quality on customer adaptation to online banking services. E-service quality was measured using information, design, communication, and fulfilment. Perceived usefulness, perceived ease of use and perceived risk were used to measure customer adaptation to online banking. The researchers carried out a confirmatory tetrad analysis to confirm the reflective nature of the e-service quality and customer adaptation towards virtual banking services. The results revealed that there was a strong positive relationship between the main two variables. The sub-hypotheses also confirmed a strong positive influence made by the determinants of e-service quality on customer adaptation toward the virtual banking services in Sri Lanka.