Enhancing Mobile Banking Adoption: Behavioural Intention among Bank Customers in Rural Sri Lanka

Abstract

Mobile banking has revolutionised global financial services, yet adoption in rural regions remains limited. While mobile penetration is high, user uptake of mobile banking services is disproportionately low, revealing a critical gap between technological availability and behavioural intention. This study investigates the determinants influencing customers’ behavioural intention to use mobile banking, focusing on a context where digital literacy and trust remain challenged. Based on the Technology Acceptance Model (TAM), the study incorporates two extended variables: Perceived Compatibility (PC) and Perceived Trust (PT), alongside the traditional constructs of Perceived Usefulness (PU) and Perceived Ease of Use (PEOU). The inclusion of PC and PT is justified by prior literature suggesting that trust and the alignment of technology with users’ values and lifestyles significantly shape technology adoption, especially in rural contexts. A quantitative research design was employed using a structured, self-administered questionnaire. A snowball sampling technique was selected as the sampling method and data were gathered from 200 mobile banking users across eight state and non-state commercial banks in the Anuradhapura district. Data analysis included both descriptive and inferential statistics, including multiple regression analysis to evaluate the impact of each determinant on behavioural intention. Findings revealed that all four determinants positively influence behavioural intention, with Perceived Trust emerging as the most influential factor. These results underscore the critical role of trust and contextual relevance in shaping user behaviour in digital finance. The study offers empirical insights for policymakers, app developers, and financial institutions seeking to expand mobile banking adoption in rural and underserved areas by addressing user concerns related to trust, ease of use, and lifestyle fit. This research contributes to existing knowledge by extending the TAM framework in a rural South Asian context and offering practical implications for improving financial inclusion through targeted mobile banking strategies.