Abstract:
The study examines the impact of mobile banking apps on customer engagement in
the public banking sector of Colombo District, Sri Lanka. While digital banking
technologies have been growing exponentially and smartphone adoption has been
rapid, mobile banking has become a key driver for enhancing customer satisfaction
and service efficiency. Despite this trend, customer involvement levels remain
inconsistent, especially among public banks. This study investigates how key
determinants security, ease of use, reliability, and efficiency of mobile banking apps
influence customer engagement. The study population comprised 1,459,962 active
mobile banking users from three major public banks in Colombo: Bank of Ceylon,
People’s Bank, and National Savings Bank. A sample of 384 respondents was
selected using a non-probability convenience sampling technique based on Krejcie
and Morgan's table. Data were collected through a structured closed-ended
questionnaire and analyzed using SPSS software, applying descriptive statistics,
correlation, and regression analyses. The findings indicate a strong positive
correlation between all four independent variables and customer engagement.
Regression results confirm that each factor is a significant predictor of engagement,
supporting all four hypotheses. Cronbach's alpha and KMO values exceeded 0.8,
indicating high reliability and validity. These findings highlight the need for public
banks to improve mobile banking app performance through effective design, strong
security features, and enhanced usability to foster long-term customer engagement.
The study contributes to digital banking research in Sri Lanka and offers practical
implications for bank directors, practitioners, and policymakers to strengthen
strategies for mobile banking acceptance.
