Tapping into Engagement: Exploring the Impact of Mobile Banking Apps on Customer Connections in Public Banking Sector in Colombo in Sri Lanka

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.