Impact of Electronic Banking on Customer satisfaction

APIIT Business, Law & Technology Conference, 2018
July 19th, 2018 | Colombo, Sri Lanka
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Impact of Electronic Banking on Customer
satisfaction
A case study on Hatton National Bank PLC, Colombo district, Sri Lanka.
Bakeerathy Mohalingam
Business Management School (BMS),
Colombo 06, Sri Lanka
bayu9714@gmail.com.
Chrishankar Janathanan
Department of management
Business Management School (BMS)
Colombo 06, Sri Lanka
chrish@bms.lk
Abstract—
Purpose: Nowadays, the banks are mainly focusing on
promoting the concept of e-banking among their
customers since it can provide speedier, faster and
reliable services to the customers better than
traditional banking. Therefore, the purpose of this
research is to explore the impact of e-banking on the
customer satisfaction within the HNB PLC, Colombo
district in Sri Lanka.
Methodology: The researcher used primary as well as
the secondary source of data where the required
primary data was collected through questionnaires
and interviews. The random sampling technique was
used to recruit 210 customers representing the desired
range of demographic variables (educational level,
occupation, gender and age). Three interviews were
conducted with two customers and an employee of
HNB PLC in depth to achieve the research objectives.
An analysis of data was done by the use of SPSS
version of 21.
Findings: The results showed that impact of e-banking
had a positive effect on Hatton National Bank PLC’s
customers. It is because, all variables namely
convenience, reliability, responsiveness, security and
costs correlated with a strong positive relationship,
and their significance level is below 0.05. The study
also indicates that convenience, security and costs
(fees and charges) are the main factors contributing to
satisfy the customers of e-banking in HNB PLC.
Research limitations: This study was limited to the
consumers in Colombo district where it can be done
for entire Sri Lanka in future.
Originality/value: The research was developed based
on the existing knowledge from previous researchers
regarding what constitutes e-banking service. The
study offering key recommendations towards HNB
PLC’s decision making to further enhance the level
customer satisfaction in e-banking.
Key words: E-banking, customer satisfaction,
Convenience, responsiveness, reliability, security and
costs.
Article type: Case study.
I. INTRODUCTION
Technology has played a vital role in today’s world.
In recent years, the adoption of e-banking began to
occur quite extensively since it is the automated
delivery of new and traditional banking products and
services to customers through electronic channels due
to fast advances in IT and intensive competitive
banking markets (Toor et al., 2016). And also, e-
banking offers several benefits to the customers such
as convenient, quick, time-saving and better cash
management. In the background of Sri Lanka, most of
the banks in the banking industry have already
introduced ATM, mobile banking, internet banking
and POS to their customers. Therefore, the researcher
is willing to evaluate the impact of e-banking on
customer satisfaction in Sri Lanka since some other
authors from different countries have already analysed
the customer satisfaction based on some variables.
A. Significance of the study
This research is significant for some of the
stakeholders who are interested in the research
process.
Banking Industry: Banks are always pushing the
customers to engage in e-banking services since it is
more convenient, speedier and cost saver than
traditional banking. Therefore, this research will help
them to identify the factors which impact the e-
banking on customer satisfaction and help them to

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further improve to maximise the level of customer
satisfaction.
Regulators: Government and operators who
determine the operating environment and provide
legal licence to operate may be interested in the project
to consider the importance of the usage of e-banking
in Sri Lanka and they may like to see the current
problems and barriers regarding the adoption of e-
banking on customer satisfaction in order to take some
steps to eradicate and implement new policies
accordingly (Kariyawasam and Jayasiri,2016).
Customers: This research will help the customers to
acquire a better knowledge about the benefits of e-
banking and what steps are being taken to improve the
engagement of e-banking services in the future.
Academic community: These people also interested
in the project due to knowledge additions regarding
the current trends and issues on the impact of e-
banking on customer satisfaction. Similarly, this may
help them to conduct future researches effectively to
analyse further.
B. Background to the company
Hatton National Bank (HNB) is a premier private
sector commercial bank operating in Sri Lanka which
has aggressively driven the adoption of the latest
technology and deployment of alternative banking
channels with 251 branches across the island (HNB
PLC, 2017). Accordingly, technology would be a
crucial driver of growth at HNB as well as for entire
industry which helps them to build the relationship and
confidence with employees and with over 2 million
customers across the country (HNB PLC, 2015).
However, the adoption of HNB’s e-banking (mobile
banking and internet banking) is between 9%- 10% of
the total customer base (Rajan, L. 2017, personal
communication, 18 September). The usage level is less
than its expectation compared to developed countries
even though its’ investment for e-banking channels are
huge. And also, customers were more resistance
toward adopting such technology even it has sufficient
relative advantages. Therefore, the researcher is
willing to identify the factors which affect the
adoption of e-banking and customer satisfaction to
provide some recommendations to further maximise
their profit through e-banking in the future.
C. Research objectives
 To assess the level of customer
understanding about e-banking.
 To conduct a literature review to identify the
correlation between chief service quality
dimensions and other factors affecting the
adoption of e-banking on customer
satisfaction.
 To conduct a primary research through
questionnaires and interviews to analyse the
level of customer satisfaction of e-banking in
Colombo district, Sri Lanka.
 To provide some recommendations to
management of HNB PLC.
D. Research questions
1. What is the level of understanding of
consumers about e-banking?
2. What are the chief service quality dimensions
and other factors in determining satisfaction of
e-banking customers in Colombo?
3. What are the measures to be taken by HNB
PLC to increase the level of customer
satisfaction?
II. LITERATURE REVIEW
A. Concept of e-banking
Electronic banking is considered as a new revolution
in the digital technology and traditional banking
services which implies the provision of banking
products and services through electronic delivery
channels such as the internet, the telephone, the cell
phone etc. (Worku, Tilahun and Tafa, 2016). On the
other hand, E-banking gives customers access to
almost any type of banking transaction at a click of a
mouse, expect of cash withdrawals (De Young,2001,
cited in Nupur, 2010). Therefore, the use of
Information and Communication Technology by
banks provide e-banking services and manages
customer relationship more quickly and most
satisfactorily than traditional banking (Addai et al.,
2015).
Further, Worku, Tilahun and Tafa (2016) argued that
ATM, mobile banking, internet banking and Point of
sale (POS) are the most widely used features of e-
banking and these can be accessed 24 hours/7 days. E-
banking serves several benefits for both customers and
banks. The main benefit from the customers’ point of
view would be a significant saving of time and reduced
costs in accessing and using banking services (Salehi
and Alipour, 2010). From the banks’ point of view, E-
banking offers benefits such as better branding, better
responsiveness to the market and provides a perfect
opportunity for maximising profits (Salehi and
Alipour, 2010). However, the e-banking provides
many advantages; there is still a large group of
customers who refuse or reluctant to consume such
services due to uncertainty, security and privacy
concerns (Kuisma, Laukkanen, and Hiltunen, 2007).
a) E-banking in Sri Lanka
E-banking services have been available in Sri Lanka
since 1986 with the introduction of ATM by HSBC

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bank (Jayamaha, 2008). By end 2016, there were
3,843 ATMs installed for the purpose of providing
efficient banking operations (CBSL,2016).
Furthermore, the development of ICT in Sri Lanka
enables the banks to provide more diversified and
convenient financial services where it is proved by the
introduction internet banking in early 1999 (Jayasiri,
Gunawaradana, and Dharmadasa, 2016). The practice
of internet and its technology had a solid growth in Sri
Lanka, and now several banks in Sri Lanka have also
provided internet banking for their customers. Today
customers can not only enjoy services through internet
but also through mobile and POS (Jayamaha, 2008).
It is further proved that currently Sri Lanka has 6
million internet users and it is 29% of the total
population which shows improvement in the people
trends and awareness on digital technology
(Consumers Affairs Authority, 2017). Even though
there are many internet users, the key question in
customers mind is dependable safety and security
measures, especially when making transactions online
which reluctances the customers towards engaging in
e-banking. Therefore, to move with a world’s digital
adaptation, customers in Sri Lanka also ready to accept
and trust the change (Kamburugamuva, 2015).
B. Service quality in e-banking and customer
satisfaction
Service quality is an important tool for measuring
customer satisfaction, especially in the field of
banking (Adil, 2013). E-service quality is about
overall assessment and impression by customers
regarding the quality of e-service delivery and
SERVQUAL model is considered as an appropriate
tool to measure service quality (Toor et al.,2016).
On the other hand, Zeithmal and Bitner (2000, cited in
Ghane, Fathian, and Gholamian, 2011) articulated
customer satisfaction as the overall consumer
perception towards a service provider or customers’
evaluation of a product or service regarding whether
that product or service has satisfied their needs.
Further Kotler and Armstrong (2014) defined
satisfaction as a person’s feeling of delight or
disappointment resulting from comparing a product
perceived performance in relation to his or her
expectations. Satisfaction has an intimate link with
service quality where researchers have verified that
provision of quality service make them stay with the
organisation and as service quality improves, the
probability of customer satisfaction increases (Adil,
2013). Previous studies concluded that people evaluate
e-banking service quality majorly on three key
dimensions out of five of the SERVQUAL model:
Reliability, responsiveness and assurance (Nupur,
2010; Toor et al.,2016). Therefore, the researcher has
chosen the above three key dimensions as variables.
As well as, the author will evaluate this study with two
other variables such as convenience and costs since
these factors are mostly considered by customers when
consuming e-banking services (Addai et al., 2015;
Kumbhar, 2011; Ahmad and Al-Zu’bi, 2011).
a) Convenience
Convenience is a dimension of e-banking that enables
customers to access e-banking at any time anywhere,
and it is available for customers 24 hours/7 days
(Kumbhar, 2011 cited in Addai et al., 2015).
Customers become satisfied when e-banking can offer
speedier, quicker and dependable services at any
location and any time convenient for them since
traditional/manual banking is inconvenient due to a
long queue and waiting time (Worku, Tilahun and Ma,
2016). Moreover, Ahmad and Al-Zu’bi (2011) stress
that factors such as easy to use, user-friendly, easy
login, check transaction details and statement
regularly, and computer literacy keeps customers
convenient when using e-banking services.
Additionally, appropriate language support is
important for customers to avoid the inconvenience of
a language barrier when functioning e-banking
services through ATMs, mobile and internet.
Therefore, it is hypothesised that there is a relation
between e-banking convenience and customer
satisfaction.
b) Reliability
Reliability is a crucial dimension that affects users’
intention to adopt e-banking services in the highly
competitive banking industry. Many researchers
argued that the success of e-banking depends on the
reliability of the services since customers expect the
promptness of delivering services in an accurate way
(Addai et.al, 2015; Nupur, 2010; AlHaliq and
AlMuhirat, 2016). Reliability involves accuracy in
billing, keeping records correctly, performing the
service at the designated time and providing services
as promised (Nochai and Nochai, 2013). Accordingly,
reliability is liable to ensure a positive and strong
conviction among customers that the bank is working
for their benefits as any deficiency in this belief will
lead them towards a dissatisfaction on e-banking
services (AlHaliq and AlMuhirat, 2016). Banks should
be reliable of performing the service right the first time
and the firm should honour its promises to enhance
customer satisfaction (Wang and Wang, 2006). To
conclude, a reliability of e-banking will have a
relationship with customer satisfaction.
c) Security (Assurance)
Security plays a major role in making customers feel
safe in their transactions and ensuring the physical

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safety, financial security and confidentiality (Nochai
and Nochai, 2013). According to Sharma (2016),
security is the prime concern for banks as that affect
the confidence to adopt e-banking services, therefore,
they need to permit their customers to perform a broad
range of banking activities without any fear. Indeed,
security risks are one of the main obstacles for a
customer to moves from traditional banking to online
banking as an unauthorised individual may access to
confidential information (Waheed, Khan and Ain,
2012) because the usernames and password
combination is relatively easy to acquire and then
relatively easy to commit financial fraud (Nupur,
2010). It is the responsibility of banks to ensure the
customer’s personal information remain safe and
private. Steward (1999, cited in Waheed, Khan and
Ain, 2012) stressed that organisations which
strengthen their level of security and privacy can
achieve easily the customer’s loyalty since the security
of e-banking services are closely related to customer’s
satisfaction. As a result, it is hypothesized that security
of e-banking has a relationship with customer
satisfaction.
d) Responsiveness
Responsiveness of the bank is an important element
for enhancing the service quality and customer
satisfaction in online banking since it concerns the
willingness or readiness of employees to provide
services (Wang and Wang, 2006). Accordingly,
responsiveness based on problem handling, recovery
of the problems, prompt services, timeliness services
and helping nature of employees towards customers
(Kumbhar, 2011). The consumers are always
expecting to complete the transactions correctly,
receiving personalised attention when performing
transactions and desire to have their emails answered
quickly (Marete, Gommans and George, 2014). When
problems occur, customers must be able to contact
customer representatives immediately and they are
responsible to guide on how to solve them and teach
the customers regarding the new innovations of e-
banking by maintaining a relationship like a good
friend not like a business to increase customer
satisfaction (Nochai and Nochai, 2013). Hence, it is
hypothesized that there is a relationship between the
responsiveness of e-banking and customer
satisfaction.
e) Costs (Fees and charges)
Offering high-quality services at lower costs to satisfy
customers’ needs is the potential competitive
advantage of e-banking (Ahmad and Al-Zu’bi, 2011).
This is further supported by Sharma (2016) that fees
and charges rendered by the banks for being e-banking
services are considered to be one of the most
influential factors on the customer satisfaction since
customers will compare the costs with quality of
services offered by different service providers.
Customers are sometimes unaware of the fee charged
for being e-banking services where banks need to
communicate the customers frequently regarding fees
and charges to maximise the level of satisfaction. In
conclusion, it is hypothesized that there is a
relationship between chargers of e-banking and
customer satisfaction.
III. METHODOLOGY OF THE STUDY
Based on the literature review, the study focuses on
five factors influencing customer satisfaction towards
e-banking in Colombo district of Sri Lanka, which
consists of convenience, reliability, security,
responsiveness and fees and charges. Accordingly, the
researcher has proposed the following research
hypotheses in achieving research objectives.
H10: There is no relationship between X1 and
H1a: There is a relationship between X1 and customer
satisfaction.
For example, X1, X2, X3, X4, and X5 represent e-
banking convenience, reliability, security,
responsiveness and fees and charges respectively.
A. Type and sources of data
Data for this study were collected from both primary
and secondary sources. The questionnaire used for
collecting primary data about the customer satisfaction
in e-banking of HNB PLC and three interviews
conducted among two customers and an employee
from HNB PLC. The researcher has gathered
secondary data from the following sources such as
books, websites, annual reports, magazines, and
journal articles which have published both locally and
internationally.
B. Sampling plan
The population of the study was customers of HNB
PLC in Colombo district of Sri Lanka who is using any
of the e-banking facility. So, the sample size was
derived as 384 from Morgan table (Krejcie and
Morgan, 1970). The customers were selected through
probability sampling method. The customers were
selected through non-probability sampling method,
that is convenience sampling because it was not
possible to get access to the list of e-banking
customers to conduct random sampling due to legal
restrictions. Total 384 questionnaires were distributed,
out of which only 210 completed surveys considered.
C. Questionnaire design and pre-test
The respondents responded to questions under each
variable using Likert based questionnaire ranging

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from 1= Strongly Disagree (dictating the highest level
of dissatisfaction) to 5= Strongly Agree (dictating the
highest level of satisfaction). The survey was
developed based on the works of Nupur (2010),
Kumbhar (2011), Toor et al. (2016) and Ahmad and
Al-Zu’bi (2011). The developed questionnaire has 35
questions including some demographic questions for
more interpretation of responses. The prepared
questionnaire was pre-tested with twenty customers to
make sure the reliability and the accuracy of the
questionnaire. Finally, the researcher has clarified the
objectives of the study to customers before filling out
the survey.
D. Methods of data analysis
SPSS statistics version 21 was used to analyse the
collected primary data from the questionnaire.
Reliability was assessed using Cronbach’s alpha
values derived from SPSS 21. Further, correlation and
multiple regression analysis were performed to
determine the significance level of the variables for
customer satisfaction in e-banking individually as well
as a whole.
IV. FINDINGS AND ANALYSIS
A. Demographics of respondents
Total of 384 questionnaires was distributed, out of
which 210 were considered for the study. Finally, the
sample size was 210, and nearly 58% of the
respondents are females and 42% of respondents are
males. In terms of age, the majority of the people are
between the ages of 18-30 where only 10.95% of the
respondents are existing in the age group of above 40.
Occupational results of the respondents showed that
students were the majority of the users which account
61.43%, 17.62% were government sector employees,
and 15.71% were private sector employees.
B. Reliability
Reliability is a measure that indicates the stability and
consistency of a measure where the internal
consistency of the survey was calculated using
Cronbach’s alpha. As shown in table 1, it demonstrates
that the coefficient for internal consistency is very
high and acceptable according to Sekaran (2003).
Indeed, the author has carefully designed each
individual question for this variable which leads the
researcher to ensure a higher consistency for all items.
TABLE 1-CRONBACH’S ALPHA TABLE
Before removal of items
Cronbach’s alpha N of items
Independent variables
Convenience 0.924 5
Reliability 0.925 5
Security 0.923 5
Responsiveness 0.920 5
Cost 0.935 3
Dependent variable
Customer
satisfaction
0.929 4
C. Descriptive statistics
TABLE 2- DESCRIPTIVE STATISTICS
Descriptive Statistics
N Mean Std.
Deviation
AVG_customer_satisfaction 210 3.7345 .78605
AVG_conveniance 210 3.9171 .77013
AVG_reliability 210 3.7229 .73332
AVG_security 210 3.8638 .72964
AVG_responsiveness 210 3.7886 .72933
AVG_cost 210 3.6413 .83031
Valid N (listwise) 210
The above table articulates the mean value depicting
the overall customer’s satisfaction. Accordingly,
3.917 (convenience), 3.722 (reliability), 3.863
(security), 3.788 (responsiveness) and 3.641 (cost) are
the mean values of the independent variables where it
demonstrates that all the mean value provides
satisfactory results. Overall customer’s satisfaction on
e-banking is above satisfactory level since the mean
value is 3.73 on a 5-point Likert scale. Customers are
fairly satisfied with all variable as the mean values are
having small variation between all independent
variables. The standard deviation for all variables also
provides overall a good variance analysis as well.
However, a correlation and regression analysis will be
run to identify the strength of the relationship between
variables in e-banking in Colombo district.
D. Correlation analysis
Correlation is a tool that enables the researcher to
quantify the strength of the linear relationship between
two ranked or numerical variables (Saunders, Lewis
and Thornhill, 2011). Similarly, Walliman (2011)
stressed that correlation between two variables can
either be positive or negative or none that means no
correlation. Therefore, the researcher has conducted
the correlation analysis to identify the relationship
between dependent and independent variables.
1) 4.4.1 Testing the hypothesis

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H1a: There is a relationship between convenience
and customer satisfaction in e-banking
As we can see that in the correlation table, the Pearson
correlation is 0.757 which demonstrates a positive
value. The statistical significance of the correlation
between those variables is 0.00 which is less than 0.05.
Therefore, H1a hypothesis is accepted and the null
hypothesis is rejected.
H2a: There is a relationship between reliability and
customer satisfaction in e-banking
The correlation value is 0.646 which demonstrates a
positive relationship between the customer satisfaction
and reliability. The significance value is 0.000 which
is lower than 0.05, depicting that the H2a hypothesis
is accepted.
H3a: There is a relationship between security and
customer satisfaction in e-banking.
The Pearson correlation value is 0.694 where it
validates a very strong positive relationship between
customer satisfaction and security, and H3a hypothesis
is accepted since the significance level 0.00.
H4a: There is a relationship between
responsiveness and customer satisfaction in e-
banking
The results demonstrate that the Pearson correlation
for responsiveness is 0.712 which shows a strong
positive relationship between customer satisfaction
and responsiveness. Similarly, the significance level is
0.00 which is less than 0.05 ensuring that the H4a is
accepted.
H5a: There is a relationship between costs and
customer satisfaction in e-banking
The Pearson correlation value is positive 0.684 which
clearly validates a very strong positive relationship
between the customer satisfaction and cost. Thus,
results are strengthening the acceptance of the above
hypothesis.
TABLE 3- SUMMARY OF CORRELATION ANALYSIS
Correlations
customer
satisfaction
convenience Reliability security Responsive
ness
cost
Customer satisfaction
Pearson
Correlation 1 .757**
.646**
.694**
.712**
.684**
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
Convenience
Pearson
Correlation .757**
1 .736**
.739**
.782**
.636**
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
Reliability
Pearson
Correlation .646**
.736**
1 .793**
.802**
.648**
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
Security
Pearson
Correlation .694**
.739**
.793**
1 .783**
.665**
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
Responsiveness
Pearson
Correlation .712**
.782**
.802**
.783**
1 .704**
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
Cost
Pearson
Correlation .684**
.636**
.648**
.665**
.704**
1
Sig. (2-tailed)
.000 .000 .000 .000 .000
N
210 210 210 210 210 210
**. Correlation is significant at the 0.01 level (2-tailed).

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It is evident from the above table that the all five
variables of e-banking such as convenience,
reliability, security, responsiveness and cost play a
major role in ensuring customer satisfaction since
correlation analysis clearly demonstrated a strong
positive relationship between independent variables
and customer satisfaction.
E. Regression analysis
Multiple regression analysis is a technique used to
measure the effects of two or more independent
variables on a single dependent variable measured on
interval or ratio scales, and it supports the researcher
to analyse the strength of a relationship between
variables (Walliman, 2011).
TABLE 4 – MODEL SUMMARY
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .811a
.657 .649 .46590
a. Predictors: (Constant), AVG_cost, AVG_conveniance,
AVG_reliability, AVG_security, AVG_responsiveness
The table provides R and R square values. R square
value will be probably less than R hence it is further
adjusted for error (Sekaran, 2003). It shows an R-
square value of 0.657 which indicates that the
predictors of e-banking (convenience, reliability,
security, responsiveness and costs) account for
approximately 66% of the effect on customer
satisfaction. The R-value of 0.811 also signifies a
strong positive correlation between convenience,
reliability, security, responsiveness and costs and
TABLE 5 – COEFFICIENT TABLE
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std.
Error
Beta
1
(Constant) .221 .186 1.186 .237
Convenience .428 .073 .420 5.908 .000
Reliability -.058 .084 -.054 -.689 .492
Security .173 .083 .160 2.090 .038
Responsivene
ss
.126 .091 .116 1.386 .167
Cost .249 .057 .263 4.363 .000
a. Dependent Variable: AVG_customer_satisfaction
The above table provides necessary information to
predict customer satisfaction from each independent
variable such as convenience, reliability, security,
responsiveness and cost. Accordingly, convenience
(0.000), security (0.38), and cost (0.000) is identified
to have significant correlation with customer
satisfaction level since their par P-values were less
than 0.05. But, the calculated significance value of
reliability (0.492) and responsiveness (0.167) are
greater than 0.05 where these factors have some
impact on customer satisfaction but it is not
significant. Therefore, overall regression statistics are
favourable to the hypothesis.
TABLE 6 – ANOVA RESULTS
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression
84.857 5 16.971 78.1
87
.000b
Residual 44.281 204 .217
Total 129.137 209
a. Dependent Variable: AVG_customer_satisfaction
b. Predictors: (Constant), AVG_cost, AVG_conveniance,
AVG_reliability, AVG_security, AVG_responsiveness
The above Anova table demonstrates the statistical
significance of regression model which is .000.
Accordingly, the significance is less than 0.05 which
means the regression model is statistically significance
in predicting how convenience, reliability, security,
responsiveness and costs influence customer
satisfaction in HNB PLC. Therefore, the overall model
shows a good significant fit between the dependent
variable and independent variables as there is enough
evidence against the null hypothesis (X1 has no
relationship between customer satisfaction).
V. CONCLUSION AND RECOMMENDATIONS
Most banks in Sri Lanka are now offering e-banking
services in diverse ways to their customers as an added
advantage. From the statistical analysis and theoretical
analysis, it is observed that there is a relationship
between customer satisfaction in e-banking and
variables such as convenience, reliability,
responsiveness, security and cost as null hypothesis
rejected and the alternative hypothesis accepted. The
results have indicated a strong positive correlation
between all the independent variables and dependent
variable. It is evident from multiple regression
analysis that convenience, security and cost are the
most influencing factors of customer satisfaction in e-
banking. The study concludes that more customers are
satisfied with e-banking service in HNB PLC. Even

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though the advantages of internet banking are certain,
there are some concerns and inconveniences where
banks need to take necessary steps to minimise these
concerns in order to enhance customer satisfaction.
Hence, banks should nurture close and maintain a long
relationship with their customers in a way it enhances
customer trust towards the bank.
Some recommendations are provided below.
 HNB PLC can advertise their secure online
facilities and motivate the users to perform
transactions without fear.
 The bank can provide official training for
customers to increase customer’s awareness
about e-banking specially to let customers
know the existence of e-banking service
charges.
 They can improve the simplicity, user
friendliness and operational convenience of
bank’s online platforms.
 The bank can educate the customers
regarding the security systems and how they
can protect themselves from criminals by
conducting seminars and workshops in
future.
 HNB PLC may provide more training and
development for customer service
representatives to provide prompt services
and to maintain a friendly relationship with
customers when handling their requests.
VI. LIMITATIONS
The researcher has found following limitations while
doing the research.
 The sample size is small because of the time-
constraint and some of the customers are not
voluntary to participate.
 The sample has derived through non-
probability sampling as the access of
probability sampling was limited due to
certain issues.
 Research has conducted within a single bank
in the banking industry which is limiting the
generalisability of the results to the overall
banking industry in Sri Lanka.
VII. FUTURE DEVELOPMENT FOR FUTURE RESEARCH
 The research can be extended up to a whole
western province or Sri Lanka since it will
give more meaningful results in future.
 It recommends that the same study could be
undertaken industry-wide (banking industry)
to understand the overall impact of e-banking
on customer satisfaction.
 For the future research, the sample could be
made larger to better generalise the findings
of the study through adopting probability
sampling method.
 If the level of satisfaction is measured after 3
or 4 years then, it will be better to identify the
impact of e-banking since now only
participation rate in e-banking services are
growing little by little in Sri Lanka.
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