Abstract:
The rapid spread of technology has undoubtedly made the Internet the most
promising channelfor providing banking services. However, despite its potential,
several studies have revealed that the internet adoption rate in Sri Lanka remains
at an inadequate level. This research study examines the factors influencing
millennial loyalty towards virtual banking with reference to a state university in
Sri Lanka. The study employed a self-administered questionnaire survey to
collect data, with 204 university students participating. The research primarily
utilized regression analysis to empirically test the hypotheses. The study
revealed that "usability," "perceived risk," "commitment/satisfaction," and
"trust" significantly influenced millennials' loyalty towards virtual banking
adoption, demonstrating a positive relationship with customer loyalty. However,
perceived enjoyment showed no significant relationship. The findings have both
short-term and long-term implications, benefiting bank managers, marketing
professionals, and technical experts. Thus, as the implications suggest, those
stakeholders can think of usability, perceived risk, commitment/satisfaction, and
trust as the most powerful considerations that customers expect when using the
virtual platform and design the virtual platform by including those features as
per customer expectations. Furthermore, the study lays the foundation for future
research, especially for technical personnel in banks engaged in developing
innovations to meet the expectations of millennial users in virtual platforms.
