Determinants of Mobile Banking Adoption Among Undergraduates in Sri Lanka: An Application of the Technology Acceptance Model (TAM)

This study examines the factors influencing the demand for mobile banking among undergraduates in Sri Lanka, applying the Technology Acceptance Model (TAM) and its extended constructs perceived ease of use, perceived credibility, perceived risk, and perceived trust. Despite the rapid digital transformation in the banking sector, the adoption of mobile banking among young consumers in developing economies remains inconsistent. Using quantitative research design, data was collected from 160 undergraduates across selected state universities through a structured questionnaire. Statistical analyses, including correlation and multiple regression, were performed using SPSS software to identify the determinants of mobile banking adoption. The results revealed that perceived ease of use, perceived credibility, and perceived risk significantly influenced undergraduates’ intention to use mobile banking, while perceived trust was statistically insignificant. Among these factors, perceived ease of use emerged as the strongest predictor, indicating that user-friendly interfaces and system simplicity are critical in promoting mobile banking usage. The findings suggest that young consumers’ adoption decisions are driven more by functionality and perceived security than by interpersonal trust. The study contributes to the existing literature by validating the extended TAM in the Sri Lankan context and highlighting the importance of usability and credibility in digital financial services. It further provides practical insights for policymakers and financial institutions to enhance mobile banking adoption and promote digital financial inclusion among youth.