1.0 Introduction

1.1 Background and rational for the proposal

Modern businesses concepts are developed around acquiring and retaining profitable and satisfied customer base within a business and it has become a major challenge for any business. With the modern technology innovations these concepts have become more achievable and reliable. However technology development and modern day innovations are playing a major role in any businesses especially for financial service providers. Virtual banking concepts such an E-banking, E-wallets are becoming more competitive and revolutionized product in Sri Lankan banking industry. Further, virtual banking can be identified as an advance replacement for the traditional banking.
According to the study carried out by Aboraia et al (2015), South Asian region which has huge population having much more potentials and competitive advantage with E-banking sector. With the introductions of certain improvement and developments, E-banking concept can be penetrate easily in to South Asian banking industry successfully. With the adopting of E-banking system by Asian bankers, they were able to level-up / enhanced the competition and productivity of its businesses (Menash, 2014). With the reduction of transaction cost by a significant amount most banks were able to provide an effective and profitable service to its customers by fulfilling their needs beyond their expectations. E-banking helps Sri Lankans to full fill their banking requirements without visiting a bank physically with the help of various delivery channels.
According to Joghee (2017), digital banking platforms lead to retain and maintain a profitable customer base in a long-term and digital banking has become the critical key success factor which will decide the overall banking performance, efficiency and the profitability. However, in Sri Lankan context, it could be unfamiliar experience for certain customer segment due to lack of human interaction and the lack of technical knowledge of customers.
This study will carrying out an analytical assessment on standard of digital banking services quality in Sri Lanka. Further service quality dimensions introduced by Parasuraman et. al (1998) will be use as a norm to conduct this study.

1.2 Problem Identification

Creating a digital banking platform and providing necessary infrastructure to digital platform is not an easy task for every commercial banks of Sri Lanka. Meeting customer expectations with unreliable systems, poor systems, poor performance level in transaction processing time, high complexity may distract customers from digital banking services (Kofi at al, 2012).
Further, failing to identify customer needs, unable to manage high transaction volumes and various limitation in digital platform (I.e. Cheque realization, insecure internet connections etc) might cause to unnecessary distractions/deviation from digital banking concept. Hence, it is important to identify customer trends and behavioral changes towards banking sector when formulating strategies in the scope of internet banking.

1.3 Justifying the research problem

This study will discuss about the quality level to satisfying customers of the digital banking service in Sri Lanka and this study will be good guide for banking sector to gather data to make decisions to develop digital marketing plans
Further, this study will provide information on how to maintain a healthy and satisfied digital banking consumer relationship in the longer run and maintaining and creating a productive and profitable internet banking business. This study will illustrate how come digital banking helps evaluate economic development and the fields that banking industry need to explore on digital banking and suitable techniques.

1.4 Research problem

Introduction of digital banking was disruption for traditional banking sector. Since the introduction of information technology for the Sri Lankan banking system in 1998, the key challenge was to adopt to the cutting edge technology which are launched frequently in highly dynamic business environment. The another major issue was to provide suitable up-to-date products to both existing and new customer segments. Understanding, consumers financial requirement and quality level they expect, determine and meet those requirements and quality level is an essential for any bank or financial institute in long term.

1.5 Objectives of the research

1.5.1 Primary objectives

Defining key aspects which affecting with the E-banking consumer’s satisfaction and creating policies to reduce the gap between the expected and the actual level of customer satisfaction.

1.5.2 Specific Objectives

 Identify and assess the current level of customer satisfaction on e-banking
 Critical assessment of the key variables contributing to e-banking
 Evaluating the demographic aspects on overall customer satisfaction