Comparative Study on Customer Experience in Digital Banking and Physical Banking in Sri Lanka: A Special Reference to Sri Lankan Commercial Banks

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With the increasing adoption of digital banking in Sri Lanka, the convenience and accessibility of online platforms have transformed how customers manage their financial activities. However, customer experiences across digital banking channels may vary considerably from those in traditional, physical bank branches. This study aims to explore the customer experience within Sri Lankan commercial banks, focusing on both digital and physical banking channels. The key research problem involves understanding customer performances and expectations while evaluating the effectiveness of these banking channels. This research seeks to provide actionable insights for the improvement of service delivery. The study specifically investigates customer experiences in terms of perceived ease of use, efficiency, control, and security, while considering the consistency of service quality and the emotional responses of the customers. The primary objectives are to compare the customer experience in digital verses physical banking channels, and to assess the influence of demographic factors, such as age, gender, income, marital status, province, and employment sector, on the choice of banking channels. A comparative quantitative analysis was conducted, utilizing demographic factors and customer variables drawn from existing literature. Two models were developed to analyse customer preferences: one for digital banking and one for physical branch banking, with outcomes categorized as ‘indifferent’, ‘prefer digital’, or ‘prefer both’. The hypotheses were tested using probit regression analysis. The findings revealed that level of education significantly affects the performance for digital banking, with perceived control and security being critical factors influencing digital banking experiences. For physical bank branches, customer age, education level, and income were found to be significant predictors of preference. Based on the analysis, this study provides policy recommendations aimed at enhancing customer experience and satisfaction in Sri Lanka commercial banks by aligning service delivery with customer expectations across both banking platforms.