The innofusion of electronic banking in Sri Lanka: A comparative study between public and private sector banks

This research study attempted to examine the innofusion of Electronic Banking in Public and private sector Banks in Sri Lanka as a comparative study. Since the Banking sector is considered as the first movers in the diffusion of innovations, two Public sector and two Private sector Banks which have been transformed from conventional banking to electronic banking are considered in the current study for the investigation. Qualitative Case study methodology has been followed and the findings show that the Public sector Banks were the innovators and early adopters in Electronic banking in Sri Lanka in the transition period and at present, the Private sector Banks are the leaders in the E-Banking as well as their trend in innofusion is speeder than the Public Sector Banks. However all of these banks have been enjoying the major innovations in electronic banking. Though one of the Public sector Banks was a pioneer in the adoption of new innovations among the banking industry, it was unable to be the leader in innofusion due to the large multiple customer bases and abide the government regulation. Findings highlight that there are intra and extra organizational factors influencing the innofusion of Electronic banking in Public and Private sector Banks in Sri Lanka and it is recommended that these banks should consider these factors in their innofusion to succeed in the market and sustain the competitive advantage.