BACKGROUND OF THE STUDY

Todays fast-paced world is becoming increasingly characterized by technology-facilitated transactions. Self-Service Technologies are used by many financial institutions in the Srilanka. Self-service technologies have had a large impact on retail banking. In the retail banking context, convergence of technologies has given birth to different channels of distribution like Automatic Teller machines (ATM), internet banking, and mobile banking, telephone banking, SMS banking, This enables the customer to avail the banking services at anytime and anywhere. These technological interfaces are known as technology- based selfservice (TBSS). Customers availing banking services through these TBSS get more benefits in terms of time, cost and energy. Although the kinds of service one can avail from these TBSS are similar, the patronage among the TBSS differs from traditional banking system. When we need to withdraw funds from your online banking service, we can use a debit card or a standard ATM card. Many of the cards have very similar setups as the standard and more traditional banks. Theres almost no difference between the ways we would use an online banking service card and a card from a traditional bank. Accelerating growth in technology-based self-service today is giving rise to question about acceptance of such forms of service delivery (technological readiness) by all kinds of consumers and under different situational concepts. Technology readiness is the personality traits and beliefs associated with technology usage. Parasuraman (2000) defines technology readiness as "Peoples propensity to embrace and use new technology for accomplishing goals in home life and at work". Technology readiness reflects a combination of technology-related beliefs that determine an individual's predisposition to interact with technology-based products and services. In general and later that its four constituent dimensions (optimism, innovativeness, discomfort and insecurity). Parasuraman (2000) has reported a very promising scale for use with general consumer populations, which he called the Technology Readiness Index; the index is based on four dimensions optimism and innovativeness as positive drivers of technology readiness, whereas discomfort and security would serve as inhibitors.

PROBLEM STATEMENT

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The major reason why banks implement self service technologies is to reduce the cost of service delivery and provided more convenient ways of carrying out transactions by the customer. Even though quick, speedy, accurate services provide at the minimum cost and within a shorter period of time, customers are queued at the counters for their withdrawals, deposits, bill payments and balance inquiries whenever they can do these through the Technology based self services. So if the customers are fully using the TBSS there is no need to presence of the customers except to pawning, loan, opening and closing accounts. It is showing the customers are using the advance technologies in very lower level. So there is a question arising is the people are willing to use the technology? At which level they are prefer to use the technology? So there is a question arising about the technology readiness of the customers in relation to retail banking.

Self-Service Technologies are used by many banks, even though there is a lack of literature related to the technology readiness in retail banking in Srilanka. The aim of this research is to provide insights and understanding of the Technological readiness on retail banking in the Chenkalady area. Problem statement is: Is there technology readiness in relation to retail banking in the Chenkalady area?

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RESEARCH QUESTIONS

Specific question Why the usage of technology-based self-services on retail banking is very poor, even though there are many facilities in technology-based self-service on retail banking?

General question Will the technology readiness increase on retail banking if the optimism is increase? Will the technology readiness increase on retail banking if the innovativeness is increase? Will the technology readiness increase on retail banking if the discomfort is decrease? Will the technology readiness increase on retail banking if the insecurity is minimize?

RESEARCH OBJECTIVE

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Find out the reason why the people are use the technology based self service on retail banking in very lower level, when there are many facilities enhanced in Technology Based Self Service on retail banking.

1. Find out the relationship between optimism and technology readiness on retail banking. 2. Find out the relationship between innovativeness and technology readiness on retail banking. 3. Find out the relationship between discomfort and technology readiness on retail banking. 4. Find out the relationship between insecurity and technology readiness on retail banking. 5. Find out whether there is the age difference of customers is affecting the technology readiness on retail banking. 6. Find out whether the gender of customers is affecting the technology readiness on retail banking. 7. Find out whether the civil status of customers is affecting the technology readiness on retail banking. 8. Find out whether the ethnicity of customers is affecting the technology readiness on retail banking. 9. Find out whether the level of education of customers is affecting the technology readiness on retail banking. 10. Find out whether the occupation of customers is affecting the technology readiness on retail banking. 11. Find out whether the income of customers is affecting the technology readiness on retail banking. 12. Find out whether the residence of customers is affecting the technology readiness on retail banking.

HYPOTHESIS

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1. Is there any positive relationship between optimism and technology readiness on retail banking? 2. Is there any positive relationship between innovativeness and technology readiness on retail banking? 3. Is there any negative relationship between discomfort and technology readiness on retail banking? 4. Is there any negative relationship between insecurity and technology readiness on retail banking? 5. Is there any difference between age group in technology readiness on retail banking? 6. Is there any difference between among gender in technology readiness on retail banking? 7. Is there any difference between among civil status in technology readiness on retail banking? 8. Is there any difference between among ethnicity in technology readiness on retail banking? 9. Is there any difference between among level of education in technology readiness on retail banking? 10. Is there any difference between among customer occupation in technology readiness on retail banking? 11. Is there any difference between customers incomes in technology readiness on retail banking? 12. Is there any difference between residence areas in technology readiness on retail banking?

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