Adoption of Social Media for the Banking Sector in Sri Lanka
Despite social media having a remarkable success in many parts of the world in different contexts such as promoting brands to changing state leaders, the adoption by the banking sector to provide financial services remains relatively low across many parts
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Management and Science University (MSU), Shah Alam, Malaysia [email protected] Universiti Tunku Abdul Rahman (UTAR), Petaling Jaya, Malaysia [email protected]
Abstract. Despite social media having a remarkable success in many parts of the world in different contexts such as promoting brands to changing state leaders, the adoption by the banking sector to provide financial services remains relatively low across many parts of the world. Many banking customers are still reluctant to consume financial services via social media. In fact, how banks should adopt social media still remains unan‐ swered, possibly due to the fluidity of social media compared to the rigidness of the banking sector. The aim of this paper is to devise a framework to better understand the determinants of social media adoption among the banking sector based on the Technology Acceptance Model (TAM). Keywords: Social media · Virtual worlds · Financial sector · Banking sector
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Introduction
A new revolution has started, covering bricks and mortar to online retailers, schools to board rooms, and already shaken some governments in the making. This phenomenon is driven by revolutionizing the way we interact and is known as “Social Media”. Armed with tools of Social media, people are taking communications and interactions to a whole new level. The Social media has been widely adopted by many across the globe and it continues to grow until now. For example, Facebook (a widely used and very popular social media web site) in May 2013 exceeded 1.11 billion monthly active users, and daily active users passed 665 million [1]. To put this number in perspective, if Facebook were a country, it would be the third largest in the world tailing behind China and India. In the near future businesses will not have a choice on whether to go for social media, but it’s how well they go about doing it. Traditionally, banks have been slow to adopt change; and their existence predomi‐ nantly has been through physical branches. Financial industry has been a risk averse industry by nature, and coupled with tight regulations and compliance requirements the social media adoption has been low [2]. However, the trends are changing and the financial services sector has realized that the technology platforms have improved thus © IFIP International Federation for Information Processing 2016 Published by Springer International Publishing Switzerland 2016. All Rights Reserved D. Kreps et al. (Eds.): HCC12 2016, IFIP AICT 474, pp. 166–177, 2016. DOI: 10.1007/978-3-319-44805-3_14
Adoption of Social Media for the Banking Sector in Sri Lanka
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providing better reliability and trust, and awareness among employees and employers have also increased and they have realized that there is a tremendous potential in social media for the financial sector if they get it right [3]. Effectively, social media usage is of prime importance to the organizations today to stay competitive and stay relevant. This could be of special importance to the banking sector, as social media could be use
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