Impact of Technology Readiness in Digital Banking Adoption and Role of Mediating Effect of Behavioral Intention: A Study of Commercial Banking Customers of Sri Lanka

The landscape of digital banking in Sri Lanka has rapidly changed in the last several years, with a wide range of financial institutions offering their clients online and mobile banking choices. Even though digital banking is becoming more popular, less is known about how it is used in underdeveloped nations like Sri Lanka. This study explores the influence of Tech-nology Readiness (TR) and the mediating effect of Behavioral Intention (BI) on Actual Us-age (AU) of digital banking services as it relates to Sri Lanka's adoption of digital banking. Online data collection from 172 users revealed that Sri Lankan commercial bank clients use digital banking at a medium level. Significantly, there is a positive relationship between Ac-tual Usage and Technology Readiness. When Behavioral Intention moderates the association between Technology Readiness and Actual Usage, Technology Readiness is no longer a reliable indicator of Actual Usage. Moreover, the results of the Sobel test indicate that Be-havioral Intention is not a substantial mediator of this association. Subsequent investigation, however, indicates that Behavioral Intention strongly moderates the link between Innova-tiveness (IN) and Actual Usage (AU) and Optimism (OP) and Actual Usage (AU) (i.e. Driv-ers). But Behavioral Intention is not a substantial mediator for Insecurity (IS) and Discom-fort (DI), i.e., Inhibitors. This study adds by offering evidence in a novel situation, and its findings broaden the body of knowledge by illuminating the factors that influence consum-ers' intentions to use digital banking.