Research Project: Analyzing Popularity of Sri Lankan Government Banks

This research project investigates the reasons behind the lack of popularity of government banks in Sri Lanka compared to their private counterparts. It examines the research problem by analyzing the evolving needs of customers in the digital age and the challenges faced by government banks in adapting to these changes. The study aims to evaluate why government banks are less popular, compare their services with private banks, and recommend strategies for improvement. A comprehensive literature review explores factors such as customer expectations, the impact of digital services, and the advantages offered by private banks. The research highlights the significance of the issue in the context of Sri Lanka, where the use of digital services is increasing rapidly. The project's practical value lies in providing insights for government banks to innovate and improve their services to attract more customers. The research suggests that government banks should adopt digital channels, enhance services in both rural and urban areas, and offer competitive returns to meet customer expectations. The project concludes by emphasizing the importance of adapting to digital trends and providing convenient services to remain competitive in the banking sector.

Research methods
Why government banks of Sri Lanka can’t be popular among their customers?
4/2/2019

Research methods 1
Contents
Introduction......................................................................................................................................2
Research problem............................................................................................................................2
Research aim and objectives............................................................................................................3
Research question........................................................................................................................3
Literature review..............................................................................................................................3
Significance and innovation, and practical value............................................................................6
Research significance..................................................................................................................6
References........................................................................................................................................8

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Introduction
In the current environment, the competition among the companies is fierce which is clear with
the emergence of globalisation. The rise in competition is also witnessed in the banking sector
with the rise in the private bank sector. The research will be conducted on the topic that is why
government banks of Sri Lanka cannot get the popularity among their customers. This is a real
world proper, which will be witnessed in the report. In the digital era, the new players in the
market have multiplied the challenges at the same pace as the opportunities. The research is
conducted to develop the understanding of the topic to bring the improvement in the operations
of the government banks comparing it with the private banks. The research includes the opinions
of the difference researcher on the selected topic (Taylor, Bogdan and DeVault, 2015).
Research problem
In the digital age, the operations of the banks are changing with the changes in the needs of the
customers that are present in the market. In Sri Lanka, the banking industry is experiencing a
major transformation within the institutions adapting their structures with the motive to keep up
to date with the changes and requirement from the public. In the real world, private banks are
becoming popular as they offer attractive and effective services to the customers that are present
in the market (Saks and Allsop, 2012). The problem is that the financial institutes have been
challenged with the motive to accomplish the sustainable as well as socially responsible goals
with the motive to form the strong relationship in the environment where the company operate its
business operations.

Research methods 3
Research aim and objectives
The aim of the research is to evaluate why government banks of Sri Lanka cannot be popular
among their customers comparing it with the private banks. The researcher has prepared the
research objectives with the motive to accomplish the aim of research. These objectives are
given below -
 To evaluate the reason due to which the government banks of Sri Lanka are not popular
among their customers.
 The comparison of the government banks with the private banks of Sri Lanka in terms of
the services
 Recommendations for the strategies that should be implemented by government banks for
improving the popularity among their customers
Research question
 Why government banks of Sri Lanka can’t be popular among their customers?
 What are differences among the government and private banks of Sri Lanka in terms of
the services?
 What are strategies that are required to implement by the government banks with the
motive to improve the popularity among the customers?
Literature review
According to the Yapa, Ukwatte Jalathge & Siriwardhane, 2017, in the past few decades, this has
been seen that the customers in the market are becoming more discerning which leads to their
expectations as well as their demand that are changing on the frequent basis. In the digital age,

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the customers generally expect higher returns based on their expectations as well as the demands
are changing (Watson, Corliss & Le, 2018). Most of the customers predict for the high returns to
be received on the deposits as well as for improving the conveniences for the advances and
innovative collection of the services that enhance the effective use of technology (Brennen &
Kreiss, 2016). The government banks are lacking in meeting the needs of the customers due to
which the government banks of Sri Lanka cannot be popular among the customers (Hagberg,
Sundstrom & Egels-Zandén, 2016).
Agreeing to this, Bandara, 2016 stated that in the rural areas, the informal funding channels are
continuing with the motive to hold sway because of their low cost. These low costs affect
government operations in adopting the technology that will help them in meeting the needs of the
customers (Joshi & Parihar, 2017). In addition to this, the government bank of Sri Lanka is not
able to offer high returns to them that reduce the popularity of the bank.
Contrasting the operation of government bank with private banks, the private banks are more
popular while comparing it with the government banks (Maixé-Altés, 2019). The private banks
in the market offer effective returns as well as improved offers due to which they are able to
attract the customers. In addition to this, the services offered by private banks are better than the
government banks. For example; People bank, one of the private banks in Sri Lanka places an
improved value on the digitalisation as it has the different digital channels through which they
can extend their reach (Fernando, 2017). This has been found that bank is able to deal with the
challenge because of extended service portfolio which includes self-banking units, kiosks for
transfer of money, cash transfer through mobile, ATM machines and 24/7 services. This has
been found that, central bank of Sri Lanka are not able to provide digital extended services due to
which they remained less popular while comparing it with the private banks. This shows the

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major differences that take place among the service offering of private as well as the government
banks (Corporate Finance, 2018).
Agreeing to this, Central Bank of Sri Lanka, 2018 stated that private banks in Sri Lanka are able
to attract the customers in the market. This is evident with the Commercial Bank of Ceylon; the
bank won the top four awards that include the Best private sector bank in the year 2016 in Sri
Lanka. The bank is considered as the most awarded bank as it has received for different
categories that include Best in CSR practices, Best in Brand excellence in financial as well as
banking services and also Best Sustainable bank in Sri Lanka (Commercial Bank, 2018). Thus,
this shows that the services, which are offered by the private banks, meet the needs that attract
the customers.
According to the Evdokimova, Shinkareva, & Bondarenko, 2019, the world is moving towards
the environment of the digital services but it does not move with the times that will be left
behind. It is suggested to the government banks to bring the new digital channels that include the
services like the cash deposits, withdrawals, inquiries, bill payments, as well as many others
(Pousttchi & Dehnert, 2018). In addition to this, the government banks need to make use of
effective machines that support in a scan of the person's identity documents as well as also take
the digital signatures with the motive to capture the customer’s photographs and the first stage of
the digital banking journey of the bank. In addition to this, the government banks should improve
the services at every rural and urban area for which the government need to raise the funds
(Kotarba, 2017).

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Significance and innovation, and practical value
Research significance
The research is important to be a concern as it provides a deep insight into the atmosphere of the
market. It has been found that the significance of the issue talk about the popularity of the
government banks among the customers in the context of Sri Lanka. This is possible because of
the increase in the use of digital services. In the year, 2016 alone internet, as well as mobile
banking, are increasing by 75% in Sri Lanka which indicates that the people, as well as business,
are making use of new tools and facilities at the emerging pace (Fernando, 2017). This shows the
emergence of digitalisation with the extent of digital issues that has enhanced the problems for
the existing government banks. Further, this has been found that the rise in the use of these
services by the customers leads to the issue for the other banks. The customers are giving
attention to the private banks who are offering digitalise services (Litosseliti, 2018).
It has been found that this research is beneficial to be conducted for the readers that include the
government banks as they get to know about the change that they need to bring in their business
operations (Leedy and Ormrod, 2019). This research is important as this helps the government
banks to make use of innovative technology. The digitalisation and use of innovative technology
help the banks to perform the business operations effectively.
The implementation of effective technology in their operation is the only way through which
they can attract more of the customers towards them (Silverman, 2016). The banking will be able
to understand the problems that are faced by the people in rural as well as in urban areas. The
digitalisation of the services will offer the convenient way of borrowing options to the customers
to the daily wage earners who remain lacking in the securing as well as in required credential

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with the motive to borrow the amount from the government banks. Thus, this shows that the
research has practical value in the lives of people living in Sri Lanka (Quinlan, Babin, Carr &
Griffin, 2019).

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References
Bandara, H. H. (2016). Digital Banking: Enhancing Customer Value. In 28th Anniversary
Convention (pp. 123-133).
Brennen, J. S., & Kreiss, D. (2016). Digitalization. The international encyclopedia of
communication theory and philosophy, 1-11.
Central Bank of Sri Lanka. (2018). Licensed Commercial Banks. Retrieved from:
https://www.cbsl.gov.lk/en/authorized-financial-institutions/licensed-commercial-banks
Commercial Bank. (2018). Achievements. Retrieved from:
https://www.combank.lk/newweb/en/about-us/achievements/best-private-sector-bank-in-
sri-lanka
Corporate Finance. (2018). Top Banks in Sri Lanka. Retrieved from:
https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-sri-lanka/
Evdokimova, Y., Shinkareva, O., & Bondarenko, A. (2019, January). Digital banks:
development trends. In 2nd International Scientific conference on New Industrialization:
Global, national, regional dimension (SICNI 2018). Atlantis Press.
Fernando, H. (2017). Sri Lankan banks embrace digital transformation. Retrieved from:
https://www.worldfinance.com/banking/sri-lankan-banks-embrace-digital-transformation
Hagberg, J., Sundstrom, M., & Egels-Zandén, N. (2016). The digitalization of retailing: an
exploratory framework. International Journal of Retail & Distribution
Management, 44(7), 694-712.

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Joshi, D., & Parihar, S. (2017). Digitalization & Customer Perception towards Banking
Services. Aweshkar Research Journal, 23(2), 133-141.
Kotarba, M. (2017). Measuring digitalization–key metrics. Foundations of Management, 9(1),
123-138.
Leedy, P.D. and Ormrod, J.E. (2019). Practical Research: Planning and Design, (12th edition),
Pearson.
Litosseliti, L. (Ed.). (2018). Research methods in linguistics. Bloomsbury Publishing.
Maixé-Altés, J. C. (2019). The Digitalization of Banking: A New Perspective from the European
Savings Banks Industry before the Internet. Enterprise & Society, 1-40.
Pousttchi, K., & Dehnert, M. (2018). Exploring the digitalization impact on consumer decision-
making in retail banking. Electronic Markets, 28(3), 265-286.
Quinlan, C., Babin, B., Carr, J., & Griffin, M. (2019). Business research methods. South Western
Cengage.
Saks, M. and Allsop, J. eds. (2012). Researching health: Qualitative, quantitative and mixed
methods. California: Sage.
Silverman, D. ed. (2016). Qualitative research. California: Sage.
Taylor, S.J., Bogdan, R. and DeVault, M. (2015) Introduction to qualitative research methods: A
guidebook and resource. New Jersey: John Wiley & Sons.
Watson, T., Corliss, M., & Le, M. (2018). Digitalisation and women's workforce participation in
the Indo-Pacific. Australian Journal of Labour Economics, 21(1), 45.

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Yapa, P. W., Ukwatte Jalathge, S. L., & Siriwardhane, P. (2017). The professionalisation of
auditing in less developed countries: the case of Sri Lanka. Managerial Auditing
Journal, 32(4/5), 500-523.