An Investigation of Psychological Factors Determining Credit Card Usage among Young Professionals: Insights from the Banking Sector in Sri Lanka

Abstract

Aims: This study aims to investigate the psychological factors that determine the credit card usage of young banking professionals in Sri Lanka, addressing a critical gap in the literature. Study Design: This is a quantitative study utilizing Partial Least Square – Structural Equation Modelling (PLS-SEM). Place and Duration of Study: The study was conducted among young banking professionals in Sri Lanka. Data collection took place over a specified period (please insert the exact dates if available). Methodology: The study employed a web-based structured questionnaire with responses from 384 young bankers. The questionnaire used a five-point Likert scale ranging from 1 (Strongly disagree) to 5 (Strongly agree). The analysis focused on the relationships and magnitudes among the dependent variable (Credit Card Usage) and independent constructs (Attitude, Convenience, Financial Optimism, Social Status, and Usage Patterns). Results: The analysis revealed a positive relationship between Credit Card Usage and the independent constructs. Convenience was found to have the most influential effect on credit card usage among young professional bankers in Sri Lanka. The findings provide valuable insights for financial institutions in shaping their credit card facilities and services specifically for banking professionals. Conclusion: This study offers significant implications for financial institutions in Sri Lanka. However, the focus on young banking professionals limits the generalizability of the findings to the wider community. Future studies should explore different professional groups to identify psychological insights from various professional demographics in Sri Lanka.