The main aim of this research study is to compare the Relationship Marketing Orientation (RMO) between public and private commercial banks in Sri Lanka. Thus, the findings of this study can possibly be useful to promote application of Relationship Marketing Orientation in both public and private banks in Sri Lanka. The theory of social exchange provides a theoretical base for this study. Trust, bonding, communication, shared value, empathy and reciprocity were considered as dimensions of the RMO. The data obtained from 1002 customers of Sri Lankan commercial banks were analyzed to test relevant hypotheses. The findings revealed that Relationship Marketing Orientation of private banks is significantly higher than that of public banks. In particular, in terms of individual dimensions of the RMO, Bonding, Shared Value and Empathy of the private banks seemed to be significantly higher than those of the public banks. Nevertheless, public banks were more trustworthy than private banks. Based on these findings, we have provided interesting implications and recommendations to the both private and public banks.

The study examines the relationship between credit risk and operational risk (understanding of risk management, risk identification, risk assessment and control, and risk monitoring) on risk management practices followed by private and public sector commercial banks. The cross-sectional data method was used to check the impact of risk management practices. Data was collected from the bank employees and a total of 284 respondents were finally selected for further analysis. Measurement Invariance of Composite Models analysis is used to test the quality of the measurement model for sub-samples, and multi-group analysis is used for path analysis in sub-sample through PLS-SEM. The findings of the study as the total sample show that both types of banks are managing adequate and significant risk management practices. On the other hand, sub-groups’ results show private sector banks are more momentous than public sector banks. Risk identification is significantly different at the sub-group level, which shows public sector banks are more concentrating on this type of risk. Understanding of risk management has no significant effect on both types of banks and risk assessment & control for public sector banks, and there is a difference in the risk management practices among private and public sector commercial banks.

In 21 st Century business world, services are carried out in multifaceted, competitive and rationality manner that are characterized by evolving many factors, which are often unpredictable. On-the-go banking is a product in financial sector. However, it faces serious pitfalls being it riskiness. Bank customers compete for time-saving options. On contrary, PCBs compete for marginalizing its operating costs for enhancing its revenues. On strategic tactics, PCBs targets city customers in multi-facets including offering incentives for enhanced usages of on-the-go banking. Influencing customer’s intention, attitude and behavior in banking, PCBs also offers incentive under market system along with often informational asymmetry. However, it causes exploitation. In most cases customers don’t read terms & conditions of services. They don’t save contract-copy. These weaknesses cause abuses. Customer faces hidden charges, extra fees, account hacked. Addressing the issue, Voluntary Insurance Option is proposed where PCBs will introduce it as a product of bank-services. Transferring risk away from customer will benefit both PCBs and bank-customers. This product can attract new customers who were on the brink using digital banking but just felt it was too risky. This model can facilitate the parties involved for increasing usage of on-the-go banking-services while customers can maintain optimal utility of usages.