INTERNET BANKING AND ADOPTION OF STUDENTS: A CASE OF NATIONAL OPEN UNIVERSITY OF NIGERIA, MAIDUGURI STUDY CENTRE

Internet banking is a great innovative financial service which is less expensive, provides the flexibility of time and space, and have brilliant customer service experience. Commercial banks around the world are offering internet banking to customers to leverage on its advantages. However, these services remain underutilized by their customers, particularly in developing countries like Nigeria. Several studies have explored factors influencing technology adoption. But a comprehensive analysis within the context of the Unified Theory of Acceptance and Use of Technology (UTAUT) specific to internet banking remains underexplored. Furthermore, most of the research focuses on specific aspects, such as security or usability, without integrating a holistic view encompassing performance expectancy, effort expectancy, social influence, facilitating conditions, behavioral intention, and actual usage behavior. This study investigates the factors influencing the adoption of internet banking among students at the National Open University of Nigeria, Maiduguri Study Centre, employing the Unified Theory of Acceptance and Use of Technology (UTAUT) Model. The study adopted a survey design, and the population consists of 944 registered students at the Maiduguri Study Centre. A sample size of 282 was determined using the Yamani formula, and simple random sampling was employed to select participants. The data was analyzed using both descriptive and inferential statistics techniques using Statistical Package for Social Science (SPSS). Findings from the study revealed that users believe that internet banking enhances their financial management effectiveness and efficiency. They find internet banking easy to use, but the relationship between effort expectancy and adoption is not significant. Users feel influenced by important individuals and their friends or family to use internet banking services. They also believe they have the necessary resources and skills for effective internet banking. Age is not a significant predictor of perceived use behavior. Gender, experience, performance expectancy, social influence, and facilitating conditions positively influence perceived use behavior. Effort expectancy does not significantly impact perceived use behavior. The overall model explains a significant portion of the variance in perceived use behavior (R² = 0.476), with a good fit (Adjusted R² = 0.462). The standard error of the estimate is 0.618. The study recommends financial institutions to provide user-friendly guides, customer support, and tools to enhance facilitating conditions and remove any barriers to usage.