An empirical investigation of the factors affecting customers towards e-banking adoption in the Nigerian banking sector

The advancement in information technologies is changing the face of offering service in thebusiness environment. Such advances encourage banks to invest in the new technologies (ebanking)to offer up-to-date service that goes beyond traditional service to their customers. Despitehuge investments by the Nigeria banks, the level of adoption of e-banking service is still low. Thisresearch focuses on the Nigeria Banking Sector by investigating the factors that affect electronicbanking (e-banking) adoption in Nigeria using 14 constructs of the Technology Acceptance Model(TAM), Diffusion of Innovation Theory (DIT) and Demographic related factors. The researchtaking this approach in developing countries such as Nigeria is scarce. By using the TAM-DITframework and demographic variables, this thesis therefore aimed to understand the factorsinfluencing banking customers towards the adoption of e-banking products and services. Aconvergence parallel mixed-method research design was employed, where quantitative andqualitative research approach were blended to achieve the objectives of the research. In the firstphase of the study, a survey questionnaire of 176 banks customers of Guaranteed Trust Bank andFirst City Monument Bank in Nigeria were analysed using T-Test Statistic, Regression andCorrelation Analysis. The second part which involves the qualitative study (semi-structuredinterviews) involving 10 customers of the two banks analysed by thematic content analysis.The research findings from the mixed-method approach revealed that perceivedadvantage/perceived usefulness, the complexity of use/perceived ease of use, the cost of e-banking,security and risk were factors that affect customers' attitude to adopt e-banking. Additionally,deficiencies in information technology infrastructure and lack of e-banking regulation policiesstand out as factors that hinder e-banking development in Nigeria. The result also found alldemographic variables marital status, educational level, occupation, income, religion and cultureexcept gender and age as significant influencing factors determining customers' e-banking adoptionin the Nigerian banking sector. Furthermore, ATM, internet banking and mobile banking werefound to be the most utilised e-banking channels in Nigeria. These research findings have greatimplications for banking institutions in terms of formulating effective e-banking strategies.Particularly, it offers insights for banking organisations, practitioners and the Nigerian banks'policy maker (Central Bank of Nigeria) when formulating e-banking adoption strategies. This studycontributes to the literature on e-banking practices using TAM-DIT and demographic variables.This is an area where studies have not been sufficiently researched and where there have beenlimited findings on factors influencing customers’ attitude towards e-banking adoption. It alsocontributes by providing a better understanding of the fragmented findings on factors affectingcustomers towards e-banking adoption, particularly in response to the calls for research ondemographic factors. Moreover, the study contributes by developing a multi-perspective e-bankingmodel that can inform future research and help the wider body of knowledge that inform bankmanagement, bank stakeholders and e-banking practitioners in Nigeria. In addition, it can help tounderstand the influences that can causes e-banking resistance in Nigeria and other developingcountries. Finally, it provides e-banking adoption strategies that can help boost the level of ebankingusage in the country.