Understanding the factors that influence user adoption of e-banking services in developing countries (a case study of Nigeria)

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Date

2015

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University of New Brunswick

Abstract

This study examines the factors that influence user adoption of e-banking services in Nigeria. The questions this study hoped to answer involved whether there are significant differences between adopters and non-adopters of e-banking with respect to gender, tribe, age, income, education level area of residence, salary payment method and internet literacy level and with respect to their perceptions towards e-banking security, awareness, ease of use, privacy and trust. Primary data were collected from using a self-administered questionnaire uploaded online for voluntary respondents within Nigeria. The data obtained were analyzed using frequencies, percentages, chi-squared tests, and independent t-tests. Findings revealed that gender, tribe, age, education level area of residence, internet literacy and e-banking awareness had significant effects in influencing user adoption of e-banking while income level sector of employment and method of payment had no significant effect on customer adoption of e-banking in Nigeria. Also, based on respondents' perceptions towards e-banking, the conclusion is that there is a significant difference between adopters and non-adopters with respect to their perception towards e-banking security, e-banking privacy, ease of use and trust in the Nigerian e-banking system. Finally, as a result of the findings, the researcher recommends that Nigerian banks incorporate biometric authentication into their e-banking system to enhance security.

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