DETERMINANTS OF INTERNET BANKING ADOPTION IN NIGERIA: CASE STUDY OF UNION BANK OF NIGERIA
Abstract
The general purpose of the study was to assess the determinants of the adoption of internet banking in Nigeria, a case of Union Bank, Nigeria. The study was conducted through the use of a descriptive research design, quantitative and qualitative research techniques were used to obtain information. The target population for the study comprised of 3700 corporate account holders from Union Bank of Nigeria, which consist of 2000 corporate customers. Data was collected from the respondents and the collected data was numbered, edited and entered in to the system so as to be run through the use of Statistical Package for Social Sciences (SPSS). The researcher then used descriptive statistics technique to the data collected, the analyzed data was then presented through the use of tables and charts that showed the different percentages and frequencies of the data. The findings on the Culture, and customer perceptions of internet banking usage indicated that most customers are not influenced much by culture. Among all the variables used culture was the weakest psychological determinant in respect to internet banking adoption but still played a key role and cannot be ignored. The findings on the resources and rewards of internet banking services indicate that banks should create awareness on the benefits of using internet banking. Customers can have easy access to the global markets, reducing the costs banking, save time and improve banking services was important to them. The automation of banking services and user friendly tools for managing the customers’ funds give the latter increased comfort in time management. The findings on the privacy and security of internet banking services indicated that customers do not trust banks to secure their personal information and this is a big inherence in the adoption of internet banking. Lack of trust among the respondents on financial institutions was a significant issue that prevents customers from internet banking acceptance. The study revealed that banks should capitalize on the benefits that Internet banking offer as consumers tend to want value for their money and relate rewards that they get from the use of internet banking as a reason for wanting to engage in internet banking. The study revealed that the perception of security has the stronger impact on customers' attitude, which in turn influences customers' intention to use electronic banking services.
Keywords: Perceived Culture, Cost and Resource Reduction, Privacy and Security, Internet Banking Adoption
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