User Acceptability and Usability of Internet Banking In Nigeria: Case Study Of Zenith Bank Plc

ABSTRACT

This study examines the acceptability and usability of Internet banking in Nigeria. One outstanding bank out of the twenty five (25) on-line banks that retained their brand names after the consolidation was studied in terms of factors affecting its online banking users’ acceptability and usability of its services and products.

           The model used is a slight modification of the theory of Technology Acceptance Model (TAM) as proposed by Diniz in 1998, with an additional factor such as security and privacy, risk, and trust, Socioeconomic /Psychological factors as well as Operational infrastructure.

            This research adopted a quantitative technique and the research design adopted was the descriptive statistics while the research instrument used is the questionnaire which was designed and distributed to 100 respondents using the online survey method. However, this research focused only on two variables- dependent (The user acceptability and usability of Internet banking in Nigeria), and the independent (which are the influencing factors such as Perceived usefulness, perceived ease of use, security and privacy, risk, and trust, Socioeconomic /Psychological factors and Operational infrastructure).

            However, the results revealed that Internet Banking in Nigeria is being offered at the BASIC level of interaction in all the 25 banks in Nigeria. It was discovered that ATM & Banking hall were the most dominant banking channels.

            The studiers also discovered that the number of those that does not use online banking equals those that use it. Also that majority of respondents uses online banking services frequently and mostly for balance enquiry and printing of mini statements.

            It was also identified that slow/unreliable internet connections, inadequate power supply & poor security are the major Psychological factors as well as Operational infrastructural factors and other factors such as Level of fraud, threats of Hackers and fraudsters as well as scared of loosing personal bank account information, as the major inhibiting factors to internet banking. 

            The findings revealed that age has some negative impact of the internet banking usability and acceptance, while computer skills have no strong influence on its usability and acceptance. Also, that internet banking usability does not really require users’ expertise in computer ability, but rather requires just some basic skills of computing or rudimentary computer knowledge.

            From the findings of this report, we were able to come up with some recommendations which were: for the Nigerian government to help in reducing the cost of interconnectivity and general Information and Communication Technology (ICT) access. A promulgation and objective enforcement of necessary electronic banking laws and policies in line with international standards to curb the rising menace of cyber crimes and threats. Also that Banks should put in place procedures for maintaining and updating their websites, including the various security features and key ingredients of Internet banking which includes confidentiality, integrity, availability and effective communication.

            Finally, we further suggested that the Nigerian government, in collaboration with the banks, should educate and inform its citizens and customers on the workability and effectiveness of Internet banking In Nigeria.

 

 

 

TABLE OF CONTENT

 

 

Declaration

Acknowledgement

Abstract

Contents

List of Tables

List of Figures

List of Appendices

                                                                                                                         

 

Chapter 1 - INTRODUCTION             

1.1       Introduction………………………………………………………...........    01 – 02

1.1.1     Acceptability………………………………………………………………02 – 03

1.1.2     Usability…………………………………………………………………….03 – 04

1.1.3     Advantages of e-Banking………………………………………………..04 – 05

1.1.4     Disadvantages of e-Banking…………………………………………….05 - 06

1.2      Background of Research………………………………………………   06 - 07

1.3         Research problem………………………………………………………...07 - 09           

1.4         Research Questions……………………………………………………...09                   

1.5         Aim of research……………………………………………………...........10

1.6         Objectives Research……………………………………………………..10

1.7         Research framework……………………………………………………..10 - 11

1.8         Importance of research…………………………………………………..11 - 12

1.9         Limitations of research…………………………………………………..12

1.9.1     Location……………………………………………………………………12

1.9.2     Sample Size……………………………………………………………………..12

1.10      Scope of research………………………………………………………..12

1.11      Organization of research………………………………………………..13

 

 

CHAPTER 2- LITERATURE REVIEW  

2.1.        Introduction…………………………………………………………………15 – 18

2.1.1     user acceptability and usability of internet banking………………........18

2.1.2     Demographic, socioeconomic/psychological

factors influencing Usability and Acceptability …………………………18

2.1.3   Demographics………………………………………………………………19

2.2         Review of Technology Acceptance Model (TAM)………………………19 - 21

2.2.1.   Perceived usefulness (PU) and perceived ease of use (PEOU)……...20

2.2.2.   Perceived enjoyment………………………………………………….........20

2.2.3.   Amount of information on online banking……………………………….21

2.2.4.   Quality of Internet Connection…………………………………………….21

2.3.        Review of e-Banking Services Provided by Nigerian Banks…………..21 - 26

2.4              Theoretical Framework……………………………………………………..27

2.4.1        Perceived Usefulness………………………………………………...........27

2.4.2        Perceived Ease of Use…………………………………………………….28     

2.4.3        Security, Risk and privacy…………………………………………............28 - 30

2.4.4        Trust………………………………………………………………………….30

2.4.5        Socioeconomic/ Psychological factors…………………………………..30 - 31

2.4.6        Operational infrastructure………………………………………………….31

 

 

CHAPTER 3 - METHODOLOGY:

3.1         Introduction……………………………………………………………….33                    

3.2         Research Approach……………………………………………………...33 - 34

3.3         Research Design…………………………………………………….......34

3.4           Research Instrument…………………………………………………….34

3.4.1     Design  of Survey Questionnaires……………………………………..35

3.4.2     Measuring Instruments………………………………………………….36

3.5         Data Collection Methodology……………………………………….......36 - 37

3.6         Population………………………………………………………………...37

3.7         Sampling………………………………………………………………….37 - 38

3.8         Estimating Population Sample Size…………………………………...38

3.9         Data Analysis Methodology…………………………………………….38 - 39

3.10      Summary and   Conclusion……………………………………………..39

 

CHAPTER 4 - DATA ANALYSES:

4.1         Introduction……………………………………………………………………….41

4.2         Background information of Respondents…………………………………….41 - 44

4.3         Analysis of Data……………………………………………………....................44 - 58

4.4         Summary of data analysis findings…………………………………………...59 – 62

4.5         Conclusion and Summary……………………………………………………..63

 

 

CHAPTER 5 - FINDINGS AND CONCLUSION:

5.1           Introduction…………………………………………………………………...65

5.2           Review of Research…………………………………………………………65 – 66

5.3           Discussion of Findings and Recommendations………………………...66 - 67

5.4           Recommendation……………………………………………………………67 - 68

5.5           Recommendation for Further Research………………………………….68 - 69

5.6           Conclusion…………………………………………………………………...69

 

 

REFERENCES

 

APPENDIX

 

 

List of Tables:

Table 1 - 5: Review of Electronic Banking Products and Services in Nigeria

Table 6: Online Banking Usability & Mostly used locations

Table 7: Correlation between Demography & Internet Banking Usage

Table 8 & 9: Correlations between socioeconomic characteristics influencing user acceptance of internet banking in Nigeria.

Table 10 & 11: Correlation between Psychological/Operational & Infrastructural factors influencing user acceptance of internet banking in Nigeria.

Table 12 - 15: Summary of data analysis & findings.

 

 

List of Figures:

Figure 1:  Proposed Research model

Figure 2:  Proposed Research’s Framework

Figure 3: Age of Respondents

Figure 4: Educational level of Respondents

Figure 5: Occupations of Respondents

Figure 6: Various Banking Channels Mostly Used by Respondents

Figure 7: Internet banking products/services Mostly Used by Respondents

Figure 8: Socioeconomic/Psychological, Operational & infrastructural Factors influencing online banking Usage in Nigeria.

Figure 9: Relationship between Online Banking usage & Respondents’ Level of Education.

Figure 10: Relationship between Online Banking usage & Respondents’ Occupation.

Figure 11: Relationship between Online Banking usage & Respondents’ Computer Usage Ability.

Figure 12: Influence of Age group on Internet Banking Usability & Acceptability

Figure 13:  Showing Relationship between Online Banking usage & Computer Ability

Figure 14:  Showing Influence of Age group to Computer Usability & Acceptability

 

 

List of Appendixes:

Appendix A: Research Questionnaire

Appendix B - E: Descriptive Statistics Table

Appendix F:  Literature review Form.