An Empirical Assessment of Customers’ Intention to Use Internet Banking In Nigeria.

Abstract

This study investigated how customers perceived and behaviourally intended to use Internet Banking (IB) in Nigeria. Since the consolidation of the banking industry in Nigeria, it has become imperative for them to be able to survive. This led them to introduce internet and electronic banking in order to serve their customers efficiently, to make banking easier for them and also to gain competitive advantage in the industry. This sustainable competitive advantage can lead to the enhancement of industrial development that can bring about global partnership for development which is one of the pivotal goals of the Millennium Development Goals (MDGs). Subjects for this study were three hundred and thirty-five bank customers in Oyo town, Oyo state, Nigeria. Three hypotheses were tested and the findings of the study revealed that perceived usefulness significantly predicted intention to use internet banking. The result also revealed that perceived web security had a direct relationship with intention to use internet banking. Furthermore, the result also showed that customers’ attitude had a positive effect on intention to use internet banking. Based on the findings of this study, it was recommended among others that bankers should improve the security features of their systems and stress their system security and the precaution functions they have implemented so that they can reassure their customers that internet banking is a safe mode of transaction.

Keywords: internet banking, intention to use IB, perceived use, customer attitude, perceived web security, Nigeria, banks.