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International Journal of Managerial Studies and Research (IJMSR)
Volume 2, Issue 9, October 2014, PP 1-13
ISSN 2349-0330 (Print) & ISSN 2349-0349 (Online)
www.arcjournals.org
©ARC Page 1
Factors Influencing Banks’ Implementation and Consumers’
Acceptance of E-Banking of Selected Commercial Banks in
Calabar, Cross River State, Nigeria
Awara, Nsobiari Festus
University of Calabar
nsoawara@yahoo.com
Anyadighibe, Joseph Amaechi
University of Calabar
janyadighibe@yahoo.com
Abstract: Globally, competition in the banking industry has become fierce, and banks are adopting
various marketing strategies to influence the consumer and his perception of their offerings. The study
examined the factors influencing banks’ implementation and consumers’ acceptance of e-banking of
selected commercial banks in Calabar, Cross River State, Nigeria. The objectives of the study were to:
investigate how customers perceive e-banking services in Calabar, identify factors influencing e-banking
implementation and acceptance in Calabar and various channels of e-banking in Calabar, Cross River of
Nigeria. 360 copies of questionnaire were administered to 300 customers and 60 staff of three banks (First
Bank Plc, Zenith Bank, United Bank for Africa) in Calabar metropolis, Cross River State, Nigeria. The
study adopted survey research design. Data were analyzed using the Ordinary Least Square (OLS) method.
The findings revealed that cost/price, infrastructure and competition influence e-banking implementation by
banking service providers. While, consumers perceived e-banking in terms of service quality and attributes
like time, financial, performance, psychological and safety/confidentiality risks. Also, security concern,
service charges, perceived ease of use, resistance to change, accessibility and awareness influence
customers' acceptance of e-banking services. Personal Computer (PC), Mobile, and Internet/online
Banking, Automated Teller Machine (ATM) and Point of Sale (POS) were the terminals for e-banking
services. The study recommended extensive training and sensitization on the features, benefits and use of e-
banking to consumers. This will create more awareness among consumers and enhance service quality to
boost confidence and consumer perception of e-banking services in Calabar metropolis and Nigeria in
general.
Keywords: Consumer, E-banking, Services, Cost, Accessibility, Security, Awareness, Infrastructure and
Competition
1. INTRODUCTION
E-banking is defined as the provision of retail and small value banking services through electronic
channels. Such products and services include deposit taking, lending, account management, the
provision of financial advice, electronic bill payment, and the provision of other electronic
payment products and services such as electronic money (Basel Committee on banking
supervision, 2003). It covers both computer and telephone banking and refers to the use of
information and communication technology by banks to provide services and manage customer
relationship more quickly and most satisfactorily (Charity-Commission, 2003 and Ovia, 2005).
Electronic Banking (e-banking) is defined as ―the use of technology to communicate instructions
and receive information from a financial institution where an account is held. This service
includes the system that enables financial institution customers, individuals or businesses to
access accounts, transact business, or obtain information on financial products and services
through a public or private network‖ (Prakash & Malik, 2008; 84 in Sanni,2009). However,
electronic banking has experienced tremendous growth in many countries especially Africa and
today it has transformed the traditional banking practice in Nigeria. Currently, electronic banking
in Nigeria has changed the way services are delivered by the banking sector to customers.
Electronic banking service, have lower operating costs, improve customer services‘ delivery,
retain customer, reduce branch traffics, and downsize the number of branch staff (Parisa, 2006 in
Sanni, 2009).
Awara, Nsobiari Festus & Anyadighibe, Joseph Amaechi
International Journal of Managerial Studies and Research (IJMSR) Page | 2
Essentially, through the use of Information and Communication Technology (ICT) banks now
employ different channels such as online banking, mobile banking and Automated Teller Machine
ATM etcto deliver their services. Report on Electronic banking system in Nigeria reveals that e-
payment machinery, especially the card technology, is presently enjoying the highest popularity in
Nigerian banking market. According to INTER SWITCH statistics, Nigeria has over 30 million
ATM card holders who conduct over 30 Billion worth of transactions on the machines every
month. Nigeria's banks operate over 9,000 ATM machines across the country's 36 states and
Federal Capital Territory.
Also, to enhance effective security measure, Nigerian banks have upgraded their ATM cards from
the magnetic stripe to the Euro-Visa-Master card standard, popularly known as EMV Technology
(www.businessdayonline.com). This latter technological device is more fraud resistant because all
the data of the customer are recorded on the chip. Hence, Electronic banking system has become
the main technology driven revolution in conducting financial transactions in Nigeria. Meanwhile,
Nigerian banks have made huge investments in telecommunication and electronic systems, users
have also been validated to accept Electronic banking system as useful and easy to use
(Ayo,Adewoye& Oni 2010). However, there are many advantages of electronic Banking. These
include convenience, not bound by operational timings, no geographical barriers and the services
can be offered at a minuscule cost. IAMAI‘s, (2006). Electronic banking has experienced
explosive growth and has transformation in the country.
1.1 Research Problem
Traditionally, the Nigerian financial system was not known for innovation during the era of
armchair banking because there were a few banks with large customer base and less competition.
Today, the case has changed as the financial system is faced with intense competition, innovation,
growth and development in information and communication technology; giving rise to electronic
banking.
E-banking is now a global phenomenon. It is a precious and influential tool for heavy
development, supporting growth, promoting innovation and enhancing competitiveness. A
physically powerful banking industry is essential in every country and can have a major effect in
supporting economic development through competent financial services sector, with huge impact
on the banking industry. Banks require developing creative solutions of how to make full use of
the new technology and provide their customers with high e-banking service quality. When
lacking face to face interaction, banks must increase the experienced e-banking service quality
among customers in order to attain and sustain competitive advantages and customer
relationships. (Aronsohn et al, 2006 in Ms. Fozia2013).
The pre consolidation era witnessed a situation of many banks with little or fewer financial
products/services. However, the consolidation exercise reduced the number of banks to 24
resulting in very stiff competition. Thus; the banks became more aggressive in service delivery,
marketing, innovation and productivity. This ushered in the introduction of series of financial
products/services in the effort to meet customers‘ demands by these banks and ensure business
continuity. The statement of the problem for this study is thus what factor influence banks
implementation and customers‘ acceptance of e-banking in Nigeria.
1.2 Objective of the Study
The objectives of this study are:
(i) To investigate customers perception of e-banking services in Calabar, Cross River
State.
(ii) To identify factors influencing e-banking acceptance inCalabar.
(iii) To identify factors influencing e-banking implementation.
(iv) To identify the various channels of e-banking.
2. LITERATURE REVIEW
2.1 The Concept of Electronic Banking
The definition of e-banking varies among researchers partially because electronic banking refers
to several types of services through which bank customers can request information and carry out
Factors Influencing Banks’ Implementation and Consumers’ Acceptance of E-Banking of Selected
Commercial Banks in Calabar, Cross River State, Nigeria
International Journal of Managerial Studies and Research (IJMSR) Page | 3
retail banking services via computer, television or mobile phones (Daniel, 1999). It is the
automated delivery of new and traditional banking products and services directly to customers
through electronic, interactive communication channels. According to Salehi and Zhila (2008), e-
banking is an electronic connection between banks and customers in order to prepare, manage and
control financial transactions.
However, a common definition of e-banking and the one adopted by this study is by the Basel
Committee Report on Banking Supervision (2003), e-banking is the provision of retail and small
value banking products and services through electronic channels.
2.2 Channels of e-banking
There has been a revolution in the Nigerian banking system with increase in the paid up capital of
banks from N2 billion to N25 billion effective from 1st of January 2006. This led to liquidation of
weak banks that could not find merger partners. The revolution brought about sweeping changes
to banking operations in Nigeria with aggressive competition among the banks. Each of the
resultants ‗mega‘ banks came up with new products, repackaged old ones and came up with more
efficient service delivery strategies. This more efficient service delivery was made possible
through investment in information and communication technology (ICT) (Sanni, 2009). This huge
investment in ICT has been the backbone of electronic banking,using several distribution
channels. It should be noted that electronic banking is a bigger platform than just banking via the
Internet. The term electronic banking can be described in many ways. In a very simple form, it
can mean the provision of information or services by a bank to its customers, via a computer,
television, telephone, or mobile phone (Daniel, 1999). Electronic banking has different types of
delivery channels: Automated Teller Machine (ATM), telephone, PC, mobile and the Internet.
2.2.1 PC Banking
Personal Computer allows a customer to use all e-banking facility at home without going to the
bank. It gives consumers a variety of services so they can move money between accounts, pay
bills, check balances, and buy and sell mutual funds, securities and also submit electronic loan
applications through PC Banking.
2.2.2 Mobile Banking
A mobile banking service is the newest service in electronic banking. Customers can check their
balance and make adjustments between accounts, account transactions, payments etc. with their
mobile phones.
2.2.3 Internet Banking (NET)
Internet is the interconnection of computer communication networks which enable the customer
to perform all the banking activities over the internet. It is the latest wave in the information
technology. The NET is changing everything, from the way of conduct commerce to the way of
distribution of information.
Several benefits of strong electronic service have also been identified to include satisfied and
retained customers, attraction of new customers, development of customer relationships,
increased sales and market shares, enhanced corporate image, reduced costs and increased profit
margins and business performance (Parasuraman et al., 2005 in MsFozia; Bauer et al., 2005).
These benefits may explain the observed increase in the level of technology adoption in the
delivery of banking services (Kalakota and Whinston, 1997; Bauer et al., 2005).
2.2.4 Automated Teller Machine (ATM)
Automated Teller Machine (ATM) is a self-service machine that dispenses cash and performs
some human teller functions like balance enquiry, bills payments, mini statements and funds
transfers. ATM transactions are carried out through the use of a debit/credit card which enables
the card holder(s) to access and carry out banking transactions without a human teller.
Awara, Nsobiari Festus & Anyadighibe, Joseph Amaechi
International Journal of Managerial Studies and Research (IJMSR) Page | 4
2.2.5 Point of Sales (POS) Terminal
A Point of Sales (POS) Terminal is a machine used to accept cards for payment of goods and
services. POS Terminal allows a cardholder to have a real-time online access to funds and
information in his/her bank account through debit or cash cards.
2.3 Factors Influencing e-banking Implementation and Acceptance in Nigeria
Sathye (1999) defines adoption as ―the acceptance and continued use of a product, service or
idea.‖ Mols et al. (1999) study reveals that the diffusion of electronic banking is more determined
by customer‘s acceptance than by the seller offerings. O‘Connell (1996) demonstrated that the
explanation for slow growth of Electronic banking is caused by security concerns, lack of
knowledge about availability of such a service, Electronic banking sites being not user friendly
and the lack of access to computers or the Internet. In line with Wallis (1997) whose report states
that new technology adoption by the majority of the customers depends mainly on awareness,
ease of use, safety and security, cost of Internet banking, reluctance and lack of computer or
Internet access are focused.
2.3.1 Cost/price factor
One of the factors influencing electronic banking in Nigeria is the Cost/Price of the service. In
Nigeria today, cost/price is one of the major factors that influence the consumer adoption of
innovation. Gupta (1988), and Mazursky et al., (1987) identify price as a major factor in brand
switching. Also, the Wallis Report (1997) states that for ―consumers to use new technologies, the
technologies must be reasonably priced relative to alternatives''. Otherwise, the acceptance of the
new technology may not be viable from the standpoint of the consumer.
2.3.2 Customer Accessibility
One of the major factors for adopting electronic banking is the availability of access to
computers/Internet (Sathye, 1999). The Wallis Report (1997) states ―as the Internet becomes more
widely accessible households will conduct their financial transactions over the Internet''.This
means that, the more widespread the access to computer/Internet the greater the possibility of use
of electronic banking adoption. O‘Connell (1996) states that lack of access to computers as one of
the reason for slow adoption of Internet banking. Thus, lack of access to computers/Internet could
also be an influence of adopting electronic banking in Nigeria.
2.3.3 Perceive Ease of Use
Perceive ease of use is another major influence on electronic banking adoption and acceptance.
Cooper (1997) identifies ―ease of use‖ as one of the three important characteristics from
customers perspective for adoption of innovative service. Katz and Aspden (1997), Walis (1997)
and Mols (2000) suggested that it is crucial for the Internet to be easy to use to increase the
adoption rate electronic banking. The Wallis Report (1997) identifies that technological
innovation ``must be easy to use'' to ensure customer take up or acceptance. Daniel (1999)
identifies ``ease of use'' as one of the factors for customer acceptance in her study of electronic
banking in the UK and Ireland. Suffice it to posit that for successful implementation of electronic
banking, Nigerian commercial banks must ensure that their services are simple, easy and of
sufficiently high quality to ensure customer satisfaction in order to maintain their customers.
2.3.4 Customer Resistance to Change
Another factor influencing electronic banking in Nigeria is resistance to change. Daniel (1999)
stated that there is a high level of customer inertia in changing their established banking
arrangements. Sathye (1999) emphasized that customers, particularly the senior citizens, prefer
personal interaction and that they have technology phobia. Furthermore, adoption of new
technologies often comes across a certain amount of resistance to change from present ways of
operating. This means that unless such a need is fulfilled by the commercial banks, customers
may not be prepared to change from present ways of operating.
2.3.5 Customer Awareness
Customer Awareness and product/service knowledge is another factor influencing electronic
Banking in Nigeria. According to Rogers and Shoemaker (1971), consumers go through ―a series
Factors Influencing Banks’ Implementation and Consumers’ Acceptance of E-Banking of Selected
Commercial Banks in Calabar, Cross River State, Nigeria
International Journal of Managerial Studies and Research (IJMSR) Page | 5
of process in knowledge, conviction, decision and confirmation‖ before they are ready to adopt a
new product or service. Hence, for adoption of electronic banking in Nigeria, it is necessary that
the commercial banks offering this service make the customers aware about the availability of
such a product and explain how it adds value relative to other products of its own or that of the
competitors. This could be done through advertising, product awareness campaign and
sensitization. The added value in electronic banking includes convenience, sales orientation and
lower costs (Trethowan& Silicone, 1999).
2.3.6 Security Concern
Security is one of the very important factors in determining the decision of consumers to use
electronic banking. Cooper (1997) identifies ―the level of risk'' as an important characteristic from
a consumer's perspective in the adoption of innovation. In a study ABF (1997) found that security
concerns are keeping both consumers and bankers away from electronic banking. Booz et al.
(1997), reveals that security concern among customers was the top ranking obstacle for non-
adoption of electronic banking in Latin America. Thus one could posit that electronic banking
will not be adopted in Nigeria unless it is considered safe and secure by the customers.
2.3.7 Infrastructure
Another factor influencing electronic banking in Nigeria is infrastructure. As a developing
country, Nigeria is yet to be adequately developed in information and Communication
Technology infrastructure which is the back bone of electronic banking. This is occasioned by
poor network services resulting in failure and delays in transactions processing.
2.3.8 Competition
High level of competition among the financial institutions all over the world is one of the major
factors driving the supply of electronic banking services by these institutions to their customers;
2.4 Nigeria’s Cashless Economy
The Nigeria‘s cashless policy (as an intention to migrate to cashless economy) took effect from
April 1, 2012 in Lagos. The essence of the policy is to shift the economy from a cash-based
economy to a cashless one. Thus it is geared towards engendering an efficient payment system
anchored on electronic – based transactions. Desirous of making the policy succeed, a number of
financial services has been introduced which among others include mobile money payment
system, point of sale terminals, Alerts and Automated Teller Machines (ATM). Essentially,
mobile payment system introduced at the dawn of January 1, 2012 allows users to make payments
with their GSM phones. It is a saving device and transfer system that turns GSM phone into a
saving account platform, allowing owners to save money in it and also make transfers. The Point
of Sale (POS) terminals are installed by businesses and connected to the Nigerian Inter Bank
Settlement System for purposes of making payments during business transactions.
The Nigeria‘s cashless initiative does not refer to an outright absence of cash transactions in the
economic setting but one with minimal amount of cash-based transactions. It is an economic
system in which transactions are not conducted mainly in exchange for actual cash. It is not also
an economy where goods and services are exchanged for other goods and services (the barter
system). It is an economic setting in which goods and services are bought and paid for through
electronic media. It is defined as ―one in which there are assumed to be no transactions frictions
that can be reduced through the use of money balances, and that accordingly provide a reason for
holding such balances even when they earn rate of return‖ (Woodford, 2003). In a cashless
economy, how much cash in your wallet is practically irrelevant. You can pay for your purchases
by any one of a plethora of credit cards or bank transfer (Roth, 2010). Some aspects of the
functioning of the cashless economy are enhanced by e-finance, e-money, e-brokering and
exchanges. These all refer to how transactions and payments are effected in a cashless economy.
In Nigeria, under the cashless economy concept, the goal is to discourage cash transactions as
much as possible. The CBN had set daily cumulative withdrawal and deposit limits of
N150,000.00 for individuals and N1,000,000.00 for corporate bodies (now reviewed to
Awara, Nsobiari Festus & Anyadighibe, Joseph Amaechi
International Journal of Managerial Studies and Research (IJMSR) Page | 6
N500,000.00 and N3million respectively). Violation of these rules attract a penalty fees of
N100.00 and N200.00 respectively (now reduced to 5% and 3% respectively) to be charged per
extra N1000.00 (Ezumba, 2011). It should be said that as at now there are already some forms of
cashless transactions that are taking place in Nigeria by indigenous firms and have been
stimulated by improvement in technology and infrastructure (Babalola, 2008). Effective July 1,
2014; this policy takes effect nationwide.
2.5 Benefits of Electronic Banking
Technological innovations in recent decades have made the move towards e-banking possible.
The increasing competition for customers in banking and need to decrease cost of providing
banking services has led banks to integrate these changes. The benefit which is driving most of
the banks towards e-banking is the reduction of overall costs as the cost of processing transactions
is minimized and the numbers of branches that are required to serve an equivalent number of
customers are reduced (Saatcioglu et al, 2001).
Electronic banking services have provided numerous benefits for both banks and customers. The
first benefit for the banks offering electronic banking service is better branding and better
response to the market. Those banks that would offer such service would be perceived as leaders
in technology implementation. As a result, they would enjoy a better brand image (Nathan 1999).
The other benefits are possible to measure in monetary terms. The main goal of every company is
to maximise profits for its owner and other stakeholders. On the other hand, the advantages for the
customers are significant time saving and reduced costs in accessing and using the various
banking products and services, increased comfort and convenience (Pyun, Scruggs & Nam, 2002).
Internet banking provides clear advantages to both the financial institutions and the customers.
From the banks‘ perspective, it has very low cost transactions, compared to human teller banking.
According to The Fourth International Conference on Electronic Business (ICEB2004) / Beijing,
e-banking reduces the following expenses (Wright &Ralson, 2002):
(1) Banks can reduce customer service staff as customers use more self-service functions;
(2) There is less cheque processing costs due to an increase in electronic payments.
(3) Costs of paper and mail distribution are reduced as bank statements and disclosures are
presented online;
(4) There is less data entry as applications are completed and processed online by customers.
On the other hand, according to KPMG (1998), bank‘s revenue increases from e-banking due to:
(1) Increased account sales;
(2) Wider market reach;
(3) New fee-based income;
(4) New market opportunities;
(5) Improved customer satisfaction.
For consumers, e-banking provides convenience, lower service charges, more accessible
information about bank accounts, and an attractive option for busy people since it saves time to go
to the bank branches and gives 24 hours access (Lee & Lee, 2000).
For Sergeant (2000) the benefits of e-banking are manifold and are to be seen from the point of
view of the banks themselves, customers and even the regulators. Sergeant is of the view that for
banks, e-banking brings different and arguably lower barriers to entry; opportunities for
significant cost reduction; the capacity to rapidly reengineer business processes; and greater
opportunities to sell cross border.
For customers, the potential benefits are: more choice; greater competition and better value for
money; more information; better tools to manage and compare information; and faster service.
E-banking creates unprecedented opportunities for the banks in the ways they organise financial
product development, delivery, and marketing via the Internet. While it offers new opportunities
to banks, it also poses many challenges such as the innovation of IT applications, the blurring of
market boundaries, the breaching of industrial barriers, the entrance of new competitors, and the
Factors Influencing Banks’ Implementation and Consumers’ Acceptance of E-Banking of Selected
Commercial Banks in Calabar, Cross River State, Nigeria
International Journal of Managerial Studies and Research (IJMSR) Page | 7
emergence of new business models (Saatcioglu et al, 2001, Liao & Cheung 2003). Now, the speed
and scale of the challenge are rapidly increasing with the pervasiveness of the Internet and the
extension of information economy (Holland & Westwood 2001).
Bello and Dogarawa(2005) also examined and assessed the impact of e-banking services on
customer satisfaction in the Nigerian banking industry. Their study found out that many banks‘
customers in Nigeria are fully aware of the positive developments in information technology and
telecommunications which led to the introduction of new delivery channels for Nigerian
commercial banks‘ products and services. The aim was to satisfy and get customer delighted.
Most customers however, still patronise the bank branches and find interaction with human tellers
as very important.
Secondly the study found that some customers enjoying electronic banking services are still not
satisfied with the quality and efficiency of the services. This is expressed in the number of times
customers physically visit banks and length of time spent before such services are received.
Customers‘ perception of and reaction to these developments are issues of concern to both
government and the banking industry. However, relevant studies have revealed that on average,
electronic banking is more profitable and less cost efficient.
2.6 Perception of e-banking Services
The breakthroughs in information technology occasioned by the introduction of the
telecommunications networks and the computer system persist to shape the way banks and their
corporate relationships are structured worldwide. The pressure of globalization, consolidation,
deregulation and rapidly changing technology has made it necessary for banks to re-examine their
service delivery systems in order to suitably position them within this dynamism of information
technology (Woherem, 2000) With the introduction of communication and computer technology,
and its attendant revolution of information processing, electronic banking has become the order of
the day resulting in the emergence of various automated devices enabling the banking industry to
improve the speed and quality of service delivery and rapidly changed how banking is done
worldwide. The volume and speed of banking transactions have tremendously improved,
especially in the developed countries. Its various innovations have brought about reduction in
costs, wide range of banking services, and greater convenience for customers (Ayodeji, 2003).
E-banking; a system that enables banks to offer their customers access to their accounts to
transact business and obtain information via electronic communication channels such as
Automated Teller Machines (ATMs), tele-banking, home banking and internet banking is
becoming a common practice across the developed world (Pikkarainen et al, 2004).
In Nigeria, the financial sector is yet to witness a massive adoption of electronic banking by
customer based on the customers‘ knowledge and perception of this innovation. Joseph et al.
(1999) investigated the influence of internet on the delivery of banking services. They found six
underlying dimensions of e-banking service quality such as convenience and accuracy, feedback
and complaint management, efficiency, queue management, accessibility and customization. Jun,
Liao and Cheung (2003) identified 17 service quality dimensions of i-banking service quality.
These are reliability, responsiveness, competence, courtesy, credibility, access, communication,
understanding the customer, collaboration, continuous improvement, content, accuracy, ease of
use, timeliness, aesthetics, security and divers features. They also suggested that some dimensions
such as responsiveness, reliability and access are critical for both traditional and internet banks.
Jayawardhena (2004) in Fozia (2013) transforms the original SERVQUAL scale to the internet
context and develops a battery of 21 items to assess service quality in e-banking. From the
provider perspective, there are target quality and delivered quality. The focus of process- or
supply-led quality definition is rather internal than external, and it is defined as conformance to
requirements. It lays emphasis on the importance of the management and the supply-side quality,
and there is an important role of the process in determining the quality of outcome (Ghobadian,
1994). Achieving the quality of conformance between the planned (target) quality level and the
real quality delivered to customers depends on the service quality management system in an
organization.
Awara, Nsobiari Festus & Anyadighibe, Joseph Amaechi
International Journal of Managerial Studies and Research (IJMSR) Page | 8
Meuter et al. (2000) in Fozia; (2013) have identified critical incidents of customer satisfaction and
dissatisfaction with technology-based service encounters. They suggested investigating what
drives business customer satisfaction or dissatisfaction with technology driven services. Factors
such as Reliability, Responsiveness, Empathy and Tangibility have been identified to have
significant influence on customer satisfaction (Santhiyavalli, G.; 2011 in Fozia ;2013).Customers
distinguish the quality of customer interactions that take place during service delivery (functional
quality) and the quality of the outcome the customer receives in the service encounter (technical
quality). Customers perceive the quality of services of Internet banking based on the performance
of online delivery systems – not on the processes in which the delivered service is developed and
produced. Because customers perceive Internet banking service quality based on relatively
standardized outcomes determined by online systems, customer attitudes toward that outcome
reflect overall quality of services delivered. Customers usually perceive risks in conducting
transactions electronically and particularly if the transactions involve money. Risk perception can
be of six different types: time, financial, performance, psychological and safety/confidentiality
risks. It is generally considered that risk perception could be higher for electronic banking
services.
3. METHODOLOGY
Research design: The study adopted survey research design
Sample size: The sample size was made of 360 respondents (300 customers and 60 staff) of First
Bank Plc, Zenith bank and United Bank for Africa.
Data analysis: Data were analysed using Ordinary Least Square (OLS) method
4. DATA PRESENTATION AND ANALYSIS
Ho1: Security concern, service charges (price), perceived ease of use, customers' resistance to
change, customer accessibility and customers' awareness do not influence customers' acceptance
of e-banking services.
Model Specification:
Where:
Customers' acceptance of e-banking Services
Y’s intercept (constant)
Security concern
Service charges (price)
Perceived ease of use
Customers' resistance to change
Customer accessibility
Customers' awareness
Table 1. Model Summary
Model
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
1
.997a
.993
.993
.175
a. Predictors: (Constant), Security Concern, Cost/Price Factor, Perceived Ease of Use, Customers'
Resistance to Change, Customer Accessibility, Customers' Awareness
Table 2. ANOVAa
Model
Sum of
Squares
Df
Mean Square
F
Sig.
Regression
1281.818
6
213.636
7010.504
.000b
Residual
8.929
293
.030
Total
1290.747
299
Factors Influencing Banks’ Implementation and Consumers’ Acceptance of E-Banking of Selected
Commercial Banks in Calabar, Cross River State, Nigeria
International Journal of Managerial Studies and Research (IJMSR) Page | 9
a. Dependent Variable: Customers' Acceptance of E-Banking Services
b. Predictors: (Constant), Security Concern, Cost/Price Factor, Perceived Ease of Use, Customers'
Resistance to Change, Customer Accessibility, Customers‘ Awareness
Table 3. Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
(Constant)
.062
.063
.980
.328
Service charges(Price)
.012
.175
.012
.070
.944
Customer Accessibility
-2.859
.243
-2.804
-11.762
.000
Perceived Ease of Use
-.195
.368
-.193
-.530
.597
Customers' Resistance to
Change
1.412
.101
1.399
13.924
.000
Customers' Awareness
.302
.367
.299
.822
.412
Security Concern
2.322
.157
2.281
14.747
.000
a. Dependent Variable: Customers' Acceptance of E-Banking Services
The tables above show the results of multiple regression analysis carried out to test HO1. The
ANOVA table reports a significant F statistic, indicating that the model has strong prediction
strength (F = 7010.504, p < 0.05). Therefore, HO1 is rejected. As further shown in Table 1, the
regression does a good job of modelling customers‘ acceptance of E-banking services; nearly all
the variation in customers‘ acceptance of E-banking services is explained by the model (R Square
= 99.3%). However, there are several non-significant coefficients, indicating that these variables
do not contribute much to the model, (i.e., their p > 0.05). These are: cost/price factor, perceived
ease of use, and customers‘ awareness. On the other hand, customers‘ accessibility followed by
security concern and, then, customers' resistance to change wield more influence on customers‘
acceptance of E-banking services as shown by their large absolute standardized coefficients.
Ho2: Competition, Cost Price Factor and Infrastructure do not influence Implementation of E-
Banking Services
Model Specification:
Where:
Implementation of E-Banking Services
Y’s intercept (constant)
Competition
Cost/Price
Infrastructure
Table 4. Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.857a
.734
.703
1.728
a. Predictors: (Constant), Competition, Cost/Price, Infrastructure
Table 5. ANOVAa
Model
Sum of Squares
Df
Mean Square
F
Sig.
1
Regression
213.831
3
71.277
23.871
.000b
Residual
77.636
26
2.986
Total
291.467
29
Awara, Nsobiari Festus & Anyadighibe, Joseph Amaechi
International Journal of Managerial Studies and Research (IJMSR) Page | 10
a. Dependent Variable: Implementation of e-banking Services
b. Predictors: (Constant), Competition, Cost/Price , Infrastructure
Table 6. Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
-1.539
1.847
-.833
.412
Infrastructure
.075
.257
.052
.292
.772
Cost/price
.687
.172
.644
3.996
.000
Competition
.353
.202
.245
1.749
.092
a. Dependent Variable: Implementation of e-banking
The tables above show the results of multiple regression analysis carried out to test HO2. The
ANOVA table reports a significant F statistic, indicating that the model has strong prediction
strength (F = 23.871, p < 0.05). Therefore, HO2 is rejected. As further shown in Table 1, the
regression does a good job of modelling implementation of E-banking; more than three quarter of
the variation in implementation of E-banking services is explained by the model (R Square =
73.4%). However, there are two non-significant coefficients, indicating that these variables do not
contribute much to the model, (i.e., their p > 0.05). These are: competition and infrastructure. On
the other hand, cost price factor wields the greatest influence on implementation of E-Banking
services as shown by its large absolute standardized coefficient.
5. FINDINGS
The findings of this study are:
(1) Customers‘ perception of e-banking aside service quality is more risk perception. This
Risk perception can be of six different types: time, financial, performance, psychological
and safety/confidentiality risks.
(2) Security concern, service charges (price), perceived ease of use, customers' resistance to
change, customer accessibility and customers' awareness influence customers' acceptance
of e-banking services.
(3) Cost/price, infrastructure and competition influence e-banking implementation by service
providers
(4) E-banking channels include: PC (Personal Computer) Banking, Mobile Banking,
Internet/online Banking, Automated Teller Machine (ATM) and Point of Sale (POS)
terminals.
6. CONCLUSION
Much is still needed for the banking system to make reforms and train the customers for
acceptance and adoption of e-banking. From studies, customers‘ perception of e-banking is more
of risk and fear for security concerns. Customers have fears of hacking of accounts and loss of
their funds; hence; hesitate to adopt e-banking. However, banks are trying their level best by
providing the best security options to the customers. Banks are providing free internet banking
services also so that the customers can be attracted. If proper training should be given to
customers by the bank employees to open an account, this will be beneficial and the e-banking
platforms should be made friendlier from where the first time customers can directly access their
accounts and carryout transactions. We can see that time is changing and with the passage of time
people are accepting technology. There is still a lot of perceptual blocking which hampers the
growth; it is the normal tendency of a human to resist change. That is also one of the reasons for
the slow acceptance of electronic banking.
7. RECOMMENDATIONS
Sequel to the study outcomes, the following are the recommendations:
(1) Proper training on e-banking features, use and benefits should be given to customers. This
will significantly improve the customers‘ acceptance of e-banking services.
Factors Influencing Banks’ Implementation and Consumers’ Acceptance of E-Banking of Selected
Commercial Banks in Calabar, Cross River State, Nigeria
International Journal of Managerial Studies and Research (IJMSR) Page | 11
(2) Reliability and Trust should be created in mind of customers towards security of their
accounts and confidentiality.
(3) Customers should be motivated to use e- banking services and facilities more.
(4) Banks should make their e-banking platforms more simplified users friendly.
(5) Banks should organise public exhibitions and talk shows and make e-banking
products/services accessible to all customers.
(6) Banks should improve on service delivery to justify the benefits of electronic banking
services. This will arouse customers‘ interest and improve customers‘ acceptance.
(7) Government should provide adequate regulatory framework that will ensure customer
protection, and security of transaction. This will boost customers‘ confidence in electronic
banking.
(8) Banks should providing adequate security of transaction and back up of critical data files and
alternative means of processing information. This will boost customers‘ confidence and
improve customers‘ perception of E-banking.
(9) E-banking issues and failures should be quickly address and resolved promptly. This will
strengthen customers‘ confidence and trust for e-banking.
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