On the determinants, gains and challenges of electronic banking adoption in Nigeria

Abstract

PurposeThe purpose of this study is to examine the gains, challenges and determinants of electronic banking adoption in Nigeria.Design/methodology/approachThis paper applied the generalized structural equation modelling (GSEM) to a large sample of respondents surveyed from five of the six geopolitical zones of Nigeria to model the determinants of electronic banking. In addition to many other advantages, GSEM can be used as a likelihood function. As a result, this paper proposes GSEM as the most appropriate tool for modelling the socioeconomic determinant of electronic banking adoption.FindingsAbout three-quarter of respondents adopted at least a form of electronic banking. However, only a tenth of users used e-banking for purchase of goods or services, implying low electronic payment adoption. The low adoption of electronic payment was due to poor digital security infrastructure which made users vulnerable to widespread electronic frauds. The findings also show that the adoption of e-banking platforms or services was characterized by users' socioeconomic status. For example, the odds of adopting internet/mobile banking decreases with older users but increase with higher educational attainment and income, whereas the odds of adopting e-banking platforms such as short message service (SMS) and point of sale (POS) banking increases with older users and informally employed users respectively.Practical implicationsFor a sustainable cashless economy and financial inclusion in Nigeria, policy consolidation that provides safe e-banking services is necessary. Also, e-banking service providers should deliver specific contents and services that match the physical and economic characteristics of users.Originality/valueGeneralized structural equation modelling (GSEM) is a robust likelihood function method that combines the power of structural equation modelling with the generalized linear model. The application of GSEM to predict the likelihood of adopting a banking technology or Service has not been explored in electronic banking literature. Also, as a fast-growing economy with a heterogeneous population, Nigeria presents an interesting context to study the determinants of electronic banking.

Mobile banking service quality and customer value co-creation intention: a moderated mediated model

“…For this reason, it is important to devote more energy to it as it transitions to more mature stages of development (Komulainen and Saraniemi, 2019;Shankar et al, 2020a;Singh and Srivastava, 2020;Tam and Oliveira, 2017a). Previous research has tended to remain focused on the determinants of m-banking adoption (Aduba, 2021;Chaouali et al, 2020;Elhajjar and Ouaida, 2020;Kumar et al, 2022), whereas scant research has been devoted to the post-adoption phase (Tam and Oliveira, 2017a).…”

“…, 2020a; Singh and Srivastava, 2020; Tam and Oliveira, 2017a). Previous research has tended to remain focused on the determinants of m-banking adoption (Aduba, 2021; Chaouali et al. , 2020; Elhajjar and Ouaida, 2020; Kumar et al.…”

Digital transformation: a conceptual framing for attaining Sustainable Development Goals 4 and 9 in Nigeria

“…It was focused on the United Nations records, on a significant achievement in terms of world-wide reduction in the level of poverty, improvement in basic education enrolments, women empowerment and awareness and gender equality (Oleribe & Taylor-Robinson, 2016). However, the millennium declaration did not achieve the set goals in Nigeria due to contextual factors such as the emergence of crises like the Boko Haram insurgency, the Niger Delta crisis and other economic challenges such as corruption (Aduba, 2021; Ojimba, 2012; Olujobi, 2021 a ; UNICEF, 2019). Other opposing challenges included neglect from the government, and strike actions by labour unions, lack of government commitment, girl child discrimination and poverty (Adepoju & Fabiyi, 2007; Alabi, Bahah, & Alabi, 2014; Dapo-Asaju & Bamgbose, 2016).…”

The effect of cashless payments on the internet and mobile banking

“…All these studies did not examine the impact of cashless payment tools on the internet and mobile banking. Cashless payment was found to encourage internet and mobile banking (Kachathan & Chalchotchuang 2020 ; Aduba 2021 ). Urhie et al ( 2021 ) found mobile banking to promote cashless payments.…”

“…The diffusion of cash to cashless payment encouraged internet and mobile banking (Kachathan and Chalchotchuang 2020 ; Aduba 2021 ). Online debit and credit cards payments require transaction authorization code (TAC) from the bank.…”