Digital Banking Adoption in Nigeria: The Place of Technology Acceptance Model

Abstract

This paper considered the adoption of digital banking in Nigeria focusing on mobile banking and internet banking with a conceptual framework that extends Technology Acceptance Model. The model of this study incorporated additional variables that would stimulate the usage of digital banking in Nigeria. These conceptual framework variables include perceived usefulness, ease of use, security and banking regulations. Questionnaires were administered electronically and the set quota of 25 respondents per bank totaling 250 was met. Cronbach’s alpha test showed that the instrument had a value greater than 0.70 which implied that the research instrument was reliable. Purposeful sampling technique was used for sampling size estimation of the descriptive and inferential statistics while the author utilized multiple regression method to analyze the data. The result of the research revealed that motivation for adoption of digital banking proxied by (perceived usage, ease of use, security and banking regulation) significantly affected mobile banking (AdR2 =0.255; F=8.357; p-value=0.000), as well as internet banking (AdR2 =0.270; F=8.960; p-value=0.000). The study therefore concluded that TAM variables in addition to security and banking regulations have statistically significant positive impact on the adoption of digital banking platforms (mobile banking and internet banking). The study therefore recommends that TAM should consider external influencing factors peculiar to the working environments as cardinal to the adoption of technology besides the TAM’s recognized variables.