An investigation of factors influencing non-users’ resistance to internet banking adoption in Nigeria

  

This study focussed on the investigation of factors influencing informed non-users’ resistance to internet banking adoption in Nigeria. Empirical evidence from this research suggests that internet banking adoption in Nigeria is extremely low. In this light, this study argues that bank customers who are aware of internet banking are resisting the adoption of internet banking, despite its benefits. Using a Unified approach, the research integrated specific constructs from ICT theoretical models – TAM, TID, and TPR (Insecurity, complexity of use, perceived risk) with empirically evident predominant inhibiting factors (insecurity, poor power supply) of internet banking adoption in Nigeria to provide a full understanding of the research investigative phenomenon. This informed the development of the research conceptual framework.

Mixed method approach was employed using convenient sampling technique to survey a total of 264 informed non-users of internet banking from 4 different cities (Lagos, Enugu, Port-Harcourt, Kaduna) representing 4 geopolitical zones in Nigeria, and data were analysed quantitatively. For the qualitative analysis, 25 samples selected conveniently were interviewed and the information gathered were thematically analysed. Chi-square test of significance was used to test the research hypotheses – to determine if the identified inhibiting factors of internet banking (Insecurity, poor power supply, complexity of use, and perceived risk) influence informed non-users’ resistance to internet banking adoption in Nigeria with respect to demographics: Age, Gender, Income, level of education. Cramer’s V was used to test the strength of the Chi-squared test results which substantiates the findings. 

The study corroborated results from the quantitative analysis with thematic evidence from the qualitative analysis which established the key research findings: Insecurity, poor power supply, complexity of use, perceived risk, poor internet network, and no perceived relative advantage are predominantly significant inhibiting factors that influence informed non-users’ resistance to internet banking adoption in Nigeria. However, only ‘Age’ demographic factor was found to have a significant influence on informed non-users’ resistance to internet banking with respect to 'complexity of use'. 

The originality of the study provides bank management, practitioners, and the Nigerian government the clue that unravels the indigenous issues hampering the use of internet banking in Nigeria and recommendations that can facilitate a high rate of internet banking adoption in Nigeria.