TECHNOLOGY ACCEPTANCE MODELING: AN ANALYSIS OF CUSTOMER ADOPTION OF ELECTRONIC BANKING IN CASH-LITE ENVIRONMENT

The emergence and development of technology in recent times has drastically hastened the pace of life especially in the nature of business around the world. In developing countries like Nigeria, banks continue to make large investments into electronic banking (e-banking) while the rate of consumer adoption of this technology remains relatively low. This study seeks to investigate the cultural and individual factors that influence the adoption of e-banking by customers within Nigeria’s cash-lite environment. This research was thus conducted by deriving study constructs (variables) from previous theoretical models, theories, and empirical researches of technology acceptance and usage. The opinion of e-banking by Nigerian bank customers were also explored in order to identify potential determinants vital to embracing innovative technology within a culture-sensitive environment. Against this backdrop, the study selected factors based on the empirical and theoretical findings which were regressed on the adoption of electronic banking by customers. Technology acceptance model (TAM), though robust, parsimonious and reliable, was found to be an incomplete model for a developing country like Nigeria where culture unvaryingly impacts attitude towards embracing e-banking. This study therefore develops a useable framework built on adaptation of the TAM for familiarizing innovative technology in a culture-sensitive society. The framework was constructed through quantitatively approaching the study by using both an explanative and deductive design, and finally concluded with a qualitative approach. Data was collected from a structured questionnaire through the purposive random sampling of 1,533 bank customers across two geographical zones in Nigeria. The study conducted a confirmatory factor analysis to test the goodness of fit of measuring instruments. Moreover, reliability analysis was done using the Cronbach alpha test of reliability. Structural equation modeling was used to examine the entire pattern of inter-correlations among the nine proposed constructs and the adoption of electronic banking, as well as to test related proposition empirically. Additionally, a qualitative approach was used to assess factors that inhibit e-banking adoption. Findings from this study revealed that electronic banking adoption is positively dependent on the following factors: perceived usefulness, perceived ease of use, attitude, safety, personality, culture, technical know-how, environmental, financial and economic considerations, and demographic considerations. In terms of demographics, gender and age status were insignificant to the adoption of e-banking, while income, educational qualification, profession (occupation), and prior knowledge of the internet were significant to the adoption of electronic banking. These identified constructs were found to be key determinants in the adoption of electronic banking in a culture sensitive society like Nigeria. Overall, this study provides scientific proof that culture impacts an individual’s personality and attitude towards innovative technology adoption. Based on these deductions, this study recommends that training seminars and workshops be conducted for both current and prospective customers adopting electronic banking.