FACTORS INFLUENCING CONSUMER BEHAVIOR TOWARDS ONLINE BANKING SYSTEM IN NIGERIA

Abstract

Nigeria was characterized to be the fastest growing telecommunications country in Africa. Currently, all banks in the industry engaged massively in the use of Information and Communication Technology (ICT) as a platform for effective and efficient means of conducting financial transactions. The scale of online users is increasing continuously in Nigeria. However, with the rise of other payment method in the banking system, the development speed of online banking users is decreasing. Therefore, competitive advantage is an essential factor which plays around the banks in the industry as customer satisfaction is an important condition that measures bank’s competitiveness. Base on this background, this study focuses on determining the factors that influence customer satisfaction of online banking in Nigeria. An extended Technology Acceptance Model (TAM) is used as a conceptual framework to investigate the factors that influence customer satisfaction.  The model measured the impact of perceived convenience, perceived security and perceived usefulness on customer satisfaction in Nigeria. To test the model, data will be collected from commercial banks users in Nigeria. The tool used for the analyses and to identify the variable’s loadings and the relationships is SPSS. Before distributing the entire 334 questionnaires, a sample of only 40 questionnaires will be first taken to conduct the pilot test to ensure the feasibility of the questionnaire’s items or constructs, afterwards the final data collection and the proper tests was executed to evaluate the presence and level of relationships between the variables in the study. The results showed that all the independent variables which are perceived convenience, perceived security and perceived usefulness have significance relationship with consumer behavior towards online banking system in Nigeria.