Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
Advances in information and communication technology and their wide application in bankingled to the development of alternative distribution channels/methods for banking services like ATMs, telephone and online banking among others. The success of this new distribution channel for banking products and services depends on their use by the Nigerian retail banking customers.The purpose of this study to employ discriminant analysis to classify retail bank customers on the basis of users and non-users; and to identify which variables that contributes to the classification. The study also sought to find out whether users and non-users of e-banking differ in opinion with respect to the variables that define e-banking usage. The sample size for the study is 1100.Quota sampling procedure was employed in selecting actual respondents as well as states and towns studied. The variables identified have multidimensional factors and were measured using five-point Likert scale. The findings are that factors like service quality, security, perceived risk, user input and individual factors of awareness, lifestyle, access to computer and knowledge of internet are significant in classifying customers on the basis of users and non-users of e-banking services. The study is a contribution to knowledge and has practical/managerial implications for banks and regulatory authorities as the rapid increase in the number of automated delivery channels and customers? preference to use them because of multifaceted attributes are putting pressure on banks to respond aggressively toward meeting customers? needs. Another implication of the study is that government and policy makers need to address the infrastructure deficit mainly ICT infrastructure that will drive e-banking. The study is significant as it has made a contribution to knowledge and is a springboard for research. Each of the variables used in the study need to be investigated separately for further insight. The variables used in the study including the demographics: like income, occupation and education are dynamic and thus have implications for further study.

Keywords: technology, high-tech banking, consumer, banking services, ATMs, electronic funds transfer, telephone banking, internet smartcard, debit/credit cards, e-payments.

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