Abstract The recent and emerging development in today’s technology has driven the business trend to adopt these technologies to improve productivity, expandability, performance, innovation and all aspects that increase prosperity ongoing development of new sources of income while decreasing the costs. Banks are one of the major players of today’s business developments, which adopt ICT in their daily activities. This Study employed quantitative approach using an online survey of questionnaires and respondents to collect information on ICT related problems on online banking in Nigerian Banks. SPSS was also made use of in the analysis. The study revealed that ICT related a problem on online Banking has an impact on banks. We try to get insight of the major factors affecting the business of banks as an impact of adopting ICT and study the problems surrounding the use of ICT that impact the usage on online banking services in Nigerian banks.

1. Assessment of the impact of Information and
Communication Technology (ICT) and related problems
on Online Banking in Nigerian Banks
Prepared By
Taufiq Hail Ghilan Al-Madhagy
email:towfeeq2k5@yahoo.com
Contribution of the following
Emad M. Muftah akash
Salam
Denen Damian Nyakuma
Page 1 of 45

2. Table of Contents
Abstract ..................................................................................................................... 5
Introduction ............................................................................................................... 6
Research Problem ...................................................................................................... 7
Research Objective .................................................................................................... 7
Objectives of the Study .............................................................................................. 7
Research Questions ................................................................................................... 8
Chapter One Introduction .......................................................................................... 8
Significance of Study................................................................................................. 8
Scope of Research ..................................................................................................... 8
Organization of the Thesis ......................................................................................... 9
1.
Literature Review ......................................................................................... 9
.2 Historical Background on Nigerian Banks........................................................ 9
3.
ICT in Bank industry in Nigeria ................................................................. 11
a.
Global Systems for Mobile Communication (GSM) ............................. 12
b.
Internet Banking ................................................................................... 12
c.
Automated Teller Machines (ATM) ..................................................... 13
d.
Telephone banking technology ............................................................. 13
e.
Adoption of ICT integrated project ...................................................... 13
f.
E-mail .................................................................................................. 13
g.
Banker Automated Clearing Services ................................................... 14
Theoretical Framework ............................................................................................ 14
1.
User characteristics..................................................................................... 14
2.
Usage of Internet Banking (IB) ................................................................... 15
3.
Security Concerns ...................................................................................... 16
4.
Intermittent Services Concern..................................................................... 16
Chapter Three Research Methodology ..................................................................... 17
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3. 1.
Sampling Design ........................................................................................ 17
2.
Instrumentation .......................................................................................... 18
3.
Data Collection........................................................................................... 19
4.
Data Analysis ............................................................................................. 19
5.
Limitation and Delimitation........................................................................ 19
Results and discussion ............................................................................................. 20
1.
The respondents’ demographic and User Characteristics............................. 20
2.
Usefulness (M) ........................................................................................... 23
3.
Ease of Use (IV) ......................................................................................... 25
4.
Intermittent Services Concerns (IV)............................................................ 27
5.
Security Concerns (IV) ............................................................................... 30
Conclusion .............................................................................................................. 33
Reference ................................................................................................................ 34
Appendix ................................................................................................................. 37
Table 1 ........................................................................................................................................................... 15
Table 2 ........................................................................................................................................................... 23
Table 3 ........................................................................................................................................................... 25
Table 4 ........................................................................................................................................................... 27
Table 5 ........................................................................................................................................................... 30
Table 6 ........................................................................................................................................................... 33
Figure 1 Theoretical Framework .................................................................................................................... 14
Figure 2 .......................................................................................................................................................... 37
Figure 3 .......................................................................................................................................................... 37
Figure 4 .......................................................................................................................................................... 38
Figure 5 .......................................................................................................................................................... 38
Figure 6 .......................................................................................................................................................... 38
Figure 7 .......................................................................................................................................................... 39
Figure 8 .......................................................................................................................................................... 39
Figure 9 .......................................................................................................................................................... 39
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4. Figure 10 ........................................................................................................................................................ 40
Figure 11 ........................................................................................................................................................ 40
Figure 12 ........................................................................................................................................................ 40
Figure 13 ........................................................................................................................................................ 41
Figure 14 ........................................................................................................................................................ 41
Figure 15 ........................................................................................................................................................ 41
Figure 16 ........................................................................................................................................................ 41
Figure 17 ........................................................................................................................................................ 42
Figure 18 ........................................................................................................................................................ 42
Figure 19 ........................................................................................................................................................ 42
Figure 20 ........................................................................................................................................................ 43
Figure 21 ........................................................................................................................................................ 43
Figure 22 ........................................................................................................................................................ 43
Figure 23 ........................................................................................................................................................ 44
Figure 24 ........................................................................................................................................................ 44
Figure 25 ........................................................................................................................................................ 44
Figure 26 ........................................................................................................................................................ 45
Figure 27 ........................................................................................................................................................ 45
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5. Assessment of the impact of Information and Communication
Technology (ICT) and related problems on Online Banking in
Nigerian Banks
Abstract
The recent and emerging development in today’s technology has driven the business
trend to adopt these technologies to improve productivity, expandability, performance,
innovation and all aspects that increase prosperity ongoing development of new sources of
income while decreasing the costs. Banks are one of the major players of today’s business
developments, which adopt ICT in their daily activities. This Study employed quantitative
approach using an online survey of questionnaires and respondents to collect information on
ICT related problems on online banking in Nigerian Banks. SPSS was also made use of in the
analysis. The study revealed that ICT related a problem on online Banking has an impact on
banks. We try to get insight of the major factors affecting the business of banks as an impact of
adopting ICT and study the problems surrounding the use of ICT that impact the usage on
online banking services in Nigerian banks.
Page 5 of 45

6. Introduction
The emerging and fast growing advancement in communication and information
technology have led to changing behavior of business operations on daily bases. Banks are one
of the major sectors of business that adopted ICT and changed the nature of banking
conventional activities. The internet banking is now a must to adopt for banks in the developing
countries and it is observed that a wave of change in many developing, and specifically the
African, countries have adopted these technologies to follow the queue of the advanced
developed countries in this vital sector of business. Customers can now transfer money, access
their accounts, online shopping, get bank statement, pay their bills, and conduct other
transactions that took a long time of process in the past. Adopting ICT has brought a lot of
success stories, saved cost, brought efficiency and convenience to customers as in (Cheng, Lam
&Yeung, 2006).
Surveys conducted in the U.S during the period of 2008-2009 shows that there isn’t a
rapid increase of the users using internet banking as perceived according to the fast growing
number of users using the internet (Cheng, Lam &Yeung, 2006; eMarketer,2012; Forrester
Research, 2011).
In spite of the users of online bank services that are using these services and enjoying the
convenience, they show a great concern of leakage of their financial information and related
security issues. According to a study performed by (Edwards, 2010) showed that 51.2% of U.S.
consumers and 60.3% of Canadian online users do not trust the security of mobile banking. On
the other hand, the category that do not use online and do not trust the Internet banking services
are 21.7% of U.S. and 26.2% of Canadians. Furthermore, all categories, that trust and use or the
others not adopting online services or not trusting, trust the branch or physical banks with 84%.
As a result of these security concerns, many are reluctant to use these facilities provided by
banks(Cheng, Lam &Yeung ,Yeung, 2006); eMarketer, 2012; Edwards, 2010).
In addition to the security issues related to the impact of ICT usage by customer, the
intermittent services in Nigeria are another major factor that the adopters, of ICT facilities in
banks, suffer from and have a big concern in using such services. We noticed that there is a great
gap between adopting ICT and the issues that impact the usage and popularity of online banking
using ICT. For these reasons, the aim of our study is to investigate the factors that have negative
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7. impacts on online banking in Nigerian banks but focusing on the security and intermittent
service concerns.
Research Problem
The ICT on banking sector has been implemented in Nigeria since the reform of banking
sector in 2004. The migration and integration on small sized banks to become larger ones has
taken place and lots of developments on the operation of banks has benefited from the ICT in
regard to profitability, usability, performance, expansion, and many other benefits. On the other
hand, implementing ICT has suffered from intermitting services and lack of trust from wide
sector of populace to adopt online services due to security issue concerns. The gap between
using ICT and problems surrounding the obstacles of security and intermittent services has
affected the bank industry and limited the raise of number of online users in Nigeria. This gave
motivation for our study to look for the reasons of intermittent services and impact of security
issues on the usage of online banking services in Nigerian banks.
Research Objective
Objectives of the Study
The broad objective of this study is to identify Information and Communication
Technology related problems on the usage of online banking services in Nigerian banks
security and intermittent services effects on it. The specific objectives of the study are;
1. To determine the extent of ICT related factors influencing the usage of online
banking services.
2. To test the influence of security concerns that clients have on the usage of online
banking services.
3. To measure the impact of intermittent services on the online banking usage.
4. To gain insight of the impact of level of education on the usage of online banking.
5. To ascertain the contributions of ICT application process in banking usage,
popularity, and performance.
6. To determine if ICT has improved the service delivery to clients in Nigerian banks
and gained their support in utilizing the innovative e-services.
7. To determine if ICT improved the services rendered by Nigerian banks.
8. To obtain insight if ICT has an effect of the application of ICT in banking services.
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8. Research Questions
In the light of the preceding objectives, the study seeks to answer the following
questions.
1. What is the extent of ICT problems influencing the usage of online banking
services?
2. What are the factors influencing the usage of online banking services?
3. How do security concerns affect the online banking services usage?
4. Does the intermittent service have an impact on the online banking services?
5. What extent does ICT related problems influence bank performance?
6. Does the level of education have an impact on the online banking usage?
7. What are the contributions of ICT application process to bank performance?
8. Did ICT improved the service delivery to Nigerian banks’ clients and gained their
support in utilizing the innovative e-services?
9. Has ICT improved the services rendered by Nigerian banks?
Chapter One Introduction
Significance of Study
It is hoped that the outcome of this study will add up, or in other words, contribute to existing
studies especially with regards to the impact of ICT and related problems on online banking
as well as barriers and challenges encountered through their transition to adopting ICT.
Scope of Research
The banking industry in the whole world is on a wheel of change the covered all aspects
of bank business and changed the traditional way of bank operations. The African countries
have, in the last decade, made a jump in the reform and usage of ICT and Nigeria is one of the
major players in banking industry in Africa. Thus, in this study, we focused on the effects and
impacts of the ICT usage and the problems related to it in the bank sector in Nigeria.
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9. Organization of the Thesis
1.
Literature Review
A survey was conducted by (Agbola, 2001) on six major banks that had been operational
for longtime, had built a wealthy experience in banking industry, had fast growth, and high level
of technology adoption in their operations. A questionnaire developed to grab the customer
satisfaction or not on services provided by banks. The study has revealed that there are number
of problems associated with banking automation on customers. The frequent system breakdown,
black-out/power failure, lack of cordial interaction with staff, and posting errors and
manipulation of figures are the major issues under focus. The findings shows that 46% of the
respondents indicate that frequent system break down is the on the first degree of concern which
can cause to loss of customer’s data and hinder them from withdrawing the urgent cash they
needed. The second in position is the power failure 29.7% which causes accessing the customer
accounts impossible and leads to huge losses in addition to inconvenient atmosphere for the
customers to remain in banks in very hot climate (Agboola, 2001)
2. Historical Background on Nigerian Banks
Formal banking is a relatively old economic activity in Nigeria, dating back to before
the emergence of the country itself as a distinct nation. While Nigeria emerged as a distinct
country in 1914 with the merger of the Northern and Southern Protectorates with the Colony
of Lagos, the first bank in the country was established in 1892. However, the industry at this
time and for some time after was largely unregulated and thus many instability and bank
failures characterized the system. However, with political independence looming in the
1950s, the government took control of the regulation of the industry bringing stability back
into the sector. This remained the situation until the late 1980s when the deregulation of the
economy that accompanied the Structural Adjustment Programme the country embarked
upon brought the sector back into public focus.
The Nigerian banking industry is regulated by the Central Bank of Nigeria (CBN).
The Nigerian banking sector has since undergone considerable reforms over the last 25 years.
Financial deregulation and economic liberalization policy of the 1980s changed the structure
of the sector from an oligopolistic, financially repressive, and highly regulated sector to one
that is deregulated and highly competitive. In 1980, there were 20 commercial banks and 6
merchant banks in Nigeria with a network of 740 and 12 branches respectively. This rose to
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10. 30 commercial and 12 merchant banks in 1986 with 1,367 and 65 branches respectively, and
in 1991 there were 65 commercial and 54 merchant banks with 2023 and 84 branches
respectively. In the mid 90’s there was a depression that occurred in the financial system
which reduced the number to 51 commercial and 38 merchant banks in 1999 (Tella, 2006).
Further reform of the system in the late 1990s saw the removal of the commercial/
merchant bank dichotomy in favor of the adoption of the term Universal bank. By the early
2000, therefore there were 89 Universal banks in Nigeria. Another reform in the sector
occurred in 2004 / 2005 this brought the sector back under greater regulation principally in
the form of a huge increase in the regulatory capital requirement from one billion Naira to
twenty five billion Naira. This gave birth to a spate of merger and consolidation agreements
among the ICT’s Service & Operational Performance in Nigerian Banks... firms in the
industry reducing the number of the Universal banks to 25. Another round of reform of the
sector was commenced in 2010.
This involved government bailout of five of the firms in the banking industry and
restructuring of the top management of the affected banks. These were aimed at improving
corporate governance and removing some structural deficiencies perceived to be inherent in
the industry and which pose significant threat to the survival of many of the firms in the
industry. From inception up to the period of deregulation, the operation of the banks in
Nigeria were characterized by paper oriented methods rather than technological based system
with attendant slowdown in pace of operation, employee productivity and general
performance (Osabuohein, 2008). Hence, before the deregulation of the economy that took
place in the 1980s, the use of ICT in the Nigerian banking system was limited. However,
Idowu et al (2002) averred that Nigerian banks have since realized that the way in which they
can gain competitive advantage over their competitors is through the use of technology, and
this has engendered a growing rate of technology adoption in the Nigerian banking operations
(Salawu and Salawu, 2007).
Ehikhamenor (2003) noted that earlier desire for the use of ICT was characterized by
long period of inertia largely attributable to the absence of an enabling policy and
infrastructural environment. The decisive step in the incorporation of IT into banking
operation in Nigeria actually started in 1999 being a consequence of stronger government
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11. commitment to the development of a national IT infrastructure. Banks not only became
financiers of this initiative but also beneficiaries (Ehikhamenor, 2003). The formulation of a
National Policy on Information Technology in 2001 created further awareness on the
possibilities offered by IT and impacted positively on economic sectors with the banking
sector as a pioneer. The Nigerian banking Industry underwent major changes, reflecting a
number of underlying developments. Advancement in communication and information
technology has facilitated growth in internet banking, ATM Network, Electronic transfer of
funds and quick dissemination of information.
In Nigeria, there are 22 commercial banks, 906 Micro-finance institutions, 5 discount
houses, 5 development finance institutions, 731 bureau de change, 102 Primary Mortgage
institutions, and 82 finance companies (Luka &Frank, 2012). The Nigerian bank is under
structural reform and many changes took place in the field of information technology and
communication. These reforms has led to heal the banking industry especially after issuing new
regulation such as “the enactment of the Securitization Act to step up loan recoveries,
establishment of asset reconstruction companies, initiatives on improving recoveries from Nonperforming Assets (NPAs) and change in the basis of income recognition has raised
transparency and efficiency in the banking system .” (Luka & Frank, 2012). These reforms have
pushed the banks to adopt ICT technologies that resulted spurt in treasury income and loan
recoveries. It is worth mentioning that the central bank of Nigeria is the only entity to control
and issue all regulations of the banking sector.
3. ICT in Bank industry in Nigeria
The world of business has witnessed enormous changes in its nature due to the recent
developments in ICT and the emerging technologies that appear frequently. The rapid changes
in the business market and the hectic and fierce competition among companies have led to the
adoption of new and innovative techniques in their business to gain trust and reap the benefits.
The decrease in ICT gadgets has encouraged banks to increase ICT usage and the
business environment is becoming more and more relying on ICT. Banks has taken the
advantage of the technology developments in almost all aspects of its operations to increase
productivity, profitability, and expandability especially in era of the sever competition in
banking sector in the country.
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12. Continual operations around the clock are becoming feasible due to the recent
developments in payment facilities because of innovative ICT gadgets adoption. Payment
systems such as ATM, Electronic Fund Transfer (EFT), Clearing House Automated Payments
(CHAPs), Electronic Purse (E-Purse), Automated Cheque Sorter (ACS), and Electronic and
Transfer at Point of Sale(EFTPOS) has made the services much easier, faster, and at
convenience for both customers and banks. In addition regulations in banks became more
sophisticated and technology dependent and speeded up operations thus reducing the cost per
unit in banking operations [5]. In some cases there are some shortcoming of the implementation
of ICT in which bankers are unable to access their accounts or make transactions because of
intermittent of network services or power failures. On the other hand, in the past times with the
traditional banks operations, bankers has faced and struggled to cope with the long procedures
and queues of people waiting for their inquiries to be fulfilled and their service to be delivered.
The Nigerian banks have nowadays online services facilities aided to transfer funds
instantly from any location and provided safer and at convenience facilities to bankers. The
telephone banking technology is another innovative technology that improved the productivity,
comfort, and innovative way to serve customers (Osabuohien, 2008).
Nigerian society is the largest in Africa in the number of subscribers, 100,000
subscribers in 2000 and teledensity jumped from 2.55% in 1992 to 9.3% in 2004 [10,Ndukewe
2005], which helped banks to reap this advantage to market their products through the internet
and encouraged them to benefit from its online services .
a. Global Systems for Mobile Communication (GSM)
GSM has a vital role in the improvement of banks operational efficiency. Through
mobile phones, many clients can receive short messages services (sms) to get informed of the
amounts deposited or withdrawn and balances up to last two transactions (Oluwatolani,
Joshua &Philip, 2011). This saves a lot of time and effort not only for customers who were
waiting in queues in banks but also it facilitates the efficiency operations of banks to serve
more clients existing physically on banks.
b. Internet Banking
Home banking became a vital space for banks to expand its operations day and night
on anywhere any time bases. Visa’s remote subsidiary become of a major player to connect
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13. banks in a secure channel for the safety of money transactions. The internet transactions
required levels of security known as authentication, authorization, data integrity, and nonrepudiation as a key of four elements to provide security channel safer to use. Internet
suppliers have to encrypt all transactions between them and the client on line to make
decoding it complex to guess unless authorized (Agboola, 2001).
This facility is very cheap, fast and in hand that needs only cost of internet
connectivity and electricity (Agboola, 2001).
c. Automated Teller Machines (ATM)
ATMs are computer-based machines that are used to provide services for bank’s
clients such as cash disposal, payment for electricity/telephone/water/internet bills, as well as
give information about clients’ recent transfers or balances. In 1990, the first bank in Nigeria
to launch this service was Societe Generale Bank in its Broad Street office with name Cash
Point24 (Agboola, 2001).
d. Telephone banking technology
One way of witnessed technology advancements that were used is the telephone
banking that enables the customers to call specific numbers to use this service. This
technology uses voice activation technique and tone pad to enable customers to have
transactions of accounts at their convenience (Osabuohien, 2008).
e. Adoption of ICT integrated project
This service has been completed successfully to provide services inside and outside
the country.
f. E-mail
Electronic messaging has a great impact on the ease of communication between bank
clients and other parties. This facility has taken a lion’s share of the ICT usage in the past
decade and remains (Agboola, 2001).
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14. g. Banker Automated Clearing Services
During the period of 1980, banks faced a huge growth of cheque usage in Nigeria as a
result of fast strides in economic development. The clearance process faced significant delays
an lea to commission Komplex Nigeria Limited to recommend means of document
automation and it recommended Magnetic Ink Character Reader (MICR)(Agboola, 2001). It
is a device used for cheque processing (encoding) in banks. It encodes, decodes, reads, and
sorts cheques.
Theoretical Framework
Figure 1 Theoretical Framework
Each construct is described below as follows.
1. User characteristics
In our conducted study, we assumed that user characteristics have an influence on the
online services usage. We considered the education as one item to test as we have a limited
period to accomplish this study. We included three categories to test among respondents
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15. namely: Msc/PhD, Bsc/BA, OND/OCE, WASCE. We found that Msc/PhD has a 24% of the
respondents, 23% for the Bsc/BA, and 8% for OND/OCE. We realized that the higher
educated the person is, the more usage of the online banking he/she perform. The mean value
of 3.39 is considered a moderate level score that gives us an indication that this factor is
positively affects the online services.
H1: The user characteristics based on the level of education is positively
linked with Internet banking usage.
Item
Number
Percentage
Mean Value
3.39
Qualification
•
WASCE
0
0
•
OND/OCE
4
8
•
Bsc/BA
23
23
•
Msc/PhD
24
24
Table 1
2. Usage of Internet Banking (IB)
Banks' operations has developed in the last two decades rapidly and the
traditional ways for dealing with customer banks have changed a lot. The employment
of ICT in the daily operations of the banks changed the nature of business process and
led to more advanced and easy to use ways to help and serve customers to fulfill their
demands as soon as possible. The usage of ICT in banking operations facilitated so
many services for the customer and bankers as well. It also cut the cost dramatically
for the banks' operations, saved a lot of time for both the banks and customers, and
lowered the transaction fees. These facilities can help beneficiaries to adopt internet
banking. Davis in his article ( Davis, 1989) explained the technology use and
technology acceptance attitudes through the Technology Acceptance Model (TAM)
using two factors namely: the perceived usefulness and perceived ease of use. Studies
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16. such as (Agboola, 2001,Wang, Line, and Tang,2003) showed a positive effects on
Internet banking use.
on the other hand, some studies showed that perceived ease of use affects the
perceived usefulness (Chang,
and Rizal, 2010; Wang, Wang, Lin
and Tang,
,2003).In this study, we have the deposit the following hypotheses.
H2: A client's perceived ease of use is positively linked with perceived
usefulness of Internet banking use.
H3: A client's usefulness is positively linked with Internet banking use.
3. Security Concerns
When it becomes to ICT devices and tools used in business, security issues
surface and create a lot of disputes and concerns as well in business financial
transactions. This issue has been the focus of many studies that covered the IT and
electronictransactions (Howcroft, Hamilton and Hewer, 2002, Grabner-krauter &
Faullant,2008;Lee, 2009; kim, Mirusmonov & Lee, 2010).
Privacy and private financial information is of big concern for everyone. When
using internet banking, people are mostly worried about this issue and has a big fear of
theft over the internet especially when they read or hear about such incidents from media
or friend. In this regard they have a negative perception on security issues concerning the
internet banking (Lee, 2009; Sayar &Wolf, 2007). Thus we hypothesized the following:
H4: A perceived security concern is negatively associated with Internet
banking use.
4. Intermittent Services Concern
As the development of the country's economic is shifting to more modern and to
follow the western trend in business, the populace are more keen to use the new and
innovative technological advances in business operations. The world has become a small
village and the internet has shorten the distances between people thus the need for more
reliable and rapid way to execute the financial transactions. Bank customers are
continually facing intermittent services while performing their transactions or using
online bank services. This issue causes a lot of inconvenience and annoyance especially
when it is urgent to perform financial operations immediately and have already relay on
that using the online services. It is sometimes shocking for the customers to have this
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17. situation which may cause considerable financial losses and lack of trust within business
partners. The intermittent service maybe caused by power failure on site which hider
clients to use ATM, or any other ICT gadgets, rapidly and efficiently. In addition, the
intermittent services that is primarily caused by the telecom companies is another major
issue that the bank sector is suffering from as there are no backup plans for the telecom
companies to recover in fraction of seconds. That is another issue that makes clients
hesitate and reluctant in using these innovative facilities that banks are providing as part
of their shift toward the innovative international arena in banking sector. Furthermore,
the clients may think to change to another bank if they get to know that others providing
better services. So developing new innovative gadgets and procedures in banking sector
is a key element to gain clients' satisfaction, loyalty, and trust. This change of client
attitude led us to have the following hypotheses as follows:
H5: A client's intermittent services concern is negatively associated with
Internet banking use. Therefore, we propose the following hypothesis.
H5:A client's intermittent services concern is negatively associated with
Internet banking use.
Chapter Three Research Methodology
1. Sampling Design
In our study, we used a survey instrument and constructs were measured using Likert
scale ranging from 1(Strongly disagree) to 5(Strongly agree), ordinal measurement using
yes/no selection, and interval measurement using selection ranging from 1(Always) to
5(Never).
The survey was supervised on 25 October until 4 November 2013 to groups of
Nigerian academic students and residents in Malaysia, as they are actual beneficiaries of
internet banking of Nigerian inside and outside the country. The number of participants is 51
in which we used online questionnaire, which is an easy to fill, applicable, fast, and
convenient way to gather the information in one location. We used Google form for the
purpose in which we find it practical and easy to be submitted to the respondents. The total
number of respondents is 51 and the unit used is students in different Universities in
Malaysia, lecturers, and residents.
Page 17 of 45

18. The percentages of respondent were calculated for each question, and then we
categorized the questionnaire into groups covering each of our variables in this study. The
mean value is used to give us the result of each variable. Graphical representation was
attached at the appendix of each question in addition to the questions on the survey. Detailed
information is presented to facilitate the analysis process in our analysis section.
We used students as our unit of measurement based on a study conducted by (Ko,
Mancha, Beebe, & Yoon) in which that justify their sample on students “ While using
student subjects is often considered as a weakness of the study, these students reported
themselves as the users of Internet banking, and, thus, we believe that they are suitable for
our study.” (2012). Demographic characteristics of the respondents collected are presented in
Tables below.
2. Instrumentation
In this study we used the quantitative method using the survey method as an
instrument. Online questionnaire was the tool used on this survey and was divided into two
sections namely: section A, where the demographic profile and usage of electronic and online
services were in question.
The second section, section B, was divided into different parts with each part has
different focus on the information that will be gained. Four questions focused on the
perceived ease of use, four questions on perceived usefulness, and five questions on the
perceived security issues, five on the perceived intermittent services and impart on the
satisfaction of clients, and nice different questions for the demographic and general-purpose
questions.
Previous studies were the base of these questions in which we adopted to suite our
purpose of this study. Previous studies such as (Cheng, Lam & Yeung, 2006; Ko, Mancha,
Beebe & Yoon, 2012; Idowu, Alu, & Adagunodo, 2002) were the main source of the adopted
questionnaire in this study. We modified the likert scale to include 5 point scale instead of 7
scale point ranging from strongly agree (1) to strongly disagree (5), and for the interval scale
ranges from always (1) to never (5), in addition to ordinal questions that take the value of
yes/no norm. We used for the analysis of the data the tools provided by the google tools in
which excel format and other graphical illustrations depicts the results gained from the
Page 18 of 45

19. published questionnaire. We intend to make use statistical package for social sciences (SPSS)
if the need arises and we have adequate time on our hands.
3. Data Collection
In this study, we conducted a questionnaire survey for the purpose to get insight of the
attitude of the respondents and find the real factors that affects or has an influence of the
usage of online services and other ICT technologies implemented in banks in Nigeria. for that
purpose, we created a questionnaire survey using Google online forms with all questions that
we assumed important to support our estimates of the real problems on the banking industry
in Nigeria. the Questionnaire is divided into two groups, section A and section B, and we
tried to include all aspects to clarify the real reasons behind the usage, intention to use, and
concerns of online services. The Google form provides an Excel sheet to give the details of
the results and a graphical presentation of the results obtained. In addition, we gave 12 days
of time for filling the questionnaire and used the e-mails or Facebook to spread out the
questionnaire to all possible respondents.
4. Data Analysis
In this study we conducted a questionnaire among Nigerian students and residents in
Malaysia as they are clients in those banks in Nigeria and use the facilities that those banks
offering for their clients. The questionnaire is an online tool that uses Google forms and
provides graphical results and percentages of the results acquired. The factors that we are
going to discuss are as in the following section.
5. Limitation and Delimitation
There are limitations in this study that we are going to highlight. First, we conducted
our study on a limited scope, Nigerian students and residents clients in Malaysia, of the
population that are clients of the Nigerian banks. The justification for that we have taken into
account that those are one important category of the Nigerian population and are studying
abroad, thus the need for online services is a must for them. Also studies such as (Ko,
MANCHA, BEEBE & SHIK YOON) indicated that “While using student subjects is often
considered as a weakness of the study, these students reported themselves as the users of
Internet banking, and, thus, we believe that they are suitable for our study." (2012). We
based our questionnaire on these studies and conducted our research based on the previous
studies in the field. The second limitation is the time limit in which hindered us from
collecting more data on a large scale. The third limitation, in our opinion, is that we did not
Page 19 of 45

20. have the opportunity to spread this questionnaire to employees in banks in which their views
will provide us with more precise data on the issues related with ICT usage and problems in
their banks and on the impact of these problems in the productivity and popularity of the
banks.
Chapter Four Research Findings
Results and discussion
The number of respondents is 51 in which we divided them into groups consisting of
the demographic characteristics, Usefulness, Ease of Use, Security concerns, and Intermittent
Services. The TAM theory is our primary framework with some adoption by adding the
Intermittent Services (IV) and Security Concerns (IV) as new independent variables. We
calculate the percentage, the number of respondents, and the mean value of each question.
We finally calculated the mean value for each variable based on the study conducted by
(Alzaza andYaakub, 2011) in which they say “The ranges of five point Likert-scales were
categorized into equal sized categories of low, moderate and high. Therefore, score of less
than 2.33 are considered low; scores of 3.67 are considered high and those in between are
considered moderate.” (2011). We, then, gained the final result of each hypothesis based on
that scale.
1. The respondents’ demographic and User Characteristics
Of the 51 respondents, 82% were male and 18% female; 22% were in the 18–25 age
groups, 43% were 26–35 in age, 24% were 36–45 in age and 12% above the age of 45. In the
qualification question, there were 23% BSc/BA, 24% MSc/PhD, and 8% OND/OCE.
Also from the table below, it is clear that more than 50% of the respondents use
internet banking at least from time to time and almost all of the respondents use other
electronic means of electronic banking, e.g. ATM, and in frequent periods.
In our analysis to the user characteristics, we found that MSc/PhD has a 24% of the
respondents, 23% for the Bsc/BA, and 8% for OND/OCE. We realized that the higher
educated the person is, the more usage of the online banking he/she perform. The mean value
of 3.39 is considered a moderate level score that gives us an indication that this factor is
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21. positively affects the online internet banking services. Hypothesis 1 is supported moderately
on the online internet banking services. Other demographic details can be found in Table 1.
Demographic and User
Number
Percentage
Mean Value
1.17
Characteristics
Gender
•
Male
42
82
•
Female
9
18
•
total
51
100
•
18-25
11
22
•
26-35
22
43
•
36-45
12
24
•
above 45
6
12
Age
2.27
Qualification
•
WASCE
0
0
•
OND/OCE
4
8
•
Bsc/BA
23
23
•
Msc/PhD
24
3.39
24
Account Type
•
Current
6
12
•
Savings
25
2.27
49
Page 21 of 45

22. Number
Percentage
20
Demographic and User
Mean Value
39
Characteristics
•
Current & Savings
purpose of opening the Account
•
Business
16
29
•
Salary
28
50
•
Other
12
2.11
21
Usage of Online Services
•
Yes
30
59
•
No
21
41
Frequency
of
using
1.4
Online
Services
•
Always
11
22
•
Often
11
22
•
Sometimes
6
12
•
Rarely
9
18
•
Never.
14
3.07
27
ATM Usage
•
Yes
49
96
•
No
2
1.03
4
Page 22 of 45

23. Demographic and User
Number
Percentage
Mean Value
1.74
Characteristics
Frequency of using ATM
•
Always
24
47
•
Often
17
33
•
Sometimes
9
18
•
Rarely
1
2
•
Never.
0
0
Table 2
2. Usefulness (M)
In our review for this category, usefulness, which consists of 3 questions, we found
that 76% of respondents agree that the internet banking is a useful and fast way to do
financial tasks. The mean value of 4.17 shows this result.
In the second item of this category, the results show that 92% of the respondents
believe that internet and online banking is useful. The mean value of 4.45 reflects this fact.
The third item in this category is representing the convenience related with internet
banking which shows that 72% believe on its convenience and the mean value is 3.88 gives a
clear indication of this result.
The last item in this category is representing the benefit of shortening the geographic
distance for the financial transactions for the clients and the results specify 84% of the
respondents agree on that and the mean value is 4.27.
Mean value for this factor is 4.19 (>3.67) which is considered high level score and
indicate that most of the participants are highly agreed on perceived usefulness of online
banking; therefore it is positively affect the usage of internet banking as hypothesized in our
study.
Page 23 of 45

24. Number
Usefulness (M)
Percentage %
Mean value
Internet banking enables me to
accomplish
my
tasks
more
quickly
•
Strongly disagree
1
2
•
Disagree
2
4
•
Neutral
9
18
•
Agree
14
27
•
Strongly agree
25
4.17
49
The Internet banking is useful
•
Strongly disagree
2
4
•
Disagree
0
0
•
Neutral
2
4
•
Agree
16
31
•
Strongly agree
31
4.45
61
Internet banking is a convenient
way to manage my finances
•
Strongly disagree
3
6
•
Disagree
4
8
•
Neutral
7
14
•
Agree
19
3.88
37
Page 24 of 45

25. Number
Usefulness (M)
•
18
Strongly agree
Internet
banking
geographic
Percentage %
Mean value
35
eliminates
limitation
and
increases flexible in mobility.
•
Strongly disagree
2
4
•
Disagree
4
8
•
Neutral
2
4
•
Agree
13
25
•
Strongly agree
30
4.27
59
Table 3
3. Ease of Use (IV)
In our review for this category, ease of use, which has 4 questions, we found that the
73.5% of respondents assume that it is easy to use online banking. In the following lines, we
analyze the figures of each question.
In our second item of the questionnaire, which is of the same meaning of the previous
one, the results reflect almost the same value of 3.66, and with percentage of 69% of
agreement of its positive effect on online banking.
In the third item, we found that more than 77% agree that learning internet banking is
easy and the mean value is 4.19 indicates that this item has a positive influence of the online
banking.
In the last item, the percentage of 80% and a mean value of 4 indicates that
remembering” how to” in the online services has positive influence on the usage of internet
online services.
Page 25 of 45

26. From the aforementioned points, we conclude that the independent variable ease of
use is positively affecting the online banking services.
Mean value for this factor is 3.863 (>3.67) which is considered high level and indicate
that most of the participants highly agreed on perceived ease of use; therefore it is positively
affects the usage of internet banking as hypothesized in our study.
Question Items in each
Numbers
Percentage % Mean Value
Variable
Ease of Use (IV)
It is easy to use Internet banking
to accomplish my banking tasks
•
Strongly disagree
7
14
•
Disagree
2
4
•
Neutral
7
14
•
Agree
21
41
•
Strongly agree
14
3.64
27
Internet banking is easy to use
•
Strongly disagree
3
6
•
Disagree
6
12
•
Neutral
7
14
•
Agree
24
47
•
Strongly agree
11
3.66
22
Page 26 of 45

27. Question Items in each
Numbers
Percentage % Mean Value
Variable
Learning to operate Internet
banking would be easy for me
•
Strongly disagree
1
2
•
Disagree
3
6
•
Neutral
8
16
•
Agree
12
24
•
Strongly agree
27
4.19
53
It is easy for me to remember
how to perform tasks with
Internet banking
•
Strongly disagree
2
4
•
Disagree
3
6
•
Neutral
5
10
•
Agree
14
29
•
Strongly agree
25
4
51
Table 4
4. Intermittent Services Concerns (IV)
From the figures shown in the table below, we found that a mean value of 2.57 and a
percentage 77% of the respondents believe that power failure affects the bank's ICT
operations.
Page 27 of 45

28. With regard of bank's performance in case of intermittent services, majority, 82% are
not satisfied with the bank’s performance with mean value of 1.82. More than 50% of the
respondents agree that with network failure their business and transactions suffers from delay
and hider them from finishing their financial operations rapidly. The results also show clearly
that more than 78% of the respondents admit that there is an intermittent services and power
failures occurrence in banks frequently and the mean value is 2.7.
On the future intention and attitude to change the banks that they are using, we found
more than 50% of the respondents believe that they can bear the continual failures, as it is the
only option to depend on in this stage of the fast growing business market, while 27% are
willing to change the bank to another. The mean value is 1.88 for this question.
Mean value for this factor is 2.084 (<2.33) which is considered a low level score;
therefore this factor has a low impact on online banking services. From these results
aforementioned, we find that our hypotheses of Intermittent Services Concerns are
negatively affecting the online Services in Banks is slightly affecting the online banking
services.
Service Number
Intermittent
Percentage %
Mean Value
Concerns(IV)
In case of power failure, do you
think
that
the
Bank’s
ICT
operations are affected
•
Always
16
31
•
Often
11
22
•
Sometimes
12
24
•
Rarely
3
6
•
Never.
9
18
When
there
are
2.57
intermittent
Page 28 of 45

29. services due to network failure,
are you satisfied with bank’s
performance?
•
Yes
9
18
•
No
42
82
When
network
intermittent
failure
services
1.82
or
happen,
does it hinder you to finish your
financial operations rapidly?
•
Yes
28
55
•
No
23
1.45
45
How frequent is the power failure
or intermittent services happen
•
Always
7
14
•
Often
13
25
•
Sometimes
20
39
•
Rarely
9
18
•
Never
2
4
14
27
2.7
Do you plan to change the bank
in case of repeated ICT failure
operations in the Bank
•
Yes
1.88
Page 29 of 45

30. •
No
29
57
•
Other
8
16
Table 5
5. Security Concerns (IV)
Upon performing transaction over the internet, almost 49% feel secure with these
transactions and around 22% feel or have concerns regarding security over the internet. The
mean value is 2.71 in this question.
More than 52% of the respondents agree that they do not feel very safe providing
personal privacy information over the Internet Banking while 34% disagree. The mean value
is 3.17.
In addition, in answering the statement "I do not perceive the information relating to
user and Internet banking transactions as secure" around 36% of the respondents disagree and
32% agree and the mean value is 3.07.
The worries that others will use the account while using the internet has 39% agree
value, 42% disagree and the main value is 3.02.
Mean value for this factor is 2.98 (> 2.33) which is considered a moderate level score;
therefore this factor has a moderate impact on online banking services. From these results
aforementioned, we find that our hypothesis of Security Concerns is negatively affecting
the online Services in Banks with moderate effect.
From the above results, it is clear that our hypothesis of the Security concern is
supported by the results gained in this survey.
Security Concern (IV)
Number
Percentage % Mean Value
5
12
I would not feel safe in
making transactions over the
Internet banking.
2.71
Page 30 of 45

31. Security Concern (IV)
Number
Percentage % Mean Value
•
Strongly disagree
•
Disagree
15
37
•
Neutral
12
29
•
Agree
5
12
•
Strongly agree
4
10
I would not feel totally
safe providing personal privacy
information
over the Internet
Banking.
•
Strongly disagree
5
12
•
Disagree
10
24
•
Neutral
5
12
•
Agree
15
37
•
Strongly agree
6
3.17
15
I do not perceive the
information relating to user and
Internet banking transactions as
secure.
•
Strongly disagree
1
2
•
Disagree
14
3.07
34
Page 31 of 45

32. Security Concern (IV)
Number
Percentage % Mean Value
•
Neutral
13
32
•
Agree
7
17
•
Strongly agree
6
15
I’m
worried
to
use
Internet banking because other
people may be able to access my
account.
•
Strongly disagree
4
10
•
Disagree
13
32
•
Neutral
8
20
•
Agree
10
24
•
Strongly agree
6
3.02
15
It is easy for me to
remember how to perform tasks
with Internet banking.
•
Strongly disagree
6
15
•
Disagree
11
27
•
Neutral
9
22
•
Agree
10
24
•
Strongly agree
5
2.93
12
Page 32 of 45

33. Table 6
Conclusion
Many banks’ clients prefer nowadays to use online banking services. The innovative
technological methods have driven the attitude of the people to use these techniques in
performing their financial transactions. It became easy, in-hand, with lower fees, and
convenient at any time and any place around the globe. These were the major advantages
over the conventional old methods of business banking transactions. Another worthwhile
In our study, we tried to focus on issues such as security and intermittent services that
are not yet investigated in research. However, customers are suffering from and no one, up to
our knowledge, has dig deeper in these issues. We turned our attention to find out the
influence of these factors on the usage of online internet banking among students and
lecturers who are users of this service in a sample of Nigerian society. The results showed
that security aspects have negative association with online banking as well as intermittent
services. In our in investigation, we also find that those users can bear these problems with
their banks, as there is no alternative way to avoid them or to have a better solution to use the
facilities of online internet banking.
On the other hand, ease of use and usefulness are clearly having positive impact on
the use of internet banking. This gives us very strong perception that most clients prefer and
like to use the online services for its advantages over the conventional and traditional way of
banking. The table below summarizes the results we found so far and compares our
hypotheses with our findings.
In conclusion, there is a need in future research to scale up the number of participants
in our sample in such investigation of the proposed issues in this research. This survey may
include variety of categories that should consist of clients and employees in banks with
different positions as well. That will give more insight of the problems from both sides, the
users and the bankers, and will help in generalize our empirical study.
Page 33 of 45

34. Results
Hypotheses
H1: The user characteristics based on the Hypothesis 1 is supported moderately.
level of education is positively linked
with Internet banking usage.
H2: A client's perceived ease of use is Most of the participants are highly agreed on
positively
linked
with
perceived perceived usefulness. Hypothesis is supported
usefulness of Internet banking use.
highly
H3: A client's usefulness is positively Most of the participants highly agreed on
linked with Internet banking use.
perceived ease of use and hypothesis is
supported highly according to the mean value.
H4: A perceived security concern is
negatively
associated
banking use.
with
The mean value we reached in our survey for
Internet this item shows moderate level score which can
be translated as a moderate negative effect of
this factor
H5: A client's intermittent services Negatively affecting the online Services in
concern is negatively associated with Banks is slightly affecting the online banking
Internet banking use.
services. Hypothesis is correct but slightly
influenced but by this factor.
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37. Appendix
Questionnaire
Dear respondents,
Kindly take some minutes of your valuable time to fill in the questionnaire with
appropriate marks/answers. This questionnaire is for the purpose of research only use. Your
feedback is highly appreciated and is ultimately confidential. Thanking you in advance for your
esteemed time and co-operation.
Figure 2
Figure 3
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38. Figure 4
Figure 5
Figure 6
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39. Figure 7
Figure 8
Figure 9
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40. Figure 10
Figure 11
Figure 12
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41. Figure 13
Figure 14
Figure 15
Figure 16
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42. Figure 17
Figure 18
Figure 19
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43. Figure 20
Figure 21
Figure 22
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44. Figure 23
Figure 24
Figure 25
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45. Figure 26
Figure 27
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