Customer Satisfaction

Vol 6. No.
1, March 2013
African Journal of Computing & ICT

2013 Afr J Comp & ICT All Rights Reserved - ISSN 2006-1781
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7

Empirical Evaluation of Customers Use of Electronic Banking
Systems in Nigeria

Onyedimekwu Okechi
AfriHUB Nig. Ltd
ICT Solutions for Africa
Federal college of Education (Technical)
Omoku, Rivers State, Nigeria.
okesonab@yahoo.com

Oruan Memoye Kepeghom
Department of Computer Science
Federal College of Education
Omoku, River State, Nigeria
oruanmemoye@yahoo.com

ABSTRACT
Electronic banking systems enable customers to access banking services through intelligent electronic devices such as
Computers (Internet banking), Personal Data Assistants (PDAs), Mobile Phones (Mobile banking & Mobile Money),
Point of sales Terminals (PoS), Automated Teller Machines (ATMs), and Debit Cards etc. This research focuses on
empirically evaluating customers use of electronic banking systems. DeLone and McLean Information System Success
model (2003) was employed as a conceptual framework. The survey instrument employed involved design and
administration of 240 questionnaires within Omoku town in Rivers state. 14 returned questionnaires were rejected due to
wrong filling. A total of 220 questionnaires were analyzed which represents 91.7%. The result of this research shows that
among all e-Banking systems, ATM has the highest level of usage. The percentage of respondents who claimed to always
use the various forms of e-banking systems is as follows: ATMs (22.7), PoS (6.4%), Internet Banking (7.3%), Mobile
Banking (10.5%), Mobile Money (8.7%), MasterCard (11.0%), and Web Merchants (5.5%). Correlation analysis of the
hypothesis variables indicates the following: System Quality and Continuance Intention( = .421, = .000 ), Information
Quality and Continuance Intention( = .437, = .000), Service quality and Customers Satisfaction( = -0.097, =.
150). Most bank customers were not satisfied with ATM service Quality in terms of how banks handle their customer
complaints, functionality of the ATM and long queues in using the ATM. Bank customers should be well informed on
how to use all forms of e-banking systems for their financial transactions.

Keywords- Electronic Banking Systems, ATM debit Cards, Information systems, System quality and User Satisfaction.

African Journal of Computing & ICT Reference Format:
Onyedimekwu Okechi & Oruan Memoye Kepeghom (2013). Empirical Evaluation of Customers Use of Electronic Banking Systems in
Nigeria. Afr J. of Comp & ICTs. Vol 6, No. 1. Pp 7-20

1. BACKGROUND
A recent research by Adesina and Ayo [1] found out that
all members of the Nigeria banking industry have
engaged the use of Information and Communication
Technology (ICT) as a platform for effective and
efficient means of conducting financial
transactions(p.2). Electronic banking systems enable
customers to access banking services through intelligent
electronic devices such as Computers (Internet banking),
Personal Data Assistants (PDAs), Mobile Phones (Mobile
banking & Mobile Money), Point of Sales Terminals
(PoS), and Automated Teller Machines (ATMs), Debit
Cards etc.

1.1 Theoretical Framework Using D & M Information
System Success Model
Evaluations of information systems can be performed
through different approaches and methodologies and
consequently evaluations aim to fulfill different kinds of
purposes and produce different kinds of results [2].
Information Systems (IS) like Electronic Banking
Systems are developed using information technology (IT)
to facilitate banking services. Researchers have derived a
number of models to explain what makes some IS
successful. Daviss Technology Acceptance Model
(TAM) [3] used the Theory of Reasoned Action (TRA)
and Theory of Planned Behavior (TPB) to explain why
some IS is more readily accepted by users than others.

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Acceptance, however, is not equivalent to success,
although acceptance of an information system is a
necessary precondition to success [4]. The pre-adoption
intention to use measure from the TAM model is not as
suitable to use for an evaluative purpose [5]. Early
attempts to define information system success were ill-
defined due to the complex, interdependent, and multi-
dimensional nature of IS success.

To address this problem DeLone and McLean [6]
performed a review of the research published during the
period 19811987, and created taxonomy of IS success
based upon this review. In their 1992 paper, they
identified six variables or components of IS success:
system quality, information quality, use, user
satisfaction, individual impact, and organizational
impact. However, these six variables are not
independent success measures, but are interdependent
variables. Figure 1 shows this original IS success model
[6].

Figure 1: DeLone and McLean IS success model (1992).

Shortly after the publication of the D&M success model,
IS researchers began proposing modifications to this
model. Seddon and Kiew (1996) studied a portion of the
IS success model (i.e. system quality, information
quality, use, and user satisfaction). In their evaluation,
they modified the construct, use, because they
conjectured that the underlying success construct that
researchers have been trying to tap is Usefulness, not
Use (p. 93). Seddon and Kiews concept of usefulness is
equivalent to the idea of perceived usefulness in TAM by
[3]. They argued that, for voluntary systems, use is an
appropriate measure; however, if system use is
mandatory, usefulness is a better measure of IS success
than use. DeLone and McLean [4] responded that, even
in mandatory systems, there can still be considerable
variability of use and therefore the variable use deserves
to be retained. Researchers have also suggested that
service quality be added to the DeLone and McLean
(D&M) model.

Recognizing these proposed modifications to their model,
D&M, in a follow-up work, reviewed empirical studies
that had been performed during the years since 1992 and
revised the original model accordingly [4]. In their
updated model, they included the core dimensions of
information quality, system quality and user
satisfaction, as well as use/intentions to use, net
benefits and service quality.

The updated model is shown in Figure 2. The dimensions
of success based on [4] include:

System quality the desirable characteristics of an
information system. For example: ease of use, Intention
to Use ,flexibility, system reliability, and ease of
learning, as well as system features of intuitiveness,
sophistication, and response times.

Information quality the desirable characteristics of the
system outputs; that is, management reports and Web
pages. For example: relevance, understandability,
accuracy, conciseness, completeness, understandability,
currency, timeliness, and usability.

Service quality the quality of the support that system
users receive from the IS department and IT support
personnel. For example: responsiveness, accuracy,
reliability, technical competence, and empathy of the
Personnel staff. SERVQUAL, adapted from the field of
Marketing, is a popular instrument for measuring IS
service quality Pitt et al. [7].

Intention to use the degree and manner in which staff
and customers utilize the capabilities of an information
system. For example: amount of use, frequency of use,
nature of use, appropriateness of use, extent of use, and
purpose of use. Bhattacherjee [8] makes the case for
Information
quality
System
Quality
User
Satisfaction
Use
Individual
Impact
Organizational
Impact

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assessing user intentions to continue using a system
(continuance intention). Such a measure is more suited to
post-adoption studies such as evaluating the success of an
information system.

User satisfaction users level of satisfaction with any
information system. For example, the most widely used
multi-attribute instrument for measuring user information
satisfaction can be found [9]. User Satisfaction is the
most general perceptual measure of information systems
success [10].

Net benefits the extent to which IS are contributing to
the success of individuals, groups, organizations,
industries, and nations. For example: improved decision-
making, improved productivity, increased sales, cost
reductions, improved profits, market efficiency,
consumer welfare, creation of jobs, and economic
development. Brynjolfsson et al. [11] have used
production economics to measure the positive impact of
IT investments on firm-level productivity. The practical
application of the D&M model is naturally dependent on
the organizational context. DeLone and McLean [4]
stated that the researcher wanting to apply the D&M
model must have an understanding of the information
system and organization under study. This will determine
the types of measures used for each success dimension.
The selection of success dimensions and specific metrics
depend on the nature and purpose of the system(s) being
evaluated [4].

1.2 Statement of Research Problem
Nigerian banks have been investing huge sums of money
in ICT and e-Banking systems most especially in the
deployment of ATM and issuance of ATM debit cards
towards measuring up with global standards. Customers
of banks today are no longer only concerned about safety
of their funds and security of ATM transactions but
customers demand efficient, fast and convenient services.
Customers want a Bank that will always have ATM
services, reduced queue, reliable and secure internet and
mobile services, support their business goals for instance;
businessmen want to travel without carryout cash for
security reasons. They want to be able to check their
balance online, find out if a cheque is cleared, transfer
funds among accounts and even want to download
transaction records into their own computer at work or
home. Evaluating the success level of these Electronic
Banking systems especially ATM cards usage from the
customers perspective will boost their confidence and
willingness to continue using these systems.

1.3 Purpose of Study
Electronic Banking Services like ATM and debit cards
witness a tremendous revolution with the introduction of
Guideline on Electronic Banking by the Central Bank of
Nigeria [12].This research work seeks to empirically
evaluate the success of Electronic Banking systems in
Nigeria, and to access customers readiness for cashless
economy, since according to Lagsten and Goldkuhl [2]
One major reason for doing evaluations of information
systems is to take actions based on the results of the
evaluation(p.97).

This work also seeks to validate DeLone and McLean
(2003) IS Success Model using ATM debit card as an
Electronic Banking System in Nigeria. ATM debit card
usage ranked far higher than other Electronic Banking
Systems according to recent findings by Central Bank
Nigeria [13] and Intermarc [14].

1.4 Research Questions and Hypotheses
Many users of Electronic Banking Systems (EBS) in
Nigeria are very Skeptical of the system and the
following questions are

Q1. What is the system quality of an Electronic
Banking System in terms of its security,
reliability, Ease of Use and Availability?
This research proposes the following
hypotheses based on EBS quality:

H1: The System Quality of an Electronic Banking
System has a positive effect on the
Customers continuance Intention to use
it.

H2: The System Quality of an Electronic Banking
Customers Satisfaction.

Q.2 What is the Information Quality content of an
Electronic Banking system in terms of
account balance enquiring, printing
transaction record etc? Based on this metric,
the following hypothesis is proposed:

H3: The Information Quality content of an
Electronic Banking system has a positive
effect on the Customers continuance
Intention to use it.

H4: The Information Quality content of an
Electronic Banking system has a positive effect
on the Customers satisfaction.

Q3. What is the Service quality of an Electronic
Banking system in terms of ATM
functionality, technical support during usage,
Secure Service, average time spent on usage?

H5: The Service Quality of an Electronic Banking
Customers continuance Intention to use
it.


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H6: The Service Quality of an Electronic Banking
Customers Satisfaction

Intention to use (modified to Continuance Intention
according to [8])
This is the degree and manner in which staff and
customers utilize the capabilities of an information
system. For example: amount of use, frequency of use,
nature of use, appropriateness of use, extent of use, and
purpose of use. Bhattacherjee [8] makes the case for
assessing user intentions to continue using a system
(continuance intention). Such a measure is more suited to
post-adoption studies such as evaluating the success of an
information system like ATM debit cards.

Q4. How does a customers continuance intention
to use EBS affect customers satisfaction
and Net Benefit of using the system?
This research proposes the following
hypotheses based on continuance intention to
use an electronic banking system.

Fig. 2 Electronic Banking Systems Research Hypotheses Model

H7: Customers continuance Intention to use
Electronic Banking System has a positive effect
on the Customers Satisfaction.

H8: Customers continuance Intention to use
Electronic Banking System has a positive effect
on the Customers Net Benefit.

Q5. How does customers satisfaction of an
electronic banking system affect Net benefit
and continuance intention of using it?

H9: Customers Satisfaction of an Electronic
Banking System has a positive effect on the
Customers continuance Intention to use it.

H10: Customers Satisfaction of an Electronic
Banking System has a positive effect on the
CustomersNet Benefit.

1.5 Limitations of the Study
Evaluation of Electronic Banking Systems is a complex
work since there are many systems to be considered. This
research work limited the evaluation to customers Use of
ATM debit card using DeLone & McLean IS Success
Model. The survey questionnaires were administered in
Omoku Town only due to limited financial resources.
Also questions were only administered to customers of
banks who use ATM debit cards or are intending to use
it. Commercial banks staffs perspectives were not
considered.

Continuance
Intention
System
Quality
Information
Quality
Service
Quality
User
Satisfaction
Net
Benefit


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2. RELATED LITERATURE
2.1. Introduction
Electronic Banking System is an innovative service
delivery mode that offers diversified financial services
like cash withdrawal, funds transfer, cash deposits,
payment of utility and credit card bills, cheque book
requests, and other financial enquiries. In Nigeria,
ATM was conventionally introduced as an electronic
delivery channel in 1989, and was first installed by
National Cash Registers (NCR) for the defunct Societe
Generale Bank of Nigeria (SGBN) in the same year.
Since its introduction, many Nigerian banks have
installed ATM in response to the changing nature of
modern banking operations. Until 2003, a small
number of banks operated their own propriety ATM
fleets .The main shared ATM network in Nigeria,
InterSwitch, began operations in 2003 with 5 ATMs
from United Bank for Africa (UBA) and First Bank of
Nigeria (FBN).[15].

2.2. Views on Electronic Banking
Recent research work by Adesina and Ayo [1] found
out that Banks customers who are active users of e-
Banking system use it because it is convenient, easy to
use, time saving and appropriate for their transaction
needs. Also the network security and the security of the
system in terms of privacy are the major concerns of
the users and constitute hindrance to intending users
(p.2). Thomas et al. [16] carried out a research on the
Importance and Performance of Various Factors
Considered In the Electronic Banking Services and
concludes that secure service is the most important
dimension, followed by convenient location of ATM,
efficiency (not need to wait), ability to set up accounts
so that the customer can perform transactions
immediately, accuracy of records, user friendly, ease of
use, complaint satisfaction, accurate transactions and
operation in 24 hours (p.151). Available data on
various e-payment channels from the Central Bank of
Nigeria Economic Report for the first half of 2011
revealed that ATM remained the most patronized,
accounting for 98.09 percent with a transaction worth
of N764.14 billion. The number of ATM deployed in
the system stood at 9,443 with over 30 million ATM
card holders at the end of June 2011(p.6) [13]

Fig. 3 Percentage of Volume and Value of E-payment channels, Half year 2011(CBN, 2011)

2.3. Electronic Banking Systems
2.3.1 Telephone Banking is a service provided by a
financial institution, which allows its customers to
perform some banking transactions over the telephone.
Most telephone banking services use an automated phone
answering system with phone keypad response or voice
recognition capability.

2.3.2 Mobile Banking (also known as M-Banking,
mbanking) is a term used for performing balance checks,
account transactions, payments, credit applications and
other banking transactions through a device such as a
mobile phone or Personal Digital Assistant (PDA). The
earliest mobile banking services were offered over Small
Message Service (SMS).

2.3.3 Mobile Money allows users to create an e-wallet
for storing funds on their phone. Once value is stored on
your mobile phone, you can use it to pay for goods and
services at merchant locations that support mobile
money. It is at the core of the CBNs cashless policy. The
philosophy behind mobile money is that most Nigerians
now have mobile phones (not as many have bank
accounts). So, if we can have an easy to use electronic
payment solution that enables people pay for goods and
services with their mobile phone we will achieve a
cashless or cash lite economy faster.Your e-wallet can be
funded via authorized agents of your Mobile money
service, partner banks and networks of your mobile
money service, transfers from your ATM/Debit cards, or
any other funding method offered by your service
provider.


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Once funded you can securely and conveniently use your
mobile money to send money to family and friends, buy
airtime of any network, Pay bills like DSTV, Hi TV,
MyTV, PHCN bills, etc. The Central Bank of Nigeria
(CBN) recently issued operating licenses to 11 mobile
money firms, namely: Fortis Mobile Money,
UBA/Afripay, GTBank Mobile Money, Pagatech, and
eTranzact, Monetise, Eartholeum, Paycom, FET,
Ecobank and Kudi. The operating license allows the
companies to provide products such as electronic
payments through mobile phones [17].

2.3.4 Online Banking (or E-banking)
This allow customers of a financial institution to conduct
financial transactions on a secure website operated by the
institution, which can be a retail or virtual bank, credit
union or building society. To access a financial
institution's online banking facility, a customer having
personal Internet access must register with the institution
for the service, and set up some password (under various
names) for customer verification.

2.3.5 Point-of-Sale (PoS) terminal
This is an electronic device that is used for verifying and
processing credit card transactions. Typically connected
via highly reliable telephone wired connections, they
require rapid dial up time, low power and reliable
performance. A Retail Point of Sales system typically
includes a computer, monitor, cash drawer, receipt
printer, customer display and a barcode scanner, and the
majority of retail POS systems also include a debit/credit
card reader. It can also include a weight scale, integrated
credit card processing system, a signature capture device
and a customer pin pad device. More and more POS
monitors use touch-screen technology for ease of use and
a computer is built in to the monitor chassis for what is
referred to as an all-in-one unit.

2.3.6 Automated Teller Machine (ATM).
An ATM device allows a bank customer to withdraw
cash from his account via cash dispenser (Machine), and
the account is debited immediately. A fundamental
advantage is that it needs not to be located within the
banking premises. It is usually in stores, shopping malls,
fuel stations etc. On most modern ATMs, the customer is
identified by inserting a plastic ATM card with a
magnetic stripe or a plastic smart card with a chip, that
contains a unique card number and some security
information such as an expiration date.

Authentication is provided by the customer through
entering a personal identification number (PIN).
InterSwitch, VPay, ETranzact, and QuickCash are some
of the leaders in ATM deployment in Nigeria.
InterSwitch today has all banks in the country connected
to her network. This actually makes it possible to use
their cards in all bank branches nationwide and in almost
all machines.
Different ATM service providers are also interconnected
so you do not need to worry which company services a
particular ATM machine. InterSwitch for example
supports Verve, Visa and MasterCard on her ATM
machines and vice versa.

2.3.7 Smart Card (chip card or integrated circuit
card) is any pocket-sized card with embedded integrated
circuits which can process data. The Verve card is the
new Interswitch debit card now with the Chip and
PIN. Verve is the new name of the more secure and
convenient Interswitch card which with the introduction
of chip and PIN makes transactions safer and with Quick
teller services, adds convenience to everyday life. Verve
is issued by your bank and powered by Interswitch. The
Verve card is the first and only chip card accepted on all
available payment channels in Nigeria. The Verve card is
the only card that allows you to conveniently pay for
goods and services on all ATMs, POS, Web, Mobile,
Kiosk, PC POS, Voice and Bank Branch connected to the
Interswitch network. The Verve card is one of the most
secure Chip and PIN card. The chip technology
guarantees that information stored is not accessible to
unauthorized persons [18].

2.3.8 Web Merchants. Web merchants are those
organizations that conduct transaction via their websites.
They make it possible for people to buy goods or render
services to people via their websites. Examples of these
web merchants are www.quickteller.com,
Virtualkard.com and Naira.com. They offer prepaid
services and charges are based on prevailing currencies
exchange rate. Online buyer purchases the card based on
the amount of the product(s) in dollars that he wants to
buy and uses the card information to make his online
purchases. Another payment method is direct payment to
the sellers bank. This is an offline method. Some of the
companies using this method are syskay.com and
Signonafrica.com. Both are web hosting companies. It is
required that a customer pays into the bank account of the
seller or service provider. A proof of payment is required,
sometimes the teller is scanned and sent via email as
proof of payment before the service is rendered, and a
process called Non-repudiation the customer makes a
phone call [19].

2.4. The Emerging Issues in E-Banking Systems
2.4.1 Threats to Electronic Banking Systems
A Miami businessman is suing his bank for the loss of
$90,000. He claims that, in February 2005, this money
was stolen from his online bank account via an
unauthorized transaction [20]. Investigations have
revealed that the businessmans computer was infected
with a Trojan capable of logging keystrokes [21],
including his full account details. It is likely that the theft
of this information was the trigger that led to the
unapproved transaction to a foreign bank account.


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So far, the businessmans bank has refused to compensate
for his loss. The number of malicious applications
targeting online banking transactions has increased
dramatically in recent years and the biggest threat to
online banking is still malicious code executed carelessly
on the end-users computer [21]. The attackers tend to
target the weakest link. Once the attacker has control
over a users computer, he or she can modify the
information flow to his or her advantage. ATMs have
contributed to the alarming rate of fraud in the Nigerian
banking industry [22].

2.4.2. The Regulatory Challenges
Recognizing that electronic banking and payments
services are still at the early stages of development in
Nigeria, Central Bank of Nigeria released its guidelines
on electronic banking in Nigeria [12]. According to the
guideline, Banks will be considered liable for fraud
arising from card skimming and counterfeiting except
where it is proven that the merchant is negligent.
However, the cardholder will be liable for frauds arising
from PIN misuse. External devices such as Automated
Teller Machines (ATMs), Personal Computers, (PCs) at
remote branches, kiosks, etc. permanently connected to
the banks network and passing through the firewall must
at the minimum address issues relating to non-
repudiation, data integrity and confidentiality.

The CBN guideline addresses the issues of security by
stating that Banks may consider authentication via
Media Access Control (MAC) address in addition to
other methods. Adopt the chip (smart card) technology as
the standard. Banks must ensure that the Internet Service
Provider (ISP) has implemented a firewall to protect the
banks Web site where outsourced (p.3). Section 1.4.8
of the guideline states that Internet Service Providers
(ISPs) should exercise due diligence to ensure that only
websites of financial institutions duly licensed by the
CBN are hosted on their servers. ISPs that host
unlicensed financial institutions would therefore be held
liable for all acts committed through the hosted
websites.

2.4.3. Electronic Banking Systems and Cashless
Economy
The Central Bank of Nigeria (CBN) has introduced a new
policy on cash-based transactions which stipulates a cash
handling charge on daily cash withdrawals or cash
deposits that exceed N500, 000 for Individuals and N3,
000,000 for corporate bodies. The new policy on cash-
based transactions (withdrawals & deposits) in banks,
aims at reducing (NOT ELIMINATING) the amount of
physical cash (coins and notes) circulating in the
economy, and encouraging more electronic-based
transactions (payments for goods, services, transfers,
through ATMs, PoS, Website, Mobile Phones etc.)[23].

Why the Cash Policy?
The new cash policy was introduced for a number of key
reasons, including:
1. To drive development and modernization of
our payment system in line with Nigerias
vision 2020 goal of being amongst the top 20
economies by the year 2020. An efficient and
modern payment system is positively correlated
with economic development, and is a key
enabler for economic growth.
2. To reduce the cost of banking services
(including cost of credit) and drive financial
inclusion by providing more efficient
transaction options and greater reach.
3. To improve the effectiveness of monetary
policy in managing inflation and driving
economic growth.

In addition, the cash policy aims to curb some of the
negative consequences associated with the high usage of
physical cash in the economy, including:

High cost of cash: There is a high cost of cash along the
value chain - from the CBN & the banks, to corporations
and traders; everyone bears the high costs associated with
volume cash handling.

High risk of using cash: Cash encourages robberies and
other cash-related crimes. It also can lead to financial loss
in the case of fire and flooding incidents.

High subsidy: CBN analysis showed that only 10 percent
of daily banking transactions are above 150k, but the 10
percent account for majority of the high value
transactions. This suggests that the entire banking
population subsidizes the costs that the tiny minority 10
percent incurs in terms of high cash usage.

Informal Economy: High cash usage results in a lot of
money outside the formal economy, thus limiting the
effectiveness of monetary policy in managing inflation
and encouraging economic growth.

Inefficiency & Corruption: High cash usage enables
corruption, leakages and money laundering, amongst
other cash-related fraudulent activities [23]

3 RESEARCH METHODOLOGIES
3.1 Introduction
The methodology employed in this study was positivistic,
quantitative and hypothetic-deductive. Hypotheses were
derived from the extant literature on Information
Systems Evaluation using D & M IS Success Model.


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3.2 Research Design
Questionnaire is the survey instrument used in this
research. The research design was divided into two
sections. The first section consists of 5 questions on
demographic profile and 7 questions on the use of various
e-banking systems. The second section consists of the
evaluating factors (items) and 20 questions which test the
customers usage of ATM debit card as shown below.

Table1: Hypothesis Variables and numbers of
research questions
Variables Numbers of
Items(questions)
Systems quality (SQ) of ATM
debit card(s)
7
Information quality (IQ) 3
Service Quality (SQ) 4
Continuance Intention to use
ATM Cards (CI)
3
Customers Satisfaction (CS) 2
Net Benefit of using ATM cards
(NB)
1

The questionnaire items were adopted from the following
prior studies [1] [5]. Bank customers were asked to
indicate their perception on the use of ATM cards as an
E-banking system using the Five-Point Likerts scale
having the ratings of strongly disagree (1) and
strongly agree (5).

3.3 Research population and Sampling Procedure
The research population of study includes bank
customers who are using e-banking services, staffs and
students of federal college of education, Omoku, NYSC
members, and anybody who has a bank account. A
criteria standard to define the valid questionnaire is set
as follows: a questionnaire having more than 10 items
clicked continuously in the same score was considered to
be invalid; if up to 5 questions were not answered, it is
considered invalid. Random sampling of questionnaires
to bank customers in Omoku was used.

3.4 Data Collection (procedure)
Primary and secondary data sources were used in this
work. The primary data source is the questionnaire while
secondary source is based on Central Bank of Nigerias
half year 2011 report [13], Intermarc consulting report
[14] and others. 240 questionnaires were distributed and
234 were collected from the respondents from July 02,
2012 to August 10, 2012. 14 returned questionnaires
were rejected due to incomplete or wrong filling. A total
of 220 questionnaires were therefore analyzed which
represents 91.7%.

Table 2: Demographic profile and e-Banking usage of respondents
Gender F requency Va li d percentag e
Male 1 29 5 8 .9
Femal e 9 0 4 1 .1
Ag e Ra nge Frequency Val id percenta ge
Bel o w 2 0 Yrs 3 2 1 4 .5
20 -30 1 04 4 7 .3
31 -40 6 7 3 0 .5
41 -50 1 6 7. 3
51 -60 0 0. 0
Abo ve 60 Yrs 1 .5
Occ upa tio n F requency Val id percenta ge
Stu den t 6 5 2 9 .5
Civi l Servi ce 5 9 2 6 .8
Priv ate J ob 3 4 1 5 .5
Tradi ng 1 0 4. 5
Self-E mp lo yed 2 4 1 0 .9
Ot hers 2 8 1 2 .8
Educa t io nal Qual ifi cat i on F reque ncy Va li d percentag e
SSCE/ WAE C 4 0 1 8 .2
NCE 5 4 2 4 .5
OND 1 1 5. 0
HND 3 0 1 3 .6
Firs t D egree 7 5 3 4 .1
Masters 7 3. 2
PhD 2 .9
Mo nthl y Inco me Frequency V al id percenta ge
Bel o w # 20 ,00 0 8 4 3 8 .2
20 ,00 0- 3 5, 000 4 5 2 0 .5
40 ,00 0- 6 5, 000 2 7 1 2 .3
70 ,00 0- 1 00 ,00 0 1 6 7. 3
Abo ve 10 0,0 00 1 8 8. 2
No Mon th ly Pay 3 0 1 3 .6


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4. RESULTS, ANALYSIS AND DISCUSSION

4.1. Introduction
The collected data were analyzed based on descriptive statistics (frequency and percentage) and correlation analyses
using the statistical package for social sciences (SPSS) version 18.

4.2. Research Questions/Hypotheses Analysis and Results
In this section the demographic profile and e-banking usage of the respondents will be stated. Also reliability analysis of
the variables as well as the descriptive statistics is given.

4.2.1 Demographic profile and e-Banking usage
Two hundred and twenty (220) questionnaires were analyzed. The demographic profile of the respondents is presented in
the table below.

Table 3: Electronic Banking Systems Usage of respondents
ATM PoS Internet
Banking
Mobile
Banking
Mobile
Money
Master
Card
Web
Merchants
Freq % Freq % Freq % Freq % Freq % Freq % Freq %
I dont use
it
65 29.5 165 75.0 168 77.1 153 69.5 162 74.3 147 67.1 175 80.3
Once per
month
62 28.2 18 8.2 16 7.3 23 10.5 24 11.0 23 10.5 17 7.8
Once per
week
30 13.6 16 7.3 7 3.2 13 5.9 7 3.2 16 7.3 4 1.8
Twice per
week
11 5.0 4 1.8 11 5.0 8 3.6 6 2.8 9 4.1 9 4.1
Always 50 22.7 14 6.4 16 7.3 23 10.5 19 8.7 24 11.0 12 5.5

Figure 4: ATM debit Cards Usage of respondents

4.2.2 Reliability Analysis of Variables
In order to assess reliability of the variables, the Cronbach Alpha was calculated for each variable. The lowest
Cronbach Alpha was 0.405 for Customer Satisfaction and the highest was 0.534 for Information Quality, thus
demonstrating that all measures exhibited reliability.


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Table 4: Reliability Analysis of Variables

4.2.3 Correlation Analysis of Variables
The table below shows the correlation analysis of the 6 variables and their mean value from SPSS output.

Variable Number of Items Cronbach alpha
Systems quality (SQ) of ATM debit card(s) 7 0.486
Information quality (IQ) 3 0.534
Service Quality (SQ) 4 0.493
Continuance Intention to use ATM Cards (CI) 3 0.468
Customers Satisfaction (CS) 2 0.405
Net Benefit of using ATM cards (NB) 1 N/A
Table 5: Correlation Analysis of Variables
SYSTEM
QUALITY
INFORMATION
QUALITY
SERVICE
QUALITY
CONTINUANCE
INTENTION
CUSTOMER
SATISFACTION
NET
BENEFIT

MEAN
SYSTEM
QUALITY
Pearson
Correlation
1 .445
**
-.049 .421
**
.376
**
.224
**
3.342
Sig. (2-
tailed)

.000 .467 .000 .000 .001
N 220 220 220 220 220 220
INFORMATION
QUALITY
Pearson
Correlation
.445
**
1 .056 .437
**
.317
**
.146
*
3.395
Sig. (2-
tailed)
.000

.407 .000 .000 .031
N 220 220 220 220 220 220
SERVICE
QUALITY
Pearson
Correlation
-.049 .056 1 .138
*
-.097 -.069 3.364
Sig. (2-
tailed)
.467 .407

.041 .150 .311
N 220 220 220 220 220 220
CONTINUANCE
INTENTION
Pearson
Correlation
.421
**
.437
**
.138
*
1 .424
**
.275
**
3.449
Sig. (2-
tailed)
.000 .000 .041

.000 .000
N 220 220 220 220 220 220
CUSTOMER
SATISFACTION
Pearson
Correlation
.376
**
.317
**
-.097 .424
**
1 .433
**
3.318
Sig. (2-
tailed)
.000 .000 .150 .000

.000
N 220 220 220 220 220 220
NET BENEFIT Pearson
Correlation
.224
**
.146
*
-.069 .275
**
.433
**
1 3.636
Sig. (2-
tailed)
.001 .031 .311 .000 .000

N 220 220 220 220 220 220

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

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4.2.4 Hypothesis testing
Hypotheses were supported if the p value is less than 0.05.

Table 6: Hypothesis Testing

4.3. Discussion of Results
Table 2 shows that 58.9 percent of the respondents
were males while 41.1 percent were females. 47.3
percent of them were aged between 20-30 years. 29.5
percent are students while 26.8 percent are Civil
Servants. Most of the respondents had bachelor degree
(34.1%). Income earners of below #20,000 monthly
had the highest percentage of 38.2. E-Banking
Systems usage of the respondents was also
determined. Respondents were asked to indicate the
rate at which they use any of the various forms of e-
Banking systems. The frequency distribution of their e-
Banking system usage is illustrated in Table 3. Among
all e-Banking system, ATM has the highest level of
usage in accordance with previous research by Adesina
and Ayo [1] and Central Bank of Nigeria Half year
report [13]. 22.7% of the respondent claimed to always
use ATM and 28.2% once per month use ATM. Web
Merchant Portal system was observed to be the least
used. 80.3% responded that they dont use it for their e-
banking transaction. Reliability Analysis of the
Variables shows that the Cronbach Alpha value for
System quality (SQ) is 0.486, Information quality is
0.534, Service Quality is 0.493, Continuance Intention
is 0.468, and Customers Satisfaction (CS) is 0.405.

Table 5 shows the hypothesis testing, from the SPSS
correlation analysis of the variable indicates that the
entire hypothesis was supported except hypothesis 6.
The mean of Service Quality shows that most
respondents were not satisfied by ATM service Quality
in terms of how banks handle their customer
complaints, functionality of the ATM, success of ATM
cards transactions, and long queues in using the ATM
which was tested via the questionnaire. This means that
if banks can increase their Service quality based on the
variables tested in this research work, then customers
satisfaction will increase leading to more people
willing to use the system.

The average value of Net Benefit which is 3.64
indicates that ATM debits cards as an e-banking system
is beneficiary to most people. From the correlation
analysis of the variables in table 5, the strongest direct
relationship existed between Information Quality (IQ)
and Continuance Intention (CI) to use ATM services.
That is the vital, timely, secure and relevant
information an ATM system has the higher the peoples
intention and wiliness to continue it usage.

Hypothesis Independent Variable Dependent Variable Beta Value P level (p<0.05) Hypothesis Supported
H1 System Quality Continuance Intention .421 .000 YES
H2 System Quality Customers Satisfaction .376 .000 YES
H3 Information Quality Continuance Intention .437 .000 YES
H4 Information Quality Customers Satisfaction .317 .000 YES
H5 Service quality Continuance Intention .138 .041 YES
H6 Service quality Customers Satisfaction -0.097 .150 NO
H7 Continuance Intention Customers Satisfaction .424 .000 YES
H8 Continuance Intention Net Benefit .275 .000 YES
H9 Customers Satisfaction Continuance Intention .424 .000 YES
H10 Customers Satisfaction Net Benefit .433 .000 YES

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5. RESEARCH IMPLICATIONS AND
CONCLUSION

5.1. Implication of the Study
The implication of the result of this study is that e-
banking systems in Nigeria is still developing and
needs a lot of improvement from the commercial banks
deploying this services in terms of System quality,
information quality and Service quality. The Central
Bank of Nigeria, who is directly responsible for
regulating e-banking services and its deployment and
other financial institutions must aggressively inform
and encourage the public on how to use all the various
forms of e-banking systems..

5.2. Conclusion
This research work has used DeLone and McLean
(2003) IS Success Model to show that most bank
customers will use e-banking systems more often if the
system quality, information quality and service quality
is improved. ATM debit cards usage ranked the highest
while most bank customers do not know how to use
Web Merchant service and Mobile Money. The banks
should enlighten their customers about the gains of
using e-banking systems and how to use them.

5.3. Recommendations
The researcher having critically examined the
responses of bank customers who use various forms of
e-banking systems as well as having read previous
works on e-banking systems and services here by
makes the following recommendations:
1) All money deposit banks in Nigeria should as
a matter of urgency improve the service
quality of their e-Banking Systems.
2) Bank customers should be encouraged and
informed on how to use all forms of e-
banking systems for their financial or
business transactions, including using ATM
debit card for payment purposes not just for
withdrawing money.
3) Further research work on customers
perspective of the usage of e-banking systems
by the CBN on a national base in other to
cover the whole Nigerian state. This will
guide them properly when formulating e-
banking policies and guidelines.
4) Further work should be done on Biometric
Authentication of ATM, for improving it
security.
5) Research work on the Design and
Construction of a unified (single) smart card-
based ATM debit card for all financial
transactions.

REFERENCES

[1] Adesina, A.A. and Ayo, C.K (2010). An
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[2] Lagsten, J. and Goldkuhl, G. (2008).
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[6] Delone, W.H. and Mclean E.R. (1992).
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[12] Central Bank of Nigeria (2003). Guideline on
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[13] Central Bank of Nigeria (2011). Half year
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[17] Microcapital Brief (September 7, 2011):
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Authors Brief

Mr. Onyedimekwu Okechi
obtained his B.Eng. (Elect/Elect)
from Ahmadu Bello University,
Zaria and his M.Sc. Information
Technology from NOUN, Lagos.
He is a Certified Internet Web
Professional and a member of
IEEE Nigeria Section. He has
undergone professional practical computer training like
CCNA, Web Development, Database Management,
Computer Repairs and Maintenance. He is currently the
Training Manager of AfriHUB Nig. Ltd (ICT Solutions
for Africa), FCE(T), Omoku, Rivers State. His research
interest include: Information Systems analysis and
design, E-Payment Systems, Web application
development with PHP/Mysql, Computer Networks
and Use of ICT for Human Development. He can be
contacted via okesonab@yahoo.com, 08032667945..


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20

Mr. Oruan Memoye K. Obtained
his B.Sc(Ed) Maths University of
Nigeria Nsukka, PGD Computer
Science and M.Sc. (comp. Sci)
both from Uniport. He is an
associate member of computer
professionals registration council
of Nigeria. He is currently a lecturer in computer
science department,Federal College of education(T),
Omoku. His research interest include Information
Systems analysis and design, E-Payment Systems and
Use of ICT for Human Development. He can be
contacted via oruanmemoye@yahoo.com
08037911980.

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