Development of Framework for Customer Acceptance of Internet Banking in Nigeria

Despite the popularity of internet banking in the world, its rate of acceptance in Nigeria is quite slow.Consequently, it is essential to study the factors that influence user’s acceptance of internet banking in Nigeria.This study aims to investigate the factors that influence user’s acceptance of internet banking so as to understand and remove the inhibitions surrounding it and increase its popularity. Several theories, specifically over the conceptualization of the technology acceptance model (TAM) have emerged and they have been applied in different contexts to investigate new insights into the acceptance behaviour of individuals.However, despite TAM’s maturity and validity in different contexts, very little published literature strives to extend its capability to predict individuals’ acceptance behaviour about internet banking.A possible rational for this gap may be conceptualization of the TAM under which individuals’ acceptance behaviour can only be predicted with two beliefs: perceived ease of use (PEOU) and perceived usefulness (PU).The evidence in literature shows that PU and PEOU beliefs are not sufficient; hence, they may not explain individuals’ acceptance behaviour in emerging contexts, such as internet banking in developing economies such as Nigeria. Consequently there is a need for inclusion of additional factors from other relevant theories that can enhance prediction of acceptance of internet banking by potential and reluctant users.According to the proposed conceptual model, internet banking acceptance was determined by five factors, which include perceived usefulness, perceived ease of use, trust, e-service quality and compatibility.