WHAT CAN WE LEARN FROM THE ADOPTION OF BANK TECHNOLOGY-ENABLED INNOVATIONS FROM THE PERSPECTIVE OF THE CUSTOMERS IN SOUTHWESTERN NIGERIA?

Abstract

The study investigated the characteristics of adopters of ICT-enabled services in selected banks and explores the factors influencing customers' adoption of these innovative channels. The motivation for integrating these innovative services in Nigerian commercial banks stems from the policy intervention by the apex bank to transition into a seamless cashless economy and to address transactional challenges. A survey research design was employed to examine customers' experiences and preferences related to these digital services. Results revealed that among the respondents, 53.2% operated savings accounts, 19% had current accounts, and 5.8% held domiciliary accounts. Most respondents were graduates, with self-employed individuals being the largest professional category. Factor analysis identified four significant factors ("Usability," "Utility," "Channel Quality," and "Performance") as the key factors impacting customers' ease of use of technology, while "Support Services" had no significant influence. These factors explained 56.94% of the variance, emphasising their importance in shaping customers' satisfaction with technology-enabled banking services. Policy recommendations focused on strengthening support services, emphasising usability, promoting utility, ensuring channel quality and performance, fostering digital literacy, and encouraging collaboration and innovation to optimise digital banking experiences and promote financial inclusion.