International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 5, July-August 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD43866 | Volume – 5 | Issue – 5 | Jul-Aug 2021 Page 551
Customer Perceived Risk and Adoption of E-Banking
Services in Southeast Nigeria: The Moderating
Effect of Educational Qualification
Chibike Onyije Nwuba
1
, Prof Ireneus Chukwudi Nwaizugbo
2
1
Marketing Department, Federal Polytechnic Oko, Anambra State, Nigeria
2
Marketing Department, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
ABSTRACT
The study examined the relationship between perceived risk and the
adoption of electronic banking in Southeast, Nigeria with the
moderating effect of selected Socio-demographics, Specifically, the
study addressed the relationship between the seven dimensions of
perceived risk (financial, performance, social, physical, privacy, time
and psychological risks) and the adoption of electronic banking in the
south-eastern region of Nigeria using the moderating effect of
educational qualification. The study adopted a descriptive survey
research design; questionnaires were employed in collecting primary
data while documentary sources were adopted for secondary data.
The population of the study was made up of electronic banking users
in the five States that make up the south-east region of Nigeria. Since
the population is unknown, the Cochran formula for determining
sample size for an infinite population was adopted to get the sample
size of four hundred and ninety (490) electronic banking adopters.
Descriptive statistics were used to check the behaviour of the data.
The data from 424 valid responses were analysed and hypotheses
tested using the Structural Equation Model (SEM) and with the aid of
WarpPLS 6.0 software. Results from the study revealed that
perceived risks in its seven dimension examined, has a significant
relationship with the adoption of E-banking in Southeast, Nigeria,
The results showed that the following risk dimensions were
significantly moderated by educational qualification: Financial risk,
privacy risk, social risk and Psychological risk, meanwhile,
performance, physical and time risk were not moderated by
educational qualification thus recommended that Managers of
financial institutions should strategically develop plans to reduced or
eliminate the risk perceived by customers by organizing educational
programs to facilitate the adoption of e-banking services in Nigeria.
KEYWORDS: Perceived Risk, Electronic banking, Demographics
How to cite this paper: Chibike Onyije
Nwuba | Prof Ireneus Chukwudi
Nwaizugbo "Customer Perceived Risk
and Adoption of E-Banking Services in
Southeast Nigeria: The Moderating
Effect of Educational Qualification"
Published in
International Journal
of Trend in
Scientific Research
and Development
(ijtsrd), ISSN: 2456-
6470, Volume-5 |
Issue-5, August
2021, pp.551-563, URL:
www.ijtsrd.com/papers/ijtsrd43866.pdf
Copyright © 2021 by author (s) and
International Journal of Trend in
Scientific Research and Development
Journal. This is an
Open Access article
distributed under the
terms of the Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)
1. INTRODUCTION
Technological advancement and increasing
competition for effective service delivery has led to
the implementation of self service at different levels.
These demands have greatly affected the financial
sector which is required to carry out service delivery
at lower cost and less time. Consequently, this has
necessitated the implementation of electronic system
called E-banking. According to Tan & Teo (2000),
electronic banking has recently become the way for
the development of banking system, and the functions
of electronic banking is increasing in many countries.
It provides opportunities to create services processes
that demand less internal resources, and thus, lower
cost and provides greater availability and feasibility
to reach more customers. From the customers’ point
of view, electronic banking provides customers with
easier access to financial services and time saving.
Electronic banking provides 24hours and 7 days a
week availability. Also, e-banking adoption has the
propensity to increase an economy's Gross Domestic
IJTSRD43866