Banking and Finance Project Topics

Impact of Covid-19 on the Adoption of E-Banking Channels in Nigeria: A Case Study of Selected Money Banks in Lagos State, Nigeria

Impact of Covid-19 on the Adoption of E-Banking Channels in Nigeria A Case Study of Selected Money Banks in Lagos State, Nigeria

Impact of Covid-19 on the Adoption of E-Banking Channels in Nigeria: A Case Study of Selected Money Banks in Lagos State, Nigeria

Chapter One

Aim and Objectives of the Study

The study aims to establish the interaction between Covid-19 and the adoption of e-banking in Lagos State, Nigeria. The specific objectives are to;

  1. Evaluate the barriers to e-banking adoption during the Covid-19 pandemic in Lagos State, Nigeria.
  2. Examine the perceived usefulness of e-banking channels during the Covid-19 pandemic in Lagos State, Nigeria.
  3. Assess the attitude of bank customers towards the adoption of e-banking during the Covid-19 Pandemic in Lagos State, Nigeria.
  4. Investigate the impact of Covid-19 on the  e-banking channels in Lagos State, Nigeria
  5. Examine the effect of Covid-19 on e-banking adoption in Lagos State, Nigeria



This chapter reveals the empirical literature, conceptual literature and theoretical framework in investigating the impact of Covid-19 on the adoption of e-banking channels in Nigeria.

Conceptual Review

Digital Banking

According to the Global Digital Report, more than 4.5 billion people across the globe now have access to the internet. Only 59 percent of the world’s population of 7.8 billion is represented (Zollo et al., 2020). To make matters worse, an estimated 40% of the global population is still not online. The financial industry is becoming more complex due to the proliferation of mobile devices and digital distribution channels, which is driving up the need for goods that can be customised right away and that can also be delivered instantly (Singh, and Srivastava, 2020). The intense competition between financial institutions and non-bank organisations has resulted from the sudden increase in demand for better customer service across all banking channels (Wang et al., 2017). This year’s battle for digital certificates for Singapore’s digital banking industry was strong as start-up financial institutions like Monzo and Revolut joined the market, fueling the current competitive atmosphere. New ‘neo-banks’ in the United States financial industry are springing up expressly for millennials who want banking services at their fingertips (Statista, 2020). Neobanks are digital or mobile-only banks that don’t have any physical premises and provide essential financial services such as checking and savings accounts and money-transfer services to customers.

Institutions cooperate with organisations worldwide to offer financial services, allowing non-financial organisations to provide financial services (Statista, 2020). Despite banks’ relatively delayed adoption of Artificial Intelligence (AI), robotics features are progressively being used to advance procedures and enhance customer service. North American banks are expected to implement AI by 2023, making it the industry’s most widely used 4th-generation technology. In Asia-Pacific, Europe, and other areas, AI technologies are likely to be implemented by banks from 2024 to 2030 (Shankar et al., 2020). Meanwhile, internet banking has not yet been widely adopted in several Western markets. Thus, direct banks’ expansion has been very sluggish.

Direct banks have begun to construct modest branch networks in key European countries to supplement their online banking services. In the United States, 90% of people plan to use internet banking by 2020, with Norway leading the pack with 95% usage (Statista, 2020). Digital banking is used by 63% of Millennials, 38% of Generation X, and 17% of Baby Boomers in the United States (Mostafa, 2020). The estimated population of Nigeria in 2019 was 59 million people (Malaquiasand Hwang). According to the data, 62 percent of Nigerians have access to the network, which translates into 37 million users (Bankia, 2020). Mobile phones are owned by 94% of the 37,00,000 inhabitants of the 21st-century city, and smartphones make up 94% of those phones. Only 54% of smartphone users have banking apps installed on their devices. Some 67% have bank accounts, and just 19% use mobile money accounts the 59 million people (Statista, 2020).

Approximately 34.7 million banking adults (or 52 percent) will conduct digitally enabled payment transactions by 2020, while 48 percent will pay with cash or credit cards (Hosseini et al., 2020). This indicates an alarmingly common use of electronic banking methods. Various terms refer to online banking, such as digital banking, Internet banking, and online banking. However, Baraghani (2007:20) views electronic banking as a high-order construct consisting of several distribution channels and a larger platform than only banking through the internet. Therefore, the term electronic banking has two separate meanings. There are various ways to conduct financial transactions in today’s world, and the phrase electronic banking or digital banking encompasses all of them.

Baabdullah et al. (2019) characterise digital banking as a general word used to describe the procedure clients employ to electronically complete banking activities without branch visits. ‘Digital banking is defined by Ahmad et al. (2019) as the automated distribution of new and conventional banking goods and services to customers directly via electronic and interactive communication channels. Financial institutions and their customers may utilise e-banking to access financial services and data over the internet. A supply chain management viewpoint might see this as integrating all of the operations involved in creating goods and services, from suppliers to the client.

Adoption of Electronic Banking by a Diverse Population

Increasingly, demographic variables are being cited as a role in product uptake. E-banking adoption is also a good example of this. Several studies have examined the association between these parameters and varying results (Glavee-Ge0 et al., 2017, Bankia, 2020, Hosseini et al., 2020; Ahmad, 2021). Except for education, there did not seem to be agreement on these factors. This is in keeping with a priori assumptions. Study after study has shown that elderly individuals are less inclined to accept new technologies, as seen by Akter (2020). In light of this, younger people are more open to new technology, particularly e-banking gadgets. Andreu et al. (2018) concluded that older people were less likely to use electronic banking. According to Baabdullah et al. (2019), there is no correlation between age and the inclination to embrace e-banking innovation; this agrees with the assertions of Carranza et al. (2020).

Because of this discrepancy, attempts to ensure that adults are included in policy development that promotes better methods for reaching more credit-worthy individuals might be harmed or enhanced. Studies such as Bigné (2008) have demonstrated that males are more inclined to accept computer-based technologies on a broad scale but are less likely to use such tools for money management than their female counterparts.  It’s essential to deny these conclusions outright in this research since global banking regulations and procedures do not discriminate based on age, gender, or anything else. The use of demographic data as a policy tool in product development is essential. There are examples of specialised financial services in Nigeria for distinct groups.

When it comes to banking, gender isn’t a factor. This is in part because of the global sensitivity of the topic. It has been utilised and continues to be a key factor in creating goods for customers, such as children’s and futures accounts, based on age for a long time now. According to the agreement that education and technology adoption are positively correlated, poor awareness is a crucial barrier to using electronic channels. Adoption of an invention is encouraged by education and leads to positive change in the target market, according to Chepurna and Criado (2018). According to Mainardes et al.(2017), experience is a major moderator in the UTAUT framework. Despite the apparent discrepancies, there is no denying the connection between education and experience. Formal and non-formal education both contribute to gaining experience. According to this, people in the target market learn, either consciously or subconsciously. To fulfil Nigeria’s cashless policy goal and, in turn, to increase financial inclusion, education is essential. An essential part of the financial inclusion plan is financial literacy, which may be achieved via education (Malar et al., 2019).

As a technologist or a company, you have the issue of explaining and selling technology to customers based on their socio-economic status. Adoption dramatically benefits from such profiling. Because it is based on meaningful situations and similarities to consumers, it allows for increased connectivity. To no one’s surprise, in most developing nations, socio-economic characteristics including education, gender, age, and irregular income are routinely cited as roadblocks to expanding financial inclusion. As a result, scholars and policymakers alike have continued to place a growing amount of focus on it. This reasoning supports the study’s first premise, and it finds that demographic determinants have a beneficial impact on financial access. UTAUT also emphasises acquiring new information, either via experience or study. Thus, it’s critical to reduce financial exclusion (Medberg and Heinonen, 2014).

This is based on the favourable effect of financial literacy as a key tactic in the financial inclusion paradigm. E-banking adoption in Nigeria is low when compared to the country’s rapid growth in the use of information and communication technology (ICT), but the public’s acceptance of ATM/debit cards as a means of payment has increased significantly since 2008 following the mandatory revised banking policy to reduce crowding efficiencies (EFlna, 2020). From a technology standpoint, this is a boost to financial inclusion.

Begrudgingly this has been done at the cost of other electronic channels, putting into doubt attempts to decrease the gap between access to a broad range of alternatives for financial services and their utilisation to achieve financial integration. The Central Bank of Nigeria (2020) defines financial inclusion as the ability of individuals to have access to a wide variety of formal financial services that satisfy their requirements and can be affordably delivered. One of the most critical aspects of financial inclusion is accessing and utilising various financial goods and services. In Nigeria, the CBN announced the National Financial Inclusion Strategy (NFIS) in 2012 to lower the percentage of individuals without access to financial services from 46.3% in 2010 to less than 20% by 2020.

Financial inclusion has several advantages. Managing one’s finances on a local and macro level is crucial to attaining inclusive development in a nation For the above to succeed, licenced financial institutions must allow their customers to start or receive electronic transactions beyond merely taking cash from a machine at a bank (EFlnA, 2020). An expansion in the number and variety of financial channels needed to improve access, availability, and use is required. The study’s ultimate hypothesis is likely to be based on this axis. According to the report, financial inclusion may be bolstered by increasing the variety of financial options available to consumers.




According to Saunders, Lewis and Thornhill (2019:27), research methodology defines the research’s activity, proceeds, progress measured, and what constitutes its success. Research methodology is the end-to-end process the researcher follows to carry out the research study. It presents the process through which the researcher articulates the study problem and objective and then presents the study outcomes from the data analysis (Sileyew, 2019). It is also explained as a logical approach for collecting and interpreting data and analysing the findings (Sekaran and Bougie, 2016:50). Research methodology is a widely applied procedure for conducting research (Aaker, Kumar, Leone, and Day 2017:42). The research methodology chapter deals with the research approach, research structure, research procedure, the study scope, and data sources such as primary and secondary data. It also covers the study demographics, how the sample was determined, data collection approaches such as primary data collection methods, primary data collection methods, data scrutiny methods applied, analysing data, the internal consistency and rationality, and ethical considerations. To achieve the objectives of this study, a quantitative research method was applied, as this approach is most suitable to address the study objectives.

 Research Design

According to Mondofacto (2009), the study design is a technique for gathering data collected information. Identifying the instruments and procedures that were utilised to collect correct data, as well as how the instruments and data were assessed and guided, may be accomplished via study design. This research project aims to learn more about the external and internal elements that contribute to the long-term viability of Nigeria’s banks. The variables in the study framework have been presented, and the best way to quantify their impacts is to use quantitative research methods. Cohen et al. (2000) stated that survey research uses scientific sampling and questionnaire design for measurement. Quantitative research, as mentioned by Pickard (2007), also offers an estimate of the population at large. To meet the study’s goals, data was collected using a cross-sectional design, which entails gathering data from a specific sample or population all at once or at a single moment in time (Cavana, Dalahaye & Seltaran, 2001; Bichi 2004). Respondents would be less likely to be unresponsive, it would take less time, and it would cost more money to do the research this way (Seltaran, 2003; Churchill, 1995; Wilson, 2010).

Study Population

Members of a well-defined class of people, events, and/or goals are considered members of the population (Ary, Jacobs & Razavich, 2002). An investigation’s results are based on the qualities of a collection of data that have been gathered for the purpose (Sekaran & Bougie, 2010). The term “population” may also refer to the whole group of people, events, or concerns the researcher wants to investigate (Sekaran, 2000). Consequently, a sample is picked from the population, which includes all population units to which one wishes to generalise survey findings, such as people, families, or organisations (Dillman et al., 2007). According to Cresswell (2012), a population is a collection of people with the same traits and other characteristics that may be identified and studied by a researcher. According to the Nigerian Bureau of Statistics (2020), 108,000 bank employees in Nigeria. However, Five banks were selected with a population of 32,000 employed for this study. These banks were selected because they have the highest number of bank branches in Nigeria. Table 3.1 indicates the bank and the total number of workers.



The study investigated the impact of covid 19 on the adoption of e-banking channels in Nigeria: a case study of selected money banks in Lagos State, Nigeria. 385 (three hundred and eighty-five) questionnaires were administered to the respondents in different sectors in Glasgow, United Kingdom.   However, 325 questionnaires were retrieved and considered usable for analysis. The study achieved a response rate of 64.8%, which was considered sufficient based on Mugena and Mugena (2003), who assert that 50% is deemed suitable and sufficient for analysis.




In the United Kingdom, Covid-19 has had a significant influence on retail banking clients’ behaviour. COVID-19’s impact on retail banking is examined during this stay, which contributes to the TAM theory of marketing. During COVID-19, TAM proved to be an effective tool. According to the literature evaluation, which is supported by this study and plainly visible in thea preceding antecedents and actions, banks are shifting away from risk management and toward a focus on customers. Consumers want value to be delivered via empathy, training, collaboration, and technological readiness and competency. For banks, maximising the worth of their customers means doing things like improving relationships with their clientele and business partners and studying the strategies of competitors and regulators alike. So our results show the need for both formal and informal communication and the necessity of social connectedness to better service customers. It was intriguing to see the results relating to clients, especially in terms of speed, flexibility, and ad hoc information useFindings suggest that the two do not seem to have a direct correlation. The frequency of customer meetings increased, yet the results were criticised. Research has shown that customers like the personal touch. Employees and customers alike reaped the benefits in spades. Worker morale improved because they were more worried about their well-being than the companies. People liked that banks contacted them in advance to learn about their individual needs and requirements before offering to advise on how to use online resources. Consumers who participated in COVID-19 could use new and valuable services designed particularly for them.

Covid-19 has become a key driver of digital transformation in retail banks, according to this report. According to Baicu et al. (2020), mobile and Internet banking usage surged dramatically during the outbreak. It was claimed in the introduction that Nigerian banks might be regarded as pioneers in digitisation, and this has prepared employees and customers in the banking sector for the transformation and helped them adjust to remote services more rapidly. As a result of these results, retail bankers’ behaviour in times of crisis may be better understood using electronic channels, which may also act as a springboard for future business.

The findings of this study might have a wide range of practical applications. A bank’s ability to communicate with customers and other stakeholders is critical. When it comes to the new normal, it’s important to be in touch with customers to ensure they feel secure, informed, and prepared for anything that may come their way. Preparing workers for times of crisis is thus an essential part of any strategy for maintaining service continuity. These studies also show how important it is for managers to be available to and in touch with their workforce. This pandemic has had a significant impact on company culture. Working collaboratively, employees from various divisions and teams may be able to deal with problems and crises more quickly and effectively.


Customers of Covid 19 should be encouraged to remain at home by bank employees. It is essential that their marketing campaign be targeted toward computer-literate bankers and convinces them of the facility’s security and convenience of use.

With the use of online financial services, businesses may easily and economically interact with financial institutions and workers, vendors, and new markets. Peer-to-peer transactions may be facilitated by them (including remittances). In addition, they can help the government reach out to individuals and businesses quickly. During the reaction to the COVID-19 issue, governments are looking for new methods to promptly and efficiently dispense cash to individuals in need, while many families and businesses are looking for new means to access online payments and funding. Digital financial services, on the other hand, allow for a degree of social isolation that is particularly useful during a pandemic. In general, digital financial services may help those who live in places where financial institutions do not have a physical presence get access to financial services.

According to this report, sensitisation is an important strategy for increasing awareness of mobile banking use. Customers in Nigeria should be aware of banks’ positive effects, benefits, and security of mobile banking.

It’s no longer enough for financial institutions’ marketing teams to talk about customer experiences. Innovating businesses, particularly service providers like banks, establish customer experience departments to set norms and effect meaningful change throughout the company, from marketing and sales to sales and customer service to product development and the executive team and beyond.

Limitation and Suggestions For Further Studies

Certain issues need to be addressed in this research. The location and size of the sample are the initial set of restrictions. Online banking customers should be included in future research that span a larger geographic region. Second, as socio-demographic factors, gender and age were not considered in this research. The function of this variable in the suggested model might be studied further. In the third place, this model is focused only on the functional qualities of technology adoption, such as the perceived ease of use and the perceived utility of a product. Other elements, such as pleasure or trust, are also important in the research of the adoption of e-banking services, according to Zhang et al. (2018). E-banking adoption is also influenced by perceived security, according to Singh and Srivastava (2020). As a result, future proposals for e-banking environments may feature a blend of functional and emotional components. Further study should add external characteristics linked with value co-creation, such as the bank’s trustworthiness. Consumer trust in the bank may enhance the favourable impact of the e-banking attitudes in some research, such as Mostafa (2020). Customers who have a favourable view of their bank’s honesty and professionalism are more likely to utilise e-banking to exchange information and offer feedback.


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