Factors that Determine Agency Banking Adoption in the Nigerian Banking Industry
DOI:
https://doi.org/10.61143/umyu-jafr.6(1)2024.005Keywords:
Agent banking, perceived usefulness, perceived ease of use, perceived risk and trustAbstract
The aim of this paper is to examine the factors that determine agency banking adoption in Nigeria using an extended Technology Acceptance Model (TAM). The population of the study is 307,000 agent bank branches as report by Nigeria Inter-Bank Settlement System (NIBSS) in 2022. Krejcie and Morgan Table was employed to determine the appropriate sample size and arrives at 384 where convenient sampling technique was employed based on willingness and ability to participate. The collected data was analyzed and hypotheses were tested using Structural Equation Modelling with SmartPLS software. The finding revealed that perceived usefulness perceived trust and perceived risk have significant positive effect on agency banking adoption in Nigeria, whereas perceived ease of use was insignificantly related. It is then conclude that adopting agency banking is likely to grow as long as the service providers are eager to seek and address the consumers’ financial needs through the agency services in a way that improve its usefulness, simplicity and minimize the applicable risks. In view of that, it is recommended that Nigerian government should create supportive regulatory environment by establishing clear guidelines, licensing requirement and consumer protection measures to ensure the safety, integrity and accessibility of hitch-free agency banking channels. Finally, banks should promote transparency and risk disclosure mechanisms in agency process in order to enable consumers make informed decisions.
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