A binary logistic regression model for the adoption of electronic banking in Akure, Ondo State

Abstract

Information and Communication Technology (ICT) is fast changing the face and tempo of the banking industry in Nigeria due to the adoption of electronic banking (e-banking). Consequently, most banks, in recent years have committed substantial investment into the development of ICT. This study examined the adoption of e-banking in Akure, Ondo State with the objective of identifying the factors that influence its adoption. Three hundred
customers of the major banks in Akure were randomly sampled and a structured questionnaire was administered on them. Binary regression analysis was used to estimate a model for predicting the probability of adoption of e-banking. The result showed that level of education, monthly income, occupation, type of account being operated; among others are the significant determinants of the probability of adoption. It is recommended that
policy makers should address those factors that could promote the adoption of e-banking.

Keywords: e-banking, adoption, binary logistic analysis.