Perceived Risk, Technology Readiness and Adoption of Online Banking among Undergraduates Students

Abstract

The study investigated the relationships between perceived risk, technology readiness and undergraduates’ adoption of online banking. Participants were 250 undergraduates of Nnamdi Azikiwe University, Awka. They included 118 (47.2%) males and 132 (52.8%) females, whose ages ranged between 18 to 36 years, with the mean age of 21.74 and standard deviation of 2.044. The Risk Perception Scale (Featherman & Pavlov, 2003); Technology Readiness Scale (Celik & Kocaman, 2017); and Online Banking Adoption Scale (Pikkarainen et al., 2004) were used for data collection. The design was correlational design, while Pearson Product Moment Correlation Analysis was used for data analysis. The result revealed between perceived risk did not significantly relate with adoption online banking (r= -.024, p >.05) while technology acceptance was found to have significant relationship with adoption online banking (r = .233, p<.001). It also further revealed that significant relationship exist between perceived risk and technology acceptance (r= -.176, p<.005). Based on the findings, the researcher recommended amongst financial institutions, educational campaigns and universities so in order to improve the student's experience on the use of online banking.