Decision to Use Electronic Banking by Bank Customers in a Rural Economy

An empirical study of bank customers decision to adopt electronic banking was investigated using cross sectional data set. Using the multi-stage sampling procedure, a total of 120 customers were selected. With the aid of questionnaire, primary data were obtained for a period of 3 months. Data were analyzed using univariate probit regression model. Results revealed that whereas age, monthly income, education and distance to nearest bank of customers were significant and positively related to the willingness of bank customers to adopt electronic banking, household size was significant (p<0.05) and negatively related to the customers willingness to use electronic banking. Findings suggest the need to increase the number and proximity of automated teller machines (ATM) located in the rural communities and households to encourage customers use of electronic banking facilities.