Abstract:
Customer preference for e-banking is a contextual concept, and how it manifests itself varies from a person to
person, product to product and service to service. A variety of psychological, economic, socio-demographic,
physical and firm-related factors influence service selection and utilisation. Because of the differences that exist
in societies, the determinants of customers' choice of e-banking services have been a source of contention. The
issues of whether or not rural populations use available e-banking services, as well as the extent and who uses
them require context-specific responses. This study specifically determined the proportion of customers’
adoption on electronic banking services; established factors that determine adoption of electronic banking
services among NMB Bank Plc customers in Rombo District as well as the reasons for usage. A cross-sectional
research design was employed and 282 respondents were reached through a survey questionnaire using
convenience sampling technique. The qualitative data were analysed through content analysis while binary
logistic regression was employed to establish the determinants of customers’ e-banking adoption. The study
revealed that, among other things, that automatic teller machine cards were the most commonly used e-banking
platform (91.8%) and credit cards were the least commonly used (1.2%) e-banking service. In general, e banking was used moderately (49.7%) in the study area. The regression results confirmed that age, education
level, ethnicity, occupation and level of income were the strongest predictors of e-banking adoption. Moreover,
the multiple response results indicated that convenience (26.4%), time savings (26.1%), and cost effectiveness
(20.7%) were all likely factors in customers' decision to use e-banking services. Given the findings, it is
suggested that banks, in partnership with the Government, take the lead role in promoting e-banking,
safeguarding consumers' personal data, and charging appropriate costs to clients.
