ASSESSMENT OF BANKING HABITS OF UNDERGRADUATE STUDENTS IN NIGERIA (A CASE STUDY OF UNIVERSITY OF BENIN AND AMBROSE ALLI UNIVERSITY STUDENTS)
main of objective of the research work an assessment of banking habits of
undergraduate students in Nigeria is to find out if The introduction of ATMs, internet
banking and mobile banking has increased the spending habits of undergraduate
students in Nigeria, also to find out
if there is a
significant relationship between banking habits of undergraduates and academic
performance, some of the
objectives of the research work is to assess banking habits and practices of
undergraduate students in Nigeria,
to find out if banking habits affect
academic performance of undergraduates in Nigeria. The study made use of primary data with a
sample size of 60; the spearman correlation method was used for the purpose of
the analysis. The research concluded that there is a significant relationship between banking habits
of undergraduates and academic performance, some recommendations were made to
assist the banks and various universities in decision making.
Definition of Terms
2.1.1 Social learning theory:
motivation to save
The consumption theory
2.2 factors affecting
banking habits of undergraduate students
2.2.1 Financial literacy
2.2.2 Parental socialization
2.2.3 Peer influence
2.3 development of
and sources of Data
3.4 Samples and Sampling Technique
and Validity of Instrument
of Data Collection
Method of Data Analysis
Data Presentation and
Test of Hypothesis
of the study
1.1 BACKGROUND OF THE STUDY
is needed for our day to day transactions and businesses, banks have also
become an integral part of lives. Banking which generally refers to any
business or transaction (depositing, withdrawal, asking for loans etc) carried
out with a bank has evolved over the years. With the introduction of computers,
mobile phones and the internet, e-banking has been enhanced to make banking a
lot easier and very interactive between users (Orji, 2003).
under-graduate students have bank accounts and they are conversant with the
evolving technology associated with modern banking. As newer technologies are
introduced everyday, so do students adjust their lifestyles, values and even
their spending habits to suite these emerging developments and newer needs.
of the cashless policy in the Nigerian economy coupled with already existing
internet and mobile phone banking has advanced our societies. Gone are the days
when people cue up for longer hours just to carry out a transaction with the
banks. Nowadays, with the introduction of more sophisticated devices and easy
access to the internet, transactions that could only be carried out in the
banking halls are done conveniently at homes, while those that took longer
hours are done within minutes. This new era is good with no single doubt, but
will easy access to funds promote saving and investment habits amongst
1.2 STATEMENT OF THE PROBLEM
to cash has negatively influence banking habits of university students in
Nigeria and in some cases leading to low academic achievement amongst
undergraduates. The introduction of the internet banking, automated teller
machines (ATM) and mobile banking in the banking sector of Nigeria has made it
easy for students to easily spend without saving or investing.Poor banking
habits are greatly linked with extravagant spending and poor financial
planning. A study conducted by Gbenga (2005) on some polytechnic students
revealed that students with ATM cards tend to exhibit huge spending habits than
those with no ATM cards. A similar study conducted on college students in New
York by Tricholla (2002) also revealed that students with credit cards exhibit
negative banking habits leading to poor academic performance as they are always
involved in issues relating to huge debts and extravagant spending.
undergraduate students have ATM cards. In fact, according to Robb and Pinto
2010, 84% of undergraduates have at least one ATM card. These students don’t
just possess the ATM cards; they accumulate unhealthy amounts of debt from
friends and practice irresponsible spending habits. With the introduction of
online shopping, students spend a huge chunk of their money buying clothes
online, shoes and other luxury items over the internet.
Banking habits by students can lead to high crime rates or poor academic
performance of students. Excessive spending by students can cause financial
instability to students thereby pushing them to involve themselves in robbery
in-order to maintain their status.
1.3 OBJECTIVES OF THE STUDY
aim of the study is to assess the banking habits of undergraduate students in
Nigeria. The specific objectives of the study are:
1. To assess banking habits and practices
of undergraduate students in Nigeria.
2. To find out if banking habits affect
academic performance of undergraduates in Nigeria
3. To critically examine the factors that
influence banking habits of undergraduate students in Nigeria.
4. To examine the usage of internet
banking by undergraduates in Nigeria.
5. To evaluate students’ perception
towards savings and investments.
1.4 RESEARCH QUESTIONS
achieve the above stated objectives, the researcher formulated the following
1. What transactions are mostly carried
out by undergraduate students in banks?
2. Does banking habits of undergraduates
affect their academic performance?
3. What are the factors that influence
banking habits of undergraduates in Nigeria?
4. How have internet banking been used by
undergraduates in Nigeria?
5. What perceptions do students have concerning
savings and investments?
1.5 RESEARCH HYPOTHESIS
following hypotheses were formulated for the study:
1. Ho: There is no significant
relationship between banking habitsof students andacademic performance.
There is a significant relationship between banking habits of undergraduates
and academic performance.
2. The introduction of ATMs, Internet
banking and mobile banking has not increased the spending habits of
undergraduate students in Nigeria.
introduction of ATMs, internet banking and mobile banking has increased the
spending habits of undergraduate students in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
will help highlights various banking habits and practices of undergraduate
students in Nigeria and how information and technology introduced into the
banking industry have influenced spending and academic performance of students.
The various assessments carried out by the researcher will enable various
stakeholders in the education and banking industry to know how to educate
students concerning maintaining good banking habits and encourage savings and
investments amongst students.
1.7 SCOPE OF STUDY
is limited to the banking habits of undergraduate students in Edo state, using
the two major universities-Universities of Benin and Ambrose Ali University as
case studies. Findings and recommendations from this study may not generalizes
the true view of banking habits of undergraduates in Nigeria, as the researcher
could not cover more universities and polytechnics due to time and financial
1.8 LIMITATION OF THE STUDY
there were some constraints that impinged on the research, these are;
constraint: The cost of sourcing information and
administering questions was quite on the high side, which included issuing out
questionnaires to students.
limited time frame given to achieve the research was also a constraint to the
1.9 DEFINITION OF TERMS
ATM:An automated or automatic teller machine is a computerized
telecommunications device that enables the clients of a financial
to perform financial
without the need for a cashier, human clerk or bank teller.
A bank is a financial institution and a financial intermediary that accepts deposits
and channels those deposits into lending
activities, either directly by loaning or indirectly through capital markets.
A bank is the connection between customers that have capital deficits and
customers with capital surpluses.
Banking: Banking which generally refers to any
business or transaction (depositing, withdrawal, asking for loans etc) carried
out with a bank
Habit: an acquired pattern of behavior that often occurs
banking (or Internet banking
or E-banking) allows customers
of a financial institution to conduct
financial transactions on a secure website operated by the institution, which
can be a retail or virtualbank,
or building society.
the accumulation of newly produced physical entities, such as factories,
machinery, houses, and goods inventories.
not spent, or deferred consumption. Methods of saving
include putting money aside in a bank