Impact of E-Banking on Students Spending Behaviour: Evidence from Kaduna State University

Abstract

All facets of society, including students, have seen a transformation in their purchasing habits and financial transactions since the introduction of electronic banking. This study looks at how Kaduna State University students' spending habits are affected by electronic banking. It specifically looks into how students' spending habits are impacted by electronic banking proxied by Automated Teller Machines (ATM), Point of Sale (POS) terminals, Mobile Banking, Internet Banking and Digital payment platforms. A structured questionnaire was used to gather data from 150 students using a quantitative study methodology. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for analysis. With average variance extracted (AVE) values over 0.50 and composite reliability (CR) values above 0.70, the measurement model showed acceptable validity and reliability. None of the electronic banking channels had a statistically significant impact on students' spending behaviour, according to  the structural model results (p > 0.05) which can be linked to the low or no income nature of students. The R2 value of 0.24 indicates that 24% of the variation in spending behaviour can be explained by electronic banking channels taken together. The results suggest that although students make use of electronic banking services often, it does not always result in notable changes in their purchasing behaviour. The study suggests that financial organisations should create financial literacy initiatives to enhance students' saving and budgeting practices in thecontext of online banking.