1.1      Background to the Study


The emergence of virtual banks has significantly transformed the landscape of the banking sector worldwide, including Nigeria. As digital technologies continue to advance, virtual banks have gained traction as innovative alternatives to traditional brick-and-mortar institutions. In Nigeria, where technological adoption is rapidly increasing, understanding the knowledge, acceptance, and perception of virtual banks among consumers and stakeholders is paramount. This introductory discussion aims to explore the evolving dynamics of virtual banking in Nigeria, focusing on the levels of awareness, acceptance, and perception within the local populace and banking industry. Adekunle, T. (2021)


Knowledge regarding virtual banks in Nigeria encompasses various aspects, including awareness of their existence, understanding of their services, and familiarity with their operational mechanisms. With the Nigerian banking sector witnessing significant digitalization in recent years, consumers' awareness of virtual banks and their offerings is expected to be on the rise. Moreover, stakeholders such as policymakers, regulators, and traditional banks play crucial roles in shaping the landscape for virtual banking through their understanding and engagement with this emerging financial paradigm. Central Bank of Nigeria. (2022).


Acceptance of virtual banks in Nigeria reflects the willingness of consumers and stakeholders to adopt and integrate virtual banking services into their financial activities. Factors influencing acceptance may include convenience, accessibility, security, and trust in virtual banking platforms. As Nigeria's population becomes increasingly tech-savvy and mobile-oriented, the propensity to embrace virtual banking solutions is likely to grow. However, concerns related to security, regulatory compliance, and cultural preferences may influence the pace and extent of virtual bank adoption in the country. Nwogwugwu, U. C., & Acha, I. A. (2020).


Perception of virtual banks in Nigeria encompasses the attitudes, beliefs, and opinions held by individuals and institutions towards these innovative financial entities. Positive perceptions may arise from experiences of seamless digital transactions, enhanced financial inclusion, and improved access to banking services, especially in underserved areas. Conversely, negative perceptions may stem from distrust in online platforms, concerns about data privacy, or skepticism regarding the reliability of virtual banking systems. Understanding these perceptions is crucial for virtual banks to address challenges, build trust, and foster widespread acceptance in Nigeria's diverse socio-economic landscape. Ogunwale, A. B., & Oyewole, S. (2019).Top of Form

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1.2      Statement of the Problem

The emergence of virtual banks in Nigeria presents a paradigm shift in the traditional banking landscape, offering innovative digital banking solutions to consumers. However, there exists a gap in understanding the knowledge, acceptance, and perception of these virtual banks among Nigerian consumers. This gap raises critical questions regarding the extent to which consumers are aware of virtual banking services, their willingness to adopt these services, and their perceptions of the reliability, security, and convenience offered by virtual banks compared to traditional brick-and-mortar banks. Understanding these factors is imperative for both virtual banks and policymakers to effectively address challenges, capitalize on opportunities, and foster the sustainable growth of virtual banking in Nigeria's dynamic financial ecosystem. . Adekunle, T. (2021)



Moreover, investigating the knowledge, acceptance, and perception of virtual banks in Nigeria can unveil insights into the socio-economic and technological factors influencing consumer behavior and preferences in the digital banking realm. By exploring the reasons behind consumers' attitudes towards virtual banks, such as trust issues, technological literacy, and perceived benefits, stakeholders can develop tailored strategies to enhance awareness, trust, and adoption of virtual banking services. Additionally, insights from this research can inform regulatory frameworks and industry practices to ensure that virtual banks operate ethically, securely, and inclusively, thus contributing to the broader financial inclusion agenda and economic development in Nigeria. Central Bank of Nigeria. (2022).Top of Form

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1.3 Objectives of the Study

The main objective of the study is to examine Knowledge, Acceptance and Perception of Virtual Banks in Nigeria. Specific objectives of the study are:

  1. 1.  To Assess the level of knowledge
  2. To Evaluate the factors influencing the acceptance
  3. To Explore the public perception


1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. 1.  To what extent are Nigerians aware of virtual banks, their offerings, and how they differ from traditional banks?
  2. 2.  What are the key factors that encourage or discourage Nigerians from using virtual banking services?
  3. How do Nigerians perceive the security, convenience, and overall user experience offered by virtual banks compared to traditional banks?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between Knowledge, Acceptance and Perception of Virtual Banks in Nigeria.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of the Study

The study is delimited to Kuda MF Bank. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.



Adekunle, T. (2021). The Evolution of Digital Banking in Nigeria: Opportunities and Challenges. International Journal of Business and Management Review, 9(1), 18-30.

Central Bank of Nigeria. (2022). Financial Inclusion in Nigeria: 10 Years After the National Financial Inclusion Strategy. Retrievedfrom

Nwogwugwu, U. C., & Acha, I. A. (2020). Mobile Banking and Financial Inclusion in Nigeria: A Synoptic View. International Journal of Economics, Commerce and Management, 8(10), 6-15.

Ogunwale, A. B., & Oyewole, S. (2019). Electronic Banking in Nigeria: Challenges of the Regulatory Environment. International Journal of Banking, Risk and Insurance, 7(2), 15-27.

Okafor, C. F., & Idike, A. N. (2023). Exploring the Potential of Virtual Banking in Nigeria: A Qualitative Study. Journal of Financial Innovation, 11(3), 45-58.