The 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.


Title Page




Table of content



1.1Background of study

1.2Statement of problems

1.3Objectives of Research

1.4Scope and limitations

1.5Research questions

1.6Significance of study

1.7 Definition of Terms


2.0 Introduction

2.1 Theoretical framework

2.1.1 Social learning theory: motivation to save

2.1.2 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

2.2.4 Self-control

2.3 development of online shopping 


3.1Research Design

3.2Types and sources of Data


3.4 Samples and Sampling Technique

3.5Research Instrument

3.6Reliability and Validity of Instrument

3.7Method of Data Collection

3.8    Method of Data Analysis


Data Presentation and Analysis


4.2Data Analysis

4.3 Test of Hypothesis





5.4Limitations of the study 


5.6 Appendix




Since money 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).

Many 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.

The introduction 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 university undergraduates?


Easy access 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.

Many 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.

Poor 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.


The main 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.


In-order to achieve the above stated objectives, the researcher formulated the following research questions:

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?


The following hypotheses were formulated for the study:

1. Ho: There is no significant relationship between banking habitsof students andacademic performance.

Hi: 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.

Hi: The introduction of ATMs, internet banking and mobile banking has increased the spending habits of undergraduate students in Nigeria.


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.


The 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 constraints.


However, there were some constraints that impinged on the research, these are;

1. Financial constraint: The cost of sourcing information and administering questions was quite on the high side, which included issuing out questionnaires to students.

2. Time Constraint: The limited time frame given to achieve the research was also a constraint to the study.


⦁ ATM:An automated or automatic teller machine is a computerized telecommunications device that enables the ⦁ clients of a ⦁ financial institution to perform ⦁ financial transactions without the need for a cashier, human clerk or ⦁ bank teller.

⦁ Bank: 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 automatically

⦁ Internet Banking: Online 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 ⦁ virtual⦁ bank, ⦁ credit union or ⦁ building society.

⦁ Investment is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories.

⦁ Saving is ⦁ income not spent, or deferred ⦁ consumption. Methods of saving include putting money aside in a ⦁ bank or ⦁ pension plan.



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