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|Title: ||KEY FACTORS THAT DETERMINE ADOPTION OF INTERNET BANKING IN ETHIOPIA|
|Authors: ||YOHANNES, ABENET|
|Advisors: ||Dr. ULAGANATHAN|
|Copyright: ||Jun-2010 |
|Date Added: ||1-Jun-2012 |
|Abstract: ||Banking around the clock is no longer a remote possibility. But the banks don't have to keep
their branches open 24 hours a day to provide this service. This is one of the biggest advantages
of Internet banking.
Advances in electronic banking technology have created new ways of handling banking
transactions, especially via the online banking channel. In Ethiopia, internet banking is still in its
early stages and it is not utilized as a considerable savings tool in operating costs for banks and
in improving customer relationships. The intent of this research project is to identify the factors
affecting the adoption of Internet banking by customers in Ethiopia.
An understanding of how demographic characteristics, social factors, and consumer perceptions
and attitudes towards internet banking influence the adoption of internet banking can allow
banks to create solutions and plans to attract consumers to their internet banking services, thus
enabling them to gain a greater share in the banking market.
This study investigates attitudes of retail banking customers in Ethiopia, specifically in Addis
Ababa, towards the adoption of internet banking. A research framework based on the diffusion of
innovation theory was used to identify factors that would influence the adoption of internet
banking. This report has reviewed current literature and opinions about this innovative banking
technology. It has also reviewed the factors, including consumer demographic characteristics,
consumer perceptions toward internet banking characteristics and social influences that affect
consumer adoption of this mode of banking.
This study presents both the results of the 400 survey questioners and the analysis of these
results, with graphs and figures to determine the extent that the factors studied influence
customer adoption of internet banking.
The key findings revealed that demographic factors including age, income, education level and
occupation have a relationship with the adoption of internet banking. Psychological factors
including perceived relative advantage, perceived compatibility, perceived complexity, perceived
risk, and perceived cost were found to influence the adoption of internet banking. Social
influences including opinions of friends, parents and colleagues were not found to be significant
factors to influence the adoption of internet banking in the Ethiopian context.
And finally possible recommendations were given so that the banking sector in Ethiopia can
exploit the potential advantages of internet banking to remain competitive.|
|Appears in:||Thesis - Accounting & Finance|
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