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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3149

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.
URI: http://hdl.handle.net/123456789/3149
Appears in:Thesis - Accounting & Finance

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