Browsing by Author "Gugsa, Afework"

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    Assessment of Adoption of Agency Banking Innovation in Ethiopia: Barriers and Drivers
    (Addis Ababa University, 2015-11) Gugsa, Afework; Anteneh, Salehu (PhD)
    This research project aims to describe factors that affect the adoption of agency banking in Ethiopian banking industry with respect to the barriers and benefits derived from adopting the system. In order to achieve the objective of this study and answer the research questions the researcher adopted quantitative research approach. This descriptive study was conducted based on the data gathered from the following four banks in Ethiopia; Dashen Bank, United Bank, Lion International Bank and Cooperative Bank of Oromia. The data collected was analyzed using descriptive statistics. A research framework developed based on the Technology - Organization - Environment (TOE) framework and Technology Acceptance Model (TAM) was used to guide the study. The study revealed the following major driving factors in adopting agency banking among commercial banks in Ethiopia; the prospects of cost reduction, availing services beyond restriction of space and time through established third party with the application of technology. The benefits were also classified as Perceived Ease of Use (PEOU) and Perceived Usefulness (PU). The barriers identified in this study came from the external environments like; lack of legal framework, under developed ICT infrastructure including poor network connectivity, lack of competition among banks and lack of sufficient government support, security risk and lack of customer trust towards the service. The study recommended banks to consider technology based competition focusing on customer base expansion, cost reduction, awareness creation, credibility, security, ease of use, and availability to exploit the benefit of agency banking while the government should support banking sector by facilitating sufficient ICT infrastructure development and issue workable legal frameworks to ease the adoption of agency banking system. Keywords: Banking industry, Agency banking, Mobile Banking, Adoption of Agency Banking by Ethiopian Banks, Branchless banking