Corporate Finance

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Browsing Corporate Finance by Subject "and financial technology"

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    Factors Affecting the Adoption of Financial Technologies in The Banking Industry of Ethiopia
    (Addis Ababa University, 2025-09) Akalu Atlaw; Berhanu Beza (PhD)
    The objective of this study is to identify the factors that influence the adoption of financial technologies in commercial banks in Ethiopia. The research has considered five major factors as explanatory variables of the adoption of financial technologies. These explanatory variables are perceived usefulness, security risk consideration, performance expectancy, facilitating condition, and financial technology regulations. As there has not been sufficient research conducted on the topic of the study in Ethiopian financial institutions in general and in commercial banks in particular, the researcher has conducted the study. A quantitative research approach was followed to determine the factors that affect technology adoption in commercial banks. Specifically, an explanatory design was employed to address the objectives of the study, and the timeframe of the study covers examining existing situations using cross-sectional data. Pertinent and adequate data were extracted from both primary and secondary data sources. Since the number of the target population was small, census methods were followed to collect data. The study has considered all of the 31 commercial banks, and pertinent data were gathered accordingly from all respondents. Questionnaire and document analysis techniques have been used to solicit information from respondents and documents. Both descriptive and inferential statistical analyses were used to analyze the data. SPSS version 27 software was used to conduct the statistical tests. The results of the research indicate that all of the explanatory variables considered in the model have a significant positive effect on the adoption of financial technologies in commercial banks in Ethiopia. The effect analysis shows that the model summary of the regression analysis has significant explanatory power with R square and adjusted R square of .926 and .911, respectively. The ANOVA test result of the study indicates that the model is fit to determine the cause-effect association relationship between the explanatory variables and the dependent variable. Specifically, perceived usefulness of the technology had the highest significant effects, while perceived security risk consideration had the least significant effect on the adoption of financial technologies. Finally, the study recommends that commercial banks be required to conduct an adequate assessment of the potential security risk of technologies before adopting the technology. Commercial banks are required to provide adequate and timely training for their employees about financial technologies and their use. Financial regulations are also expected to further improve the adoption of financial technologies in the banking industry.