Determinants of Digital Banking Adoption and the Moderating Role of Cultural Value in the Case of Addis Ababa Abay Bank Branches
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Date
2026-06-02
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Addis Ababa University
Abstract
This study aimed to examine the factors influencing digital banking adoption and how cultural value moderates digital banking adoption among Abay Bank retail banking customers, Addis Ababa, Ethiopia. The study was based on an extended Technology Acceptance Model (TAM) with the three constructs of trust, social influence, and cultural value. The design of the research used was the explanatory quantitative research, in which the sampling technique used was stratified random sampling, with a sample size of 384 active participants in digital banking. The data obtained were primary data which were analyzed by using Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4. Findings showed that Perceived Usefulness (β = 0.329) and Cultural Value (β = 0.327) are the most significant direct factors influencing digital banking adoption. Trust (β = 0.170), Social Influence (β = 0.133), and Perceived Ease of Use (β = 0.117) were also found to have significant positive direct effects. The study also showed that the relationship between Perceived Ease of Use and digital banking adoption is significantly and positively moderated by Cultural Value, meaning that the ease of use of the interface is crucial for the users who tend to have high collectivist and uncertainty avoidance orientations. But neither perceived usefulness, social influence, nor trust had a significant interaction with cultural value. In the light of this study, the following recommendations are proposed for the digital adoption of the SMEs segment by Abay Bank: Digital micro-credit by backend automation using API, optimize backend API resilience, and implement vernacular interface localization. The study builds on the existing literature by providing cultural value as a key direct driver and a selective moderator in the development of financial markets in Sub-Saharan Africa.
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Digital Banking Adoption, Technology Acceptance Model, Cultural Value, Abay Bank, PLS-SEM, Ethiopia.