Assessing the Determinants of Behavioral Intention of Interest-Free Banking Customers: Case Study on Oromia Bank S.C
| dc.contributor.advisor | Takele Fufa | |
| dc.contributor.author | Niya Taye | |
| dc.date.accessioned | 2024-03-25T11:17:20Z | |
| dc.date.available | 2024-03-25T11:17:20Z | |
| dc.date.issued | 2024-02-13 | |
| dc.description.abstract | Abstract This paper reviewed the current state and future perspectives of Interest-Free Banking in the case of Oromia Bank S.C. Specifically; the research is aimed at reviewing the current state of Interest-free banking practice of Oromia Bank and investigating factors influencing the adoption of interest-free banking services of the bank. Accordingly, the descriptive and exploratory research designs were applied for the study and a survey was conducted covering 384 respondents of IFB customers from 32 sample branches that were selected based on a purposive sampling technique which targeted all 46 full-fledged IFB branches and other 400 conventional branches that give the service on window base Mixed research approach was used and the study relied on primary and secondary data. The collected data was analyzed using exploratory factor analysis. The findings of the study depict that the bank’s IFB practice growth in terms of deposit, financing, number of customers, profit and branch expansion have been showing an increment except for some fluctuation during the year between 2019 and 2020, which was due to the Covid-19 pandemic. Currently, the bank has achieved an excellent result in terms of its target given on different performance measurements and its current customers’ usage of the service shows most of them get the service for more than three years and serve occasionally, saving was their reason for attachment with the bank and they are associated with full-fledged IFB branches and Amana IFB account. The relative advantage and compatibility are the main factors that influence the adoption of IFB service while, uncertainty, social influence and awareness have a negative influence. It is recommended that the bank should give much emphasis on branch expansion, mobilizing more deposits and customers. Much emphasis should be on the relative advent and compatibility of the IFB practice. The Shari’ah advisory committees should communicate with the society to identify their problems and questions on the IFB practice and educate them well. The National Bank of Ethiopia should have a separate department that is composed of different scholars of Shari’ah law and well-trained and experienced employees | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/2603 | |
| dc.language.iso | en_US | |
| dc.publisher | AAU | |
| dc.title | Assessing the Determinants of Behavioral Intention of Interest-Free Banking Customers: Case Study on Oromia Bank S.C | |
| dc.type | Thesis |