Factors Influencing Usage of Mobile Banking in Addis Ababa, Ethiopia

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Addis Ababa University


The purpose of this study is to investigate factors influencing the usage of mobile banking in Ethiopia. The study tries to build on two widely used models for technology adoption, the Technology Acceptance Model (TAM) and Innovation Diffusion Theory and to identify factors influencing customer's usage of mobile banking. A research model uses the TAM model and IDT model by integrating perceived risk, trust and awareness into the established models. This study was conducted based on the data gathered from customers of Commercial Bank of Ethiopia and United Bank in Addis Ababa, Ethiopia. Survey was conducted using questionnaire. Out of 400 questionnaires that have been distributed, 383 were usable. The analysis of the data was done with the help of the SPSS and EViews. The research results found relative advantage, compatibility, perceived trust, perceived usefulness, and perceived risk as major influencing factors for mobile banking adoption whereas perceived ease of use and awareness were found to have insignificant effect on mobile banking usage for bank customers located in Addis Ababa, Ethiopia. The study recommended banks to consider investing in campaigns and arranging information sessions to demonstrate the features of mobile banking services, and its benefits over traditional channels. Keywords: Mobile banking Usage, TAM, IDT, Perceived Trust, Perceived risk, Awareness



Mobile banking Usage, Tam, Idt, Perceived trust, Awareness, Perceived risk