Factors Affecting the Adoption of Mobile Banking in Addis Ababa

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Addis Ababa University


Regardless of different benefits of mobile banking and huge mobile subscribes in Ethiopia, the adoption rate is too low. Therefore, the purpose of this research is to identify factors affecting the adoption of mobile banking in Ethiopia, Addis Ababa. The study tried to build on two widely used models for technology adoption. These are technology acceptance model (TAM) and United Theory of Acceptance of and use of technology (UTAUT). Hence the research model used TAM and UTAUT by integrating perceived risk, perceived trust and mobile phone experience as additional variables. The study was conducted based on the data collected from customers of four banks, namely United Bank, Dashen Bank, Wegagen Bank and Birehan international bank S.C. This study collected data using questionnaire distributed to 246 respondents. The collected data is analyzed using multiple regression method by SPSS version 20. The research finding indicated that effort expectancy, perceived usefulness, perceived ease of use; perceived cost and mobile phone experience are major factors affecting mobile banking adoption where as performance expectancy, perceived risk and perceived trust to have insignificant effect on mobile banking adoption. The study recommended banks to educate users about benefits of mobile banking services and make mobile banking applications ease and free of effort.


A Thesis Submitted to the Department of Management in Partial Fulfillment for the Requirement of the Degree of Executive Masters of Business Administration


Ease of use, Effort Expectancy, Mobile Banking Adoption