Determinants of Mobile and Agent Banking Service Adoption: Evidence from Selected Commercial Banks in Ethiopia

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Addis Ababa University


This study aims at describing factors which can be Determinants of Mobile and Agent Banking Service Adoption: Evidence From selected commercial banks in Ethiopia. To achieve the objectives of the study and answer the research questions, the researcher used mixed research approach which encompasses both qualitative and quantitative research methods. This descriptive study was conducted based on the data gathered from the following four banks in Ethiopia; Abay Bank, Wgagen Bank, Lion International Bank and Cooperative Bank of Oromia. The data collected was analyzed using exploratory statistics and regression analysis. A research framework developed based on the Technology - Organization - Environment (TOE) framework and Technology Acceptance Model (TAM) was used to guide the study. The study revealed the following major driving factors in adopting agency banking among commercial banks in Ethiopia; Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) of the technology. The barriers identified in this study came from the external environments like; lack of legal framework, under developed ICT infrastructure including poor network connectivity, lack of competition among banks and lack of sufficient government support, and perceived risk (PR). The study recommended banks to consider technology based competition focusing on customer base expansion, cost reduction, awareness creation, credibility, security, ease of use, and availability to exploit the benefit of agency banking while the government should support banking sector by facilitating sufficient ICT infrastructure development and issue workable legal frameworks to ease the adoption of agency banking system.


A thesis submitted to the school of graduate studies of Addis Ababa University in partial fulfillment of the requirements for the degree of master of business administration


Agency banking, Banking industry, Ethiopian Banks