Customers’ Perception Towards Electronic Banking Service: The Case Of Commercial Bank Of Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


This research aimed at finding out the current customers‟ perception towards electronic banking service of Commercial Bank of Ethiopia as a case study. The study used customers‟ benefit perception and risk perception as independent variables to identify the actual usage of e-banking service. The study examined customers‟ perception regarding with benefits and risks associated within the context of CBE E-banking services using a Technology Acceptance Model (TAM) with some modification to guide the research. The study followed survey method and samples of 400 respondents were taken from CBE customers using purposive sampling technique. The data was analyzed and tested using linear regression to show the effects of perceived benefit and perceived risk on usage of E-banking service. Based on the statistical analysis, perceived benefit was found to have a significant positive effect on usage of E-banking services, this was the reason why customers‟ perception on risks associated with E-banking service could not totally restrict customers from using E-banking products. The findings of the study were all consistent with prior researches except on the findings of risk perceptions such as e-banking transaction handling fees is costly and the service do not provide up to date information which were agreed by the respondents in the study is found to be contrary with the prior researchers. The study revealed areas of improvement with possible solutions that mitigate the identified major challenges, which includes continuous reviewing and up grading of the existing security system, emphasis on improving network stability, provide a cheaper customer service charges and quality service expansion throughout the country with appropriate teaching based promotion. Furthermore, the study suggests that future researches may embark on comprehensive investigation by incorporating customers‟ perceptions of all Ethiopian Private Banks.



Commercial Bank of Ethiopia, Customer Perception, E-banking, Usage