Customers’ E-Banking Adoption In Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


In Ethiopia, E-banking technologies were introduced almost before two decades for the main purposes of reaching new customers and enhance deposit mobilization. Though banks are investing huge amount of money for technological and service enhancements, customers did not yet adopt these technologies to the required level. Despite number of researches conducted on E-banking channels, no study has been undertaken to comprehensively analyze determinant factors of customers’ E-banking adoption in Ethiopia. Hence, after an extensive review of literature, this research has developed and tested a model based on the unified theory of acceptance and use of technology (UTAUT2). The research model has been built to explain how UTAUT2 constructs influence behavioral intention and the actual use behavior of E-banking adoption from the point of customers’ perspective. A cross-sectional survey research has been conducted to collect data from 321 respondents of four different banks across the country. Partial Least Square Structural Equation Modelling (PLS-SEM) has been used to test the proposed model and identify the key determinant factors of customers’ behavioral intention and the actual use behavior of E-banking technologies. The research revealed that performance expectancy, habit, hedonic motivation, price value, and facilitating conditions are the main influential factors of customers’ behavioral intention to adopt Ebanking technologies in Ethiopia. Moreover, habit and facilitating conditions has been found to be the influential factors on determining the actual use behavior of E-banking technologies in Ethiopian context. Practitioners can use the findings in such a way that they focus on the functionalities of E-banking technologies that increases customers’ performance expectancy and creating a conducive environment to users that exposes them to experience these benefits and built habit of using these technologies for everyday activities. However, it is still demanding to study further for identifying other factors that affect E-banking adoptions and testing the model in similar technology adoption areas.



UTAUT2, PLS, E-banking adoption, PLS-SEM, partial least square, structural equation modelling, unified theory of acceptance and use of technology