Customers’ E-Banking Adoption In Ethiopia
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Date
2018-06-03
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Addis Ababa University
Abstract
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.
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Keywords
UTAUT2, PLS, E-banking adoption, PLS-SEM, partial least square, structural equation modelling, unified theory of acceptance and use of technology