Digital Literacy as a Mediator Between Perceived Usability and Mobile Banking Adoption in Addis Ababa
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Date
2026-01-02
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A.A.U
Abstract
Adoption of mobile banking is shaped by usability, trust, security and digital literacy. However, current studies are centered on the conventional technology acceptance models without considering digital literacy as a mediating factor in mobile banking usability and adoption. Moreover, the previous works being carried on mobile banking adoption of Ethiopia have only focused on technological infrastructure and convenient of using banking services, but not taking into account barriers from system user such as digital literacy and trust. This study, thus, investigated the mediating role of digital literacy in the relationship between customer-perceived usability and mobile banking adoption, focusing on five major banks in Addis Ababa: Commercial Bank of Ethiopia, Bank of Abyssinia, Awash Bank, Dashen Bank, and Hibret Bank. A quantitative research approach with explanatory design was employed. Primary data collected from 289 respondents through a structured questionnaire were used for analysis. Convenience sampling was applied to ensure access to diverse bank users. Data analysis involved descriptive and inferential statistics, including correlation tests and multiple linear regression. Findings revealed that digital literacy significantly mediates the relationship between usability and adoption, enabling customers to navigate mobile banking applications and conduct financial transactions with confidence. However, adoption barriers persist, particularly in areas of security transparency and fraud mitigation. The study underscores the need for banks to integrate digital literacy programs with usability enhancements to foster greater adoption.
Keywords: Digital Literacy, Digital Competency, Financial Services Innovation, Mobile Banking Adoption, Mobile Banking Usability, Security Concerns, Technology Acceptance