Adoption of Electronic Banking System in Ethiopian Banking Industry: Barriers and Drivers
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Date
2012-05
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Addis Ababa University
Abstract
This thesis aims to examine adoption of E-banking in the Ethiopian banking industry with
respect to the barriers which can influence firms from taking advantage of E-banking
system and expected benefits derived by adopting the system. The study was conducted based
on the data gathered from four banks in Ethiopia; three private banks (Dashen bank, Zemen
bank and Wegagen bank) and one state owned bank (commercial bank of Ethiopia).
A mixed research approach was used to answer the research questions that emerge through
the review of existing literature and the experiences of the researcher in respect of the E-
banking system in Ethiopia. The study statistically analyse data obtained from the survey
questionnaire. A research framework developed based on technology-organization-
environment framework and Technology acceptance model to guide the study.
The result of the study indicated that, the major barriers Ethiopian banking industry faces
in the adoption of Electronic banking are, security risk, lack of trust, lack of legal and
regulatory frame work, Lack of ICT infrastructure and absence of competition between
local and foreign banks. The study also identified perceived ease of use and perceived
usefulness as a driver of adopting E-banking system.
The study suggests a series of measures which could be taken by the banking industry and by
government to address various challenges identified in the thesis. These measures include:
Establishing a clear set of legal frame work on the use of technology in banking industry,
supporting banking industry by investing on ICT infrastructure and banks needs to be
focused on technological innovation competition rather than traditional bases of retail bank
competition
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Keywords
Barriers and drivers