Factors Influencing Adoption of Electronic Banking: The case of commercial banks in Addis Ababa

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Addis Ababa University


The purpose of this study was to investigate factors that influence customers adoption of e-banking in Addis Ababa. Data was collected using questionnaire distributed to a sample of 384 with response rate of 81% from customers of the two selected banks. The chosen banks were Commercial bank of Ethiopia and Dashen bank which have a better e-banking service. Quantitative research approach was used to answer research questions. The collected data was analyzed using SPSS version 20.0 for descriptive analysis and inferential analysis. The relationship and influence of the factors was analyzed using Pearson correlation and multiples regression. The findings of the study showed that perceived ease of use, ICT infrastructure, security perception and information about e-banking have significant positive effect on the adoption of electronic banking except perceived risk which has significant but negative effect. Strategies are also recommended to enhance the e-banking services including formulating security policies and guidelines, making websites more user-friendly, reducing users risk concerns and the role of government in terms of improving ICT infrastructure. Finally, in order to bring about sustainable adaptation of e- banking services by financial institutions which best serves the customer needs, more research works are suggested to be done to further analyze the contribution of e-banking services to the larger economic transactions.



E-banking, adoption, Commercial bank of Ethiopia