Factors Affecting Slow Adoption and Low Usage of Mobile Banking in Ethiopia
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Date
2018-06
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Abstract
This paper explores factors affecting slow adoption and usage of mobile banking in Ethiopia.
The objective of the study was investigating factors affecting adoption and usage of mobile
banking. The study was conducted on AAU graduate EMBA students and exploratory research
design was employed in the study. The sample size for the research comprised 108 AAU
graduate EMBA students, due to small number of target population a census was carried out.
Data were collected through use of questionnaire; an open ended questionnaire was designed to
collect data. The return rate of questionnaire was 100%. Data was analyzed by open coding
method. Conclusions were made and the result of the study indicated that, the major barriers
Ethiopian banking industry faces in the adoption and usage of mobile banking are infrastructure,
awareness, security, literacy, trust, perceived cost ,legal frame work, advertisement ,business
model ,monopoly power of Ethio telecom ,Government support on ICT and demography. Lastly
the Mobile banking service was found to possess relative advantages in comparison to
traditional banking services. Such advantages included accessibility, saving of time, less cost,
privacy and comfort. Consequently, the researcher suggests a series of measures which could be
taken by the banking industry and by government to address various challenges identified that
the bank undertake an aggressive marketing campaign to make customers aware of the service.
The banks need to build the confidence of their customers. To prevent loss of personal/account
information the bank should ensure that their system is secure to prevent hacking. There is a
need to change the customer’s perception through a well-structured advertisement and staff
interaction in order to make them realize that the service is safe to use. Government should
emphasis on supporting national ICT research and training center. Government should also
facilitate condition for new entrants to the telecom business.
Description
A Research Submitted In Partial Fulfillment of The
Requirements for the Degree of Masters in Business
Administration
Keywords
Commercial banks in Ethiopia, Mobile banking, TAM