Factors affecting customers’ electronic banking adoption in commercial banks within Addis Ababa
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Date
2019-10
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A.A.U.
Abstract
This study aimed at identifying factors that affect E-banking adoption in Addis Ababa, Ethiopia. The study used both quantitative and qualitative (mixed) research approach with a survey design to collect and analyze the data. Target population of this study were walk-in individual customers of selected commercial banks in Addis Ababa. Eight Commercial Banks (Commercial Bank of Ethiopia, Awash international Bank, Dashen Bank, Bank of Abyssinia, Wegagen Bank, Buna International Bank, Oromia International and United Bank) were selected for the purpose of the study. Primary data was collected through questionnaire and interview and secondary data such as annual reports of the National Bank of Ethiopia and the selected eight commercial banks were used. 481 samples of walk-in customers were selected randomly from these selected banks and 387 of them participated in responding to the questionnaire; branch managers of the respective banks also interviewed to have more insight on customers’ perspective towards the e-banking offerings. The data was analyzed using descriptive and inferential statistics. Multiple linear regression model was developed and employed to test the hypothesized relationship proposed in this study considering seven psychographic and three demographic variables. The findings of the study revealed that the psychographic variables (perceived ease of use, perceived usefulness, perceived risk, perceived cost and facilitating conditions) have positive and statistically significant effect on E-Banking adoption whereas perceived risk and perceived cost have negative and statistically significant effect on E-banking adoption. On the other hand, perceived trust and Social influence were found to have positive but statistically insignificant effect on E-Banking adoption. Besides, out of the three demographic variables (income, education and age), only income was found to have positive and statistically significant effect on E-Banking adoption while respondents’ age and education level were not.
Description
A thesis submitted to Addis Ababa University College of business and economics in partial fulfillment of the requirements for the degree of Master of Arts in business admiration
Keywords
E-Banking adoption, Facilitating conditions, Perceived ease of use