Assessment of Mobile Banking Practice and its Challenges in the case of Commercial Bank of Ethiopia, South Addis Ababa District
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Date
2018-12-18
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Addis Ababa University
Abstract
With the convergence of banking services and mobile technologies, users are able to conduct banking services at any place and at any time through mobile banking. This is, therefore; mobile banking has a vital advantage for customers. The main purpose of this study is to assess the practice of mobile banking and its challenges in Commercial Bank of Ethiopia. In so doing, the research used the extended TAM Model, which deals with the factors influencing the practice of mobile banking i.e., Convenience (perceived usefulness and perceived ease of use), perceived trust, perceived risk, perceived cost. Moreover, the research used infrastructure as independent variable to examine its effect of the practice of mobile banking.
Data for the study was collected through closed ended questionnaire which were distributed for 330 respondents and analysis of findings are done based on 313 complete responses. The study employed mean, frequency and t-test extracted from SPSS for analysis. Accordingly, the research has found that customers in the CBE perceived that mobile banking service is useful and easy to use. Customers who are using mobile banking service (86.9%) perceives that cost and risk doesn’t affect the practice of mobile banking, whereas, 13.1% of the customers who are not using mobile banking perceives that risk and cost are barriers to use the mobile banking service. In addition, customers at CBE perceive that infrastructure is the most critical factor for the customer to use mobile banking service. Furthermore, the t-test result shows all variables considered have a significant effect on the practice of mobile banking as their probability values are less than 5%.
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Mobile banking, Convenience, Perceived Risk, Commercial Bank of Ethiopia (CBE)