Factors that influence the effectiveness of mobile banking adoption: The case of Commercial Banks in Addis Ababa, Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
The purpose of this study is to investigate factors that influence the effectiveness of mobile banking
adoption in the case of commercial banks in Ethiopia. A sample of 400 respondents was drawn
from both public and private banks in Addis Ababa, Ethiopia where a structured questionnaire
was distributed to these samples. However, the response rate from among the intended samples
was only 95.5% therefore; around 382 responses were found to be workable by this study. SPSS
V 24.0 was used to analyze the data collected and to test the hypotheses put forward. The findings
of this study then show that factors namely convenience and relative advantage have a positive
and significant relationship with mobile banking adoption in Ethiopia which led to, the acceptance
of hypothesis two and four. From Hypothesis three, perceived risk was found to have a significant
negative influence on mobile banking adoption, meaning hypothesis three was supported. Whereas
hypothesis one trust has no significant relationship with the dependent variable mobile banking
adoption. And this was found by running multiple linear regressions on SPSS. The testing of the
fifth and final hypothesis, which set out to find any significant difference between the different
factors (trust, convenience, risk and relative advantage) of public and private banks show that
there is no significant difference on trust, convenience and relative advantage between public and
private banks but perceived risk was found to be significantly different between public and private
banks in Ethiopia. This led to the partial acceptance of the fifth hypothesis. These findings are
beneficial for both public and private banks in Ethiopia to identify factors that influence the
effectiveness of mobile banking adoption. The study recommends more studies on mobile banking
adoption to be conducted in other areas of the country to find out if there could be any similarities
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Keywords
trust, convenience, perceived risk