Challenge and prospects of mobile and agent banking adoption in Ethiopia banking industry
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Date
2018-11
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Addis Ababa University
Abstract
This research project was aimed to describe the challenge and prospects of mobile and agent banking adoption in
Ethiopian banking industry. In order to achieve the objective of this study and answer the research questions the
researcher adopted mixed research approach. This descriptive study was conducted based on the data gathered
from purposively selected e-banking staffs of the six banks commencing mobile and agent banking; Commercial
bank of Ethiopia Dashen Bank, United Bank, Lion International Bank, Wegagen bank and Cooperative Bank of
Oromia. The data collected was analyzed using descriptive statistics. The study revealed that environmental (lack of
adequate ICT infrastructure, poor quality of internet and mobile network, inconsistent power & network supply in
rural areas of the country), organizational (lack of support & commitment of top level management, lack of
availability of well trained manpower to build agent network, lack of skill of IT personnel, lack of technical an d
managerial skill of staffs), and technological (lack of confidence with the security aspect, customer’s fear of risk of
new technology innovation, and lack of availability of physical security) are challenges of adopting mobile and
agent banking. The study also revealed that, the major prospects of adopting mobile and agent banking classified
under perceived ease and perceived usefulness are simplicity to perform banking tasks, easiness to understand and
use, friendliness with the existing service offering, improving customer service being a solution for banks closing
their doors early, motivates fast small cash movers to put their extra money into the banking system, creating wider
market coverage for the bank, increases the productivity of banks, enhance customer service, and accessibility of
service without limit of time and place. The study recommended banks to consider technology based competition,
regulatory body to issue suitable legal frameworks to ease the adoption of mobile and agent banking syste m while
the government should support banking sector by investing on ICT infrastructure development and financial
education program.
Description
A Thesis Submitted To the School Of Graduate Studies of Addis Ababa University in
Partial Fulfillment of the Requirements for the Degree of Master of Business
Administration (In Finance)
Keywords
Adoption, Agent banking, Banking industry, Mobile Banking