Factors Affecting Adoption of Mobile Banking: The Case of Commercial Bank of Ethiopia Addis Ababa City Customers
No Thumbnail Available
Date
2015-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Banking industry is one of the critical economic institutions in the economic development of a country. However, the majority of Ethiopians’ do not have access to the banking services. Even most of the existing banks operate in cities and towns where significant customers exist to secure financial viability since all commercial banks operate for profit. Thanks to the advancement of information and communications technology in the banking sector commercial banks can provide banking services through mobile banking technology. However, in spite of the implementation of mobile banking technology in Ethiopia through commercial Banks the numbers of users of the services are very small as compared to other countries like Kenya. This research paper aims to understand the factors that affect the adoption of mobile banking technology in the case of Commercial Bank of Ethiopia Addis Ababa city customers using technology acceptance model developed by Davis with additional variable namely perceived risk. Understanding the factors that will affect customers’ adoption behavior of mobile banking will help the commercial Bank of Ethiopia’s Effort to increase the penetration and growth of mobile banking service.
To address the research objective 400 sample customers are selected based on purposive and convenient sampling method and questionnaire is distributed from which 294 sample respondents replied appropriately to the questionnaire. Data gathered are analyzed using descriptive statistics such as frequency, percentage, mean, mode, median and standard deviation. Besides binary logistics regression analysis is conducted to understand the relationship of mobile banking adoption and perceived usefulness, perceived ease of use and perceived risk. As result the study found out that perceived usefulness and perceived ease of use have positive relationship with the adoption of mobile banking whereas perceived risk has negative relationship with the adoption of mobile banking.
Key words: TAM, Mobile Banking, perceived usefulness, perceived ease of use and perceived risk
Description
Keywords
TAM, Mobile Banking, perceived usefulness, perceived ease of use and perceived risk