Factors Affecting the Adoption of Internet Banking Services by Customers in Addis Ababa

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Date

2015-06

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Addis Ababa University

Abstract

The purpose of this study was to investigate which factors affect the adoption of Internet banking in Addis Ababa. A conceptual frame work was developed based on factors in TAM, culture and perceived risk. Data was collected using questionnaire and distributed to a sample of 300 customers of three selected banks namely Dashen bank, Commercial bank of Ethiopia, and United bank. The collected data was analyzed using SPSS version 20.0 for descriptive analysis and the inferential analysis was analyzed using structural equation modeling. The findings of the study showed that perceived usefulness, perceived ease of use, attitude, perceived risk, and culture have a significant effect on intention to adopt Internet banking. In addition attitude is negatively and significantly related to perceived risk and positively and significantly related to perceived ease of use and perceived usefulness. Finally it is recommended to banks to improve their security policies, to make Internet banking more useful and useable, to concentrate on making their website user friendly, and government should also improve ICT infrastructure. Key words- Internet banking, TAM, Culture, Perceived Risk, Addis Ababa.

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Keywords

Internet banking, TAM, Culture, Perceived Risk

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