Factors Affecting the adoption of Mobile Banking Service in Ethiopian Commercial Banks
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Date
2024-10
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Addis Ababa University
Abstract
This study investigates the factors influencing mobile banking adoption among customers of three pioneering banks in Ethiopia: Commercial Bank of Ethiopia (CBE), Dashen Bank, and Awash Bank. Employing a quantitative research approach, the study integrates both descriptive and explanatory research designs to comprehensively analyze the determinants of mobile banking adoption. Data were collected using structured questionnaires based on a Likert scale from a sample of 384 respondents in Addis Ababa City.
The Technology Acceptance Model (TAM) was utilized as the theoretical framework, focusing on five key variables: perceived security, trust, perceived ease of use, perceived usefulness, and social influence. Statistical analyses, including correlation and regression, were conducted using SPSS version 22 to examine the relationships between these variables and mobile banking adoption.
The findings reveal that perceived usefulness has the most significant impact on mobile banking adoption, followed by trust, perceived security, perceived ease of use, and social influence. The regression model explains 85.8% of the variance in mobile banking adoption, indicating a strong predictive capability.
This research contributes to the understanding of mobile banking adoption in the Ethiopian context, highlighting the critical role of perceived usefulness and trust. The study provides valuable insights for banks and policymakers to enhance mobile banking services and strategies to increase adoption rates. Future research directions are suggested to explore additional factors and expand the study to other regions.
Keywords: Mobile Banking Adoption, Technology Acceptance Model (TAM), Perceived Security, Trust, Perceived Ease of Use, Perceived Usefulness, Social Influence, Ethiopia.