Factors affecting the adoption of agency Banking (CBE birr) service in the case of Commercial bank of Ethiopia
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Date
2019-06
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Addis Ababa University
Abstract
This research paper aims to identifying factors which influence the adoption of agent banking by commercial Bank of Ethiopia. Clear understanding of these factors will enable agent banking service providers to develop suitable marketing strategies, business models, processes, and pilot projects. To address the research objective 126 sampled customers were selected. Purposive and convenience sampling methods were used. Questioners were distributed to 126 different managers, from which 117 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 117 responses using SPSS 20 software package. Descriptive statistics and explanatory research approach were employed. All out puts were reported using frequency, mean, correlation and multiple linear regression analysis results such as ANOVA and coefficient and regression results were used. The result indicates that Compatibility, perceived support, perceived trust, Perceived Benefit, and Financial Literacy major factors influencing adoption of CBE Birr Service. But security factors were not significant. Among these factors Financial Literacy, and Perceived trust were the most statistically significant factors adopting agency banking. Financial literacy found to have a positive significant influence on mobile money adoption. This implies that users’ knowledge, ability and skills are needed to use the new information technology.
The study recommended that adoption can be increased by developing better functions in terms of flexibility, security and accessibility features to enhance consumers’ confidence to adopt CBE Birr services and users’ knowledge, ability and skills are needed to use the new information technology. Available support structures and strong top management support becomes an essential measure to encourage CBE Birr adoption.
Description
A Thesis Submitted to the Department of Management for the Partial fulfillment of the Requirement of MBA Degree in Management
Keywords
Agency banking, Benefit, Compatibility, Financial literacy