Determinants of Mobile Banking Adoption: A case study in Commercial Bank of Ethiopia
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Date
2020-06
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A.A.U
Abstract
This study aims to assess factors that determine mobile banking adoption in Ethiopian Banking
Industry. A case study of Commercial Bank of Ethiopia; This study tries to use extended TAM
(Technology Acceptance Model) with Relative Advantage from Innovation Diffusion Theory, and
Awareness to indentify factors influencing mobile banking adoption in Commercial Bank of Ethiopia
with special focus on Branches under Addis Ababa Districts. By referring previous literature eight
determinants as awareness, perceived usefulness, perceived ease of use, perceived credibility,
perceived self-efficacy, perceived risk, perceived cost and relative advantage has been identified.
Mobile banking has many benefits which includes reduce time of transactions, avoid physically
visiting bank’s branches and it involves anywhere anytime transactions. However, in Ethiopia the
mobile banking adoption rate is very low when we compare with Bank’s account holders and mobile
connection penetrations in the country. The study was conducted based on the data gathered from
customers of Commercial Bank of Ethiopia under Addis Ababa districts and the survey was
conducted by using semi structured questionnaires. Out of 400 questionnaires that have been
distributed, 374 customers were complete the questionnaire (response rate of 93.5%). The research
results identified four variables influencing customers to adopt mobile banking such as awareness,
perceived usefulness, perceived risk and relative advantage that had significant effect mobile banking
adoption. Perceived risk was negatively influencing factor while awareness, perceived usefulness,
and relative advantage positively affect mobile banking adoption. Thus, the bank should have to
strive to improve customers level awareness by devising different means of change since; awareness
has a multiplied effect on motivating customers to be mobile banking user. Even, if customers get
sufficient know how risk related issues will be eliminated then mobile banking user will increase
which reduced customers that visit the bank’s hall and this helps the bank to allocate this resource on
the other best alternatives.
Description
A Thesis Submitted to the College of Business & Economics Department of
Master of Business Administration
Presented in Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration in Finance
Keywords
Mobile banking, Mobile banking adoption, Technology acceptance Models.