Factors Affecting Consumers’ Adoption of Virtual Banking (In case of bank of Abyssinia)

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Date

2025-09

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Publisher

Addis Ababa University

Abstract

This study sought to investigate the factors influencing consumer adoption of virtual banking. Quantitative research approach was utilized, which included surveys and data analysis. To attain representativeness by non-random sampling, a convenience sampling approach was employed with a sample size of 384 individuals. Data was gathered via an online survey questionnaire delivered via Google Forms and dispatching questionnaire via paper. A model based unified theory on acceptance and use of technology was developed to link the key variables. Multiple regression analysis was used to test the hypotheses. This study identified Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), and Habit (HB) as critical factors that significantly influence customer adoption of virtual banking. The study also identified facilitating conditions, hedonic motivation and price value have no a significant impact on the adoption of virtual banking. These research findings could be useful for virtual banking service providers, legislators, researchers, technology developers, and financial institutions alike. Understanding the individual elements that drive consumer adoption of virtual banking can help lead the creation of effective tactics to promote its use and expedite the wider adoption of virtual banking technology.

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Keywords

Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), Facilitating Conditions (FC), Hedonic motivation (HM), Price Value (PV), Habit (HB), UTAUT, Virtual Banking (VB), Interactive teller machine (ITM)

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