FACTORS AFFECTING THE ADOPTION OF MOBILE BANKING IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this study is to identify factors influencing the adoption and usage of mobile banking as the tool for help banks understand and improve the service in order to gather the expected benefits and can add on to the existing literature concerning mobile banking in the Ethiopian context. From the literature, six determinant factors are identifies. Each variable is measured using 5-point Likert-scale. Using primary data collection method, questionnaires were distributed to target respondents of customers of Commercial bank of Ethiopia for mobile banking users, This study is based on The Unified Theory of Acceptance and Use of Technology (UTAUT) model specifies the causal relationships between Performance expectancy, Perceived risk, Perceived cost, Effort expectancy, Trust, Mobile banking service quality and Behavioral intention items. The data were analyzed using AMOS version 23 and SPSS version 20. The findings of this study revealed that Performance expectancy, Perceived risk, perceived cost, Effort expectancy and Trust, were the factors affecting users having intention to adopt mobile banking. Meanwhile, the Mobile banking service quality was found to be insignificant in this study. Furthermore, this study also manages to present demographic variables effects toward behavioral intention to adopt mobile banking, and found that gender is non-significant factor for mobile banking adoption. Age and occupation is found as significant factor for adoption of mobile banking but educational qualification was not a significant factor for adoption of mobile banking in Ethiopian mobile banking user context.