Factors Affecting on Electronic Banking Adoption of Customers In Commercial Bank of Ethiopia, Addis Ababa

Abstract

The purpose of this study is to identify and analyze factors affecting on customers in the adoption of e-banking of Commercial bank of Ethiopia, Addis Ababa. In this study both primary and secondary sources of data were employed. Primary data was collected through questionnaires and interviews. Questionnaires were distributed to 384 customers of the bank using multistage sampling techniques and interviews were conducted from CBE and NBE. Secondary data were also extracted from studies conducted, company manuals and reports in the area of the study. Data were analyzed using descriptive and inferential statistics (percentage, mean, standard deviation and reliability analysis, Pearson correlation and multiple regression analysis). The regression analysis of this study indicates that there are positive and strong relationships exists between infrastructure, security ,trust, perceived ease of use ,subjective norms , perceived behavioral control and perceived usefulness with customers’ adoption of e-banking. But, security was a better predictor of customers’ adoption of ebanking followed by trust and infrastructure. Moreover, the correlation analysis reveals that there is a positive and strong relationship exist among independent variables(security, perceived risk, perceived ease of use, perceived behavioral control, trust, perceived usefulness, subjective norms and infrastructure) and customers adoption of e-banking, however, perceived risk has negative and strong effect on customers’ adoption of e-banking followed by security in Commercial Bank of Ethiopia. The overall e-banking adoption of CBE was low. The factors identified above were 75.2 % effect on the adoption of e-banking of CBE and had 86.7% level of relationship with customers’ ebanking adoption of the bank. The government of Ethiopia should formulate strategies to enhance the e- banking infrastructure and enabling policy environment in collaboration with different actors and stakeholders. In addition to this, CBE should take part in creation of awareness through developing different awareness raising campaigns. It is recommended that future research to determine additional factors that are pertinent to Commercial Bank of Ethiopia future and current strategies and other commercial banks in the adoption of e-banking.