Factors Affecting Adoption of Electronic Banking System: The case of Commercial Bank of Ethiopia Sebeta Branch

Abstract

Electronic banking services are being used with increasing frequency in most countries, including ETHIOPIA. Although previous studies have confirmed the importance for such services for both banks and customers, the level of electronic banking services' adoption in ETHIOPPIA is still low. This study aims to identify and understand factors that affect bank customers' use of electronic banking services. This study integrates technology acceptance model (TAM) with the theory of planned behavior model (TPB) and incorporates dimensions and perceived risk to propose a theoretical model. The primary data were collected from 380 valid questionnaires which were distributed to random banking customers of sebeta branch multiple regression analysis was employed to test the hypotheses. Random sampling methods and descriptive statistics analysis used. The main findings of the study are: uncertainty avoidance has a positive and significant impact on perceived ease of use and perceived usefulness. Perceived risk has the stronger impact on customers' attitude, which in turn influences customers' intention to use electronic banking services areas for further research on the subject matter of service quality, dimension and customer satisfaction. The Commercial bank and its board should work on e-banking adoption of the customer, perceived behavioral control and trust dimension of e-banking. The commercial bank must give attention to brand building strategies as it is reminiscent of their e- banking customer satisfaction and overall bank performance. Bank must come up with strong brand building blocks if they are to harness the power of brand equity and remain competitive in application of e-banking. The study, it has been established that commercial bank of Ethiopia. The study recommends that the regulatory commercial bank must strive towards standardization of the e- banking environment to assure all service equal value irrespective of where they experience the service and its customer. Effort should be exerted to Standardize with bank standard policy guideline; enforcement of these policies must be operational zed. Standardization policies should set out minimum qualification requirement for staff, minimum conditions for deliver e- banking service creating minimum requirement for staff who can work in a bank set up, bank must have a well-stocked technology facility, laboratory to maintain and innovate e better e- banking service delivery system .This promote e-banking service and develop confidence to use e- banking.