ASSESMENT OF FACTORS AFFECTING USAGE OF E-BANKING IN WEGAGEN BANK SOUTH ADDIS ABABA DISTRICT

Abstract

E-Banking technology is still at infant stage in Ethiopia compared to the rest of the world. In Ethiopia Cash is still the most dominant medium of exchange. This study is aimed to assess factor affecting usage of e-banking. The study was conducted based on the data gathered from four branch found in wegagen bank south Addis Ababa district; (Goffa, meskel, nifas silk, and Akaki branch). Mixed research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the E-banking system in wegagen bank south Addis Ababa district. The survey was conducted to collect the data and 368 complete responses were gathered from customers who have an account in wegagen bank south Addis Ababa district. Explanatory research design was applied and Correlation and regression analysis was done to provide strength to the research study which showed that the relation between variables and how much the dependent variable is explained by the independent variable. Spearman‟s rank correlation was used to examine relationship of five hypotheses with actual e- banking usage. Result of the study indicated that relative advantage, compatibility with values, complexity, trialability and risk found to influence the adoption of e-banking and 83% of the variation in adoption of e-banking explained by independent variables namely relative advantage, compatibility, complexity, trialability and risk . The adjusted R2 value, which accounts for the number of variables, shows that the independent variable account for 83% of the variation in adoption of E- banking. Conclusion of the research study implied that banks have to majorly influence the E- banking adoption through „pull strategies