FACTORS AFFECTING CUSTOMERS’ INTENTION TO ADOPT ATM BANKING IN COMMERCIAL BANK OF ETHIOPIA

Abstract

This research project aims to explore Factors Affecting Customer’s intention to Adopt ATM banking system on Commercial Bank of Ethiopia. The study was conducted based on the data gathered from commercial bank of Ethiopia south Addis district. In order to achieve the objective of this study and answer the research questions, the researcher adopted mixed research design (both descriptive and explanatory research design).The study was conducted based on the data gathered from the user of commercial bank of Ethiopia.. The data collected was analyzed using descriptive statistics by using SPSS version 20.. A research framework developed based on the Technology Acceptance Model (TAM) was used to guide the study. The study revealed the following major driving factors in adopting of ATM banking among commercial banks in Ethiopia; perceived usefulness, perceived ease of use, perceived risk, intention to use, convenience, are major factors. The study recommended banks should launch campaigns to create direct awareness to potential adopters, issues such as fear of the lack of privacy and security, together with relative advantages of using ATM banking system. The results obtained from regression output indicated that among the studied variables, Perceived usefulness, ease of use, intention to use and convenience were found to be statistically significant determinant of adoption of ATM banking