Factors Affecting Adoption of Electronic Banking in the case of Awash Bank southern region

Abstract

Electronic Banking has been widely used in developed countries and is rapidly expanding in developing countries.Ethiopia’s financial sector cannot remain an exception in expanding the use of the system. Thus, this study was conducted with a general objective of to investigate factor that affect adoption of e- banking system in Awash Bank.To achieve the objective descriptive and explanatory research design was employed while using both qualitative and quantitative techniques. Data was collected from primary sources that involve questionnaire, while secondary data included journals articles and like. By using simple random sampling technique, sample size of 400 was selected. The collected data were analyzed by using statistical tools (SPSS-Version 25).Both descriptive and inferential statistics were used for the data analysis.The results show that although there is a moderate level of knowledge of e- banking services, user adoption is still low. This implies that the bank has to step up its educational initiatives. Another problem is security, which emphasizes the significance of strong security procedures and transparent data privacy communication.Correlation analysis is used in the study to look at the connections between different variables and the adoption of e-banking. The adoption of security/confidentiality, environment, and organizational elements are significantly positively correlated, according to the study. Furthermore, there is a somewhat favorable link between acceptance and knowledge. Regression analysis was used to determine the main variables impacting the uptake of e-banking. A significant amount (86%) of the variation in adoption rates can be explained by the model. Infrastructure, awareness, environment, and security/confidentiality are important factors that influence Awash Bank's adoption of e-banking, according to the study. However, it was shown that organizational aspects had a modestly detrimental influence, necessitating more research. The study's result highlights the necessity of a multimodal strategy to improve Awash Bank's adoption of e-banking. This entails developing a favorable legislative framework, investing in infrastructure, increasing knowledge of the advantages of e-banking,boosting security/confidentiality, and optimizing internal procedures