This paper explores factors affecting slow adoption and usage of mobile banking in Ethiopia.rnThe objective of the study was investigating factors affecting adoption and usage of mobilernbanking. The study was conducted on AAU graduate EMBA students and exploratory researchrndesign was employed in the study. The sample size for the research comprised 108 AAUrngraduate EMBA students, due to small number of target population a census was carried out.rnData were collected through use of questionnaire; an open ended questionnaire was designed torncollect data. The return rate of questionnaire was 100%. Data was analyzed by open codingrnmethod. Conclusions were made and the result of the study indicated that, the major barriersrnEthiopian banking industry faces in the adoption and usage of mobile banking are infrastructure,rnawareness, security, literacy, trust, perceived cost ,legal frame work, advertisement ,businessrnmodel ,monopoly power of Ethio telecom ,Government support on ICT and demography. Lastlyrnthe Mobile banking service was found to possess relative advantages in comparison torntraditional banking services. Such advantages included accessibility, saving of time, less cost,rnprivacy and comfort. Consequently, the researcher suggests a series of measures which could berntaken by the banking industry and by government to address various challenges identified thatrnthe bank undertake an aggressive marketing campaign to make customers aware of the service.rnThe banks need to build the confidence of their customers. To prevent loss of personal/accountrninformation the bank should ensure that their system is secure to prevent hacking. There is arnneed to change the customerâ€™s perception through a well-structured advertisement and staffrninteraction in order to make them realize that the service is safe to use. Government shouldrnemphasis on supporting national ICT research and training center. Government should alsornfacilitate condition for new entrants to the telecom business.