Determinants Of Mobile Banking Adoption A Case Study In Commercial Bank Of Ethiopia

This study aims to assess factors that determine mobile banking adoption in Ethiopian BankingrnIndustry. A case study of Commercial Bank of Ethiopia; This study tries to use extended TAMrn(Technology Acceptance Model) with Relative Advantage from Innovation Diffusion Theory, andrnAwareness to indentify factors influencing mobile banking adoption in Commercial Bank of Ethiopiarnwith special focus on Branches under Addis Ababa Districts. By referring previous literature eightrndeterminants as awareness, perceived usefulness, perceived ease of use, perceived credibility,rnperceived self-efficacy, perceived risk, perceived cost and relative advantage has been identified.rnMobile banking has many benefits which includes reduce time of transactions, avoid physicallyrnvisiting bank’s branches and it involves anywhere anytime transactions. However, in Ethiopia thernmobile banking adoption rate is very low when we compare with Bank’s account holders and mobilernconnection penetrations in the country. The study was conducted based on the data gathered fromrncustomers of Commercial Bank of Ethiopia under Addis Ababa districts and the survey wasrnconducted by using semi structured questionnaires. Out of 400 questionnaires that have beenrndistributed, 374 customers were complete the questionnaire (response rate of 93.5%). The researchrnresults identified four variables influencing customers to adopt mobile banking such as awareness,rnperceived usefulness, perceived risk and relative advantage that had significant effect mobile bankingrnadoption. Perceived risk was negatively influencing factor while awareness, perceived usefulness,rnand relative advantage positively affect mobile banking adoption. Thus, the bank should have tornstrive to improve customers level awareness by devising different means of change since; awarenessrnhas a multiplied effect on motivating customers to be mobile banking user. Even, if customers getrnsufficient know how risk related issues will be eliminated then mobile banking user will increasernwhich reduced customers that visit the bank’s hall and this helps the bank to allocate this resource onrnthe other best alternatives.

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