Habte Takele Factors Affecting Adoption Of E-Banking: The Case Of Commercial Bank Of Ethiopia, Ginchi Branch, West Shoa, Oromia Ethiopia

Abstract

The purpose of this study is to identify and analyze factors affecting e-banking adoption of CBE at Ginchi branch, West Shoa Zone, Oromia Regional State, Ethiopia. In this study both primary and secondary sources of data were employed. Primary data was collected through questionnaires and interviews. Questionnaires were distributed to 385 customers of the bank using multistage sampling techniques and interviews were conducted four from CBE Ginchi branch of management. Secondary data were also extracted from studies conducted, company manuals and reports in the area of the study. Data were analyzed using descriptive and inferential statistics (percentage, mean, standard deviation and reliability analysis, Pearson correlation and multiple regression analysis). The regression analysis of this study indicates that there are positive and strong relationships exists between awareness of customers, Environmental factors, Technological factors, Demographic factors ,and trust on the system with e-banking adoption. Moreover, the correlation analysis reveals that there is a positive and strong relationship exist among independent variables(awareness of customers, Environmental factors, Technological factors, Demographic factors ,and trust on the system) and e-banking adoption.The overall e-banking adoption of CBE was low. The government of Ethiopia should formulate strategies to enhance the e- banking infrastructure and enabling policy environment in collaboration with different actors and stakeholders. In addition to this, CBE should take part in creation of awareness through developing different awareness raising campaigns. It is recommended that future research to determine additional factors that are pertinent to Commercial Bank of Ethiopia future and current strategies and other commercial banks in the adoption of e-banking