Assessment Of Factors Affecting The Adoption Of Agency Banking (Ebirr) Service Practices: The Case Of Cooperative Bank Of Oromia (In Finfinne City)

Abstract

This research paper aims to identifying factors which influence the adoption of agent banking by cooperative bank of oromia. Clear understanding of these factors will enable agent banking service providers to develop suitable marketing strategies, business models, processes, and pilot projects. To address the research objective 111 sampled customers were selected. Purposive sampling methods were used. Questioners were distributed to 111 different managers, from which 103 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 103 responses. The quantitative data were analyzed with the use of SPSS version 20 software using statistical tools of frequency, percentage, mean score and standard deviation and supported by qualitative analysis. The study revealed the following major factors in adopting agency banking in cooperative bank of oromia; Security factors(perceived risk), from support factor, Lack of sufficient government support, from Compatibility factors, agency compatibility with the bank's existing service offering, lack of trust and lack of financial literacy are major factors. The study recommended that adoption can be increased by developing better functions in terms of flexibility, security and accessibility features to enhance consumers’ confidence to adopt agency banking services and users’ knowledge, ability and skills are needed to use the new information technology. Available support structures and strong top management support becomes an essential measure to encourage agency banking adoption.