Abstract:
The primary aim of this study is to explore the determinants of digital banking channels usage
and its effect on money transactions within Ethiopia's banking sector, in the case of
Cooperative Bank of Oromia. . Employing the Unified Theory of Acceptance and Use of
Technology (UTAUT) framework, encompassing performance expectancy, effort expectancy,
social influence, facilitating conditions, and use behaviour, by adopting a mixed-methods
approach. The primary data was collected from 373 randomly selected respondents via semi structured questionnaires. Descriptive statistics, multinomial logit, and multiple linear
regression models were employed for analysis. . Cooperative bank of Oromia offers different
digital banking channels. Among the mainly used were mobile banking, Internet banking, card
banking and wallet banking. Key findings highlight that Wallet Banking emerges as the most
widely used channel (50.13%), with lower fees identified as a significant driver of adoption
(47.5%). Multinomial regression results underscore the impact of age on digital banking
usage, indicating a preference for Internet Banking among younger individuals. Gender
dynamics reveal that males are less inclined to use Mobile Banking compared to Wallet
Banking. Marital status also plays a role, with married individuals showing a preference for
Internet Banking. Performance expectancy strongly influences the usage of Mobile and Card
Banking. Social influence has a negative impact on the usage of Mobile, Internet, and Card
Banking compared to Wallet Banking. Facilitating conditions positively affect Mobile Banking
and overall channel usage but have a negative impact on Internet Banking. Multiple regression
results indicate that Internet Banking, Card Banking, and Wallet Banking collectively affects
transaction frequency. Practical recommendations derived from these findings include
tailoring marketing strategies to the prevalent demographic, enhancing internet connectivity
for improved user satisfaction, diversifying digital banking services, promoting long-term
engagement through incentives, targeting higher-income users with exclusive benefits, refining
the user experience, and educating users on the security features of digital banking channels.
In essence, the study provides valuable insights into the intricate dynamics of digital banking
channel usage within the Ethiopian context
