Factors Affecting Adoption Of Electronic Banking Service: In Case Of Commercial Bank Of Ethiopia In Selected Ambo Branches

Abstract

In an era marked by rapid technological advancement, the banking sector is increasingly transitioning towards digital platforms to meet evolving customer expectations and operational efficiencies. This study investigates on factors affecting of e-banking adoption at Commercial Bank Of Ethiopian, focusing on technological factors, customer awareness, environmental influences and organizational support. To achieve the objective of the study, the researcher used a mixed research approach that combines both a qualitative and a quantitative research approach. The primary data were collected through questionnaires from 399 sample of the study. The secondary data sources were used from various articles, and research works in the area of the study. In order to arrive at meaningful facts and conclusions, the collected data were analyzed using descriptive and inferential statistics. Descriptive statistics reveal that technological readiness, customer awareness, and organizational factors are viewed as highly significant to e-banking adoption, with lower perceived importance placed on environmental factors. Correlation analysis shows strong positive relationships between technological factors,customer awareness, organizational support, and e-banking adoption, emphasizing that enhancements in these areas foster higher adoption rates. A moderate inverse correlation with enviromental Regression analysis indicates that 65.1% of the variance in e-banking adoption can be explained by these factors, with a significant model fit confirmed by an R-value of 0.809 and an F-statistic of 186.758 (p < 0.001). Hypothesis testing confirms that technological, organizational, and environmental factors significantly impact e-banking adoption, while The study concludes that technological improvements, organizational commitment, and effective customer education are key drivers for e-banking adoption. Recommendations include investing in secure, user-friendly technology, enhancing internal support, educating customers on e-banking benefits, and fostering regulatory collaboration for improved ICT infrastructure