Factors Affecting Customers’ Adoption Towards Online Banking (A Case Study On Awash Bank S.C)

Abstract

The objective of this study is to examine the Factors Affecting Customers’ Adoption toward online Banking Service in Awash Bank S.C. In addition, the study considers independent variables which are ease of use, perceived risk, perceived usefulness, awareness and Online banking adoption and dependent variable users’ adoption toward online banking service to determine whether a relationship exist between the variables. In order to attest the study objectives, the researcher use both descriptive and explanatory survey design. A total of 100 questionnaires were distributed to customers of the Awash Bank S.C in the Addis Ababa of which 94 was used. The respondents were selected using a non-probability random convenience and judgmental sampling technique. The questionnaire was tested for its reliability and found to be reliable enough to study the research questions. The data was collected through questionnaire and by using inferential statistics in SPSS software and presented in the form of descriptive data analysis and using binary logistic regression to estimate the likelihood of adoption based on predictors such as perceived ease of use, perceived usefulness, level of awareness, and perceived risk. The finding of the study indicates that there is significant positive relation between the independent and dependent variable. The findings revealed that perceived ease of use and perceived usefulness were the strongest predictors of online banking adoption. The regression model was significant, explaining 78.2% of the variation in adoption behavior among Awash Bank customers.. This study has implications for research and practice. On the practical side, the results have shown perceived usefulness is a significant driver to the adoption toward online banking. The study recommended cultivating awareness to change the perception that online banking is suitable and time saving with some problems