Abstract:
This thesis examines the factors influencing the adoption of core banking system services
in the Ethiopian banking sector, with a specific focus on three selected branches of
Oromia Bank: Cheffe, Atlas, and Shalla. The study aims to identify the determinants that
encourage or hinder the successful implementation and utilization of core banking
technologies. A mixed research approach was employed, incorporating both qualitative
and quantitative data collection techniques. Primary data was gathered through
interviews and structured questionnaires, while secondary data was sourced from relevant
literature and organizational reports. To ensure comprehensive data collection, 392
questionnaires were distributed to bank customers, out of which 363 were properly filled
and returned, resulting in a high response rate of 92.6%. The sample was selected using
convenience sampling, a non-probability sampling technique. The collected data were
analyzed using descriptive statistics such as percentages and frequencies, and further
examined through regression analysis using SPSS version 23. Findings from the
regression analysis revealed that organizational factors, demographic characteristics,
customer trust, security concerns, and awareness have a significant and positive impact
on the adoption of core banking systems. Conversely, service interruptions were found to
negatively affect adoption levels. Despite its valuable findings, the study faced limitations,
including a lack of sufficient published and organizational materials, shortage of
stationery, and respondents' limited familiarity with research instruments. Overall, the
study provides important insights for banking institutions aiming to enhance the adoption
and performance of core banking services. It recommends that banks prioritize
organizational readiness, improve customer awareness, ensure system security, and
minimize service disruptions to boost customer trust and satisfaction
