Factors Affecting E-Banking Service: In Case Of Selected Commercial Banks In Ambo Town

Abstract

This study investigates the factors affecting E-Banking services in commercial banks in Ambo town, focusing on the elements that influence users’ decisions to adopt E-Banking services. A mixed-method approach, combining both quantitative and qualitative research approach, was employed. Primary data were collected from a sample of 148 E-Banking users in Ambo town through surveys using standardized questions that explored the key drivers of E-Banking services. Descriptive statistics, such as frequencies, averages, and visualizations, were used to provide an initial understanding of the data, while inferential statistics, including multiple linear regressions, were applied to examine the relationships between independent variables and E-Banking service adoption. The results indicate that transaction efficiency is the strongest predictor of E-Banking adoption, showing a significant positive correlation. Customer support and system reliability also have a notable impact, indicating that responsive assistance and dependable systems are crucial to user satisfaction. Service security and service content were found to have smaller yet still statistically significant effects. The regression model explained 65.62% of the variance in E-Banking service usage, and 63.9% of this variation was attributed to the explanatory variables after removing insignificant ones. Based on these findings, the study recommends that commercial bank managers, IT departments, and service developers in Ambo town prioritize efforts to enhance transaction efficiency, customer support, and system reliability. Specifically, banks should invest in customer service training, streamline digital transaction interfaces, and conduct regular system maintenance to ensure platform stability. Additionally, ensuring strong cyber security measures and expanding the range of digital services offered will contribute to increased user satisfaction and higher adoption rates