Abstract:
The objective of this study is to identify factors influencing the adoption of mobile banking
service in Bonga town. For the achievement of this objective quantitative research approach was
used, both primary and secondary data were used. From the literature nine determinant
variables were identified, six mobile banking related variables were measured using 5-point
likert scale and three demographic variables were measured using nominal scale. Questionaries’
was distributed to target respondents of customers of four selected private banks for mobile
baking users by using convenience sampling method. The study also used purposive (judgmental)
sampling technique as it enabled the researcher to select the banks that have high number of
mobile banking subscribers. Data was analyzed using descriptive and inferential statistics
through binary logistic regression analysis. The research finding indicated that, Perceived ease
of use, Perceived usefulness, Trust, Awareness and compatibility have a positive and significant
effect on the adoption of mobile banking, whereas perceived risk was found to have a negative
and significant effect on the adoption of mobile banking. With regard to demographic variables,
gender and age have statistically significant effect on mobile banking adoption but, monthly
income has no significant effect on mobile banking adoption in selected private banks in bonga
town. The study recommended Ethio telecom as a service provider and bank management has to
work together to ensure the security measures are put in place to safeguard the customers
adopting this technology
