Abstract:
Banking sector is the lubricating wheel of modern economy and E- banking is one of the
emerging trends of the banking industry which is not quite common yet in developing country
like Ethiopia and with the exception of capital and major regional cities E- banking in Ethiopia
is infant stage. So it provides a lot of scope for research. This research study aims at
investigating factors affecting the application of electronic banking services in case of Mizan –
Tepi city branches. A mixed research design (descriptive and explanatory) was adopted in
carrying out this research and the study was conducted based on the data gathered from four
branches of commercial bank of Ethiopia in Mizan- tepi: namely Mizan branch, Tepi branch,
Gacheb branch and Yeki branch. Hence, convenience sampling method was employed to draw
the sample respondents. Hence out of 392 respondents 386 responded the questionnaires. The
collected data was analyzed by descriptive statistics, correlation and regression analysis to
estimate the model using SPSS version 20. Results of the study revealed the most significant
factors that organization faces in the application of e- banking are demographic factors
(gender, age and education level), Technological factors (perceived risk) and environmental
factors (national ICT infrastructure, lack of legal and regulatory frame work, lack of government
support).In accordance with the analysis results: it is concluded that demographic factors,
technological factors and environmental factors separately upon the application of E- banking
have the highest positive relationship and meaningful effect. The study recommend to enhance Ebanking application, the organization should upgrade the existing system of security and the
government establishing a clear set of legal and regulatory frame work on the use of technology,
supporting banking industry by investing on ICT infrastructure.
