Determinants of Customer Adoption of Electronic Banking in Ethiopia: The Case of Commercial Bank of Ethiopia Jimma District

Abstract

This study aims to examine determinants of customer adoption of E-banking in Ethiopia. The study were conducted based on the data gathered from the customers of commercial bank of Ethiopia jimma district by classifying them in to three stratums based on their educational and income level. A mixed research approach were used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect to the electronic banking system in Ethiopia. The study analyzes data obtained from the survey questionnaire using the statistical package for social science (SPSS). The result of the study indicated that, from the tested five variables computer experience, income level and educational level have a positive significant influence on the adoption of electronic banking while fear of security have a negative significance influence and the rest variable age doesn't have a significance influence on the adoption of electronic banking. The study suggests a series of measures, which can take by the banking industry to address the findings observed in the study. These measures include the banks must make their electronic banking as simple and easy to use as possible. They must work on minimizing the security issues related to the adoption of the system by developing different mechanisms and working with its customers to enhance the sustainability and improvement in adoption of the system. The banks must plan how to give information related to the system to its customers to improve the adoption of the system in a successful manner.