Determinants of Internet Banking Adoption among Customers of Commercial Bank of Ethiopia Jimma District: The Case of Jimma Town

Abstract

The main objective of this study was to assess the determinants of internet banking adoption among customers of commercial bank of Ethiopia Jimma District in case of Jimma town. Currently, the commercial bank of Ethiopia is providing convenient and economical internet banking services to its customers by using the development of ICT as an opportunity without diminishing the traditional banking service remotely. The study employed explanatory design. The target population comprised of 384 bank customers. Theresearcher used primary source of data which is collected through close ended and open ended questionnaires. Judgmental sampling was used to select 268sample respondents with 30% non-response rate mainly because of COVID 19 pandemic. Accordingly, 221questionnaires were returned with 82.46% response rate. To generate frequencies, explanatory and inferential statistics SPSS was used and derive conclusions and generalizations regarding the population. Explanatory statistics included use of percentages, mean, frequency distribution and standard deviation while inferential statistics used included correlation and multiple regression analysis. The study findings indicated that most of the respondents were not usinginternet banking service since it is not adopted by customers. Thefinding of the study revealed that perceived cost, perceived ease use, perceived risk, responsiveness, convenience and reliability were significant determinants of internet banking service adoption among customers of commercial bank of Ethiopia Jimma District found in Jimma Town. On the other hand, customer attitudewere statistically insignificant in affecting adoption of internet banking. Result of the study indicates that perceived risk and perceived cost havenegative effect in adoption of internet banking service. Reliability, Perceived ease use, convenience, responsiveness had positive effects on adoption of internet banking service. Accordingly the study recommended that the bank should negotiate with the complementary organizations like Ethio telecom, the bank should work to increase the trust of the customers by creating awareness through different media, preparing video show at the branches, and the damage they can gain from bank if the risk occurred due to bank security failure, linking the internet banking user with prize, like free from bank transfer fee for whom using for big money transfer made by customer to build their trust on internet banking so as to stimulate the consumer’s intention to adopt and continue usage, to increase the adoption of internet banking. In addition to this the bank should increase the responsiveness of the employees by giving different training, providing guide line for the customer how to use the internet banking, customizing the internet banking in the way that it fits to the environment