Factors Influencing the Adoption of Mobile Banking Technology (In the case of Selected Private Banks in Bonga Town)

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