Factors Affecting Usage of Mobile banking: A Study on Commercial Bank of Ethiopia

Abstract

This research is aimed to assess factors affecting mobile banking usage in commercial banking of Ethiopia in Jimma Town. The initiation to this title emanated from very slow digital banking usage rate in Ethiopia as compared to the government interest and banks strategy to shift to digital banking system. Hence, this research assessed factors affecting the usage rate of mobile banking. In assessing the research, the researcher designed to use explanatory research method in combination with quantitative approach. The required information is mainly gathered from commercial bank of Ethiopia mobile banking customers; and supported by bank employees’ response using questionnaire and structured interview. To select the respondents, systematic and purposive sampling methods were used to collect primary information. The data obtained from the study was entered into the computer and statistically analyzed using descriptive analysis, reliability analysis and multiple regression analysis. Accordingly, the study concluded that complexity, lack of awareness, trust issues, compatibility, network interruption and security issues have direct effect on usage of mobile banking in which the bank is mainly recommended to manage those factors by adopting necessary technology; formulating legal structures, empowering man power, and improving network capability and accessibility