Factors affecting customer`s internet banking adoption in commercial bank of Ethiopia, jimma city branches

Abstract

The study investigates factors that affect the adoption of internet banking in commercial bank of Ethiopia, jimma city branches. The variables are chosen from previous studies and the study was conducted based on the data gathered from fourteen chosen CBE, Jimma city branches. This study was adopted quantitative research approach with descriptive and explanatory research design. To collect data from respondent’s simple random and stratified sampling techniques were used. Primary data was collected from 365 customers that are using at least one e-banking system and the questionnaire is prepared with five scales Likert statements. Data was analyzed using multiple linear regression models with SPSS. This study was found that perceived risk, perceive ease of use, perceived usefulness, awareness and infrastructure were significantly associated with internet banking adoption. However, perceived risk is the most significant factor which affect the dependent variable positively .Perceived usefulness, awareness, perceived ease of use and infrastructure has found to be positively significant factors to influence internet banking adoption in descending order respectively. The study recommended banks should launch privacy and security features and continuously review and upgrade the existing system of security to the level that minimize risk, also banks to facilitate internet banking at a very close level they offer at the branch and giving the service at low cost which adds value to customers and decrease their time. The researcher recommended that banking sectors should develop guidance’s in the internet banking apps and besides this creating awareness about overall importance of internet banking adoption and their fear of risks is crucial for increase customer’s usage rate. Banks and the concerned organs (like ethio telecom) should work with collaboration to improve the quality of internet access and also mobile application should be developed to use internet banking services that let customers easy access the system because most of the customers can not gain computer access in their homes.