Factor affecting usage of electronic banking service in banking industry: The case study private commercial bank of Ethiopia

Abstract

This research project aims to investigate factors influencing the use of electronic banking services in the banking industry (using a case of some selected private commercial bank in south west region of Ethiopia Ethiopia). The study were conducted based on the data gathered from five private banks in Ethiopia (Dashen Bank, Awash Bank, Abyssinia Bank, Wogagen Bank, and Hibret Bank). To achieve the objective of this study and answer the research hypothesis, the researcher adopts a mixed research design (both descriptive and explanatory research design). Both primary and secondary data were used on investigate the factor that affect the usage of ebanking service in the banking industry.These collected data were analyzed statistical tools descriptive and linear regression method by using statically package for social science(SPSS V25). Prior research on e-banking usage in the Ethiopian context has focused primarily on Demographic variable such as age, sex and cultural as the variable affect usage of e-banking. Bank customers trust and attitude as well as features and technical related variables investigated more as factor affecting the usage e-banking service. The study revealed that awareness of getting enough information and help from the bank website, an ICT infrastructural factor (adequacy of ICT, quality of internet, and speed of internet) and government factors (financial regulatory guidelines, promoting of e-Banking, and providing the necessary infrastructure) was the major driving factors in usage e-banking service. The study recommends banks launch campaigns to create direct awareness among potential adopters of issues such as fear of a lack of privacy and security, and continuously review and upgrade the existing system of security to the level that minimizes risk. This study was analyze data from five private banks in Ethiopia to determine the driving factors in the usage of e-banking service usage. The government should support the banking sector by facilitating sufficient ICT infrastructure development, and the National Bank of Ethiopia (NBE) needs to establish a comprehensive legal and regulatory framework on the use of technological innovation