FACTORS AFFECTING USAGE OF MOBILE BANKING SERVICE IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this study is to examine factors that affecting the usage of Mobile Banking Service in Commercial Bank of Ethiopia. A sample of 204 respondents was drawn from CBE customers in Addis Ababa. A questionnaire was distributed to these respondents. Data were collect by making use of convenience sampling techniques with descriptive statistics using SPSS V 20.0 to analyze the data. The study results indicate that customer and staff awareness, device feature, customer perception, customer preference, ease of use and utilization, telecom infrastructure, and Lack of suitable legal and regulatory framework were the major challenges of M-Banking found in this study. On the other hand, the study also reveals that the benefits of M-Banking are well known to the banks and represent a formidable force to drive implementation of the service. In general reducing branch burden, improving customer relationship, reduction of cost in general, reducing human error, time saving and other additional benefit identified in the study was considered as a very great potential for banks to improve their public image. It is recommended for awareness creation in order to change the perception that m-banking are difficult and risky. Furthermore, it is recommended for CBE to intensify its marketing communication activities and introduce more services.