FACTORS AFFECTING THE ADOPTION OF MOBILE AND INTERNET BANKING SERVICES IN ADDIS ABEBA: (IN CASE OF SELECTED COMMERCIAL BANKS)

Abstract

Electronic banking is the application of information technology which helps to facilitate the infor-mation and services over public standards based networks. This paper aims to examine factors af-fecting the adoption of mobile and internet banking in Addis Ababa. The study was conducted based on the data gathered from one state owned bank and two private banks in Addis Ababa; Commer-cial bank of Ethiopia, Dashen bank and NIB International bank s.c. To answer the research ques-tions mixed research approach was utilized. The study statistically analyses data obtained from the survey questionnaire and interview. The questionnaire data were analysed using descriptive statis-tics and data from interview were interpreted qualitatively. The study identified basic drives to ac-cept the adoption of mobile and internet banking service. The perceived convenience for the banks and clients were found that mobile and internet banking service save time, minimizes inconvenienc-es, provides up to date information, increases operational efficiency and minimizes the cost of transaction. The result of the study indicated that, the major factors affecting the adoption of mobile and internet banking were lack of awareness, lack of customer trust, lack of confidence on security and privacy, high cost of internet, poorly developed telecommunication infrastructure and network failures were also other key factors, lack of competition among local and foreign banks and the ab-sence of government support to enhance and encourage mobile and internet banking technology. The study recommended that, enhancing customer awareness to use mobile and internet banking facilities, gives more attention to privacy and security issues, staffing skilled man power for both busi-ness and technical side, Recommended to amend current policies of NBE and the government should also support the banking industry by investing on ICT infrastructure.