ASSESSMENT OF FACTOR AFFECTING ADOPTION ON ELECTRONIC BANKING IN ABYSSINIA BANK, ETHIOPIA

Abstract

The purpose of this study is to assess factor adoption on Electronic Banking in bank of Abyssinia and to fill the gap in order to maximize the usage of the service and to avoid any impediment regarding the adoption of new technology. In this research descriptive research method was used to investigate research objective and questions and both primary and secondary source of date was used. The researcher applied convenience sampling technique to collect the data and a research framework developed based on technology – Organization – Environment Model (TOE) developed by Tornatzky & Fleisher. A total of 35 questionnaires were distributed to purposely sampled Abyssinia bank staffs. Out of the total 35 questionnaires, 31 questionnaires were obtained. In addition to questionnaire, the researcher conducted an interview with only E-payment/IT managers for the reason that it was not well-situated to interview all bank managers; and reviews some bank documents regarding E-banking system. The result of the study indicate that, the major factors on adoption of Electronic banking in BOA are :- Security risk , lack of trust, high rate of illiteracy , lack of legal and regulatory frame work, lack of ICT infrastructure , absence of computation between local and foreign banks, frequent power interruption & security issues. The study recommends a series of measures which could be taken by the banking industry and by government to address various challenges identified. supporting banking industry by investing on ICT infrastructure, solve the problem on the power interruption, establishing a clear set of legal framework on the use of technology in banking industry and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank computation.