| Abstract: | This study aimed to examine the effect of mobile banking on customer retention in mobile banking of Commercial Bank of Ethiopia in Addis Ababa. Using explanatory and descriptive research design, the study revealed that there is a positive and significant relationship between security and privacy, relative advantage / benefits, information quality, system quality and customer satisfaction and consumer retention using correlation test results and analysis In addition, customer satisfaction makes the strongest unique contribution to explaining the customer retention and followed by information, then relative advantage and finally system quality and security besides there is a positive and significant effect of security and privacy, relative advantage / benefits, information quality, system quality and customer satisfaction on consumer retention. In the banking sector, customer retention becomes a crucial phenomenon since this sector has perceived substantial growing and competition both globally and locally. Customer retention provides a clear picture of customers’ relationship with their favourite bank. The bank may understand that the importance of the banking operators will have been through a wave of critically rapid changes in its structure, competition, strategies, techniques, and technological environment. These changes came as a result of marketing concepts (customer satisfaction) and technological developments and adaption (information and system quality and security) which are the primary factors affecting economies in general and the banking industry in particular. As a result, the study suggests. |
