| Abstract: | Ethiopian banking system is still underdeveloped compared to the rest of the world. In Ethiopia Cash is still the most dominant medium of exchange. This study aims to assess determinants of adopting e-banking service in the case of south Addis Ababa district, awash bank customers.
Qualitative and quantitative research approach was used to answer the research questions that emerge through the review of existing literature with Mixed research design which is, (both descriptive and explanatory research design)
Quantitative data was collected, coded and entered into the computer for analysis using the Statistical Package for Social Sciences., including descriptive statistics, Pearson’s correlation analysis, multiple linear regression analysis, model summery and One Way Analysis of Variance (ANOVA).
The study revealed the following major determinant factors in adopting e-banking in the case of south Addis Ababa district awash bank customers; technological factors(perceived risk),from organizational factor, human and financial resources , from environmental factors, national ICT infrastructure, lack of legal and regulatory frame work, lack of government support and lack of completion from foreign banks, from demographical factors, gender, age and education level, and finally lack of awareness and lack of trust on the system are major determinants.
The study recommended banks should launch campaigns to create direct awareness to potential adopters, issues such as fear of the lack of privacy and security, together with relative advantages of using E-banking products and continuously review and upgrade the existing system of security to the level that minimize risk ,while the government should support banking sector by facilitating sufficient ICT infrastructure development and National Bank of Ethiopia, (NBE) needs to urgently establish a comprehensive legal and regulatory frame works on the use of technological innovation. |
