| Abstract: | Many bank customers are still reluctant to conduct their financial transactions online. The aim
of this paper is to provide an improved understanding of factors affecting adoption of digital
banking in Ethiopia banking industry. The research adopted descriptive and exploratory
research design with mixed research approach. Stratified sampling and simple random sampling
techniques were employed for this research with 339 sample size. Both primary and secondary
data that were collected through questionnaires, interview and document review. Descriptive
statistics, correlation analysis, linear regression analyze techniques were used to analysis the
data. The study shown the following major determinants of adoption digital banking services
among commercial banks in Ethiopia; technological factors, organizational factor, human and
financial resources, environmental factors, national ICT infrastructure, lack of legal and
regulatory frame work, lack of government support and lack of competition from foreign banks,
from demographical factors, gender, age and education level, and finally lack of awareness The
study recommended banks to give continues awareness and learning about their digital banking
services and focus on technology based competition focusing on customer base expansion,
credibility, security, ease of use, and availability to tackle challenges as well as to seize the
opportunities offered by digital technology while the government should support banking sector
by facilitating sufficient ICT infrastructure development and issue workable legal frameworks to
ease the adoption of digital banking service. |
