Determinants of adoption of mobile banking services: the case of south Addis Ababa district, Commercial Bank of Ethiopia

Abstract

Commercial banks in Ethiopia introduced mobile banking technology. However, the numbers of users of the services are very small, even by African standard. This research paper aims to identify the factors that affect the adoption of mobile banking technology in the South Addis Ababa district of Commercial bank of Ethiopia. A sample of 384 customers were selected based on stratified and convenient sampling techniques, from which 362 respondents replied appropriately to the survey questionnaire. Data were analyzed using the binary logistic regression model, in addition to. Descriptive statistics tools such as frequency, percentage, mean, and standard deviation. The study found out that sex, income, perceived security of the technology, perceived usefulness of the service, experience on technology and voluntarism to use the service have positive and significant effect on the adoption of mobile banking service. Therefore, to increase the penetration and growth of mobile banking service, Commercial bank of Ethiopia should work on the correlates that affect the adoption of the service.