Factors affecting for the adoption of E-banking: The case of

Commercial Bank of Ethiopia, Gondar city.

UNIVERSITY OF GONDAR

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
By: AklogTeginAlellegn

Principal Advisor: Asmamaw Tilahun(PhD)

Co advisor: Addisu Mehari

A THESIS SUBMITTED TO THE UNIVERSITY OF GONDAR, DEPARTEMENT OF

MANAGEMENT, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF MASTER OF BUSINESS ADMINSTRATION (MBA)

September, 2018.

Gondar, Ethiopia

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 DECLARATION

I, declare that this thesis is my bona fide own original contribution and has not been presented for a
degree in any other university. I in compliance with internationally accepted practices; and that all
sources of material used for the thesis have been duly acknowledged. I understand the non-
adherence to the principle of academic honesty and integrity, misrepresentation/fabrication of any
idea/data/fact source will ground sufficient ground for disciplinary action by the university and can
also evoke penal action from the sources which have not been properly cited or acknowledge.

Name: AklogTeginAlellegn

Sign: ___________

This work has been done under my advisor of:

Name; Asmamaw Tilahun (PHD)

Sign: ____________

Name; Addisu Mehari

Sign: ____________

University of Gondar

College of Business and Economics

Department of Management

September, 2018.

Gondar, Ethiopia

i
 APPROVAL SHEET

The undersigned certify that they have read and hereby recommend to the university of Gondar to
accept the thesis submitted by AklogTeginAlellegn, entitled “factors affecting for the adoption of
E-banking: the case of commercial bank of Ethiopia, Gondar city “in partial fulfillment of the
requirement for the Award of Master of Business Administration (MBA).

Name of principal advisor ………………….….Signature …………………...Date……………

Name of principal co-advisor …………………...Signature …………………...Date……………

Name of Internal Examiner ……………………..Signature ……………….… Date ………….

Name of External Examiner ……………………..Signature …………………. Date………….

Name of Head of Department……………………Signature ……………………Date………….

September, 2018

Gondar, Ethiopia

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 DEDICATION
I dedicate this thesis to my beloved father Tegin Alellegn and mother Yeshitila Ayal for nursing me
with affections and love and their dedicated partnership in the success of my life.

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 ACKNOWLEDGEMENTS
This dissertation would not have been complete without the support of my honorable research
principal advisor; Dr. Asmamaw Tilahun and co advisor Addisu Mehari they guided me all the way
up to this point. Special thanks and appreciation goes to my family for encouragement, moral
support during the period of study. Special thanks also are made to all the respondents who
responded to my questionnaires.

I owe a great debt of gratitude to the employees and managements of CBE working in Gondar city;
they for all period allowed me access to their rich resources which enabled me to accomplish this
dissertation and for the privilege to learn from them.

Lastly, many individuals have supported and contributed to the accomplishment of this study I am
deeply grateful to each one of them.

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Contents
DECLARATION ............................................................................................................................. i
APPROVAL SHEET ...................................................................................................................... ii
DEDICATION ............................................................................................................................... iii
ACKNOWLEDGEMENTS ........................................................................................................... iv
List of Tables ............................................................................................................................... viii
List of Figures .............................................................................................................................. viii
ACRONYMS ................................................................................................................................. ix
Abstract ........................................................................................................................................... x
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Back ground of the study ...................................................................................................... 1
1.2 Statement of the problem ...................................................................................................... 3
1.3 Objective of the study ........................................................................................................... 4
1.3.1 General Objective .......................................................................................................... 4
1.3.2 Specific Objectives ........................................................................................................ 4
1.4 Hypothesis of the study......................................................................................................... 5
1.5 The scope and limitation of study ......................................................................................... 5
1.6 Significance of the study ....................................................................................................... 6
1.7 Organization of the study ...................................................................................................... 6
1.8 Definition of basic terms ....................................................................................................... 7
CHAPTER TWO ............................................................................................................................ 8
LITERATUER REVIEW ............................................................................................................... 8
2.1 Definition and concept of e-banking..................................................................................... 8
2.2 The History of e-banking ...................................................................................................... 8
2.3 The background of e-banking in Ethiopia ............................................................................ 9
2.4 Electronic banking services delivered in CBE .................................................................... 10
2.4.1 ATM ............................................................................................................................. 10
2.4.2 POS .............................................................................................................................. 11
2.4.3 Internet banking ........................................................................................................... 11

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 2.4.4 Mobile banking ............................................................................................................ 12
2.4.5 Agent banking .............................................................................................................. 12
2.5 Theoretical background ...................................................................................................... 12
2.5.1 Technology-organization-environment framework ..................................................... 13
2.5.2 Theory of technology adoption model ......................................................................... 13
2.5.3 Theory of reasoned action ............................................................................................ 14
2.5.4 Theory of planned behavior ......................................................................................... 14
2.6 Empirical studies about the factors affecting e-banking adoption ...................................... 15
2.7 Conceptual frame work ....................................................................................................... 18
2.7.1 Definition of basic variables in the model ................................................................... 19
CHAPTER THREE ...................................................................................................................... 22
RESEARCH METHODOLOGY.................................................................................................. 22
Overview ................................................................................................................................... 22
3.1 Research approach .............................................................................................................. 22
3.2 Research design .................................................................................................................. 23
3.3 Description of the study area .............................................................................................. 23
3.4 Sampling technique and Procedure ..................................................................................... 24
3.4.1 Target population ......................................................................................................... 24
3.4.2 Sampling Technique .................................................................................................... 24
3.4.3 Sampling Size Determination ...................................................................................... 25
3.5 The variables of the study ................................................................................................... 25
3.6 Source of data ..................................................................................................................... 26
3.7 Data collection instrument .................................................................................................. 26
3.8 Methods of data analysis ..................................................................................................... 27
3.8.1 Descriptive statistics .................................................................................................... 27
3.8.2 Inferential statistics ...................................................................................................... 27
3.9 Reliability and validity test ................................................................................................. 28
3.9.1 Reliability Analysis ...................................................................................................... 28
3.9.2 Validity Analysis ......................................................................................................... 29
CHAPTER FOUR......................................................................................................................... 30
RESULTS AND DISCUSIONS ................................................................................................... 30

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 4.1 Introduction ......................................................................................................................... 30
4.1.1 Data Editing and Coding .............................................................................................. 30
4.1.2 Data preparation ........................................................................................................... 30
4.2 Descriptive statistics ........................................................................................................... 31
4.2.1 Demographic profiles of Respondents ......................................................................... 31
4.3 Determinant factors of e-banking adoption ........................................................................ 32
4.4 Correlation analysis ............................................................................................................ 36
4.5 Regression analysis ............................................................................................................. 37
4.5.1 Regression Model Summary ........................................................................................ 41
4.5.2 F-test for e-banking adoption ....................................................................................... 42
4.5.3 Regression analysis for e-banking adoption ................................................................ 42
4.5.4 Summery of the regression analysis ............................................................................ 44
4.6 Discussion of statistical results ........................................................................................... 46
CHAPTER FIVE .......................................................................................................................... 50
SUMMARY, CONCLUSION AND RECOMMENDATION ..................................................... 50
Introduction ............................................................................................................................... 50
5.1 Summary of findings........................................................................................................... 50
5.2 Conclusion .......................................................................................................................... 51
5.3 Recommendation ................................................................................................................ 52
5.4 Limitation and Directions for Future Researches ............................................................... 54
References ..................................................................................................................................... 55
APPENDIXS................................................................................................................................. 60
Appendix I: Questionnaire Used in main study ........................................................................ 60

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List of Tables
Table4. 1 Demographic profile of respondents............................................................................. 32
Table4. 2 Descriptive Statistical Analyses for Likert Scale Items ................................................ 33
Table4. 3 Correlations between Variables .................................................................................... 36
Table4. 4 Multicollinearity statistics............................................................................................. 38
Table4. 5 Standardized residual Statistics .................................................................................... 40
Table4. 6 Regression Model Summaries ...................................................................................... 41
Table4. 7 Anova analyses ............................................................................................................. 42
Table4. 8 Regression Analysis for e-banking adoption ................................................................ 43
Table4. 9 Summary of overall research hypothesis ...................................................................... 44

List of Figures
Figure 1 Adopted from Technology Acceptance Model (Davis et al., 1989)............................... 13
Figure 2 Conceptual Framework of the research .......................................................................... 19
Figure 3 Heteroscedasticity result ................................................................................................. 39
Figure 4 Normality Test Result..................................................................................................... 40

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ACRONYMS
SPSS Statistical package for social science

E-banking electronic banking

ATM Automated teller machine

POS point of sale

ICT Information communication technology

IT information technology

CBE commercial bank of Ethiopia

TAM technology acceptance model

TRA theory of reasoned action

AVR automated voice response

EFT electronic fund transfer

TOE technology organization environment

M-banking mobile banking

SMS short message service

USSD Unstructured Supplementary Service Data

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 Abstract
Electronic banking adoption has been a topic of increasing interest in recent years for both
academics and banks, as the changes taking place in the field are clearly observable. However
the growing interest has not been matched well enough with relevant studies that would give
insight into the processes and behaviors underlying for the rapid adoption of new channels. In
Gondar city, e-banking is still at it infancy and its adoption is not in line of the expected level of
adoption. The purpose of this study was to examine the factors that influence the adoption of
Electronic banking in CBE Gondar city. Specifically the study sought to examine the factors
affecting for e-banking adoption namely perceived benefit, perceived risk, internal capability,
ease of use, infrastructure, governing regulations and the role of other supporting institutions.
This study was adopted quantitative research approach with descriptive and explanatory
research design. To collect data from respondent’s convenience and purposive sampling
techniques were used. Primary data was collected from 352 CBE customers they are using either
of e-banking products in Gondar city by using self-administrated structured questionnaires with
five scale likert statements. Quantitative data was collected, coded and entered into the
computer for analysis using the Statistical Package for Social Sciences. Data was analyzed
by using descriptive, correlation and multiple linear regression models. This study was found
that perceived benefit, ease of use, perceived risk, role of supporting institutions and internal
capability of the bank were significantly associated with e-banking adoption. However, the
influences of perceived benefit and ease of use were more contributing than other factors. The
multiple regression result of this study revealed that perceived benefit, Perceived risk, ease of
use, internal capability of banks and role of other supporting institution were the factors
affecting users to adopt e-banking. Meanwhile, infrastructure and governing regulations was
found to be insignificant in this study. Based on findings CBE should improve the service and
system efficiency of ATM, POS, internet banking, mobile banking and agent banking to provide
user friendly and comparatively advantageous product for their customer.

Key words: electronic banking, technology organizational model, commercial bank of Ethiopia,
Gondar city.

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 CHAPTER ONE

INTRODUCTION
1.1 Back ground of the study
The rapid growth of information technology, provides commercial banks to reach their
customers everywhere at any time easily. IT facilitates a user friendly banking service and
customers have different option of payment methods. It helps to provide services such as
accessing accounts, transferring funds, and buying financial products or services online (Paul,
2013).

E-banking is defined as a variety of self-service platforms such as internet banking, mobile

banking, ATM dispensers, agent banking, point of sale where by customers access these services
using electronic devices like personal computer, Automated teller machine (ATM), Point of sale
terminals and mobile phones without their physical presence in the bank (business dictionary).
The pressure of globalization, consolidation, deregulation and rapidly changing technology has
made it necessary for banks to re-examine their service delivery systems in order to suitably
position them within this dynamism of information technology and users
adaptability(Evwiekpaefe, 2011).

For more than 200 years, banks were using branch based operations but the advent of multiple
technologies and applications changed the nature of financial services delivered to
customers(Milanzi, 2013).

The fastest growth of internet in the world accelerates the modernization of banks by facilitating
the accessibility, delivery time, self-service and ease of marketing. The Ethiopian banking is not
an exception of it, though it comes late compared to the rest of the world.

Currently, banks are faced with competitive environment and in order to succeed in such market
places, they must provide different user friendly products with latest technology. As such, many
banks and financial institutions are actively providing new electronic banking products for their
customers throughout the world.

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The financial sector in Ethiopia is composed of the banking industry, insurance companies,
microfinance institutions, saving and credit cooperatives and the informal financial sector. In
Ethiopian there are 16 private and 1 state owned commercial banks; Out of these 17 banks, the
state owned commercial Bank of Ethiopia (CBE) is the largest and leading bank in financial
operations(NBE, document). Commercial Banks as such provide all the banking services
including ATM facility, internet Banking, mobile Banking and agent Banking beside the
conventional banking activities.

Factors affecting customers to adopt E-banking service channels have been studied in the
developed world (Salim 2013, Alice 2012 and John, 2015). In Comparison to this there is
limited published works that investigate the factors influencing the adoption of E-banking from
the viewpoint of customers in the context of Ethiopia. The relatively recent introduction of
electronic banking in Ethiopia is one of the reasons for limited empirical study in this area. The
study conducted (Sira, 2013) and (Teka, 2017) are remarkable exceptions. .

However, the implementation of e-banking system may not be likely successful if users are
unmotivated to use that type of technology, and thus it don‟t bring full benefits to the
organization and customers. So to inspire customers to use electronic banking, banks must make
remarkable improvements that address the customers' concerns. Although electronic banking
introduces many benefits for banks and customers; customers still fear from the risk of electronic
banking service(Al-smadi, 2012).

Therefore to get the potential benefits of e-banking, bank users may adopt the attributes of e-
banking i.e. ATM machines, POS, internet banking, mobile banking and agent banking. Hence
there is limited understanding of the benefits of adopting e-banking, the factors influencing the CBE
customers to adopt e-banking and the role played by e-banking to the performance of banking
institution are the current concern of the bank. In this way they don‟t benefit from lower transaction
costs, 24 hours trading, more extended business destination, higher customer satisfaction and also
increased efficiency in daily banking processes in addition to the simultaneous importance to the
customers.
Keeping in view studying and examining factors affecting for the adoption of e-banking was
conducted to provide academic recommendation for the maximum significance of e-banking
service channels for both CBE and the customer.

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1.2 Statement of the problem

E-banking was a new technology in Ethiopia which needs a lot of academic contribution to
service providers regarding the factors affecting e-banking adoption. Hence, the ground
motivating and inhibiting factors of e-banking adoption, of customer‟s usage have been
examined. The serving of customers at the branch level forces customers for, long waiting line,
high transaction error and lower reliability, etc. then it encourages users to see other banks or to
use informal financial institutions.

Therefore, giving due attention on e-banking and user‟s adoption has been the current focus of
all banks to get the remedy for lower acceptance rate of users. Most of the study on e-banking
has been reported from western countries and other Asian countries. Unlike those countries most
of the researchers in Ethiopia, studied about e-banking adoption don‟t incorporate non users in
their study(Bultum, 2014). In addition most of the study focused only on single channel of e-
banking like ATM service not widely on e-banking adoption (Asrat molla Fantaye, 2017).
Moreover (Paul, 2013) the study was incorporating on the demographic variables and internal
factors unlike external factors which have influencing factors are not covered.
Because Commercial bank of Ethiopia possesses more than 60% of the country‟s banking
market, (CBE annual report, 2016) then examining the factors for the adoption of e-banking in
case of CBE, Gondar city may lead to solve the big share of e-banking challenges in Gondar.
There are longest waiting lines in commercial bank of Ethiopia because of the traditional
banking practice and little academicals contribution in this area. CBE has 35 ATM machine 30
POS, 80,614 mobile banking subscribers, 1011 internet banking users and 16 merchants working
with CBE BIRR agent banking, 7014 agent banking users, and 15 agents they make their base in
Gondar city (CBE performance report 2017/2018) but those all delivering channels are not
effectively deliver reliable service to the ultimate functioning of the customer and the service
render (CBE).
Despite the growth of e-banking worldwide, commercial banks in Ethiopia continue to conduct
most of their banking transactions using traditional teller based methods. Banking operation is
still under developed due to low level of awareness creation about the comparative advantage
(perceived benefit) and disadvantage (perceived risk) of adopting e-banking. In addition
infrastructural development, legal and regulatory framework, literacy level, power, ICT and

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security issues are the main influencing factors of users e-banking adoption (Belay and
Mengesha, 2016).
Therefore, the delivery of service mainly at the branch level lead customers to commit longest
transaction time, repetitive transaction errors, service inconvenience, lower supervision of their
bank accounts and less financial inclusion in the society. Then the result of the thesis functions;
to examine the factors on e-banking adoption like internet banking, mobile banking, ATM, POS
and agent banking.

Besides, there is very little information available on this issue by previous attempts. Hence, this
research is undertaken to fill the knowledge gap.

Considering the above concepts studying factors affecting user‟s adoption of e-banking services
in case of Commercial Bank of Ethiopia, Gondar city are the motivation to conduct this study.

1.3 Objective of the study

1.3.1 General Objective

The main objective of the study is to examine the factors affecting the adoption of e-banking in
case of commercial bank of Ethiopia, Gondar city.

1.3.2 Specific Objectives

The study has the following specific objectives.

1. To examine whether perceived benefit, perceived risk, internal capability and ease of use
can affect the adoption of e-banking.
2. To investigate the degree of influence of ICT, power infrastructure, regulation and other
supporting institutions in e-banking adoption.

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1.4 Hypothesis of the study

In this research, the proposed model and its associated hypotheses concerning the factors
affecting e-banking adoption was developed and hypothesized connections was presented in the
conceptual framework of the study.

HA1: perceived benefit has an effect on e-banking adoption.

HA2: Perceived risk has an effect on the adoption of e-banking.

HA3: An internal capability of the service render (CBE) has influence on the adoption of e-
banking.

HA4: Ease of use has an effect on e-banking adoption.

HA5: ICT and power infrastructure has the effect on e-banking adoption.

HA6: laws and regulatory support has the effect on e-banking adoption.

HA7: The role of other supporting institutions has an effect on the adoption of e-banking.

1.5 The scope and limitation of study

The study has been focused on the e-banking adoption of CBE e-banking users in Gondar city
and aimed to examine the factors which may affect for e-banking usage. Though CBE has more
than 1145 branches but the study area had been only focused in Gondar city. Gondar is one of
the greatest towns in Ethiopia and has a heterogeneous population which ensures a wide spread
of potential respondents to the study that affects e-banking adoption in CBE. The data for this
study has been collected from Gondar city branches i.e. from bank users in Gondar city through
standardized questioner and other secondary sources i.e. books, theories, research journals, bank
leaflets, broachers and annual reports are used for the study. The cost and time required to
conduct the study was so expensive because of that, the study was limited to a restricted Gondar
city. While conducting this research study, a number of limitations were occurred. The first
challenge occurred in this study were getting all necessary data and testing all of the potential
determinants of e-banking adoption such as perceived benefit, perceived risk, internal capability,
perceived usefulness and external factors.

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The researcher highly depends on a limited number of variables. Therefore, such a limitation
may adversely affect the findings of the study.

1.6 Significance of the study

Primarily being study in this topic gives the researcher fundamental knowledge in the area of e-
banking besides the MBA award from the university.

The various challenges coming from several fronts make the banking industry in Ethiopia more
competitive than ever before. Hence e-payment is the key indicator of the bank‟s performance,
the findings of this study may benefit CBE branches located in Gondar city.

Besides CBE, the findings provides other banks as well to know the main determinant for e-
banking adoption and helps to provide customer friendly e-banking service to their customers.
The study also add knowledge to scholars they want to engage in e-banking adoption.

1.7 Organization of the study

The study contains five chapters the first chapter contains the introduction part which contains
the back ground and justification of the study, statement of the problem, objective of the study,
research hypothesis, scope of the study and significance of the study.

The second chapter contains the review of related literature which contains the definition and
concept of the study, history of e-banking, experience of e-banking in Ethiopia, the major
services and the theoretical and the conceptual framework which related with the current paper
has been discussed.

The third chapter contains methodology part i.e. research design, research variables, sample
design, sampling technique, source of data, data collection, procedure of data collection, data
analysis models has been discussed.

The fourth chapter contains data analysis and interpretation part which are the demographic
Characteristics of respondents and data analysis and discussion of the study.

Finally, the fifth chapter contains summery, conclusion, recommendation and direction for future
research.

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 1.8 Definition of basic terms
2. Adoption of E-banking: E-banking adoption in this study is defined that, it is a decision to
make full use of an innovation at the best course of action available through electronic
delivery channels which are internet banking, mobile banking, ATM, POS, and agent
banking like „CBE birr‟.
3. E-banking: Electronic devices to carry out banking transactions such as cash withdrawal
through cash dispensers or transfer of funds at point of sale without cash or cheque. E-
banking in this study incorporates internet banking, mobile banking, ATM, POS and agent
banking.
4. Automated teller machine /ATM/: An electronic telecommunications device that enables
the customers of a financial institution to perform financial transactions without the need for
a human cashier, clerk, or bank teller.
5. Point of sale/POS/: Electronic device used to process card payments at the point at which a
customer makes a payment to the merchant in exchange for goods and services. The POS
device is a hardware (fixed or mobile) device that runs software to facilitate the transaction.
6. Mobile banking: The use of a mobile phone to access banking services and execute
financial transactions. This covers both transactional and non-transactional services, such as
viewing financial information on a bank customer‟s mobile phone, fund transfer, pin change
and supply other bank related information to customers.
7. Agent banking: Providing of limited scale banking and financial service to the undeserved
population through engaged agents under a valid agency agreement rather than a teller or
cashier. The conduct of banking business on behalf of a financial institution using various
service delivery channels.
8. Internet banking: An electronic payment system that enables customers to conduct
financial transactions on a secure website operated by a Financial Service Providers, such as
CBE.

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 CHAPTER TWO

LITERATUER REVIEW
2.1 Definition and concept of e-banking

E-banking is defined as the automated delivery of banking service to users through different
distribution channel of technology which are internet banking, mobile banking, ATM, POS, and
through agent banking (prakash and malik, 2008).

(Kamrul, 2009) e-banking is a form of banking service where funds are transferred through an
exchange of electronic signal between financial institutions, rather than exchange of cash,
checks, or other negotiable instruments.
Electronic banking is defined as the use of electronic delivery channels for banking products and
services, and is a subset of electronic finance and the delivery channels are the Internet, wireless
communication networks and automatic teller machines (ATMs) (Hiltunen et al., 2004). Closely
related to e-banking there are different terminology used which has different definitions and
historical back grounds namely e-commerce which defined as Conducting business through
electronic networks; e-money meaning that Stared Values or prepaid payment mechanisms and
finally e-finance defined that Providing financial services through electronic channels which
incorporates e-banking and Other financial services and products i.e. insurance, online brokering
etc. (Hiltunen et al., 2004)

2.2 The History of e-banking

Bank of Scotland is the forerunner of the ATM or cash machine in 1968, allowing customers to
withdraw cash 24 hours a day and allowing when their branch was closed in (bank of scotland,
2017). In addition, by the year 1985 the revolutionary home and office banking (HOBS) was
launched.

Electronic data inter change (EDI) and electronic fund transfers (EFT) were introduced in the
end of 1970s to transfer commercial documents like purchase orders or invoices electronically
(Seokumar, 2013).

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The evolution of online banking started in the 1980s when the definition and the practice of
internet banking were far different than what exists today. In 1981 New York City was the first
place in the US to test out the innovative way of doing business by providing remote service as
four of its major banks Citibank chase Manhattan, chemical bank and manufacturers Hanover
made home banking access available to their customers. In 1983 bank of Scotland institutes first
UK internet banking service named homelink through TVs and telephone to pay bills and
transfer money. In 1994 Stanford federal credit union becomes the first financial institution in
the U.S to offer internet banking to all of its customers.

E-banking provides higher degree of convenience that enables customers to access internet bank
at all times and places. Apart from that, the accessibility of computers is perceived as a measure
of relative advantage (Daniel, 1999). The early decade of the 1990s witnessed the emergence of
automated voice response (AVR) technology. By using the automated voice response
Technology, banks could offer telephone banking facilities for financial services. E-commerce
precedes other electronic based services like e-finance, electronic money and e-banking. With
further advancements in technology, banks were able to offer services, through PC owned and
operated by costumers at their convenience, through the use of intranet propriety software. The
users of these services were, however, mainly corporate customers rather than retail ones (Sohail
& shanmugham, 2003). For instance, banks using internet through providing online banking
service since 1999. The service of e-banking incorporates balance inquiry, information to locate
ATMs, fund transfer between own account and other third party, exchange rate enquiry, utility
and bill payments, check status enquiry and mini statement, check book request, pin password
change, alerts on accounts and mobile recharging services.

2.3 The background of e-banking in Ethiopia

The largest state owned bank of the country CBE, has been the pioneer to introduce ATM to
deliver service to the domestic market and, after 4 years CBE has got membership since
November 14, 2005(Bultum, 2014). Despite being the pioneer of visa membership and
introducer of ATM, CBE retards to practice due to poor telecom infrastructure and power
installation and let back to Dashen bank. Hence Dashen bank the leading to begin the e-banking
service prior to other banks since 2006 (Gardachew, 2010) and they provide ATM service
simultaneously for local and international card holders. Six IT firms in 2007 are responded to

9
CBE‟s international tender issued with M2M, Xiamen, Longtop, systems Ltd, Fintech Ltd,
Paynet and ACI and lastly three are short listed by CBE bid committee (Oumer Redi, 2008).
However, CBE made contractual negotiation with Kenyan firm to deploy banking solutions. At
the end of June 2009, Dashen bank has installed more than 40 ATMs in its area branches,
university compounds, shopping malls, restaurants and hotels.

With the agreement made with Kenyan technology associate (TA) during December 30, 2008
Wogagen bank installed ATM network(Bultum, 2014). During the time 2010, Zemen bank has
the first to start full-blown internet banking in Ethiopia and include free account money transfer,
corporate payroll uploading system (Asrat molla Fantaye, 2017). In the year 2011 the payment
card services have witnessed significant strides, Dashen‟s ATM service expanded to 70 and 704
POS terminals(Bultum, 2014).This would make Dashen Bank the first private bank in Ethiopia
to acquire E-commerce and mobile merchant transactions (Amanyehun, 2011). The history of e-
banking in Ethiopia was not the longer time experience as compared to other peer and neighbor
countries and its rate of adoption is retarded due to different hindering factors but the diffusion of
e-banking becoming increased from time to time. By the time may, 2016 commercial banks in
Ethiopia and National bank of Ethiopia established a business solution ET switch which
connects all automated teller machine (ATM) and disclosed 1,175,089,410 birr completed
transactions up to January 02, 2017 (2merkato, 2017). Hence all bank customers can access cash
withdrawal service at any bank ATM through the central server of ET switch SC and it was a
great switch in e- payment history of the country (NBE profile, 2016).

2.4 Electronic banking services delivered in CBE

2.4.1 ATM

An automated teller machine (ATM) is a computerized telecommunications device that provides

the customers with access to financial transactions in a public space without the need for a
human clerk or bank teller. Besides, the potential benefit of ATM are cashiers were relieved of
some of the simpler transactions of simply dispensing cash, cheaper to dispense cash through a
machine /saves cost and on the side of customers 24-hour availability (which might attract more
customers) and potentially faster service. ATM may provide access to customers at time
branches are not working. The service of ATM is Cash withdrawal, fast cash, pin change, fund

10
transfer (Account to Account), deposit (cash and check), foreign exchange, balance inquiry and
mini statement. CBE has 1501 ATM machines working in Ethiopia as of June 30 2017(CBE
annual report 2017). The Different types of CBE ATMs are Personas, Self-Serve 32, Self-Serve
34, FOREX, NCR 6622, NCR 6625 and NCR 6632.

2.4.2 POS

Point of Sale (POS) service is an innovative electronic money transferring system that allows the
customers of banks to pay for their purchases through their credit card at any POS enabled
retailer.

Point of Sale (POS) means a retail shop, a checkout counter in a shop, or the location where a
transaction occurs. More specifically, the point of sale often refers to the hardware and software
used for checkouts the equivalent of an electronic cash register. Point of sale systems are used in
supermarkets, restaurants, hotels, stadiums, and casinos, as well as almost any type of retail
establishment. The money for the purchase is transferred immediately from account of debit card
holder to the store's account (Malak, 2007). CBE has 6811POS machines working in Ethiopia as
of June 30 2017(CBE annual report 2017). CBE has two types of POS
I. Cash Advance POS: - it is a type of POS defined for the purpose of cash payment to
customers using their card from branch side.
II. Merchant POS: - it is a type of POS defined for merchants, to facilitate their transaction
activities, E.g. Hotels, supermarkets, gas station, hospitals, and other business areas.

2.4.3 Internet banking

Internet banking is a web Banking or PC Banking which is working through internet. The easy
accessibility to internet facility and availability of computer lead the banks to provide their products
and services through the deliver medium internet (Shodhganga.inflibnet.ac. cha 2 e-banking).

Internet banking refers to a system that provides customers to get access to their accounts and
information on bank products and services through the use of banks website, without the
intervention or inconvenience of sending letters, faxes, original signatures and telephone
confirmations(Safeena, Date and Kammani, 2011).

11
2.4.4 Mobile banking

Refers to the use of a mobile device to remotely access a bank account, primarily to check the
account balance and transfer money to other accounts. Examples of mobile banking service
include account enquiry and inter-account transfer using internet base application or USSD.
Mobile banking (also known as M-Banking, SMS Banking etc.) is a type used for performing
balance checks, account transactions, payments etc. using a mobile device such as a mobile
phone. Mobile banking today is most often performed via SMS or the Mobile internet but can
also use special programs called clients downloaded to the mobile device.

SMS banking is a type of mobile banking, a technology-enabled service offering from banks to
its customers, permitting them to operate selected banking services over their mobile phones
using SMS messaging. SMS banking uses short text messages sent through the client‟s mobile
phone. SMS text messages can be used for both passive and active operations.
2.4.5 Agent banking

A licensed financial institution (typically a bank) delivers financial services through a retail
agent. That is, the bank develops financial products and services, but distributes them through
retail agents who handle all or most customer interactions. Hence Customers do not deal with a
bank, nor do they maintain a bank account through different delivery channels like USSD, web
and SIM toolkit. Agent banking does have two basic models which are bank led model and non-
bank led model.

Bank led model of agent banking is a licensed financial institution (typically a bank) delivers
financial services through a retail agent. That is, the bank financial products and services, but
distributed them through retail agents who handle all or most customer transactions.

The next model is non-bank led customers do not deal with a bank, nor do they maintain a bank
account. A bank may not be involved at all; rather customers deal with non-bank firms called
mobile network operators as the point of customer contact.

2.5 Theoretical background

Different theories discussed about technology adoption and motivation such as technology
adoption Model (Davis, 1985), technology-organization environment (TOE) framework was

12
developed by (Tornatzky, G & Fleischer, 1990), theory of reasoned action (Ajzen & Fishbein,
1980; Fishbein & Ajzen, 1975 ) and theory of planned behavior (TPB) (Ajzen, 1991). (Rogers,
2003)diffusion of innovation theory, categorizes the adopters in to five namely innovators, early
adopters, early majority (deliberate), late majority (skeptical) and lagers (traditional).

2.5.1 Technology-organization-environment framework

(Tornatzky, G & Fleischer, 1990)in their Technology-Organization-Environment (T-O-E)

framework describe that three factors are important for any technology adoption diffusion
process: technology context, organizational context and environmental context. Technology
context includes both internal and external technologies applicable for firm. Organizational
context includes resources (capital and human), organizational scope and size. Environment
context includes both the direct and indirect roles of competitors, industry associations, and the
governments.

2.5.2 Theory of technology adoption model

The two most important independent variables in technologies adoption Model of (Davis, 1989)
are: Perceived ease of use, defined as „the degree to which a person believes that using a
particular system would be free of effort”. Perceived usefulness, defined as „the degree to which
a person believes that using a particular system would enhance his or her performance”.

Perceived
usefulness
External
variables
Attitude Behavioral
towards using Actual use
. intension

Perceived ease of
use

Figure 1 Adopted from Technology Acceptance Model (Davis et al., 1989)

13
2.5.3 Theory of reasoned action

The theory of reasoned action (Ajzen & Fishbein, 1980) is assumed that users are rational to
choice their demand based on the nature of things being better for them in a systematic way.

According to theory of reasoned action, behavioral intention (BI) of an individual is a measure of

the strength of one's attitude to apply a specified behavior. BI is determined by two factors: of
social groups i.e. what specific individuals or groups think that a person should or should not
perform (Belleau, 2007). An individual's subjective norm (SN) is determined by a multiplicative
function of his or her normative beliefs, i.e., perceived expectations of specific referent
individuals or groups, and his or her motivation to comply with these expectations (Fishbein and
Ajzen, 1975 and Davis et al., 1989). In addition to the above listed factors, (Ajzen & Fishbein,
1980) quoted that some external variables might also have influence on behavioral intention, for
instance, demographics, traditional attributes towards targets and personality traits.

2.5.4 Theory of planned behavior

Theory of planned behavior/TPB/ is developed originally based on the theory of reasoned action
(TRA) which explains almost about human behavior. According to TRA, a person‟s behavioral
intention guides his actual behavior of performing some certain action and where subjective
norm and attitude toward the behavior determine the behavioral intention (Liao etal., 2007).
According to (Fishbein & Ajzen, 2010) quoted behavioral intention is a measure of the strength
of one‟s willingness to try while performing certain behaviors.

According to (Fishbein, & Ajzen, 2010), the theory of planned behavior proposes three
independent determinants of intention which are attitude towards the behavior, subjective norm
and perceived behavioral control. Attitude as defined by (Fishbein, M., & Ajzen, 1975) quoted
the degree of one‟s favorable or unfavorable evaluation of the behavior in question. The attitudes
are developed reasonably from one‟s beliefs about object of the attitude.

It can be said that it is related to the normative beliefs about other people‟s expectations on either
to perform or not to perform the behavior. Perceived behavioral control refers to people‟s
perception of ease or difficulty in performing the behavior of interest (Fishbein, & Ajzen, 2010).
The construct of the perceived behavioral control in the TPB is added to cope with the situations

14
in which people may lack the complete volitional control over the behavior of interest. Control
factors can be referred to as the internal or external constraints where internal constraints are
related to self-efficacy and external constraints to the environment (Fishbein, & Ajzen, 2010).

2.6 Empirical studies about the factors affecting e-banking adoption

Different scholars studied about the factors which affects for the adoption of e-banking. (Teka,
2017) investigates the demographic variables which affects for the adoption of e- banking like
gender, income, literacy level and age.

(Bultum, 2014) quotes by using technology-organization-Environment (TOE) frame work, e-

banking system, such as ATM, mobile banking, internet banking and others were not well
adopted by Ethiopian banking industry. This is due to low level of ICT infrastructure and lack of
legal frame works at NBE, which can initiate banking industry to implement the system. In
addition factors affecting adoption of e-banking in Ethiopia, on the study result shows that
security risk and lack of trust on the use of technological adoption are other major barriers for the
system

(Jahangir and Begum, 2008) e-banking has obviously a cost minimizing target for both financial
organizations and customers but the delay of internet and lack of online and virtual support due
to lack of skilled bank staffs forced customers incur high cost and that is why most users may not
accept internet banking. In addition, the author also states that insufficient trust on financial
institutions is a critical perceived credibility issues that lower internet banking acceptance.
Customer trust is an essential way to retain existing bank customers as well as encouraging the
adoption of internet banking.

The factors affecting the adoption of e-banking are convenience, accessibility, feature reliability,
security, bank management and image, privacy, speed, fees and charges, design, and content
(Poon, 2008)

(Alhinai et al., 2013)develops a research model which integrates two types of factor which are
related to the individual characteristics of the customers (customer-related factors) and those that
relate to customers‟ perceptions of various characteristics of the e-banking systems (system-

15
related factors). As based this finding system-related set of factors (Perceived benefit, ease of
use, perceived risk and internal capability or confidentiality) are the most determinant factors for
e-banking adoption.

(Kartini and Rina, 2016) in the beginning of technology launch external factors dominate the
acceptance of technology including IT infrastructure, perceived benefit and risk and mass media
promotion but at later stage interpersonal influence and aggressive banks awareness creation and
personal recommendation influences the adoption rate.

(Paul, 2013) shows that the young generation is more likely with computer and internet
banking. So they are more interested in using the e-banking system particularly in ATM & online
transaction rather than old & traditional banking. Again find that a large no of customers
especially the old generation having no computer knowledge are till now prefer the traditional
banking but along with some moderate changes and quick service delivery.

(Paul, 2013) describes about the factors like education, knowledge in computer, willingness of
the people, peoples convenient and awareness etc. are responsible for the successful operation of
e-banking in any area.

(Poon, 2008) sates variables which affects for the adoption of e-banking i.e. convenience
accessibility, feature availability, bank management and image, fees and charges, privacy,
security, design, content and speed (Baraghani, 2008) used inclusive methods which are
perceived ease of use, subjective norm, perceived behavioral control, perceived usefulness,
attitude and subjective norm.

(Bultum, 2014) also quotes on the factors affecting e-banking adoption in Ethiopia are perceived
benefit and risk, legal and regulatory frameworks, government support, IT infrastructure and
technical and managerial skills of the bank. The result obtained from the study states that lack of
such legal framework may thus hinder the introduction of cost effective modern electronic
payment instrument such as ATMs, credit and debit cards, mobile/telephone/internet banking.

(Milanzi, 2013) conducted to assessment of the factors that influence adoption of electronic
banking in Tanzania: the case of NMB customers in morogoro municipality. Multiple regression

16
analysis is used to assess the factors that influence the adoption of electronic banking in
Tanzania. The findings of this study indicated that education, income, demographic factors such
as age, security, perceived ease of use influenced the adoption of e banking.

(Laekemariam, 2015) studied the Factors Affecting the Adoption of Mobile Banking in
Commercial Bank of Ethiopia. The general objective of the study is to identify factors
influencing the adoption and usage of mobile banking. The finding of this study revealed that
Performance expectancy, Perceived risk, perceived cost, Effort expectancy and Trust, were the
factors affecting users having intention to adopt mobile banking. Age and occupation is
significant factor for adoption of mobile banking but educational qualification was not a
significant factor for adoption of mobile banking in Ethiopian mobile banking user context.

(Peter, 2015) also investigate factors affecting the adoption of internet banking service in
Nigeria from the perspective of bank customers. The study evaluated identified ease of use,
accessibility, and security, which could influence the adoption internet banking as affecting and
have positive effects on customer satisfaction but awareness factor has no effect on customer
satisfaction of internet banking.

(Milanzi, 2013) examined the factors affecting on the adoption of E-banking of customers in
CBE. Regression analysis and correlation were used in this study. The results of the survey
show that there are six common factors affecting the usage of internet banking; of this study
indicates that there are positive and strong relationships exists between infrastructure, security
,trust, perceived ease of use, perceived behavioral control and perceived usefulness with
customers‟ adoption of e-banking. However, security was a better predictor of customers‟
adoption of e banking followed by trust and infrastructure. The overall e-banking adoption of
CBE was low.

(Takele and Sira, 2013) investigated the factors that influence customers‟ intention to adopt e-
banking service channels in Bahir Dar city. Multiple regression analysis was done to see the
effect of each independent variable on the outcome variables. The result of this study was show
that perceived usefulness, perceived ease of use, and perceived Behavioral controls were
significant in affecting users‟ intention to use e-banking service channel.

17
The study (Bultum, 2014) aims to identify factors that affect adoption of e banking in the
Ethiopian baking industry. The study was conduct based on the data gathered from four banks in
Ethiopia, three private banks (Dashen bank, Zemen bank, Wegagen bank) one state owned bank.
A mixed research approach was used to answer the research question that emerge through the
review of existing literature and the experience of the research in respect of the e banking system
in Ethiopia. The study statistically analyzes data obtained from the survey questionnaire. A
research framework developed based on technology organization environment model developed
by (Tornatzky, G & Fleischer, 1990). The result of the study indicate that the major barriers
Ethiopian banking industry face in the adoption of electronic banking are security risk, lack of
legal trust, lack of legal and regular frame work, lack of ICT infrastructure and absence of
competition between local and foreign banks.

(Riyadh, Akter and Islam, 2009) through TOE framework, Technology Acceptance Model
(TAM), Institutional theory and institutional intervention theory they identify seven variables in
the study those affecting e-banking adoption named organizational capabilities, perceived
benefits, perceived credibility, perceived regulatory support, ICT industries readiness, lack of
financial institutions readiness and institutional influence.

For instance, the integrated approach which integrates the upper quoted theories has bee
employed as a frame work for this study. So this study incorporates six basic environmental
factors these are Perceived Benefit, Perceived Risk, internal capability, ICT and power
infrastructure, Law and Regulatory support and other supporting institutions.

2.7 Conceptual frame work

Since the TAM, technology organization environmental model/TOE/, TPB, TRA has broader
theoretical bases proven by various empirical grounds in e- banking adoption.

However most of the above named models are not directly applicable in to developing countries
without modification due to the difference in economic, social, cultural, and other attitudinal
varieties. Therefore, as (Juwaheer, Pudaruth and Ramdin, 2012) identifying 12 variables
influencing internet adoption in a case study of commercial banks in Mauritius i.e. perceived
ease of use, perceived usefulness, subjective norms, attitude, behavioral intention, security trust,

18
level of awareness, age, income, gender and education. In addition, (Riyadh, Akter and Islam,
2009) quoted internal organizational factor and external factors.

Perceived Benefit

Perceived Risk

Internal Capability

Ease of use

ICT and power E-banking Adoption

infrastructure

Laws and
regulatory
support

Other supporting
institutions

Figure 2 Conceptual Framework of the research

Source: Adapted from(Riyadh, Akter and Islam, 2009) and & Modified by Researcher of this
Paper (2018).

2.7.1 Definition of basic variables in the model

Perceived Benefit: Since e-banking provides access to bank account, fund transfer and bill
payment etc…and it saves the waiting time, transaction cost of the customers and service deliver
(CBE) then the comparative advantage the customers perceived from using ATM dispenser
machines, internet banking, mobile banking, POS and agent banking. (Takele and Sira, 2013)

19
show that perceived usefulness, perceived ease of use are determinant variable for e-banking
adoption.

Perceived Risk: Perceived risk is the customers subjective expectation of suffering a loss in
pursuit of a desired outcome (Poon, 2008). Internet security, card and money capture at ATM,
loss of pin codes and passwords, disruption of power and network, cash out of ATM, reliability
and privacy are the factors which may affect e-banking adoption. Perceived risk is the
comparative disadvantage when using e-banking channels. For example, in CBE case with the
ATM machines in Gondar city more than 55 credit cards are captured per day from 41 ATM
machines in Gondar city (unpublished CBE document). (Al-smadi, 2012) “Banks should develop
risk reducing strategies that could reduce the customers' concerns about such services. It include
the strategies include the development of the security of electronic banking services,
protecting personal information, giving unconditional loss guarantees, reducing the possibility
of delays of payment and waiting time and providing accessible customer services and
educating customers, which might assist in inspiring high confidence in potential customers”.

Internal capability: It incorporates human skill, system efficiency, service layout, financial
capability, experience in the industry, management skill, readiness in research and development.
The customers are the immediate source of information to evaluate the internal capability of
CBE in this study. Due to comparative importance of the above mentioned factors organizational
capabilities is included as one of the factors in e-banking adoption by CBE, Gondar city.

Ease of use: refers to the degree to which the users perceived that using this electronic banking
would be free of effort, that is, the ease of learning and using electronic banking (Davis, F. D.,
Bagozzi, R. P., & Warshaw, 1989). The platforms of e-banking to accomplish banking tasks are
among the influential factors for e-banking adoption.

ICT and power infrastructure: The power infrastructure and ICT development of a country
affects the adoption of e-banking which are telecommunication network, internet connectivity,
availability of electronic devices are the main factors which affects the adoption. Therefore, the
government support towards the fulfillment of the Upper mentioned factors may affect the
adoption of e-banking and examined in the study.

20
Law and Regulatory support: (Hettiarachchi, 2014) Support from the government and
industry regulator should be effective to increase the growth of e-banking. Banking
services described that legal regulation for online banking helps to safeguarding customers.
Customers hesitate to use the e-banking services if there are inadequate laws on it. Then the laws
and regulation of e-banking in Ethiopia affects e-banking adoption and considered in the study.
(Bultum, 2014) “Lack of such legal framework may thus hinder the introduction of cost
effective modern electronic payment instrument such as ATMs, credit and debit cards,
mobile/telephone/internet banking”.

Other supporting institutions: The development partner organizations like government

organizations, educational institutions, research and development organizations, civic
associations, religious institutions have both positive and negative effect towards e-banking
adoption.

21
 CHAPTER THREE

RESEARCH METHODOLOGY
Overview

This chapter presents the research methods used to complete this research work. It presents
research design, data collection techniques, questionnaire design and data sampling techniques
utilized for this research.

3.1 Research approach

The process of measurement of the study is central to quantitative research approach because it
provides the fundamental connection between empirical observation and mathematical
expression of an attribute. Since the objective of quantitative research is to develop and employ
mathematical models, theories and hypotheses pertaining to natural phenomena. Cross sectional
data has been gathered from CBE branches in Gondar city using structured questionnaires.
Quantitative research was employed in this research for the purpose of examining the variables
that could affect the adoption of e-banking in users of CBE Gondar city.

(Mary, 2018) selecting the best research method allows you to successfully answer a research
question or test a hypothesis and knowing the advantages helps to make a better decision. Hence
it may be familiar with quantitative research when a question or problem is examined by
deductively forming a hypothesis derived from theory. In addition results are valid reliable and
generalized to a large population.

(Choy, 2014) Quantitative data can help establish correlations between given variables and
outcomes. Such data should allow others to validate original findings by independently
replicating the analysis.
In comparison of relative advantages with other methods, the quantitative research method was
viewed as a more friendly and controllable tool to examine this study. This study employed
survey research strategy; consequently from quantitative research approach to deal with sample
of population to study its characteristics.

22
3.2 Research design

Research design contains about the type of data, method of data collection, source of data and
sampling strategy (Saunders, Lewis, & Thornhill 2012).There are three types of research design
based on the study purpose: exploratory, descriptive and causal (David, 1987).

Descriptive and explanatory research design by using cross sectional survey strategy was used
for this study. Descriptive research design seeks to describe the current status of an identified
variable. The analysis and synthesis of the data provide the test of the hypothesis. Systematic
collection of information requires careful selection of the units studied and careful measurement
of each variable.

(Brewer, 2000) A descriptive research is concerned with conditions, practices, structures,

differences or relationships that exist, opinions held processes that are going on or trends that are
evident. Correlation research comprises of collecting data to determine whether, and to what
extent, a relationship exists between two or more quantifiable variables. Correlation research
uses numerical data to explore relationships between two or more variables. The degree of
relationship is expressed in terms of a Coefficient of correlation. If the relationship exists
between variables, it implies that score on one variable are associated with or vary with the
scores on another variable.
In addition, to examine the extent of influence of the independent variable to the dependent
variable, explanatory design has been employed.

3.3 Description of the study area

The study area had conducted in Gondar city, which is one of the biggest and historical towns in
Ethiopia. Gondar city locates North West of Ethiopia and southwest of the Simien Mountains.
Based on the 2007 national census conducted by the Central Statistical Agency of
Ethiopia (CSA, 2007), Gondar had a total population of 207,044, of whom 98,120 were men
and 108,924 women. There are different financial institutions licensed to engage in financial
business in the town. From this CBE has 12 actively working branches in Gondar city namely
Gondar main, Jantekel, Mintiwab, Atse Bakafa, Fasiledes, Kidame Gebeya, Zoble, Maraki,
Guzara, Ras Dashen, Azeo and Abajale branch up to the end of 2017 (CBE, 2017)

23
3.4 Sampling technique and Procedure

3.4.1 Target population

The population of the study contains CBE customers currently used either of the CBE e-banking
products in Gondar city. In Gondar city, CBE has 94,154 debit card holders, 80,614 mobile
banking subscribers, 1011 internet banking users and 16 merchants working with CBE BIRR
agent banking, 7014 agent banking users, and 15 agents (CBE performance report 2017/2018).
Hence, the researcher has been selected this study area with purpose of Gondar city customers
are more diversified and well enough to provide information on determinants of e-banking
adoption and in return helps achieve research objectives.

3.4.2 Sampling Technique

Sampling is the statistical process of selecting a subset called a sample of a population of interest
for purposes of making observations and statistical inferences about that population
(Bhattacherjee, 2012).

Because of the large number of the sample unit, time and cost constraint the sample was taken
from the targeted population by using non probability sampling. Hence it was difficult to know
the lists of e-banking users in Gondar, non-probability sampling were used.

This study were employed non-probability sampling; because the sampling unit is unavailable
and difficult to reach randomly selected samples in person based on the list of customers.
Employing convenient sampling technique were better when infinite population to reduce cost,
time and easy to handle (Saunders, Lewis & Thornhill, 2009). (Laekemariam, 2015) used
convenient sampling technique on the study of “Factors Affecting the Adoption of Mobile
Banking in Commercial Bank of Ethiopia”.

To increase the representation of samples equal number of respondents was selected from all
twelve CBE branches purposively, in order to avoid lower responsiveness the questioners are
collected through the immediate help of the researcher in person. In addition to increase the
representation of samples the data are collected in different times and dates continuously from
June 07th – June 28th 2018. This method helped the researcher to get highly representative
information in an expertise way.
24
3.4.3 Sampling Size Determination
Thus, for populations that are large, (Cochran, 1963) developed the Equation to yield a
representative sample for proportions.

To illustrate, we have large population but that we do not know the variability in the proportion
and could not got the previous related result; therefore, assume p=0.5 (maximum variability).
Furthermore, suppose we desire a 95% confidence level and ±5% precision, e = desired level of
precision, p = the estimated proportion (standard deviation) of an attribute that is present in the
population, and q is 1-p, the value for Z is found in statistical tables which contain the area under
the normal curve. The above sample size was the representative of sample proportion at 95%
confidence level and ±5% precision when the population is large and unknown. The resulting
sample size is demonstrated in as follows:

385

3.5 The variables of the study

Dependent variable: E-banking adoption is the dependent variable of the study and it may be
affected by different known and unknown factors but in this study the relative effect of seven
identified factors on e-banking adoption was assessed. E-banking adoption is the integrated
result of different factors and it may be measured using the integrated effect and significance
relationship of factors using regression and correlation analysis.

Independent variable: Though e-banking adoption has been affected by different known and un
known factors here the known factors which has direct effect on e-banking adoption included in
the study are perceived benefit, perceived risk, internal capability, ease of use, IT and power
infrastructure laws and regulations support and other supporting institutions. The values of
independent variables are measured using frequency, mean and standard deviation of the
respondent‟s degree of agreement on e-banking services.

25
3.6 Source of data

The study is composed from the survey of CBE e-banking users. There are many techniques used
to conduct survey. However, questionnaire is common technique for survey (Saunders, M.,
Lewis P., & Thornhill, 2009) . Even though obtaining primary data becoming expensive and time
consuming, primary data, being the most significant when gathered through structured
questionnaires (Malhotra, 2006). The primary instrument for data collection in this research was
designed through structured questionnaire, which consists of closed-ended questions. The
purpose of using this type of questions is because it is much easier to answer by respondents.
Data collection process are done separately Primary data has been collected using standardized
questionnaire survey, and also secondary information are used from previous studies, published
institutional documents, journals, working manuals and reports are reviewed to generate baseline
information on e-banking adoption. The data to be collected is quantitative in nature.
Questionnaire based data collected in field survey assessment of e-banking adoption factors
including the following variables, age, gender, literacy level and income level with close
supervision by the researcher. To increase the response rate the questioner is handled face to face
and to assure the content validity the contents of the questioner are constructed based on the
literature used in other study.

3.7 Data collection instrument

Primary data for the study was collected, after the pilot questioner in 30 respondents has been
collected and resulting >0.60 of Cronbach's Alpha according to (Zikmund, Babin, Carr, Griffin,
2010) reliability test so standardized questioner with little modification was used for data
collection. This study has been employed five-point Likert scale statements. The reliability in
such scale is higher compared to a two- scale and seven scale system and is an effective
choice since the reliability decreases if the number of response options is greater than five
(Hayes, 1992). Then after the collection instrument for this study which reflects;

1. The customers level of agreement based on the five-point Likert scale from “1” (strongly
disagree) to “5” (strongly agree) are employed to CBE customers they use either of the e-
banking products based on the standardized questions about their motivation and hindering
factors for e-banking adoption. This study was adapted and constructed questionnaires

26
 based on different previous studies perceived benefit, ease of use and e-banking adoption
(Chen, 2007) perceived risk and internal capability (Featherman and Pavlou, 2003) and
infrastructure, regulatory support and other supporting institutions role (Al-smadi, 2012).
Questionnaires were distributed to sample of 385 customers of CBE in Gondar city and data
has been collected from June 07th – June 28th 2018.
2. Secondary data which has importance and related with the research title are taken from
published and unpublished thesis‟s, journals, books etc…

3.8 Methods of data analysis

After the necessary data were collected, coded, screened and processed data analyses were made
by using both descriptive, correlation and inferential statistics. Different statistical techniques
have been implemented by statistical package for social science (SPSS, v.20) in order for
automated analysis of the data.
3.8.1 Descriptive statistics

Descriptive statistics has been used to analyze data that related to demographic profile of
respondents and the factors affecting user‟s e-banking adoption via descriptive statistics for likert
items. To analyze these; frequency table, percentage, mean and standard deviation were used.

3.8.2 Inferential statistics

3.8.2.1 Correlation Analysis

Correlation analysis is used to describe the strength and direction of the linear relationship
between two variables. Pearson correlation coefficient has been employed to show the
interdependence between the seven explanatory (perceived benefit, perceived risk, internal
capability, ease of use, ICT and power infrastructure, law and regulatory support and role of
other supporting institutions (Juwaheer, Pudaruth and Ramdin, 2012). Pearson correlation
employed to show the degree of relationship between e-banking adoption and perceived benefit,
perceived risk, internal capability, ease of use, ICT, power infrastructure, other supporting
institutions. The higher the correlation coefficient indicated the stronger the relationship between
the explanatory variables with the dependent variable.

27
3.8.2.2 Regression analysis

Multiple regression analysis is statistical techniques that can be used to explore the relationship
between one continuous dependent variable and a number of independent variables or predictors.
It is based on correlation but allows a more sophisticated exploration of the interrelationship
among a set of variables (Pallant, 2016). Regression analysis was used to test the significance
contribution of each independent variable to the dependent variable e-banking adoption. This
statistical technique was helped researcher to explain whether the variation in e-banking adoption
can be accounted for by explanatory variables.

A logical explanation of relationship between inputs and output is possible considering the
factors (F-1), external factors (F-2). Mathematically, the input-output function can be expressed
as:

Equation 2: Adopted from Al N.et.al. Islam, 2009

Y= f (X1i + X2i+X3i +X4i +X5i +X6i +X7i)

Where, Y = e-banking adoption;

X1= perceived benefit, X2= perceived risk, X3=internal capability, X4= ease of, X5= ICT and
power infrastructure, X6= laws and regulatory support and X7=other supporting institution.

3.9 Reliability and validity test

3.9.1 Reliability Analysis

As suggested by (Zikmund, Babin, Carr, Griffin, 2010), that scales with coefficient alpha
between 0.6 and 0.7 indicate fair reliability for further analysis. Thus, for this study, a
Cronbach„s Alpha scores of 0.60 or higher is considered adequate to determine reliability. In
order to test the internal consistency of variables in this research instrument Cronbach‟s alpha
coefficient was determined. A questionnaire adapted and constructed from previous studies has
been pretested on thirty respondents by using Cronbach‟s alpha coefficient through SPSS v.20
was found to be 0.793. This indicates that acceptability of the questionnaires for further actual
data collection. After all required data collected from respondents, Cronbach‟s alpha
coefficients for each variables had been determined.

28
Table 3. 1 Reliability statistics

No Variables Number of item Cronbach‟s Remark

under each variable alpha

1 Perceived Benefit 3 0.730 Good coefficient

2 Perceived Risk 5 0.788 Good coefficient

3 Internal capability 5 0.741 Good coefficient

4 Ease of use 3 0.741 Good coefficient

Good coefficient
5 ICT and power infrastructure 2 0.878

Law and Regulatory support

6 5 0.764 Good coefficient

7 Other institutions 6 0.757 Good coefficient

8 e-banking adoption 4 0.719 Good coefficient

Source: Survey result (2018)

3.9.2 Validity Analysis

In selecting a related measure of the variables outcome the measure has been based on the
theoretical constructs having importance to the study. The model of this study have been
testified within the acceptable range in previous studies (Al-smadi, 2012), (Hettiarachchi, 2014)
and (Riyadh, Akter and Islam, 2009).

29
 CHAPTER FOUR

RESULTS AND DISCUSIONS

4.1 Introduction

This chapter presents the data analysis and discussion of the research findings. The data analysis
was made with the help of statistical package for social science (SPSSv.20). The demographic
profile of the study sample, perceived benefit, perceived risk, internal capability, ease of use,
ICT and power infrastructure, legal and regulatory and other supporting institutions have been
described using descriptive statistics. Furthermore, descriptive statistics was implanted to
analyze likert scale items and variables of e-banking adoption decision. To test hypothesis and
achieve the study objectives, different inferential statistics had been employed. Multiple linear
regression analyses was employed to test hypothesis and achieve the study objective that
focuses on examining the most important determinants of e-banking adoption.

4.1.1 Data Editing and Coding

Once the primary data was collected, prior to the analysis the questionnaire was reviewed and
this is to certify that if questionnaires were filled out appropriately. Any incomplete or missing
response was discarded from the subsequent analysis. The steps which were stated in the data
analysis section such as Coding and data entry errors, known as clearing the data were
performed.

4.1.2 Data preparation

In order to make all the collected data suitable for the analysis, all questionnaires was screened to
be complete. All returned incomplete questionnaires were therefore considered as errors
and removed from the survey data. Out of the 385 distributed questionnaires, twenty five of
them were lost and eight are incomplete. Hence, a total of 352 complete questionnaires were
used for this research for data analysis. This represented 91.4% response rate which was
above the adequate 50%. According to (Rubin and Babbie, 2010) a response rate of 70% is
"very good" for further assessment. So 91.4 % is significant. Each question and possible answer
of the questionnaire has a code, since coding of data is necessary for transferring and editing data

30
in SPSS v.20. The questions and possible answers were corresponded in the order of the actual
questionnaire.

4.2 Descriptive statistics

4.2.1 Demographic profiles of Respondents

The demographic details of the main survey sample show that the majority of the respondents
were males, forming 52.3% of the whole sample, while females are represented by
47.7%. The classification of sample based on age seems to be quite appropriate because
the adoption of customers among different age groups vary from moderately to significant from
one another. The respondents are of different ages categorized into four main groups.
Sample population largely dominated by age group of 21-30 (48.6%) followed by the group
comprising the age group of 31-40(42%), 18-20(6.3%) and >41(3.1%) of sample population.
This indicates that most of the sample populations are under the age of 21-30. Composition of
age group is important factor in determining different stages of human development as well the
adoption of respondents on e-banking. The study result shows that e-banking adoption is highly
prevalent to middle aged group of 21-30 with 48.6% of respondents. Education plays important
role in influencing e-banking adoption, the impulse and motives that sustain and regulate all
mental activity and behavior of individual (Bytiqi, 2008). Based on the educational classification
45.5% of the respondents are higher educational level, 23.9% of the population represents TVET
graduate, 13.6% are secondary school complete, 13.4% of respondents hold Diploma, , and 3.7%
of respondents are at primary education level. In terms of income, majority of the respondents
3501-750 (32.4%), >7501(29%), 1501-3500 (23%) and those others earn a monthly income that
is less than 1500 ETB are (15.6%). This might be explained by the fact that a great part of the
sample population is highly educated and therefore probably earns a better income than less
educated ones. Those respondents who earn less than 1500 ETB are only 15.6% of the
population, away below half of the respondents. Generally, factors for e-banking adoption can be
considered as different in different sex, age and education level of the respondents (See annex
Table 1.1-1.4). But e-banking adoption factors can be considered similar among different sex and
income groups of respondents.

31
Table4. 1 Demographic profile of respondents

No Frequency Percent Cumulative Percent

Sex of respondents

Male 184 52.3 52.3

Female 168 47.7 100.0
Age of respondents(years)

18-20 22 6.3 6.3

21-30 171 48.6 54.8
31-40 148 42.0 96.9
greater than 41 11 3.1 100.0

Level of education of respondents

Primary school 13 3.7 3.7

Secondary school 48 13.6 17.3
TVET 84 23.9 41.2
Diploma 47 13.4 54.5
Higher education 160 45.5 100.0
Income level of respondents

<1500 55 15.6 15.6

1501-3500 81 23.0 38.6
3501-7500 114 32.4 71.0
>7501 102 29.0 100.0

Source: Survey result (2018)

4.3 Determinant factors of e-banking adoption

One statistical approach for determining equivalence between groups is to use simple analyses of
means and standard deviations for the variables of interest for each group in study
(Marczy, Dematteo, and Festinger, 2005) . The mean indicates to what extent the sample group
averagely agrees or does not agree with the different statement. The lower the mean, the more
the respondents disagree with the statement. The higher the mean, the more the respondents
agree with the statement. On the other hand, standard deviation shows the variability of an

32
observed response from a single sample. The mean values are presented in (table 4.2),
together with standard deviation of values for each variable.

Table4. 2 Descriptive Statistical Analyses for Likert Scale Items

Variables N Mean Std. Deviation

I think that using the electronic banking service would enable
352 3.68 1.091
me to accomplish my tasks more quickly
I think that using the electronic banking service would make it
352 3.68 1.068
easier me to carry out my tasks.
I think the electronic banking service is useful 352 3.51 1.013

Perceived benefit 3.62 0.78

Electronic banking service may not perform well and process
352 3.89 1.101
payments incorrectly
When transaction error occurs, I worry that I cannot get
352 3.45 1.126
compensating from bank
When CBE account incurs fraud or the hacker invades, I would
352 4.00 1.032
have potential loss of status in one‟s social groups
I would take me lots of time to learn how to use Electronic
352 2.82 1.225
banking service.

I am worried to use Electronic banking Service because other

352 3.73 .925
people may be able to access my account

Perceived risk 3.58 0.59

Confidential information is delivered safely from banks to
352 3.78 1.142
customers
seek helps from the customer services when I encounter
352 3.41 1.202
problems
Easy to navigate the bank site due to smooth speed 352 3.60 1.118
Response speed to complaint is satisfactory 352 3.43 1.167
Satisfy with the diversity of services 352 3.54 1.121

Internal capability 3.55 0.66

33
I think that learning to use electronic banking service would be
352 3.55 1.087
easy.
I think that interaction with electronic banking service does not
352 3.61 1.032
require a lot of mental effort.

I think it is easy to use electronic banking service to

352 3.99 1.043
accomplish my banking tasks

Ease of use 3.72 0.73

Using e-banking is difficult due to low internet access in
352 3.88 1.103
Gondar town
E-banking services may not perform well because of power
352 3.50 1.155
interruption

ICT and power infrastructure 3.69 0.96

I think e-banking has enough safeguards to make me feel
352 3.90 1.084
comfortable using it
I hesitate, E- banking service have legal support 352 3.52 1.130
I got informed; the bank may have e-payment procedures that
352 3.99 1.038
solve legal irregularities
The bank refunds if there may happen unsuccessful transaction
352 3.16 1.167
which needs pay back

I feel assured that legal structures adequately protect me from

352 3.28 1.075
problems associated with using e-banking services

Laws and regulatory support 3.57 0.60

I got informed about the service of e-banking outside the bank 352 3.35 1.067
I have informed about the allowed transaction limit using e-
352 3.33 1.147
banking channels
I have informed about the risks may face when using e-
352 3.41 1.139
banking service
I have informed about the service fees and charges when using
352 3.62 1.026
e-banking service
I have informed about the perceived use and ease of e-banking
352 3.40 1.063
service

34
My decision to use e-banking is influenced by other supporting
institutions like (colleges, local governments, university, 352 3.46 1.098
media NBE etc.)

Supporting institutions 3.43 0.78

Based on my experience, I am very likely to return to use e-
352 3.57 1.110
banking facility
Provided that I may have access to e- banking system in future,
352 3.49 1.013
I will use it
I will use e- banking on a regular basis in the future 352 3.66 1.091

I intend to use E- banking system as often as needed 352 3.83 .833

e-banking adoption
3.42 0.78

Source: Survey result (2018)

Perceived ease of use with mean score of (3.72) with std. deviation of 0.73 implies that it is the
most significant factor among variables to adopt e-banking. Although, perceived ease of use
scores a higher mean however, the other items that affects e-banking adoption contributes
significantly to the grand mean. The mean score of ICT and power infrastructure was relatively
high (3.69) with the std. deviation of (0.96) and the second influential factor for customers to
adopt e-banking depending on the telecom infrastructure and power supply for electronic
banking channels like internet banking, mobile banking, ATM, POS and agent banking.

Perceived benefit comes third with mean score of (3.62) and std. deviation of 0.78 implies that it
is the most significant factor among respondents to adopt e-banking adoption. This implies that
the benefit or comparative advantage of e-banking have significant influence on adoption.

Next to ease of use, ICT and power infrastructure and perceived benefit perceived risk becoming
the fourth influential factor with mean of (3.58) and std. deviation (0.59) for e-banking adoption.
This shows that the comparative disadvantage of e-banking channels negatively affects the
adoption of e-banking. Customer‟s reliability to use e-banking services has been depending on
these big factors.

35
Laws and regulation on e-banking adoption (CBE&NBE) comes fifth with the mean (3.57) and
standard deviation of (0.6) that has significant influence on e-banking adoption. The NBE and
CBE regulation on e-banking while to refund and safeguard the customers balance when
transaction error occurs. This legal issue has relatively significant influence on e-banking
adoption.

Internal capability and role of other supporting institution comes at the end respectively that
influences e-banking adoption with mean (3.55), (3.43) and standard deviation of (0.66) (0.78)
respectively. Internal capability of the bank (CBE) which incorporates the managerial
experience, financial position, art of technology, employee quality, response rate on complain,
and help desks to serve the customer. The role of other supporting institutions like educational
institutions, business research centers, media, the central bank and other civic associations
engaging for societal development have significant factor for e-banking and they can create
awareness and providing easy and user friendly electronic channels for banks and the end user.

4.4 Correlation analysis

For this study Pearson‟s correlation analysis was used to measure the magnitude of the
relationships between e-banking adoption and factors affecting it. A correlation coefficient is a
very useful means to summarize the relationship between two variables with single number that
falls between -1 and +1 (Pallant, 2016). To interpret correlation result and its strength of
relationship between variables the guidelines suggested by (Field, 2006) was followed mainly
for simplicity his classification of correlation coefficient (r) as follows 0.1 to 0.3 is weak: 0.3 to
0.5 is moderate and above 0.5 is strong. Regarding relationship between variables, Table 4.3
clearly shows that figures with symbol (**) indicates that each of variables significantly
contributes or correlated at significance level of P<0.01.

Table4. 3 Correlations between Variables

Correlations
Benefit Risk Capability Easiness Infrastructur Regulatio Support Adoption
es n
Benefit 1 .180** .698** .596** -.111* .578** .508** .887**
36
Risk .180** 1 .305** .551** .006 .246** .312** .217**
Capability .698** .305** 1 .649** -.093 .534** .430** .726**
Easiness .596** .551** .649** 1 -.095 .342** .436** .705**
infrastructure -.111* .006 -.093 -.095 1 -.051 -.003 -.087
Regulations .578** .246** .534** .342** -.051 1 .451** .528**
Support .508** .312** .430** .436** -.003 .451** 1 .581**
Adoption .887** .217** .726** .705** -.087 .528** .581** 1
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Correlation is significant at the 0.01 level (2-tailed) and*. Significant at 0.05 levels (2-tailed). As
per table 4.3, the coefficients was revealed that the six independent variables affecting all
positively related with dependent variable within the range of (0.217) to (0.887) all were
significant at p<0.01 level. Over the six explanatory variables that affect e-banking adoption;
perceived benefit (0.887), internal capability (0.726), ease of use(0.705), other supporting
institution (0.581) and laws and regulatory support (0.528) and perceived risk (0.217) ) shows a
moderate positive relationship with e-banking adoption in an descending order. But the factor
perceived risk stated in the question with positive questions and imply that perceived risk affects
inversely e-banking adoption.

4.5 Regression analysis

According to (Pallant, 2016), multiple regression analysis is a family of statistical techniques that
can be used to explore the relationship between one dependent variable and a number of
predicting variables. As developed by different research scholars the assumption to conduct
multiple regression analysis includes adequacy of sample size, multicollinearity, independence of
50 residuals, heteroscedasticity, normality, linearity and outliers. Based on this all that
prerequisite to conduct multiple linear regressions has been tested for this study purpose.
Adequacy of sample size was determined by formula developed by (Tabachnick & Fidell, 2013,
p. 123), that takes into account consideration a number of independent variables and number of
respondents that researcher wishes to use i.e. N>50+8m, m is number of independent variables
(perceived benefit, perceived risk, internal capability, ease of use, ICT and power infrastructure,

37
laws and regulatory support and the role of other supporting institutions and N is sample size of
study. Thus, 352>50+8(7); 352>106, based on this value, adequacy of sample size was clearly
satisfied by this study. One of classical assumption to conduct multiple linear regression
analysis is multicollinearity. As suggested by (Pallant, 2016), it preferable correlation between
each independent not too high, two variables with bivariate correlation of 0.7 or more in the
same analysis shows the existence of multicollinearity. In this study correlation between each
independent variables were between -0.111-0.698 which is less than 0.7, this reveals there was
no multicollinearity in this study. Hence, all variables were retained for further analysis (see,
correlation table 4.3).Alternatively, tolerance value and VIF for each independent variable (see,
table 4.4) has been determined. Based on multicollinearity statistics table, tolerance value was
0.366-0.979; which is not less than 0.10 and VIF value for perceived benefit (2.735), perceived
risk (1.624), internal capability(2.483), ease of use (2.674), ICT and power infrastructure (1.021),
laws and regulation support (1.739) and supportive institutions (1.515) which is not greater
than 10; this implies that there was no connection between the explanatory variables, which
shows independence of predicting variables. For this reason, the study has not violated
multicollinearity assumption to conduct multiple linear regression analysis.

Table4. 4 Multicollinearity statistics

Multicollinearity Statistics

Tolerance VIF

.366 2.735
.616 1.624

.403 2.483
.374 2.674
.979 1.021

.575 1.739
.660 1.515

Source: survey, 2018

38
The another assumption to undertake multiple linear regression analysis is
heteroscedasticity; Which occurs if there are dots which form a definite pattern regularly as
waves and it occurs if there are no certain patterns which are clear and the dots spread above and
below the zero on the Y-axis (Pallant, 2016). From (figure 3), we can see that the patterns of the
dots are not mostly spreading above and below the zero point of Y-axis and most score was
concentrated on center along with zero point. For that reason, there was no heteroscedasticity in
this regression analysis.

Figure 3 Heteroscedasticity result

Another assumption to multiple regression analysis is checking outliers; as suggested by
(Tabachnick and Fidell, 2013) it exists when cases that has a standardized residual of > 3.3 or < -
3.3; the value of standardized residual value for this study was minimum of -2.610 which is not

39
less than -3.3; and maximum 3.147 which is not greater than 3.3 so this assumption was clearly
satisfied(see table 4.5).
Table4. 5 Standardized residual Statistics

Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N

Predicted Value 1.34 5.11 3.64 .715 352

Residual -.754 1.199 .000 .286 352
Std. Predicted Value -3.217 2.053 .000 1.000 352
Std. Residual -2.610 3.147 .000 .990 352

a. Dependent Variable: e-banking adoption

Furthermore, normality test was conducted; this can be identified by using graph of P-P Plot
(see, figure 4). As suggested by (Pallant, 2016), data will distribute normally if the value of P-P
Plot line reasonably is close to straight diagonal line of the graph from bottom left to top right;
based on this test shows that there was no major deviation from normality and data was
approximately distributed normal. The purpose of normality test is whether the regression model
of the underlying factors of e-banking adoption has a normal distributed or not violated
multicollinearity assumption to conduct multiple linear regression analysis.

Figure 4 Normality Test Result

40
Regression model is good if the data distribution is normal or near normal. Normal P-P Plot
graph regression standardized residual shows that line near the diagonal line and follow the
direction of the diagonal line.

4.5.1 Regression Model Summary

In order to examine the influence of factors on user‟s e-banking adoption, multiple linear
regression analysis has been conducted. E-banking adoption was used as the dependent variable
while the underlying factors of e-banking adoption were used as the independent variables. The
regression model (see table 4.6) was explained summary of findings R square that how much of
the variance in the measure of e-banking adoption was explained by the determinant factors of e-
banking adoption. Based on this, model coefficient of determination or R2 obtained was
indicated that 0.862% of the variation in the measurement (e-banking adoption) function can
be explained by perceived benefit, perceived risk, internal capability, ease of use, ICT and
power infrastructure, legal and regulatory support, role of other supporting institutions.
Alternatively, R square is 0.862 means that explanatory variables have 86.2% impact on
dependent variable. The remaining 13.8% influence on e-banking adoption was explained by
other variables but out of this model which is not incorporated in this study such as life style,
personality, situational variables, national development index, attitude and etc.

Table4. 6 Regression Model Summaries

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate

1 .928a .862 .859 .289

a. Predictors: (Constant), Support, Infrastructure, Risk, Regulation, Capability, Easiness, Benefit
b. Dependent Variable: Adoption
Source; survey result (2018)

41
4.5.2 F-test for e-banking adoption

ANOVA table shows that level of significance; all predicting variables are related to underlying
factors of e-banking adoption and the relationship between them is as compared to alpha value
0.05. (Table 4.7), reveals that the level of significance that it is acceptable or not acceptable. But
results in table was revealed that significance level is 0.000 which is less than 0.05 and it is
acceptable and shows strong impact of independent variable on e-banking adoption. This table
posited that the value of F equals to 306.765 Count significant 0.000. Because the sig <0.05
means the confidence of this predictions greater than 95% and the probability of this
prediction error is less than 0.05 which sig 0.000. Therefore, the model was significant with
linear relationship in multiple regressions and it indicates that the variation explained by the
model not due to chance.

Table4. 7 Anova analyses

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 179.370 7 25.624 306.765 .000
b

1 Residual 28.735 344 .084

Total 208.105 351
a. Dependent Variable: E-banking adoption
b. Predictors: (Constant), other supporting institutions, perceived risk, perceive benefit,
ICT and Power infrastructure, ease use, legal and regulatory support, Internal capability

Source; survey result (2018)

4.5.3 Regression analysis for e-banking adoption

We can observe that the extent to which each independent variables influence the dependent
variable ease of use, other supporting institutions role, perceived benefit, laws and regulatory
support, ICT and power infrastructure, internal capability and perceived risk were found to be
the influential factors for e-banking adoption, in their unstandardized beta coefficient values
descending order referring ease of use, role of supporting institutions and perceived benefit

42
regarding e-banking as the most important determinant factors of e-banking adoption. This F-
test table additionally, was showed that the existence of linear relationship in regression equation
model. In other words, the five explanatory variables have significant influence on e-banking
adoption. According to Table 4.8, the regression analysis of unstandardized coefficients of Beta
and Sig values for the seven independent variables were revealed that, perceived benefit, ease
of use, other supporting institutions role, perceived risk, internal capability, , ICT and power
infrastructure, laws and regulatory support ;(0.584), (0.311), (0.1480), (-0.167) (0.116), (0.014)
& (-0.05) respectively. Their significance levels are 0.000, 0.000, 0.000, 0.000, 0.002, 0.0.372,
and 0.861 respectively, which two items are greater than 0.05 significance level but the other five
are significant influence on the dependent variable (e-banking adoption).

Table4. 8 Regression Analysis for e-banking adoption

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) .014 .137 .102 .919
Benefit .584 .033 .593 17.891 .000
Risk -.167 .033 -.129 -5.034 .000
Capability .116 .037 .099 3.143 .002
1
Easiness .311 .034 .296 9.049 .000
Infrastructure .014 .016 .018 .893 .372
Regulations -.006 .034 -.005 -.176 .861
Support .148 .024 .150 6.069 .000
a. Dependent Variable-banking adoption

43
4.5.4 Summery of the regression analysis

Table4. 9 Summary of overall research hypothesis

Hypotheses Result Reason

HA1: perceived benefit will have effect on E-banking adoption. H1: Accepted B= 0.584

P< 0.05
H01: perceived benefit will not have effect on E-banking adoption HA0: Rejected

HA2: Perceived risk will have an effect on the adoption of E-banking. HA1: Accepted B= -0.167

P< 0.05
HA0: Perceived risk will not have an effect on the adoption of E-banking. HA0: Rejected

HA3: Internal capability of the service render can influence the adoption of HA1: Accepted B= 0.116
E-banking
P< 0.05
HA0: Internal capability of the service render cannot influence the adoption HA0: Rejected
of E-banking

HA4: Ease of use will have effect on adoption of E-banking. HA1: Accepted B= 0.311

P<0.05
HA0: Ease of use will not have effect on adoption of E-banking. HA0: Rejected

HA5: IT and power infrastructure, will have the effect on E-banking usage. HA1: Rejected B= 0.014

P> 0.05
HA0: IT and power infrastructure, will not have the effect on E-banking HA0: Accepted
usage.

HA6: laws and regulatory support will have the effect on E-banking HA1: Rejected B= -0.006
adoption.
P>0.05
H0: laws and regulatory support will not have the effect on E-banking HA0: Accepted
adoption.

HA7: The role of other supporting institutions, may affect the adoption of E- HA1: Accepted B=0.148
banking.

44
 P< 0.05
H0: The role of other supporting institutions, may not affect the adoption of HA0: Rejected
E-banking.

In general, as per table 4.9, clearly revealed that among the seven explanatory variables
that strongly contribute to e-banking adoption are ease of use, perceived risk and perceived
benefit.

Perceived benefit in the study showed that the independent variable is significant to the
dependent variable with the multiple regression results of P = 0.000.

Likewise the above perceived benefit construct perceived ease of use is also significant to
dependent variable with the results P = 0.000 which is < 0.05.

Perceived risk which incorporates the components of security, trust, confidence, reliability, risk
on e-banking transactions and reputation of e-banking financial service providers is the third
dominant factor for e-banking adoption with p=0.000 which is less than 0.05 and staisticaly
significant.

The role of other supporting institutions is a social structure that has attended a high degree of
reliance (Scott, 2001) which provides a list of institutions including government, governmental
institutes, development agencies, educational institutes, business association. Hence based on the
result table 4.8 the role of supporting institutions comes forth influential factor for e-banking
adoption with p=0.000 which is less than 0.05 and statistically significant and high evidence of
prediction. (Al-smadi, 2012) Institutions can exert pressure to customers to adopt e-banking
through many ways including enacting laws, providing training, awareness creation, and
knowledge deployment.

Internal capability which consists human capital, IT literacy, and slack resources as (Riyadh,
Akter and Islam, 2009) mention that human, financial and material resources and that affects e-
banking adoption are the most significant factor which comes at last with p=0.02 which is less
than 0.05 and statistically significant factor for e-banking adoption in CBE Gondar city.

45
To express the dependent variable (adoption of e banking) and independent variable (perceived
benefit, perceived risk, internal capability, ease of use, and supporting institutions in
mathematical equation,

Let:

Y= Adoption of e banking,

X1=perceived benefit,

X2= perceived risk,

X3= Internal capability

X4= ease of use

X5= supporting institutions

Therefore, the general relationship is written mathematically as follow:

4.6 Discussion of statistical results

The aim of this study was to examine how selected explanatory variables influence e-
banking adoption and to gain insights about the factors for e-banking adoption.

According to study most of the explanatory variables perceived benefit, ease of use, the role of
other supporting institutions, perceived risk, internal capability of CBE, were identified as
critical to e-banking adoption.

Based on the result of multiple regression model perceived benefit was among the independent
variable which affect‟s e-banking adoption. In this study perceived benefit (comparative
advantage of e-banking) come the first influential factor for e-banking adoption based on the
result of multiple regression models with un standardized coefficient of 0.584 and p value of
0.000 which is statically significant. This finding supported by studies of (Beatriz Isabel de
Almeida Rodrigues, 2017) Perceived benefits have a strong impact on e-banking adoption.
Furthermore, (Nasri and Charfeddine, 2012) studied the TAM and TPB to examine the adoption
of Internet banking in Tunisia. The results of this study show that perceived usefulness is found

46
to be a significant determinant to predict the intention to use the Internet banking. (Isabel and
Rodrigues, 2017) Perceived benefits have a strong impact on e-banking adoption. In addition,
(Riyadh, Akter and Islam, 2009) perceived benefits, perceived credibility and organizational
capabilities has significant influence on e-banking adoption. To encourage more customers to
adopt e-banking services and products in Gondar, customers have to enjoy on the rewards
received from intended benefits such as immediate and tangible benefits when using e-banking
services, The benefit that the customer will derive from the e-banking service and Price been the
cost that the customer has to pay for the services enjoyed are the most influential factor that
drives and hinders for e-banking adoption.

The second dominant factor in the order of its influence on e-banking adoption was ease of use
with the unstandardized Coefficient value of 0.311, p-value of 0.000. Simplicity of carrying out
e-banking channels to use dominantly influences e-banking adoption of CBE customers in
Gondar city. (Milanzi, 2013) and (Lusaya, 2018)) studied that customers perceive e-banking in
terms of its usefulness, ease of use, and becoming a matter of need and holds the key that
might help the banking industry to formulate their marketing strategy.

(Lusaya, 2018) customer can only adopt a service or product if she/he has full information
regarding its use and also concluded that familiarity is very important in the use of e-banking.
Technological acceptance is based on the familiarity and complexity of the service.

(Al-smadi, 2012) discussed that perceived ease of use has a positive and significant impact on
customers' attitude toward electronic banking services. (Fonchamnyo, 2013) provides evidence
that clearly reflect that customers perceive e-banking in terms of ease of use. Moreover banks
should improve help and feedback facilities in their services to enable customers to
accomplish their operations effectively and make easy to the end users and make e-banking
channels more user-friendly since that will go a long way to increase customers trust and upsurge
their intention to accept e-banking.

The role of other supporting institutions like research centers, media, education institutions,
national bank on creating of awareness and business solution on e-banking related concerns has
the third dominant effect on the well adoption of e-banking on customers. The role of other
supporting institutions has statistically significant positive impact on e-banking adoption with

47
unstandardized coefficient of 0.148 and p value of 0.000. Meaning that; the full performance of
supporting institution has a positive increment of 15% impacts to adopt e-banking channels.

Supporting organizations working in ICT and internet education must be incorporated in the
educational system at the basic level as notified by (Nasri, 2011), since as more people become
IT literates the more they will derive interest in accepting online banking and its related services
like online shopping among others. Not only that but also the Government of Ethiopia should
invest more in ICT infrastructure to support e-banking adoption as suggested by the study.

(Riyadh, Akter and Islam, 2009) identified that five types of institutions- government, donor
agencies, financial institutions, IT support institutions and resource centers are playing role in
technology diffusion and adoption in SMEs in Bangladesh. Institutions readiness and
institutional influence has dominant effect on e-banking adoption. Institution is a social structure
that has attended a high degree of reliance (Scott, 2001). (Riyadh, Akter and Islam, 2009)
provides a list of institutions including government, governmental institutes, development
agencies, educational institutes, business association they have dominant effect on e-banking
adoption. Institutions can exert pressure to individuals to adopt e-banking through many ways
including enacting laws, providing training, subsidy, and knowledge deployment. Institutional
pressure can be coercive, normative and mimetic.

Next to perceived benefit, ease of use and role of other supporting institutions perceived risk
come the fourth influential factor which affects e-banking adoption negatively with
unstandardized coefficient of -0.167 with p value of 0.000 which is statistically significant based
on the multiple regressions.

Several mobile banking adoption studies have supported that people refuse or are unwilling to
use mobile banking mainly because of perceived risk. Most of the findings of this study are in
conformity with the work of this studies (Takele and Sira 2013) revealed that the seven factors
included in the models (attitude, subjective norm, perceived behavioral control, perceived
usefulness, perceived ease of use and perceived risk were significant in affecting users'
behavioral intention to use e-banking.

48
Since perceived risk and security is significant to determine customers‟ intention to use e-
banking, security must be given a high priority and must be linked with conventional means of
banking to boost the trust and confidence that customers may have to use e- banking products
and services.

Finally internal capability of the service render comes last in its beta coefficient of multiple
regressions with coefficient of 0.116 and p value of 0.002. Hence this is statistically significant
positive influence on e-banking adoption. Organizational capabilities may take several forms
including human capital, IT literacy, and slack resources, human, financial and material
resources and that hinders or fosters them to adopt e-banking. Supporting with this study (Zhu,
K., K. L, 2006) mentioned that, organizational readiness includes infrastructure, relevant
systems, and technical skills. Although, the definition of organizational readiness differs in
literature but all agreed that organizational readiness have strong influence on individuals‟
technologies adoption (Zhu et al., 2003). Due to importance of human, IT and capital in
determining technology adoption and use in any organization, we have included organizational
capabilities as one of the factors in e-banking adoption by CBE customers.

49
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction

This chapter presents the conclusion for this study derived from the findings. The chapter also
presents recommendations for future in matters related to full adoption of E-banking in
customers.
5.1 Summary of findings

Descriptive data analysis has been conducted to examine the adoption of e-banking. The study
has been conducted descriptive statistical analysis including mean and standard deviation for
likert scale items and variables; based on this analysis variables scored higher mean and
lower standard deviation in their orderly manner as ease of use, ICT and power infrastructure,
perceived benefit, perceived risk, laws and regulations, internal capability and supporting
institution.

Pearson correlation analysis has been conducted to examine relationship between seven
independent variables (ease of use, ICT and power infrastructure, perceived benefit, perceived
risk, laws and regulations, internal capability and supporting institution) and one dependent
variable (e-banking adoption). From the correlation analysis, ease of use, perceived benefit,
laws and regulations, internal capability and supporting institution are positively correlated with
e-banking adoption but perceived risk was negatively correlated with the dependent variable.

Multiple linear regression analysis has been employed to determine each explanatory
variable contribution to dependent e-banking adoption . From the regression analysis, it was
observed that five explanatory variables come out to significantly affect e-banking adoption.
Regression model, coefficient determination result was indicated that these selected explanatory
variables are capable to predict e-banking adoption by 86.2%; the remaining 13.8% predictors
are out of this model. When put in the order of contribution to dependent variable, perceived
benefit, ease of use, supporting institution, perceived risk and internal capability in descending
order for e-banking adoption.

50
The result of the regression analysis shows the identified factors affecting e-banking adoption
perceived benefit (B = 0.584, p=0.0000) ease of use (B = 0.311, P = 0.0000), supporting
institutions (B = 0.148, P = 0.0000), perceived risk (B = -0.167, P = 0.0000), and internal
capability (B = 0.116, P = 0.002). The P-value of the result is less than the alpha value of 0.05.
Our P value is 0.000. The R square is about 86.2%. That shows 86.2% of e-banking adoption is
determined by perceived benefit, ease of use, supporting institutions, perceived risk and internal
capability. Thus, the above listed variables are statistically supported and the alternative
hypotheses are accepted. But the rest two variables are not statistically significant for e-banking
adoption.

5.2 Conclusion
The primary purpose of this study was to empirically examine the determinant factors of e-
banking adoption on CBE customers in Gondar city. Additionally examine the demographic
profile of customers and the factors they consider their e-banking adoption.

Perceived benefit was found to be the first significant explanatory variable that influences e-
banking adoption with multiple regression analysis result of (B=0.584, p=0.000), most of
respondents wants to use e-banking in related to the comparative advantage compared to branch
base service i.e. using e-banking reduces transaction time, reduce cash holding risk, convenient
service, availability of 24 hrs and 7 day a week, ease of controlling account (Anuj Agarwal,
2016).

Ease of use was found to be the second significant factor that respondents consider to adopt e-
banking. (Jahangir and Begum, 2008) noted that perceive ease of use ability of consumers to
experiment with a new innovation and evaluate its benefit easily. The statistical test also supports
that it is significant variable in determining e-banking adoption (B=0.311, p=0.000).

Finally supporting institutions is the third influential factor with (B=0.148, p=0.000). Today
most of private and state owned commercial banks in Ethiopia have invested on e-banking
applications, however the system is not well strengthen in providing services due to various
challenges. Such as low level of ICT and power infrastructure, lack of legal frame works. In

51
addition security risk with ATM, mobile banking, internet banking lessen confidence of
customer to use those technologies (Alhinai et al., 2013).

Perceived risk, and internal capability are among the statistically supported variables affecting e-
banking adoption (B=-0.167, p=0.000), (B=0.116, p=0.002) respectively. E-banking also has a
strong positive impact on the overall banking performance by making workers performance more
effective and efficiency for the ultimate adoption of e-banking.

Majority of the respondents agreed that, when transaction error occurs, they worry that we
cannot get compensating from bank and incurs fraud or the hacker invades, we would have
potential loss of status in one‟s accounts. However, they intend to use e- banking system as often
as needed and very likely to return to use e- banking facility as far as the security problems are
solved.

Therefore commercial bank of Ethiopia and other commercial banks should hire well
knowledgeable and qualified personnel with the art of the globe to answer customer complaints
and suggestion.

5.3 Recommendation

Electronic banking service is a new banking progression in Ethiopia and hence its expansion
from time to time is high in both state owned and private banks, so that it„s a key issue, because
it has a great impact on the whole banking activity, at the same time it„s difficult and need a lot
of efforts to be adopted and accepted by customers and staffs of commercial bank of Ethiopia, so
it need an integrated efforts to adopt e-banking.

The researcher recommends the following possible solutions that can help to show the significant
influential factor for e-banking adoption. As per the findings from the analysis of the collected
data; the following recommendations are forwarded for any private and state owned banks and
other stakeholders in order to provide efficient and effective e-banking service to their
customers.
 Commercial bank of Ethiopia should adapt user friendly technologies for the ease of use,
improving their internal capability and perceived usefulness.

52
 Prior service awareness creation might be provided for customers about the all over e-
banking service and security issues of using e-banking channels. This is good for the
customer and for controlling bank costs.
 Banks should have to supply user manuals at time of service agreement with the customer
for the ease of use.
 In order to survive and increase competitive advantage CBE and other banks may focusing
about the benefit, ease to use, and risks might happen.
 Majority of respondents generally suggested that electronic banking service may not perform
well and process payments incorrectly. Then CBE and other commercial banks should have
to follow up their e-banking delivery channels.
 online requests is mainly due to the shortage of knowledgeable personnel
 Making close and smooth relation with Ethiopia Telecommunication Corporation to expand
ICT infrastructure and access of internet broadband to minimize the down of internet in ATM
machines, POS, mobile banking, internet banking and agent banking web based platforms.
 Bank managers to pay attention to customers for better customer adoption of e-banking. It
might be important to develop a marketing strategy for e-banking; however, banks need to
closely demonstrate concern for ease of use, perceived usefulness, with concrete solutions to
change customer‟s attitude and behavioral intention in the adoption of e-banking.
 To improve the e-banking service delivery and thereby standardize the service offering the
bank has to work hard more on the technology based banking in such a way that it can bring
standardization of offerings and create more conducive technology based banking
environment which is convenient and accessible with more freedom mobility.
 As the results of the study show perceived benefit, ease of use are the most important
dimensions so the bank has to pay attention on these area for more achievements. Unless
customers are attached to branch based banking if the comparative advantage of using e-
banking is below the conventional banking.
 Banks should have to follow up and monitor ATM and POS machines regularly and forward
immediate remedy and maintenance the problems on the spot.
 The national bank of Ethiopia should create the awareness of the public to move in to e-
banking products and create cash less society. Besides NBE may provide incentives for
banks to invest strictly on ICT and use of e-banking.

53
 ICT and e-payment department of CBE and other banks may provide training to their staffs
in order to solve transaction errors, card jam, incorrect payment and other related problems as
fast as possible.
 Risk and security related issues should be reduced by using software while launching a new
products/services and making new strategies to increase e-banking adoption.
 Hence e-banking have the role of different public and development partner organizations,
banks should work closely with them to increase the acceptance and transformation of
customers from branch base to 24 hrs and 7 days available e-banking service.

5.4 Limitation and Directions for Future Researches

The study is not without limitations, which, however, future research can address. Since the
study is descriptive and explanatory in design, future research could undertake a more in-depth
longitudinal study. Future research may be conducted by further extending and refining TAM
and test it in the context of other technologies.

As the use of the technology based banking service is get accustomed by customers and its
application is fully employed in the future ,the behavioral intentions such as loyalty, tendency to
switch ,barriers to switch and other similar issues can be examined.

As the study is cross-sectional in its nature and only the identified influential factors for e-
banking adoption are examined then future studies can identify additional factors using the
longitudinal studies to show the effects on customer‟s e-banking adoption.

Finally, the study recommends that future researchers can carry out a study on the effect of new
integrated inter-bank transaction (ET switch) system on the adoption of ATM.

54
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 APPENDIXS
Appendix I: Questionnaire Used in main study

UNIVERSITY OF GONDAR

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Questionnaires
Dear Respondent,
I am conducting a research to learn about the factors affecting adoption of electronic banking
in case of commercial bank of Ethiopia, Gondar town being for the Partial fulfillment of
Masters in Business administration (MBA) with University of Gondar. I sincerely assure you that
the information you provide will be kept strictly confidential, will not be transferred to any third
party and will be used only for academic purposes Please take a bit of your time to give your
opinion about the adoption of e –banking in CBE.

Thank you in advance for your willingness, cooperation and dedicating your time!
Aklog Tegin
Researcher

General Instruction:
 There is no need of writing your name
 In all cases where answer options are available please tick (“√ ”)
Part I: General Background Information/Demographics: (Please tick with “√ ” where
1. Sex 1) Male 2) Female

2. Age: 1) 18-20 years 2) 21-30 years

60
 3) 31-40 years 4) Greater than 41 years

3. Level of education 1) Primary school 2) Secondary school

3) TVET 4) Diploma 5) Higher education
4. Income level 1) <1,500 2) 1501-3,500 3) 3501 -7500 4) >7501

Part II: Survey Questions about the factors affecting electronic banking adoptions (Please
circle where applicable like “ ”

Instruction: please indicate the extent to which you agree or disagree with the statements
regarding the adoption of electronic banking in CBE based on the scale below. A list of
statements is given below and the student /researcher is interested in a number that indicates your
feeling concerning the level of agreement which 1-5, .Each statement is ranked in the following
ways:

1= Strongly Disagree 2= Disagree 3= Neutral 4= Agree 5= Strongly Agree

Response rates

1 2 3 4 5
Constructs code Items

Perceived benefit PB1 I think that using the electronic banking service 1 2 3 4 5
(PB) would enable me to accomplish my tasks more
quickly

PB2 I think that using the electronic banking service 1 2 3 4 5

would make it easier me to carry out my tasks.

PB3 I think the electronic banking service is useful 1 2 3 4 5

Perceived risk PER1 Electronic banking service may not perform well 1 2 3 4 5
(PER) and process payments incorrectly.

61
 PER2 When transaction error occurs, I worry that I 1 2 3 4 5
cannot get compensating from bank.

PER3 When CBE account incurs fraud or the hacker 1 2 3 4 5

invades, I would have potential loss of status in
one‟s social groups.

PER4 I would take me lots of time to learn how to use 1 2 3 4 5

Electronic banking service.

PER5 I am worried to use Electronic banking Service 1 2 3 4 5

because other people may be able to access my
account.

Internal ICA1 Confidential information is delivered safely from 1 2 3 4 5

capability(ICA) banks to customers

ICA2 seek helps from the customer services when I 1 2 3 4 5

encounter problems

ICA3 Easy to navigate the bank site due to smooth 1 2 3 4 5

speed

ICA4 Response speed to complaint is satisfactory 1 2 3 4 5

ICA5 Satisfy with the diversity of services 1 2 3 4 5

Ease of use(EAU) EAU1 I think that learning to use electronic banking 1 2 3 4 5

service would be easy.

EAU2 I think that interaction with electronic banking 1 2 3 4 5

service does not require a lot of mental effort.

EAU3 I think it is easy to use electronic banking service 1 2 3 4 5

to accomplish my banking tasks.

62
ICT& power IPI1 Using e-banking is difficult due to low internet 1 2 3 4 5
infrastructure(IPI) access in Gondar town.

IPI2 E-banking services may not perform well because 1 2 3 4 5

of power interruption.

I think e-banking has enough safeguards to make

Laws and LRS1 1 2 3 4 5
me feel comfortable using it.
regulatory
support (LRS)
LRS2 I hesitate, E- banking service have legal support 1 2 3 4 5

LRS3 I got informed; the bank may have e-payment 1 2 3 4 5

procedures that solve legal irregularities.

LRS4 The bank refunds if there may happen un 1 2 3 4 5

successful transaction which needs pay back

LRS5 I feel assured that legal structures adequately 1 2 3 4 5

protect me from problems associated with using
e-banking services
supporting SUI 1 I got informed about the service of e-banking 1 2 3 4 5
institutions(SUI) outside the bank

SUI 2 I have informed about the allowed transaction 1 2 3 4 5

limit using e-banking channels

SUI 3 I have informed about the risks may face when 1 2 3 4 5

using e-banking service

SUI 4 I have informed about the service fees and 1 2 3 4 5

charges when using e-banking service

SUI 5 I have informed about the perceived use and ease 1 2 3 4 5

of e-banking service

63
 SUI6 My decision to use e-banking is influenced by 1 2 3 4 5
other supporting institutions like (colleges, local
governments, university, media NBE etc.)

Part III: Survey Questions about the intention to adopt electronic banking (Please circle
where applicable like “ ”

Please, indicate your response for the following statements (items) how much do you agree and
choose in the right column box using rating scales.

1=Strongly Disagree 2=Disagree 3= Neutral 4=Agree 5=Strongly Agree

e-banking EBA1 Based on my experience, I am very likely to return to use 1 2 3 4 5

adoption e- banking facility

EBA2 Provided that I may have access to e- banking system in 1 2 3 4 5

future, I will use it

EBA3 I will use e- banking on a regular basis in the future 1 2 3 4 5

EBA4 I intend to use E- banking system as often as needed 1 2 3 4 5

Adopted from: (Cheng, 2006), (Al-smadi, 2012)and Bruce Mwiya et.al. 2017

64