ELECTRONIC BANKING SERVICES ANDCUSTOMERSADOPTIONIN COMMERCIAL BANK OF ETHIOPIA.A CASE STUDY OF COMMERCIAL BANK OF ETHIOPIA, GONDAR DISTRICT

Abstract

The general purpose of the study was to investigate the electronic banking services and its usage by customers in commercial bank of Ethiopia. A quantitative cross-sectional self-report survey research design was used to reach the aim of this study. The target population of the study consisted of customers of CBE, who were using e- banking services in CBE Gondar main branch. The major instrument that was used in the collection of data for this research work was questionnaire. The questionnaire was prepared based on the literature review and by making some adaptations from prior researches. The data was analyzed using both descriptive and inferential statistics. The result of the study revealed that the majority of the respondents used ATM, followed by mobile banking, and the combination of ATM and Mobile banking. Internet banking and tele banking services are the least adopted.Majority of the respondents used electronic banking services for depositing money, followed by balance enquiry, and transfer fund. The least used services by the respondents are Cheque book order, Interim Statement, and Min statement.Further, the result of descriptive statistics revealed that the introduction of ebanking services moderately affected customers’ perception about the services offered by Commercial Bank of Ethiopia. Descriptive analyses revealed that the respondents rated most of the electronic banking services quality dimensions highly. Multiple regression analysis was employed to test the impact of perceived ease of use complexity, compatibility, trialability, observability perceived risk, and attitude on customers’ adoption of e-banking services.The result of Multiple regression analysis revealed that perceived ease of use, compatibility, observability,attitude,trialability, perceived usefulness, and complexityhave significant effect on customers’ adoption of electronic banking services. However, perceived risk has no significant effect on adoption of electronic banking services. Finally it is recommended that because adoption of e-banking is affected by several factors, banks need to know the factors that influence customers to adopt E-banking technology. Key Words: Electronic banking, Adoption, Electronic service, Service quality, Commercial bank of Ethiopia.