Abstract:
The study aims at investigating the Determinant of e-banking service adoption among customers
of CBE branches, in DEBARK city administration. To achieve the objectives, the study used the
explanatory research design and quantitative research approach. Both primary and secondary
data sources were used. The primary data was collected using questionnaire survey from 395
sampled customers selected by using convenient sampling technique. The data that was collected
from customers by questionnaire was analyzed by using both descriptive and inferential
statistical tests. Inferential statistical tests such as independent sample t-test and binary logistic
regression tests were employed to evaluate the existing group differences and to identify the
significant challenges that affect adoption of e-banking services in Debark town. The result of
the study revealed that 55.8% of the customers were adopters of e-banking services while 44.2%
of customers were non-adopters of e-banking services in the study area. the study also found out
that perceived cost, perceived trust, perceived ease of use and perceived risk factors affected the
adoption of e-banking services significantly; While perceived usefulness, attitude and
infrastructural challenge were not significant challenges. Based on the findings, the study
concluded that adopters of e-banking services are 2.765 and 2.395 times more likely to have
increased level of perceived cost and trust towards e-banking services than their counterparts/
non-adopters. Similarly, the study also concluded that those customers who have an increased
level of perceived ease of use and perceived risk towards e-banking services are 3.776 and
13.946 times more likely to adopt e-banking services. In addition, perceived risk challenge had
higher and significant multiplicative power for adoption of e-banking services than the other
significant challenges. Furthermore, these challenges exhibited statistically significant group
difference between adopters and non-adopters of e-banking service in the study area. Based on
the finding, the study concluded that, the difference is significant because extent of these
challenges was high among non-adopters than adopters.
