FACTORS INFLUENCING MOBILE BANKING

ADOPTION IN ETHIOPIA: A PERSPECTIVE ON

COMMERCIAL BANKS CUSTOMERS IN ADDIS ABABA

A Thesis Submitted in Partial Fulfillment of the

Requirements for the Degree of
Master of Art in Marketing Management

By

Nebiyu Yusuf

Advisor
Mulugeta G/Medihin (Dr.)

May 29, 2017

Addis Ababa

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 Addis Ababa University

School of Commerce

Department of Marketing Management

This is to certify that the thesis prepared by Nebiyu Yusuf entitled “Factors
Influencing Mobile Banking Adoption: A Perspective on Commercial Banks
Customers in Addis Ababa”. Which is submitted in partial fulfillment for the
Degree of Master in Marketing Management complies with the regulation of the
University and meets the accepted standards with respect to originality and
quality.
Approved by Board of Examiners:

Mulugeta G/Medihin (Dr.) ………………………… …………………………

Advisor Signature Date

………………………… ………………………… …………………………

Internal Examiner Signature Date

………………………… …………………………
…………………………
External Examiner Signature Date

………………………… …………………………
Chair of Department /Graduate Programs Signature Date
Coordinator

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 Declaration

I declare that this thesis has been composed solely by myself and that it has not been
submitted, in whole or in part, in any previous application for a degree. Except where
those stated by reference or acknowledgment, the work presented is entirely my own.

………………………………………….
Signature

………………………………………….
Date

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 Acknowledgement

First and foremost I would like to thank the almighty God who shield and put me on the
right path on every circumstance in my life.

This thesis has got it existence by the help and support of many people around me. I
would like to express my deepest appreciation and gratitude to Dr. Mulugeta G/Medihn
for his precious suggestion on the contents and path of the research.

I am also indebted to those who supported me during data collection, participating and
facilitating the entire period.

Finally, my deepest gratitude goes to my Mom, My wife and Aku and Bitu for their
unconditional support and their patience during my study.

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 Abstract

Most Commercial banks in Ethiopia have implemented Mobile banking technology

However; there is a challenge that their effort may not bring much result as it was
anticipated. Due to the fact that the number of mobile banking users are still lagged
behind. This study therefore focused on examining factors affecting the adoption of
mobile banking technology in Addis Ababa. The study was tuned to five constructs,
such that, perceived usefulness, perceived ease of use , perceived trust, perceived risk
and awareness in determining their effect on intention to adopt mobile banking. A
cross-sectional survey design was employed. From which a convenient sample of 384
customers were selected for the study. Data was analyzed using SPSS regression
analysis. This study revealed that Perceived Ease of use, Awareness, Trust had a
positive impact on mobile banking adoption while perceived risk was found to have a
negative impact. Whereas, Perceived Usefulness found no effect on the intention to
adopt mobile banking.

Key Words: Commercial banks, Perceived Usefulness, Perceived Ease of use, Trust,
Risk Awareness, Mobile banking.

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 List of Acronyms

ATB - Attitude toward the behavior

CBE- Commercial Bank of Ethiopia
FIS-Financial Institutions
NBE- National Bank of Ethiopia
PU- Perceived Usefulness
PEOU- Perceived Ease of Use
PR- Perceived Risk
PBC- Perceived behavioral control
SPSS- Statistical Package for Social Science
SMS- Short Message Service
MMS- Multimedia Messaging Service
TPB- Theory of Planned Behavior
TAM- Technology Acceptance Model
TRA- Theory of Reasoned Action
WAP- Wireless Application protocol

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 Table of Contents

Chapter One
1.1Background of the study ................................................................................................................. 12
1.2 Statement of the problem ............................................................................................................... 16
1.3 Research question .......................................................................................................................... 18
1.4 Research Aim and Objectives ......................................................................................................... 18
1.5 Hypotheses .................................................................................................................................... 19
1.6 Significance of the study ................................................................................................................ 19
1.7 Scope/Delimitation of the study ..................................................................................................... 20
1.8 Limitation of the study ................................................................................................................... 20
1.9 Organization of the study ............................................................................................................... 21
Chapter Two ........................................................................................................................................ 23
Review of Related Literature ............................................................................................................... 23
2.1 Introduction ................................................................................................................................... 23
2.2 Technologies Employed to Provide Mobile Banking Services ........................................................ 24
2.3 Theoretical Review ........................................................................................................................ 26
2.3.1 Theory of Reasoned Action (TRA) .............................................................................................. 27
2.3.2 Theory of Planned Behavior (TPB) ............................................................................................. 27
2.3.3 Technology Acceptance model(TAM) ....................................................................................... 28
2.3.4 Mobile Banking Adoption (IDT) ................................................................................................. 29
2.3.5 Perceived Ease of Use ................................................................................................................. 31
2.3.6 Perceived Usefulness................................................................................................................... 31
2.3.7 Perceived Risk ............................................................................................................................ 31
2.3.8 Perceived Trust ........................................................................................................................... 33
2.3.9 Customer Awareness ................................................................................................................... 33
2. 4. Empirical Review......................................................................................................................... 34
2.5 Conceptual Frame work / Research Model/ .................................................................................... 36
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Chapter Three ...................................................................................................................................... 37
3.1 Introduction ................................................................................................................................... 37
3.2 Research Approach ........................................................................................................................ 37
3.3 Research Design ............................................................................................................................ 37
3.4 Target Population ........................................................................................................................... 38
3.5 Sample Size ................................................................................................................................... 38
3.6 Sampling Techniques ..................................................................................................................... 40
3.7 Instrumentation, Data Collection and Analysis ............................................................................... 41
3.7.1 Development of Instrument ...................................................................................................... 41
3.7.2 Data Collection ....................................................................................................................... 42
3.7.3 Reliability ............................................................................................................................... 42
3.7.4 Data analysis ........................................................................................................................... 42
Chapter Four........................................................................................................................................ 44
Data Analysis and Discussion of findings............................................................................................. 44
4.1 Introduction ................................................................................................................................... 44
4.2 Reliability Analysis ........................................................................................................................ 45
4.3 General characteristics of respondents ............................................................................................ 46
4.3.1 Respondents Gender distribution ............................................................................................. 47
4.3.2 Respondents Age..................................................................................................................... 47
4.3.3 Education Level ...................................................................................................................... 47
4.3.4 Mobile banking Usage ............................................................................................................. 47
4.3.5 Respondents Income Level ...................................................................................................... 48
4.3.6 Cross Tabulation between Age, Education qualification and Mobile banking usage ................. 48
4.4 Response Item analyses .................................................................................................................. 49
4.4.1 I receive enough information about mobile banking service. .................................................... 49
4.4.2 I think mobile banking is useful in conducting banking activities ............................................. 50
4.4.3 Overall, I think mobile banking is easy to use. ....................................................................... 50
4.4.4 I think mobile banking services are more risky than other banking ........................................... 51
4.4.5 The bank’s mobile banking is totally trustworthy. .................................................................... 52
4.4.6 I will adopt mobile banking as soon as possible ....................................................................... 53
4.5 Comparison between mobile banking users and non users .............................................................. 54
4.6 Multiple Regression Analysis ......................................................................................................... 55

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4.7 Normality Test ............................................................................................................................... 55
4.8 Linearity ........................................................................................................................................ 56
4.9 Multicollinearity Test ..................................................................................................................... 56
4.10 Regression Analysis ..................................................................................................................... 57
4.11 Hypothesis Test............................................................................................................................ 59

Chapter 5 ............................................................................................................................................. 62
Summary, conclusion and recommendation ......................................................................................... 62
5.1 Summary ....................................................................................................................................... 62
5.5 Conclusion ..................................................................................................................................... 64
5.3 Academic and Managerial Implications .......................................................................................... 65
5.4 Direction for future research........................................................................................................... 66
List of References ................................................................................................................................ 67
Appendices .......................................................................................................................................... 71

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 List of Tables
Table 1. Mobile banking users’ growth in the industry………………..…..………14
Table 2 Sample commercial banks branch network in AddisAbaba…………..…..40
Table3 Sample respondents allocation per branch ……………………….….…….41
Table 4 summary on regression variables………………………………...….……..42
Table 5 Scale Item reliability statistics………..……………….…………..………45
Table 6 General characteristics of respondents……………………………………..46
Table 7.I receive enough information about mobile banking service..….….…..…..49
Table 8. I think mobile banking is useful in conducting banking activities. ….…....50
Table 9. I think mobile banking is easy to use………….…………………...…….. 51
Table10 I think mobile banking services are more risky………………………...…52
Table11. The bank’s mobile banking it is totally trustworthy……….…….………..52
Table12. I will adopt mobile banking as soon as possible …………...………..……53
Table13. mean value of constructs/dimension/……….………….…….……..……..54
Table14. Survey dimensions over all Likert value………………..………………..54
Table15. Skewness and Kurtosis analysis Statistics………….….….………..…….55
Table16. Correlations matrix…………………………….…….….…………….…..57
Table17 Model summary……………………………….……….…………………..58
Table18 Regression model significance…………………………………..….…......58
Table19 Regression coefficient summary………….…………….….…….…..……58
Table20. Summary on hypothesis……….……………………….….….…………..63

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 List of figures

Figure 1.SourceTheory of Reasoned Action (Fishbein & Ajzen, 1980)…………27

Fig.2. The proposed conceptual model for the study……………………….……36
Fig 3. Age Vs Mobile banking usage ……………………………………………48
Fig. 4. Education qualification Vs mobile banking subscription….…….………49

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 Chapter One

1.1 Background of the study

Technology has incredible power to improve people’s lives, foster economic growth, and create
opportunities for individuals, companies and nations around the globe (GITR, 2015). Firms are
developing new and innovative products to be able to maintain existing customers and to attract
new markets. Advance in mobile technology have revolutionalize almost every facet of the
society from information to education, granting access to an ever growing number of people.
Consequently, in this information technology era, mobile banking service is the most common
technology which became the part of everyday life for many individuals (Sharma N., 2015).
The spread of mobile technology across the globe is one of the most remarkable achievements
in the last decades, as a result mobile phones have increasingly becomes tools that consumers
use for banking, payment, budgetary and shopping (Sharma N., 2015).

Banking sector is one of the largest financial institutions which are constantly innovating new
services for better customer satisfaction and convenience (Sharma Neha, 2015). Thus, banks
promote new strategies that facilitate online information sharing and transactions linking
banking business to customers through mobile devices. One such innovation is the introduction
of mobile banking technology in the banking sector (Oluoch Roselyne Akinyi, 2012). Mobile
banking technology is a major force that breaking the geographical, legal, and industrial barriers
and has created new products and services (Aboelmaged M.G. and Gebba Tarek R., 2013).

According to Ravichandran Diluxshy and Madana H.Bandaralage and Ayesha H. Madana

(2016) the scopes offered in mobile banking services may include facilitate to conduct bank and
stock market transactions, to administer accounts and to access customized information. The
authors further explained that mobile banking offers the possibility to use e-banking (electronic
banking or internet banking) services via a mobile phone. However, the major difference
between an electronic and mobile transaction, highlighted by the prefixes “e” and “m”, is that
electronic banking offers “anytime access”, while mobile banking offers “anytime and
anywhere access” for business transactions. Therefore, customers using mobile banking have a
greater flexibility than users of other electronic banking service channels.

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Ravichandra Diluxshy et al (2016) define Mobile banking as, “an application of mobile
computing which provides customers with the support needed to be able to bank anywhere,
anytime using a mobile handheld device and a mobile service such as text messaging (SMS)”.
Thus, it removes space and time limitations for banking activities where one can check account
balance or transferring money from one account to another.

In recent studies it was found that while mobile banking and more specifically SMS-based
mobile banking applications have become popular in some countries and regions, they were still
not widely used (Son Yu C. 2012, Ravichandra Diluxshy et al, 2016). With the recently quick
growth in the market of 3G and 4G smart mobile phones, the wireless service delivery channel
becomes a promising alternative for firms to create commercial opportunities. Beside the above
mentioned benefit, the more the personality of mobile phones over PC’s internet and range of
computer like functionality offered by top-the-range devices are leading some observer to
speculate that many people in the near future will start to see the mobile phone as an alternate to
pc’s (Kharaim Hamza Salim et.al , 2011).

It is averred that earliest mobile banking services were offered over short message service
(SMS) banking. Upon the inception of smart phone with WAP support in 1999, the first
European bank commenced offering mobile banking on this plat form to their customer (Doline
Kiura and Solomon Ngahu, 2012).

In our country, this rapid growth of technology knocking the front door of every organization,
where banks in Ethiopia would never be exceptional. In the face of rapid expansion of systems
throughout the developed and the developing world, Ethiopian’s financial sector cannot remain
an exception in expanding the use of the system (Gardachew, 2010).

Commercial banking industry in Ethiopia has composed of one stated owned and 16 private
banks (Birritu, No.119). Though it is true traditional banking has grown steadily over the years,
in terms of technological based financial service/product, the Ethiopian banking sector did not
fully benefits from ICT in general and mobile banking in particular(Arega Henok, 2014).

However, in spite of such growth recently in the banking sector, the financial service
accessibility is still very limited in Ethiopia. For instance the country has one bank branch per
every 27,255 during 2016/17 according to the National Bank of Ethiopia quarter magazine
(2016/17). Thus, such type of technology will be mutually beneficial for both stakeholders.
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After the implementation of mobile banking in Ethiopia, mobile banking users have seen some
growth but in terms of transaction and active involvement still has way to go as compared to a
majority of customer who prefer banking in traditional way. For example out of 10,573,000
customers in CBE only registered mobile banking users are 458,909 with majority used for
notification alarm (CBE, performance review 2015/16).

Table 1. Mobile banking users’ growth in the industry

Commercial Number of mobile banking users

Banks 2015 2014 2013 2012 2011 2010
Commercial bank of 458,909 110,676 9,236
Ethiopia
United bank 219,388 145,078 12,779
Dashen Bank 10,100 5,414 5,356 1472 648 520
Bank of Abissinya 9,000
Wegagen bank 5,536
Zemen bank 674
Nib bank 400
Total 706,022 263,182 29,384 1,472 648 520
Source: National Bank of Ethiopia (2016)

The infrastructure like telecom sector has continued to exhibit remarkable expansion. For
example, in 2015/16, the numbers of mobile subscribers increased by 18.4 percent which is 46
million (NBE, 2015/16). Not accompanied by proportional growth on mobile banking users.

1.2 Mobile banking Technology Employed in Ethiopia

Mobile Banking Channels :
1) SMS (short messaging service) mobile banking
2) USSD (Unstructured Supplementary Service Data)
3) XHTML (the Extensible Hyper Text Markup Language) mobile banking
4) Downloadable mobile banking
5) Smart Applications
a. Android Applications
b. Windows Mobile 7 and 8

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 c. iPhone (IOS Application)
1. SMS Mobile Banking Channel
Functionalities:
i. Balance Enquiry: which allows viewing a real time account balances.
ii. Enquiry of mini statement or account history: allows viewing the last six
transactions or statements
iii. Account Transfer: which allows to transfer fund from one own account to
another own accounts
iv. Payment: which allows payment (transfer) to the predefined beneficiaries
v. Changing PIN: which allows PIN changing
vi. De-subscribe from the service: which gives the option to the customer to
discontinue the subscription of mobile banking services
vii. Help:- which list all commands that customer can use to perform mobile
banking service in SMS channel.
2. USSD, XHTML, Downloadable and Smart Applications Mobile Banking
Functionalities :
i. My account balance:- which allows viewing the real balances with account
currency type, and last 4 digits of customers account numbers. This menu also
allows viewing the last 10 transactions.
ii. Own Account Transfer:- This feature enables to transfer from one accounts to
another own account
iii. Make Payment to Beneficiary:- This allows to transfer to pre-defined beneficiary
iv. Payment to others:- This allows transferring to any CBE account holder.
v. Local money transfer system (LMTS):- This allows transferring money or initiating
local money remittance services to banked/unbanked receiver. The Remitter and the
Receiver will get SMS with security code and the Receiver can collect the money
from any CBE branch with security code.
The above mobile banking services were adapted from CBE’s user manual. The stated benefits
and other opportunities are available in mobile banking service. Almost all services type
provided by other commercial banks is similar.

However, despite many wireless commercial services increase quickly, the use of mobile
banking service is much lower than expected and still used, and the market of mobile banking
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still remains very small in comparing to the whole banking transaction (Ravichandra Diluxshy
et al, 2016). That is, the wide spread adoption and large usage of cell phones did not reflect on
the adoption usage of mobile banking. In other word, Kharim H. S. et al.(2011) stated that,
Mobile banking services operations are still in their immaturity, leaving a great deal of
opportunity for development.

There is a need to identify major factors influencing mobile banking adoption in order to
enhance its usage rate. The wide spread and rapidly increase penetration rates of mobile phones
with the low adaptation of mobile banking by commercial banks customers is one of the
motivation of this study. In our country, the adoption of this technology still not satisfactory and
the banking industry couldn’t be able to serve their potential customers as it was displayed in
the above table. In addition to this, the observed divergence of research findings in this regard
inspired for further investigation. The finding of this study has revealed the reason why
potential users avoid using the technology, which will be an input for banks to foster new
strategies which promote the acceptance of the service.

1.2 Statement of the problem

Mobile banking has been in use since early 2000s in many parts of the world. Indeed, European
banks started using the service in 1999 upon the launch of smart phones (Ravichandra D. et al.,
2016). In Ethiopia, commercial banks commence mobile banking service according to NBE
report (2016). Some of the early mobile banking technology implementers are Commercial
Bank of Ethiopia, United Bank, Bank of Abyssinia, Dashen Bank, Wegagen Bank and Zemen
Bank as per NBE directives, FIS/01/2012 (Arega H.,2015).

As it was presented in the previous section mobile banking is associated with many benefits
which include reduce time of transaction, reduce the need for physically appear in branches for
the service. Against these favorable conditions, however, it is observed on the previous report
(Table 1.) that there has been limited acceptance. In other word, fast advances in the wireless
technology and the intensive penetration of cell phones have motivated banks to spend large
budget on building mobile banking systems, but the adoption rate of mobile banking is still
underused than expected(Chain-Son Yu,2012).

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According to Arega Henok (2015) mobile banking development in Ethiopia is not fully fledged
in terms of extensively utilizing all the mobile services one can get. He added that, of all the
types of mobile banking services, most customers of the bank uses notification (alarm inquiry).

Identifying major factors that hindering successful adoption of mobile banking will help those
service providers to review their effort and to enhance their communication effectively.
However, the situation was challenging due to the fact that the suggested research finding was
contradict with each other on some variables.

For instance, Mulualem Worku (2015) studied in specified CBE customers in Addis Ababa
found out that perceived usefulness and perceived ease of use have positive relationship with
the adoption of mobile banking. On the other hand, perceived risk has negative relationship with
the adoption of mobile banking. Another study conducted by Gizachew Kalkidan (2016), found
out that the relative advantage, compatibility, perceived trust, perceived usefulness, and
perceived risk were major influencing factors for mobile banking adoption. Whereas, to the
contrary of the previous research, perceived ease of use were found to have insignificant effect
on mobile banking usage for CBE and United bank customers located in Addis Ababa, Ethiopia.

According to Oluoch R. A. (2012), which was studied in Kenyan commercial bank customers
revealed that there is no relationship between perceived ease of use (PEOU) and adoption of
mobile banking technology. The author concludes that perceived usefulness (PU) was the most
significant factor affecting adoption of mobile banking technology. Another study conducted on
this issue by Wakungi R. N. (2015) in Kenyans commercial bank customers found out that
majority of the respondents revealed that awareness has the most important challenge in mobile
banking adoption. The author concluded that service providers should focus on awareness in
order to have successful mobile banking adoption.

Thus, this research will fill the gap by integrating technology acceptance model(TAM),
innovation diffusion theory(IDT), Perceived risk, Trust and Awareness in order to examine its
actual effect on mobile banking adoption behavior. In addition to this, the study were consider
four pioneer commercial banks in implementing the technology and their specific retail banking
(ordinary) customer’s behavior. These segments of customers are those who have saving
account. This is more realistic model than previous researches and helpful to bridge the existing

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gap. An important question here is why large number of customers did not adopt mobile
banking as expected. Such that the inquiry was examining the potential factors that influencing
mobile banking adoption in Ethiopia, Particularly in Addis Ababa city commercial banks
customers. Answers to this question could help banks to come up with a right solution to their
mobile banking users and bases for expanding their customer service and competitive
advantage.

1.3 Research question

Based on the above problem statement, the following research questions were examined in the
study. Accordingly, the research were focused on examining how the identified factors
influencing mobile banking adoption in Ethiopia, particularly those commercial banks
customers reside in Addis Ababa.

1.3.1 The main research questions were as follows.

1. What is the effect of Awareness on intention to adopt mobile banking?

2. Will Perceived ease of use have an effect on intention to adopt mobile banking?
3. What is the effect of Perceived Usefulness on intention to adopt mobile banking?
4. Does Perceived Risk affect intention to adopt mobile banking?
5. What is the effect of Trust on intention to adopt mobile banking?

1.3.2. The Specific question will be:

1. What is the direction of relationship between the above listed variables?

1.4 Research Aim and Objectives

The aim of the study was examining the effect of those stated factors (independent variables) on
intention to adopt mobile banking (dependent variable) in Addis Ababa, Ethiopia. This study
was bounded by the following objectives:

1.4.1 General Objectives

 To examine the effect of awareness on intention to adopt mobile banking.

 To examine the effect of perceived ease of use on intention to adopt mobile banking.
 To assess the effect of perceived usefulness on intention to adopt mobile banking.
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  To evaluate the effect of perceived risk on intention to adopt mobile banking.
 To examine the effect of trust on intention to adopt mobile banking.

1.4.2 Specific Objectives

The Specific objectives will be determining the direction of relationship between those
independent variables and dependent variable listed above.

1.5 Hypotheses
The following five research hypothesis were developed in order to answer the research question

H1: PEOU has a significant positive influence on intention to adopt mobile banking.
H2: PU has a significant positive effect on intention to adopt mobile banking.
H3: Perceived risk has a significant negative effect on intention to adopt mobile banking.
H4: Awareness has a significant positive effect on intention to adopt mobile banking.
H5: Trust has a significant positive effect on intention to adopt mobile banking.

1.6 Significance of the study

The study will help banks to:

Understand major factors hindering customers to adopt mobile banking successfully.
Realize the level of their customers’ perception on each research dimension.
Formulate appropriate strategies in implementing this technology.

Beside this, the research will add value for the existing knowledge and bases for further study in
the area of interest. The study was unique due to the fact that, it has selected those pioneer
banks in implementing the technology and integrated elements from TAM, IDT, Perceived risk,
Awareness and Trust with specified commercial bank customers segment.

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1.7 Scope/Delimitation of the study

The scope of study was sufficiently defined in order to ensure that the breadth, depth and detail
of the study were compatible and sufficient to address the stated goal. The boundaries were
determined from the perspectives of conceptual, methodological and target population aspect.
The conceptual scope were first identified and properly selected in order to fully explain the
study of interest. Davis (1989) stated that adoption of a new information system is determined
by perceived usefulness and perceived ease of uses. Kharim H.Salim et.al (2011) suggested that
future technology acceptance research must include other variables to increase its predicative
power. Thus, Awareness, Trust and Perceived risk were considered together with perceived ease
of use and perceived usefulness in predicting intention to adopt mobile banking.

Second, Four Commercial banks in Addis Ababa were selected purposively for this study. Such
that CBE, United bank, Dashen bank and Abyssinia bank. The study considers those
commercial banks customers in Addis Ababa. Here, the customers are saving account holder
and their expected mobile banking transaction were only within their bank account transfer type
of transaction. Finally, Explanatory study was used to discuss the relationship between those
independent variables and dependent variable. 384 sample respondents were considered for the
study. Regression analysis was used to test the hypothesis.

1.8 Limitation of the study

One of the identified limitations of the study was pre-specifying factors affecting mobile
banking adoption of commercial banks customers in Addis Ababa. To have better
understanding and prediction on the issue, the researcher factor out five major variables which
were more representative for the study by reviewing previous research works. The other
suspected limitation was on Sample selection strategy. Convenience sampling may applicable if
the population is homogeneous (Kothari, 2004). Here, the target population was assumed
having similar characteristics, since customers can get the service online from any branch and
anywhere for the service.

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1.9 Organization of the study

This research is organized into five chapters. Chapter one contains background of the study,
statement of the problem, research questions, research objectives, hypothesis of the study,
significance of the study, scope of the study and limitation of the study. Chapter two presented a
literature review on the existing knowledge about the area of study. Chapter three presented the
methodology and research approach employed in the study, including, research design, target
population, Sample size and sampling technique, instrumentation and data collection and
analysis. Chapter four is all about data analysis and discussion of results. Finally, Chapter five
contains summary, conclusions, academic and managerial implication and scope for future
research.

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 Chapter Two
Review of Related Literature

2.1 Introduction
This chapter discusses the overall concepts which were an input for this study by starting with
the introduction of mobile commerce, which is narrowed down to mobile banking. The
technology employed by banks to carry out mobile banking services will be presented. The
adoption will also be discussed in the next section. It goes further to explain TRA, TPB, TAM,
IDT, Perceived risk, Awareness, Trust and the formulated concept that was vital for this study.

Reviewing previous researcher works help us to analyze the existing knowledge in the area of
interest. The theoretical and empirical findings gave validation to carry out the study and help
the researcher to set foundation for the prevailing study. Reviewing the theoretical and
empirical aspects will guide the study, which is helpful in bounding mobile banking technology
adoption concepts (research objectives), figure out and examining their effect on the successful
adoption of mobile banking in our context.

The advent of mobile phone marked the beginning of a revolution where people communicate
and it has redefined communication and has reshaped the way services are provided (Dineshwar
Ramdhony and Steven Munien, 2013). In addition to this, mobile phone has undeniably brought
a paradigm shift which affects both the lives of people and the business environment. These
distinctive features have made the mobile phone evolve into a channel conducive for the
provision of many services. Many firms are increasingly realizing that there are indeed huge
opportunities to be tapped with the mobile phenomena (Dineshwar Ramdhony and Steven
Munien , 2013).

The revolution of mobile commerce can be attributed to the popular ownership and use of
mobile, personal programmable communication devices, like mobile phones and Personal
Digital Assistants(PDAs) like laptops, iPods and palm tops among other emerging
communication gadgets (Wakungi R. N.,2015). These allow consumers to interact with one
another or businesses in a wireless mode, anytime and anywhere.

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Masinge Khumbula (2010) described the use of mobile phone for buying and selling of goods
and services is regarded as mobile commerce. This allows customers to make any kind of
transaction including service enquiry, transferring of money, buying and selling of goods
through internet service on their mobile phone.

Mobile banking is the latest approach used by financial institutions for the provision of financial
services through information and communication technology; whereby customers use a mobile
phone or mobile device to access banking services and perform financial transactions
(Ramdhony Dineshwar and Munien Steven, 2013). Traditionally, the most widespread method
of conducting banking transactions has been through offline retail banking. Wireless
technology, however, is rapidly changing the way personal financial services are designed and
delivered (lee ki soon et al, 2007).
Mobile banking service created new, convenient and fast delivery channel for customers to
enjoy banking services from anywhere, anytime. It is also defined as “Mobile banking is refers
to provision and availing of banking and financial services with the help of mobile
telecommunication devices” (Ravichandra Diluxshy et al, 2016).

2.2 Technologies Employed to Provide Mobile Banking Services

Mobile banking services could be used through more than one channel such as short messaging
service/messaging and application download (client-based) and browser based (Tiwari, R. and
Buse, S. 2007).

1) SMS-Short Messaging Service

This is where the customers communicate with the bank through their mobile devices by
sending an SMS (short messaging service) to the bank. The short messaging service (SMS)
works in two ways, and it can be either a pull mode or a push mode. In the push mode, the
mobile customer send a text message to the bank which contains a service command with a
predefined request code to the bank’s specific number. The bank also reply with SMS
containing the specific information requested from the bank while the pull mode is when the
banks sends a text message to the subscriber (customer) to inform the customer about certain
transaction that have just taken place over the account. The message could be in the form of an

24
MMS (multimedia message service) or SMS (short message service) both work similarly even
though the use of SMS is more popular.

2) Client-Based

This method requires the customers to use software installation, and this will serve as a user
interface that can allow customers to use the mobile device while offline to access some basic
transactions before going online.

Typing details before connecting to the internet could reduce cost. This client based application
is particularly useful because it allows customers to stay offline and while preparing transaction
such as entry of account details and afterwards the transmission is made by sending out the data,
this banking process conducted offline reduces online connection time and cost.

3) Browser-Based

Browser-based customer needs to be connected to the internet to use this service. The interface
is generated from the server which is transported to mobile device, and this allows the content
to be displayed through the browser. This method is extremely fast depending on the server that
the customer is connected to but one its disadvantages is that, it requires the subscriber
(customer) to stay online all through the transaction process and could lead to higher cost for the
customers.

According to Ravichandra Diluxshy et al. (2016), the use of mobile phones has facilitated the
expansion of markets, social business and public service in both developing and developed
countries claims that rapid advance in mobile technologies have made mobile banking
increasingly important in financial services. The use of mobile banking offers a way of lowering
the cost of moving money from place to place. At the same time it brings more users in to
contact formal financial services. In addition, fast advances in wireless technology and the
intensive penetration of cell phones have motivated banks to spend large budget on building
mobile banking system, but, the adoption rate of mobile banking is still underused than
expected (Yu Chian-Son, 2012).

25
2.3 Theoretical Review

The introduction of prepaid cards and the fallen prices of mobile handsets have lead to a rapid
spread of mobile phones in the emerging economies (Tobbin, Peter Ebo 2010). This has opened
up diverse opportunities to be used over and above voice communication. One of such uses
which have emerged lately is the use of mobile phones in financial services.

In the Information Systems literature, Roger’s innovation diffusion theory (IDT), Davies’
(1989) technology acceptance model (TAM), the extended technology acceptance model (Davis
1989) and the theory of planned behavior have been used for the last two decades to explain
possible consumer behavior on adoption and acceptance patterns of new technologies and
innovations(Tobbin, Peter Ebo 2010).

Tobbin Peter Ebo (2010) Technology Acceptance model (TAM) of Perceived Usefulness (PU)
and Perceived Ease of Use (PEOU) and IDT of Relative Advantage (RA) and Trialability with
additional constructs, Perceived Trust (PT) and Perceived Risk (PR), and empirically tested its
ability in predicting user behavioral intention of Mobile Money.

The most applied, tested and refined model is the TAM followed by UTAUT, IDT and then
TPB. In more recent contributions, researchers have used a number of constructs from all four
areas and new constructs from other sources (Tobbin, Peter Ebo 2010). TAM has received
praises from earlier researchers on its contribution towards our understanding into consumer
behavior. Thus, this study were focused TAM , IDT and the extended dimension Perceived risk
, Perceived Trust and Awareness for a better prediction power of intention to adopt mobile
banking.

TAM and IDT are extremely similar in some constructs and supplement one another. Some
researchers indicated that the constructs employed in TAM are fundamentally a subset of the
perceived innovation characteristics and, if integrated, could provide an even stronger model
than either standing alone (Tobbin Peter Ebo , 2010).

26
2.3.1 Theory of Reasoned Action (TRA)
This theory was the foundation for TPB and TAM. According to the theory of reasoned action
(TRA) (Ajzen & Fishbein, 1980), performance of a given behavior is primarily determined by
the strength of a person’s intention to perform that behavior. The intention to perform a given
behavior is, in turn, viewed as a function of two factors, namely the person’s attitude toward
performing the behavior (i.e., one’s overall positive or negative feeling about personally
performing the behavior) and/or the person’s subjective norm concerning the behavior (i.e., the
person’s perception that his or her important others think that he or she should or should not
perform the behavior) (Fishbein Martin and Cyzer Marco, 2003).
Attitudes are a function of behavioral beliefs (i.e., beliefs that performing the behavior will lead
to certain outcomes) and their evaluative aspects (i.e., the evaluation of those outcomes);
Subjective Norms are viewed as a function of normative beliefs (i.e., beliefs that a specific
individual or group has regarding whether one should or should not perform the behavior in
question) and motivations to comply (i.e., the degree to which, in general, one wants to do what
the referent thinks one should do) (Ajzen and Fishbein's , 1980).

Figure 1.SourceTheory of Reasoned Action (Fishbein & Ajzen, 1980).

2.3.2 Theory of Planned Behavior (TPB)

Theory of planned behavior (TPB) despite the predictability of TRA is strong across the study;
it becomes problematic if the behavior under study is not full volitional control (Bargani S.
Naimi, 2008). Ajzen (1985) extended the theory of reasoned action by including another
construct called perceived behavioral control, which predicts behavioral intention and behavior.
The extended model is called the theory of planned behavior (TPB). The theory of planned
behavior (TPB) suggested that human behavior is determined by intention to perform the
behavior, which is affected jointly by ATB, SN and PBC.

27
Attitude toward the behavior: Is the general feeling of people about the desirability or
undesirability of specific behavior.
Subjective Norm: Express the perceived organizational or social pressure on a person who
intends to perform a particular behavior.
Perceived behavioral control: Reflects perception of the ease or difficulty of implementing a
particular behavior (Karungu Catherine W., 2014)

TRA and TPB have many similarities. In both models, behavioral intention is a key factor in the
prediction of actual behavior. Both theories assumed that human beings are basically rational
and make systematic use of information available to them when making decision (Bargani S.
Naimi, 2008).
Many existing studies in the context of e-business have shown that individuals attitude directly
and significantly influence behavioral intention to use a particular e business application
(Mazhar Fatima et al.,2014 and Takele Yitabrek, Sira Zeleke,2013) found that attitude
significantly affects intention to adopt mobile banking .Similarly, previous research in an online
technology adoption suggested that PBC as a good predictor of usage intention (Tarik bahti,
2007 and Yitabrek Takele and Zelek Sira, 2013). In addition, PBC significantly affects intention
to adopt mobile banking.
The theory of planned behavior (TPB) has been successfully applied to various situations in
predicting user intentions to use new software. Other researchers also found that TPB has a
better predictive power of behavior than TRA (Aboelmaged Mohammed G. and Gebba Tarik
R,2013).

2.3.3 Technology Acceptance model(TAM)

Technology acceptance model (TAM), introduced by Davis (1989), and is an adaptation of the
theory of reasoned action (TRA) specifically tailored for modeling user acceptance information
system. The goal of TAM is to provide an explanation of the determinants of computer
acceptance that is general, capable of explaining user behavior a broad range end user
computing technologies user populations. In addition to this, the author stated that the purpose
of TAM is to provide bases for tracing the impact external factors on internal beliefs, attitudes
and intentions. The TAM posits that a user’s adoption of a new information system is
determined by that user’s intention to use the system, which in turn is determined by the user’s

28
beliefs about the system. The TAM further suggests that two beliefs – perceived usefulness and
perceived ease of use – are instrumental in explaining the variance in users’ intentions (Kharim
H.Salim,Al Shoubaki Y.Ellian and Kharim A.Salim,2011). Thus, we have two particular beliefs
perceived usefulness (PU) and perceived ease of use (PEOU) for the determination of intention
to adopt mobile banking.

According to Kharim H.Salim et.al (2011) future technology acceptance research must address
how other variables affect usefulness, ease of use and user acceptance. Therefore, perceived
ease of use and perceived usefulness may not fully explain behavioral intentions towards the use
of mobile banking, necessitating a search for additional factors that can better predict the
acceptance of mobile banking.

2.3.4 Mobile Banking Adoption (IDT)

Another theory which has received similar attention by scholars in explaining consumer
behavior towards new technology is the Innovation Diffusion Theory(IDT). Adoption is the
acceptance and continued use of a product, service or idea (Roger, 2003). According to the
author, consumer goes through a process of knowledge, persuasion, decision, implementation
and confirmation before they are ready to adopt a product or service. In other word, innovation
adoption is the process through which an individual or other decision making unit passes from
knowledge of an innovation, to forming an attitude towards the innovation, to a decision to
adopt or reject, implementation of the new idea, and to confirmation of this decision.

Wu Jen Her and Wang Shu-Ching ( 2004) presents an extended technology acceptance model
(TAM) that integrates innovation diffusion theory, perceived risk and cost into the TAM to
investigate what determines user mobile commerce acceptance.Furthermore, the central concept
of innovation diffusion is ‘‘the process in which an innovation is communicated through certain
channels, over time, among the members of a social system.’’ However, research has suggested
that only the relative advantage, compatibility, and complexity are consistently related to
innovation adoption (Wu Jen Her and Wang Shu-Ching, 2004). In addition the authors further
related that Relative advantage is similar to perceived usefulness, whereas complexity is similar
to perceived ease of use. Compatibility is the degree to which the innovation is perceived to be
consistent with the potential users’ existing values, previous experiences, and needs.

29
According to Rogers (2003) there are five perceived characteristics of innovation that can be
used to form a favorable or unfavorable attitude toward an innovation, relative advantage,
compatibility, complexity, trialability, and observability.
1) Trailability: is the degree to which an innovation may be experimented with on a limited
basis.
2) Compatibility: is the degree to which an innovation is perceived as being consistent with the
existing values, past experiences, and needs of potential adopters.
3) Complexity: is the degree to which an innovation is perceived as difficult to understand and
use.
4) Risk: The perceived sense of risk concerning disclosure of personal and financial information
5) Relative advantage: is the degree to which an innovation is perceived as better than the idea it
supersedes.

By these definitions, innovation diffusion is achieved by how a social system accepts and
begins to use (adopt) an idea or a technology. Therefore it could be argued that the determinants
of adoption in mobile banking and mobile payment environment should be applicable to mobile
money. TAM and IDT are considered to be extremely similar in some constructs and
supplement one another Tobbin Peter Ebo (2010).

According to Tobbin Peter Ebo (2010) some similarities can be drawn between RA and PU;
Complexity and PEOU to the extent that some researchers identifies the TAM constructs as a
subset of the Innovation Diffusion Theory. However, developing different measurements for
RA and PU was found to be particularly important in mobile money adoption. However,
complexity and PEOU is considered to be too similar to be separated in this study.

Wu Jen-Her and Wang Shu-Ching (2004) presents an extended technology acceptance model
(TAM) that integrates innovation diffusion theory, perceived risk and cost into the TAM to
investigate what determines user mobile commerce acceptance.

30
TAM and IDT are extremely similar in some constructs and supplement one another. Some
researchers indicated that the constructs employed in TAM are fundamentally a subset of the
perceived innovation characteristics and, if integrated, could provide an even stronger model
than either standing alone (Jen-Her Wu and and Shu-Ching Wang, 2004).

2.3.5 Perceived Ease of Use

PEOU is “the degree to which a person believes that using a particular system will be free of
effort” (Davis, 1989). In mobile money transfer, it includes registration procedures, ease of use
of the payment procedure, easy access to customer services, minimal steps required to make a
payment, appropriate screen size and input capabilities. Furthermore, it should be accessible on
mobile phones with the most basic features and software. Prior researches have concluded that
PEOU is a key determinant to consumer behavioral intentions (Tobbin, Peter Ebo 2010).
H1: PEOU has a significant positive influence on intention to adopt mobile banking.

2.3.6 Perceived Usefulness

Perceived usefulness is said to be the degree to which a person thinks that using a particular
system will enhance his or her performance. In consumer behavior analysis PU has been well
tested as a determinant for a consumer’s intention to use mobile services. Also, the extent to
which a consumer finds the MM transfer useful may depend on the RA of the service. If the
mobility and easier accessibility characteristics of mobile services leads to a consumer belief
that the mobile money transfer is better than its predecessors (other money transfer services)
then that will affect its perceived usefulness (Tobbin, Peter Ebo,2010).

H2: PU has a significant positive effect on intention to adopt mobile banking.

2.3.7 Perceived Risk

Perceived risk as defined by (Pavlou, 2001), “It is the user’s subjective expectation of suffering
a loss in pursuit of a desired outcome”. The quality of online services offered the possible risk
of illegal activities and fraud has always been a concern for both consumer and service
providers. When customers are uncertain about product quality, brand and online services, they
may worry about an unjustified delay in product delivery, providing payment without receiving

31
the product and other illegal activities and fraud. The Perceived Risk surrounding an innovation
might cause a potential adopter to postpone the decision to either adopt or reject the adoption.
Introduced risk as an additional measurement in IT adoption (Ravichandra Diluxshy et al,
2016).
Perceived Risk is defined as a consumer’s belief about the potential uncertain negative
outcomes from the mobile money transaction. Credit ratings, bank balances and financial data
could be changed without the owner knowing during online transactions. Some users perceive
potential risks from immature technology. Others hesitate before trusting online transactions
and other activities (Wu Jen-Her and Wang Shu-Ching , 2004) .

The following is a summary of the results of this study. In support of TAM, Perceived Ease of
Use and perceived usefulness were found to be the most significant determinants to intention to
use mobile money transfer in Ghana. Perceived Trust, Trialability and Perceived Risk were also
found to significantly affect Intention. As part of financial services, the adoption of mobile
money transfer is dependent on consumers’ perception on Trust and Risk. Thus, the findings
support the traditional view on the effect of risk and trust on usage of financial services.
Furthermore, the need for potential consumers to trial the service before adoption was
significantly confirmed (Tobbin, P. E. 2010). The study found that customers who believed that
mobile banking is unsafe want to adopt mobile banking at much lower rate as compared to those
who consider mobile banking safe. The study also further explained that people with higher
level of risk tolerance are more eager to adopt mobile banking even after controlling their
perception of the safety associated with mobile banking (Arif Imtiaz, Afshan Sahar and Shari
Arshian, 2016).

Joubert Janine and Bellev Jean-Paul Van (2013) Trust is pertinent in risky situations and only
relevant in contexts where decisions have to be made in situations that involve a degree of
(perceived) risk. Since to trust essentially means to take risks and leave oneself vulnerable to the
actions of trusted others. E-commerce trust researchers show that increased trust reduces the
trustee‟s perception of risk and influences their attitudes towards the trustee, which, in turn,
influences the willingness to purchase. The research hypothesis will be:
H3: Perceived risk has a significant negative effect on intention to adopt mobile banking

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2.3.8 Perceived Trust
Trust, the degree to which a person believes that others will live up to his expectations and will
not take undue advantage of the situation, is one of the most frequently discussed external factor
that hinders adoption of technology (Mazhar Fatima et al.,2014). They have figure out from
different authors that trust plays important role in diminishing of fears. It helps make possible
the reduction in uncertainties and ambiguities related to financial transactions in e-commerce
thus enhancing the likelihood of increasing customers adopting of mobile banking.

Mobile Money transfer environment, like all business transactions require an element of trust.
And for the purpose of this study, trust is defined as a measure of consumer’s level of assurance
that the service will be provided with minimum possible hindrance. In addition overall network
and service perceived reliability affect consumer’s perceived trust in the service. The reliability
can be measured by the successful utilization of the service over a period of time with little or
no interference. Consumers need to have a belief that the network is reliable (Wu, Jen-Her and
Wang, Shu-Ching 2004).
Thus, the research hypothesis will be:

H5: Trust has a significant positive effect on intention to adopt mobile banking.

2.3.9 Customer Awareness

According to Sathye, M. (1999), the level of information consumers have on mobile banking is
one of the major factors affecting the adoption and usage of online banking. In addition rate of
adoption of an innovation could be determined by level of awareness of the customers. Since, a
mobile banking service is new for many customers and the banks required to create enough
awareness to capture the attention of the customers.
H4: Awareness has a significant positive effect on intention to adopt mobile banking.
A number of respondents feel that low awareness of mobile banking services can influence their
intention to adopt this service. In addition, lack of knowledge about mobile technology and/or
mobile banking especially information related to the applications discourage them from trying
the service. One participant mentions that Malaysians are generally not familiar with mobile
banking service, and that probably is one of the reasons contribute to low adoption rate at the
moment(Ewe Soo Yeong and Yap Sheau Fen, 2012)
33
Thus, the study were tested the integrated components of technology acceptance model (TAM)
of Peou and PU, innovation diffusion theory of perceived risk with perceived trust and
awareness to investigate what determines mobile banking users acceptance of the technology.

2. 4. Empirical Review
Even though the penetration of mobile phones among the population continues to grow in
significant numbers year on year mobile banking adoption is too low. This argument is
evidenced by the fact that the use of mobile banking service is much lower than the initial
anticipated and still underused, and the mobile banking service coverage in terms of financial
coverage and number of users still remains very far behind as we compared to the entire
banking transaction (Arega Henok, 2015).

Some of the empirical research findings are presented here for example; A study conducted by
Sathya Swaroop Debasish and Sabyasachi Dey (2015) Perceived Usefulness (PU) 0.157,
Perceived Ease of Use (PEOU) 0.163 and Perceived Risk (PR) -0.151 have effect on intention
to adopt mobile banking.
Ki Soon Lee (2007) stated that Perceived risk (β=-.24) had an indirect effect on adoption
behavior even though it had an insignificant direct relationship with adoption behavior. The
researcher concluded that trust had strong effect on the adoption of mobile banking behavior
than perceived usefulness of the traditional TAM variable. Consumer’s trust of the bank,
telecom provider, and wireless Internet had significant influence on their usage of mobile
banking.

A study conducted by Ravichandran Diluxshy et al (2016) in Sri lank revealed that PU has a
significant relationship with adoption of mobile banking. Further the coefficient of PU is 0.695
which is positive; implying that PU has positively affects adoption of mobile banking. Whereas,
PR (-0.681) has a significant relationship with adoption of mobile banking. Further the
coefficient of PR is -0.681 which is negative; they conclude that PR has negatively affects
adoption of M-banking. The researchers concluded that PU was the most significant factor
affecting adoption of M-banking technology.

34
An empirical study conducted in Pakistan concluded that consumers’ intention to adopt mobile
banking services was significantly influenced by social influence, perceived risk, perceived
usefulness, and perceived ease of use. The most significant positive impact was of social
influence on consumers’ intention to adopt mobile banking services (Kaziia A. Kabeer and
Mannanb Muhammad Adeel, 2013). Another study conducted on the same issue by Wakungi R.
Ndinda (2015) in Kenyans commercial bank customers found out that the majority of the
respondents(64%) revealed that awareness has the most important effect on mobile banking
adoption.
According to Oluoch Roselyne Akinyi (2012) who had studied in Kenyan commercial bank
customer, found out that the significant variables that influence mobile banking adoption
include Perceived Usefulness (p = 0.0001< 0.0005) and PU (p = 0.028). However, PR
significantly influence mobile adoption negatively (coefficient = -0.2373). However, Perceived
Ease of Use (p = 0.64 > 0.005) is not a significant factors. The researchers revealed that there is
no significant relationship between perceived ease of use (P=0.64>0.05) and adoption of Mobile
banking technology. This implies that there is no relationship between perceived ease of use
(PEOU) and adoption of Mobile banking technology. From their research PU was the most
significant factor affecting adoption of mobile banking technology.

A Case study on selected access bank customer in Ghana by Cudjoe A. G. et al.(2015) found
that the majority of the respondents, thus, seventy four percent (74%) believed that, the services
provided through their banks using a mobile device must be compatible with their important
transaction needs before they can use the self-service. A study conducted by Rumanyika Joel D.
(2015) about obstacles towards the adoption of mobile banking in Tanzania. Their observation
revealed that poor network coverage (78.6 %), lack of knowledge of mobile banking users
(57.1%), lack of enough floats, ATMs breakdown and theft (50%), poor security of mobile
network (57.1%), are critical obstacles towards the adoption of mobile banking in Tanzania.
The finding identified that facilitation condition is most significant predictor of intention to
mobile banking adoption.
A research conducted locally by Gizachew Kalkidan (2016) revealed that Perceived ease of use
has emerged in this study as having an insignificant negative influence on mobile banking
usage. In addition the researcher concluded that Awareness was found to have an insignificant
impact on mobile banking usage. The researcher concluded that having more or less awareness

35
about mobile banking has no significant impact on usage of mobile banking adoption for
customers in Addis Ababa, Ethiopia.

The same study on commercial bank customers in Addis Ababa which was studied by Worku
(2015) revealed that perceived usefulness and perceived ease of use have positive relationship
with the adoption of mobile banking, whereas perceived risk has negative relationship with the
adoption of mobile banking. As it was presented above we have got divergent research finding
on some variables which will be required to elucidate.

In fact there is a difference in socio –economic and cultural belief exist between study groups,
different researchers found different and unrelated result on some determinant factors which has
significant influence on customers’ mobile banking adoption. There was also divergent result
observed in this specific target population. Thus, this research will propose the following
research model for the study.

2.5 Conceptual Frame work / Research Model/

The conceptual framework displayed in Fig2 below, was extracted from previously discussed
known theories. It illustrates the causal effect of independent variables on dependent variable. It
shows Awareness, perceived usefulness (PU), perceived ease of use (PEOU), perceived risk
(PR) and Trust variables have an effect on intention to adopt mobile banking technology.

Fig.2. The proposed conceptual model for the study.

36
 Chapter Three
Research Methodology

3.1 Introduction

This section presents the methods which were followed to achieve the research objectives. It
highlights the research approach, research design, source of data for the study, data sampling
technique and description of data collection tools. Finally, the statistical method which was
utilized to analyze the data will be discussed.

3.2 Research Approach

The research approach was quantitative in nature which involves the use of primary data in
order to answer the research questions and to achieve its research objective deductively. Survey
strategy was used, which is usually associated with the deductive approach and It is a popular
strategy in business and management research and is most frequently used to answer who, what,
where, how much and how many questions (Saunders Mark, Lewis Philip and Thornhill Adrian,
2009). Surveys are efficient in obtaining information with regards to customers’ feelings or
opinion on that specific period. Survey studies ask large numbers of people questions about
their behaviors, attitudes, and opinions. Some surveys merely describe what people say, they
think and do. Other survey studies attempt to find relationships between the characteristics of
the respondents and their reported behaviors and opinions (Geoffrey Marczyk, David DeMatteo
and David Festinger, 2005).

3.3 Research Design

Here, the research strategies, research choices and time horizons are the three layers that can be
thought while developing research design that are turning research question into a research
project. The way the researcher chooses to answer a research question will be influenced by his
research philosophy and approach (Saunders Mark et al, 2009). The author stated that, research
questions will subsequently inform the choice of research strategy, choices of collection

37
techniques and analysis procedures, and the time horizon over which the researcher undertake
the research project .

This research was explanatory study that was mainly aimed at examining and identifying the
relationship of factors influencing mobile banking adoption behavior in the context of
commercial banks customers in Addis Ababa. Saunders Mark, Lewis Philip and Thornhill
Adrian (2009) stated that explanatory research seeks to establish relationship that exists between
variables, that is, to identify how one variable affects the other; it also seeks to provide an
explanation to the causes and/or effects of one or more variables. In addition, studies that
establish causal relationships between variables may be termed explanatory research.
Furthermore, the study was cross-sectional because it focuses on a particular phenomenon at a
specific period of time as opposed to longitudinal research which focuses on the phenomenon
successive time interval. The effect of perceived usefulness, perceived ease of use, perceived
risk, trust and awareness on intention to use mobile banking were investigated. In addition, the
relationships between dependent and independent variables were also discussed.

3.4 Target Population

For the purposes of this study, the population was commercial banks customers in Addis Ababa.
According to Zikmund (2003) a population is any complete group of people, companies,
hospitals, stores, college students or the like that share some set of characteristics.

According to National bank of Ethiopia annual report (2016) Commercial Bank of Ethiopia,
United bank, Dashen bank and bank of Abyssinia have started the technology early. Major
relevant characteristics of the target population were age, education qualification and mobile
banking usage. The unit of analysis for the study was individual customers with saving account
in their respective banks, because the study entirely focuses on the behavior of individual
customers this segment was more representative to deal with the behavior.

3.5 Sample Size

The basic idea of sampling is that by selecting some of the elements in a population,
conclusions can be drawn about the entire population (Zikmund, 2003). And hence, the study
was focused on commercial banks customers within Addis Ababa City administration. Four
commercial banks were identified purposively for this study, three private and one government

38
owned, namely Commercial bank of Ethiopia (CBE), United bank, Dashen bank and bank of
Abyssinia. Focusing on these pioneer banks in the study with an assumption of they have been
serving these new platform for their customers relatively longer period of time than others and
the proposed constructs have been able to fully determined their customers’ behavioral
intention.
In the views of personal innovativeness demonstrates a positive-significant relationship towards
mobile banking adoption; thus the banks can promote and create awareness to the public
through highlighting the benefits or advantages that can be gained from the mobile banking
services to stimulate the adoption level among the mobile users. Instead, such promotion also
provides better exposure and awareness to the non-mobile banking users to have positive
impression towards mobile banking (Dr. Sathya Swaroop Debasish, 2015).

In addition, a quantitative study by Ewe Soo Yeong and Yap Sheau Fen (2012) reveled that
awareness is one of the salient factor determining mobile banking adoption. Thus, those pioneer
banks would be expected to capture the level of awareness better than those newly implemented
the technology and evaluation of the level of awareness were meaningful from the perspectives
of relatively longer period providing the mobile banking service.

Sample size is influenced by a number of factors, including the purpose of the study, population
size, the risk of selecting a "bad" sample, and the allowable sampling error (Glenn, D. Israel,
1992). In addition to the purpose of the study and population size, the author also reviewed
three criteria usually considered to determine the appropriate sample size, i.e. the level of
precision, the level of confidence or risk, and the degree of variability in the attributes being
measured.

According to Zikmund (2003) sample size has a direct influence over the accuracy of the
research findings. To determine a suitable sample size, it is necessary to specify the variation or
standard deviation of the population, magnitude of acceptable error and confidence level. A
minimum of 384 sample respondents required for researchers normally work to a 95 per cent
level of certainty and 100,000 plus number of population. This means that if sample was
selected 100 times, at least 95 of these samples would be certain to represent the characteristics

39
of the population (Saunders M, 2009). Thus, 384 sample respondents were involved in the
study.

3.6 Sampling Techniques

Developing a sampling frame was difficult as it requires banks to make available confidential
information about their customers. This is something they would not do. Since there is no
sampling frame, non-probability sampling was used. In other word, limited resources or the
inability to specify a sampling frame may dictate the use of one or a number of non probability
sampling techniques (Saunders Mark, 2009).

Purposive/judgment sampling technique was used to select those pioneer banks in implementing
the technology. Being pioneer in the technology means it has a ground for the researcher to
claim why peoples resist to this technology. The reason behind this assumption is that those
pioneer banks have sufficient time to create awareness and able to change their customer
attitude in order to flourish the technology. Respective branches were selected based on
convenience sampling technique. Proportional sample respondents was selected from each
banks based on their number of branch. Then, sample respondents were selected from respective
branches by way of approaching customers who visit the branch accidentally with the help of
respective branches staffs. Under convenience or accidental sample selection sample was
identified primarily on the basis of its relative ease of access or convenience; for example,
market developments research (IFC, 2009).

Table 2 Sample commercial banks branch network in Addis Ababa

S.No Commercial Number of Branches Sample
Banks in Addis Ababa % Branch respondents
out let
1 CBE 262 52.3 201
2 Dashen bank 68 13.6 52
3 United bank 77 15.4 59
4 Abissiniya 94 18.7 72
bank
Total 501 100 384
Source: NBE (2016/17) 1st quarter report

40
Based on the number of branches operating by the respective banks in Addis Ababa,
proportional sample respondents were selected for the study. Using convenience sampling six
branches were selected in order to allocate those pre-specified sample respondents.

Table3 Sample respondents allocation per branch

Goffa sefer 67
CBE Nifas silk 67
China Africa 67
Dashen bank Beklobet 52
United bank Yosef 59
Abissiniya Adey Abeba 72
Total 384

3.7 Instrumentation, Data Collection and Analysis

3.7.1 Development of Instrument

The data collection instrument was entirely of closed-ended. The questioners have twenty eight
(28) items in two parts. The first part have six questions about respondents general information
and the remaining 22 items concerning on individuals perception towards mobile banking
adoption. To ensure success, the questionnaires were short and simple, with questions moving
from easy to more difficult ones are recommended (Kothari, 2004). The questions were
assumed to capture data in line with the study objectives. Furthermore, to be consistent with
previous research questionnaires were adapted from related literature and modified to our
context.

According to Zikmund (2003), using a Likert scale allows the respondents to indicate their
attitudes by checking how strongly they agree or disagree with the constructed statements. The
questionnaires were distributed to sample respondents in order to have primary data from the
respondents. A five point likert scale were used, where 1=strongly Disagree (SD), 2=Disagree
(D), 3 = Not Sure (NS), 4 = Agree (A), and 5=strongly Agree (SA) were applied to measure the
respondents’ view concerning statements on those constructs which was briefly discussed in the
literature and the conceptual model. Refer the developed questionnaire for this study at the
Appendix A.

41
3.7.2 Data Collection
Primary data were collected from sample respondent. Structured questionnaires were applied to
obtain primary data from the respondents. The questionnaires were administered to those
sample respondents in order to have their opinion regarding to intention to adopt mobile
banking.

3.7.3 Reliability
Before conducting the actual survey, a pre-testing (pilot study) were conducted to validate the
instrument. According to Zikmund (2003), a pre-testing study provides an opportunity for the
researcher to determine whether the respondents had any difficulty on understanding the
questionnaire. Pre-testing has an opportunity to check whether there were any ambiguous or
biased questions (Zikmund, 2003).

To check the reliability of the test items 20 questionnaires were distributed for respondents. The
respondents were asked if they have any problems or suggestion regarding the questionnaire.
The respondents were encouraged to be open and free in giving suggestion for improvement.
Their recommendation and suggestion were accepted. Finally, the observed data were tested
using Cronbach’s alpha test for the reliability of the items that make up the questionnaires. The
Cronbach’s alpha values for pilot survey were summarized in data analysis part table 5.

3.7.4 Data analysis

The data analysis procedures were editing of raw data, classification, coding of responses
according to class intervals and tabulation. Descriptive statistics was used to find out
demographic and general characteristics of the respondents. Summarized data were presented in
the form of frequency tables, cumulative tables, percentage and bar chart. The quantitative data
were analyzed using SPSS software package. Multiple linear regression analysis was applied to
identify the relationship between the dependent and independent variables and to test the
research hypothesis.

Descriptive analysis: descriptive statistics output were presented by tables, frequency

distributions, percentages and charts to analyze demographic characteristics of the respondents.
The results were obtained through SPSS software version16.0.
Pearson Correlation analysis: In this study Pearson's correlation coefficient were used to
determine the relationships between explanatory variables (Awareness, Perceived Usefulness,

42
Perceived ease of Use, Perceived risk, Trust) and explained variable (Intention to Adopt mobile
banking).

Multiple Regression Analysis: Multiple regression analysis was used to examine the effect
Awareness, Perceived Usefulness, Perceived ease of Use, Perceived risk, Trust on Intention to
Adopt mobile banking. In addition to this regression analysis were used to test the research
hypothesis.

Regression functions

The equation of multiple regressions was built around the two sets of variables, namely
dependent variables (Intention to adopt) and independent variables (Awareness, Perceived
Usefulness, Perceived ease of Use, Perceived risk, Trust).

Table 4 summary on regression variables

Independent variables Dependent variable
Awareness (X2) Intention to Adopt Mobile banking (Y)
Perceived Usefulness (X3)
Perceived Ease of Use (X4)
Perceived Trust (X5)
Perceived Risk (X6)

The proposed research model was represented by the following equation:

Y = B1+B2X2 + B3 X3 + B 4X4 + B5X5 + B6X6 ; Where Y is the dependent variable-

Intention to adopt mobile banking

X2, X3, X4, X5, and X6 are the explanatory variables

B1 is the intercept term- it gives the mean or average effect on Y of all the variables excluded
from the equation, although its mechanical interpretation is the average value of Y when the
stated independent variables are set equal to zero.

B2, B3, B4, B5, and B6 refer to the coefficient of the respective independent variable which
measures the change in the mean value of Y, per unit change in their respective independent
variables.

43
 Chapter Four
Data Analysis and Discussion of findings

4.1 Introduction

This chapter provides an overview of the performed analyses on the observed survey data. The
basic variables that were intended to measure customers’ perception on mobile banking
adoption were organized in to five constructs. The proposed hypotheses were tested and its
statistical outcomes discussed. In order to test the hypothesis, the significance level is set at 95
% confidence interval, since sample size was already specified for this level of precision in the
methodology section. The fundamental analyses were performed by using Statistical Software
Package SPSS 16.0.

The observed survey data were analyzed and presented in meaningful form that can be easily
understandable. First, sample respondents demographic characteristics were discussed using
frequency distribution table, bar charts. Respondent’s perception regarding to the respective
dimensions/constructs/ were also discussed. Before applying regression analysis the basic
assumptions were tested. Then regression analyses were carried out on the survey data to test
the research hypothesis.

A total of 384 questionnaires were given to the respondents, 360 responses were received but
only 317 questionnaires were used for analysis yields 82.6 % of response rate. This is
performed based on the basic response rate calculation; where dividing the number of people
who submitted a completed survey by the number of people the researcher attempted to contact.
In this case 80%-85% response rate regarded as good (M. G. Saldivar, 2012). Sample
respondents were selected from four commercial banks in Addis Ababa (i.e Commercial Bank
of Ethiopia, Dashen bank, United bank and Bank of Abyssinia). The study was entirely focused
on examining the effect of Awareness, Perceived Usefulness, and Perceived ease of Use,
Perceived Trust and Perceived Risk on intention to adopt mobile banking.

44
Prior to the analysis procedure data screening and cleaning was performed on the collected data
set. In this procedure those entered variable scores were checked, where the observed data were
lies on the specified unit of measurement. The observed SPSS output assured for next step of
data analysis procedure.

4.2 Reliability Analysis

Reliability refers to the consistency or dependability of a measurement technique, and it is

concerned with the consistency or stability of the score obtained from a measure or assessment
over time and across settings or conditions. If the measurement is reliable, then there is less
chance that the obtained score is due to random factors and measurement error (Geoffrey
Marczyk ,David DeMatteo and David Festinger, 2005).

Reliability is defined as the degree to which measures are free from error and therefore yield
consistent result (Zikmund , 2003). A reliability coefficient of zero indicates that the test scores
are unreliable on the other hand the higher reliability coefficient the more reliable or accurate
the test score. The chronbach's alpha test of reliability is used to test of reliability of the
instrument used for the study. The reliability test was done on those five identified constructs
(dimensions) scales and the scores are displayed in the table 5. below.

Table 5 Scale Item reliability statistics

Pilot test Cronbach's Alpha Number of Items
Dimension Cronbach’s Alpha
Awareness 0.900 0.864 4
Perceived Usefulness 0.694 0.799 4
Perceived Ease of Use 0.917 0.853 3
Perceived Risk 0.930 0.804 4
Perceived Trust 0.717 0.898 3
Intention To Adopt 0.823 0.889 4
Overall Reliability 0.757 0.786 22
Source: Own survey data (2017)

To test the reliability of the scale from each variable, a Cronbach’s Alpha was used to measure
the internal consistency of the variables (items). The cut-off point used in this analysis was a
maximum value of 0.9 for α maximum alpha value of 0.90 has been recommended (Tavakol
Mohsen and Dennick Reg, 2011). The output of the reliability test shows all variables scores
have good result for Alpha. These values (table) above met the requirement and assure the items
were measuring the intended construct.
45
After confirming the reliability of each dimension above, next, respondents profile was
discussed using descriptive statistics. The relationship between dependent and independent
variables were identified and the research hypothesis was tested using multiple regression
techniques with the help of SPSS software.
4.3 General characteristics of respondents

In order to observe the profile of sample respondents a set of basic questions were asked.
Frequencies were used to determine how often respondents made a certain response in
answering the respective questions, and these gave background information about the sample
respondents general characteristics. The demographic detail shows gender, age, occupation,
educational status, monthly income level and mobile banking usage.
Table 6 General characteristics of respondents
Valid Cumulative
Characteristics of respondents Frequency Percent Percent
Male 192 61.1 61.1
Gender Female 122 38.9 100
Total 314 100
Less than 20 year 6 1.9 1.9
20-30 years 98 31.5 33.4
31-40 years 147 46.3 79.7
Age
41-50 years 51 16.4 96.1
Older than 50 years 12 3.9 100
Total 314 100
High school or Below 115 37.3 37.3
Diploma 120 38.3 75.6
Education Qualification Degree 70 22.4 98.1
Masters or above 6 1.9 100
Total 311 100
government 140 46.5 46.5
Private 96 29.9 76.4
Occupation
Other 71 23.6 100
Total 307 100
Less than 3,000 birr 65 21.1 21.1
3,001 to 6,000 birr 131 42.5 63.6
6,000 to 10,000 86 27.3 90.9
Monthly Income
Above 10,000 birr per
28 9.1 100
Month
Total 308 100
Yes 130 32.2 32.2
Mobile Banking usage No 187 67.8 100
Total 317 100
Source: Own Survey data (2017)

46
4.3.1 Respondents Gender distribution
As it was displayed on the above table 6, from 314 respondents who completed the gender
information 192 were men which comprise 61.1% of the study participants and the number of
female participants accounted for 38.9 % of the total participant in the study. The output
revealed that there was a wide gap between men and women bank customers. This is economic
implication of gender inequality in the country.

4.3.2 Respondents Age

Table 6 above, shows that 46.3% of respondents’ ages were between 31-40 years, followed by
those between 21 and 30 years which constituted 31.5% while the other age group lies between
41 to 50 years lagged behind the two age groups with 16.4 % and the rest two extreme ends
accounted for less than 6%. The implication of the result is that most of commercial banks
customers are potential work force between the age group 20-40 and these segment will be a
potential target market of the mobile banking service channel.

4.3.3 Education Level

Respondents were also requested to indicate their educational level and their responses were
summarized as shown in table 6 above. The finding revealed that 37.3 % of the respondents
indicated that they had some high School education or below, 38.3 % indicated that they have
diploma education, 22.4 % indicated that they have Bachelor‘s degree education and 1.9%
indicated that they have masters. We can therefore deduce that majority of the respondents (63
%) were educated.

4.3.4 Mobile banking Usage

As it was displayed in the above table 6, the majority 67.8% of the respondents were non-users
whereas, 32.2% of the respondents in the study were mobile banking users. The study revealed
that the numbers of non user were twice as much as the number of users. In order to have
adequate information on mobile banking users, additional investigation will required on the type
service do they have frequently engaged. These may further decline the active mobile banking
users, because someone may feel that notification alarm /balance inquiry as a major mobile
banking function.

47
4.3.5 Respondents Income Level
Sample respondents were requested to indicate their income levels. From the sample
respondents 21.1% indicated that they have earned below 3,000 birr, 42.3 % indicated that they
have monthly income between 3,000 and 6,000; 27.7% replied that they have earned between
6,000 and 10,000; whereas, 9.1% indicated that they have earned above 10,000 Birr. The data
revealed that the majority of saving account holders monthly income fall between 3,000 and
6,000.00 birr.

4.3.6 Cross Tabulation between Age, Education qualification and Mobile banking usage
As it was revealed in the fig.3 below, within each respective age group the number of non
mobile banking users was larger than the number of users. But, from those five age categories,
the second age groups (21-30) have equivalent proportion of users and non users existed.
Whereas, the others segments, the number of non users were more than twice the number of
users. Thus, we can conclude that this age category (21-30) is innovative in adopting new
technologies.
Fig 3. Age Vs Mobile banking usage

Source: Own survey data (2017)

48
In addition to this, the study was investigated the relation between education qualification and
mobile banking usage. The study has revealed that the number of respondents who didn’t use
mobile banking was decrease proportionally as the level of education qualification increase.
Banks should develop an interface that is compatible with each group.

Fig. 4. Education qualification Vs mobile banking subscription

Source: Own survey data (2017)

4.4 Response Item analyses
The response item analysis was carried out in order to observe relative stance of respondents. For
simplicity the discussion were given on percentages of response lies on the middle, on the right and on
the left separately.

4.4.1 I receive enough information about mobile banking service.

Table 7. I receive enough information about mobile banking service.
In general, I receive enough information about mobile banking Total
service.
Strongly Disagree Not Sure Agree Strongly
Disagree agree
Count 6 5 31 44 16 102
% MB use 5.9 4.9 30.4 43.1 15.7 100
Mobile % column 26.1 15.2 24.2 43.6 50.0 32.2
bankin Yes % of Total 1.9 1.6 9.8 13.9 5.0 32.2
g use Count 17 28 97 57 16 215
% MB use 7.9 13.0 45.1 26.5 7.4 100
% column 73.9 84.8 75.8 56.4 50.0 67.8
No % of Total 5.4 8.8 30.6 18.0 5.0 67.8
Total Count 23 33 128 101 32 317
% MB use 7.3 10.4 40.4 31.9 10.1 100
% column 100.0 100.0 100.0 100.0 100 100
% of Total 7.3 10.4 40.4 31.9 10.1 100

Source: Own survey data (2017)

49
Respondents were asked about the level of information provided by their service provider. From
the total respondents 42.0 % were positively replied that the information provided by their
service provider were sufficient. On the other hand, 17.7 % of the respondents have revealed
that the information were insufficient. Whereas, a significant number (40.4%) were not sure
about the condition. Here less than 50% of the total respondents agreed about the level of
information. This has its own problem on mobile banking adoption.

4.4.2 I think mobile banking is useful in conducting banking activities

Respondents were asked about the usefulness of mobile banking service (table 8) around
88.9 % of the respondent favoring its usefulness. In addition to this, almost less than 1% of
respondents were opposed mobile banking usefulness. Whereas, 10.4% of respondents were not
sure about its usefulness. This is favorable opportunity for banks to induce more mobile
banking users.

Table 8. I think mobile banking is useful in conducting banking activities.

I think mobile banking is useful in conducting banking
activities.

Disagree Not sure Agree Strongly Agree Total

Count 0 10 54 38 102
% MB use 0 9.8 52.9 37.3 100.0
% column 0 30.3 26.7 47.5 32.2
Mobile 0 3.2 17.0 12.0 32.2
Yes % of Total
banking
Count 2 23.0 148.0 42.0 215.0
use
% MB use 0.9 10.7 68.8 19.5 100.0
% column 100.0 69.7 73.3 52.5 67.8
No % of Total 0.6 7.3 46.7 13.2 67.8
Total Count 2.0 33.0 202.0 80.0 317.0
% MB use 0.6 10.4 63.7 25.2 100.0
% column 100.0 100.0 100.0 100.0 100.0
% of Total 0.6 10.4 63.7 25.2 100.0
Source: own survey data (2017)

4.4.3 Overall, I think mobile banking is easy to use.

Table 9 below, respondents were asked their perception regarding how simple was utilizing
mobile banking. This question was designed to capture respondents’ perception on its simplicity
while using mobile banking.

50
The majority of the respondents (74.4%) have thought that using mobile banking is simple. On
the other hand a total of 1.9 % respondents were thought that using mobile banking is difficult
and 23.7% couldn’t specify its difficulty. Here we can assume that users are familiar with the
mobile phone and perceived that mobile banking is easy to use.

Table 9. I think mobile banking is easy to use.

Overall, I think mobile banking is easy to use.
Total
Disagree Not sure Agree Strongly Agree

Count 2 16 43 41 102
% MB use 2.0 15.7 42.2 40.2 100
% column 33.3 21.3 27.4 51.9 32.2
Mobile 0.6 5.0 13.6 12.9 32.2
Yes % of Total
banking
use Count 4.0 59.0 114.0 38.0 215.0
% MB use 1.9 27.4 53.0 17.7 100.0
% column 66.7 78.7 72.6 48.1 67.8
No % of Total 1.3 18.6 36.0 12.0 67.8
Count 6.0 75.0 157.0 79.0 317
% MB use 1.9 23.7 49.5 24.9 100
% column 100.0 100.0 100.0 100.0 100.0
Total % of Total 1.9 23.7 49.5 24.9 100.0
Source: own survey data (2017)

4.4.4 I think mobile banking services are more risky than other banking
The following table 10, summarized respondents’ perceived risk while using mobile banking.
From the total respondents 23.3 % perceived that mobile banking transactions have certain level
of risk. To the contrary, 44.2 % perceived that there is no significant risk associated while using
mobile banking. The other groups 32.5 % were neutral, such that they were not sure about the
level of risk involved while using the service. On the other hand, as it was reveled in the table
below there is a significant difference between users and non users perception towards risk
associated with mobile banking.

51
 Table 10 I think mobile banking services are more risky than other banking option.
I think mobile banking services are more risky than other banking option. Total
Strongly Disagree Not sure Agree Strongly
Disagree Agree
Count 25 41 21 12 3 102
% MB use 24.5 40.2 20.6 11.8 2.9 100.0
Mobile
% column 54.3 43.6 20.4 20.0 21.4 32.2
banking
use Yes % of Total 7.9 12.9 6.6 3.8 0.9 32.2
Count 21.0 53.0 82.0 48.0 11.0 215.0
% MB use 9.8 24.7 38.1 22.3 5.1 100.0
% column 45.7 56.4 79.6 80.0 78.6 67.8
No % of Total 6.6 16.7 25.9 15.1 3.5 67.8
Count 46.0 94.0 103.0 60.0 14.0 317.0
% MB use 14.5 29.7 32.5 18.9 4.4 100.0
% column 100.0 100.0 100.0 100.0 100.0 100.0
Total % of Total 14.5 29.7 32.5 18.9 4.4 100.0
Source: own survey data (2017)

4.4.5 The bank’s mobile banking is totally trustworthy.

As it was depicted in the table 11 below, 37.3 % of the respondents was positively agreed that
the service provider was trust worthy. Whereas, 34.7% of respondents were revealed that they
were not sure about the trustworthiness of the service. On the other hand 28.1 % of respondent
were not relied on their service provider. The data depicted that the level of trust on banks
mobile banking technology was low.

Table 11. The bank’s mobile banking it is totally trustworthy

The bank's mobile banking it is totally trustworthy. Total
Strongly Disagree Not sure Agree Strongly
Disagree Agree
Count 5 16 37 33 11 102
% MB use 4.9 15.7 36.3 32.4 10.8 100.0
% column 29.4 22.2 33.6 34.7 47.8 32.2
Mobile 1.6 5.0 11.7 10.4 3.5 32.2
Yes % of Total
banking
use Count 12.0 56.0 73.0 62.0 12.0 215.0
% MB use 5.6 26.0 34.0 28.8 5.6 100.0
% column 70.6 77.8 66.4 65.3 52.2 67.8
No % of Total 3.8 17.7 23.0 19.6 3.8 67.8
Count 17.0 72.0 110.0 95.0 23.0 317.0
% MB use 5.4 22.7 34.7 30.0 7.3 100.0
% column 100.0 100.0 100.0 100.0 100.0 100.0
Total % of Total 5.4 22.7 34.7 30.0 7.3 100.0
Source: Own Survey data (2017)

52
4.4.6 I will adopt mobile banking as soon as possible
From the total respondents 67.5 % have positive feeling that they will adopt mobile banking for
their day today activities in the future as it depicted in the table 12 below. To the contrary, a
total of 2.5 % have a negative feeling towards using mobile banking in the future. On the other
hand 30% respondents were not sure about their future action. Among the two set of
respondents, mobile banking users were relatively higher degree of desire to resume the service.
Therefore, banks are recommended to capture their customer’s intention by removing those
discouraging factors.

Tabel 12. I will adopt mobile banking as soon as possible

I will adopt mobile banking as soon as possible Total

Strongly Disagree not sure agree Strongly

Disagree agree
Count - 4 15 46 37 102
% MB use - 3.9 14.7 45.1 36.3 100.0
% column - 57.1 15.8 31.7 53.6 32.2
Mobile - 1.3 4.7 14.5 11.7 32.2
Yes % of Total
banking
use Count 1 3.0 80.0 99.0 32.0 215.0
% MB use 0.5 1.4 37.2 46.0 14.9 100.0
% column 100.0 42.9 84.2 68.3 46.4 67.8
No % of Total 0.3 0.9 25.2 31.2 10.1 67.8
Count 1.0 7.0 95.0 145.0 69.0 317.0
% MB use 0.3 2.2 30.0 45.7 21.8 100.0
% column 100.0 100.0 100.0 100.0 100.0 100.0
Total % of Total 0.3 2.2 30.0 45.7 21.8 100.0
Source: Own survey data (2017)

53
4.5 Comparison between mobile banking users and non users

Table 13. mean value of constructs/dimension/

Mobile
banking Perceived Perceived Perceived Perceived Intention
use Awareness Usefulness Ease of Use Risk Trust to Adopt
Yes Mean 3.66 4.23 3.99 2.33 3.36 4.03
N 102.00 102.00 102.00 102.00 102.00 102.00
Std. Deviation 0.85 0.61 0.72 1.03 0.97 0.72
% of Total N 32.18 32.18 32.18 32.18 32.18 32.18
No Mean 3.22 4.04 3.60 2.83 3.07 3.64
N 215.00 215.00 215.00 215.00 215.00 215.00
Std. Deviation 0.81 0.56 0.75 1.02 0.95 0.72
% of Total N 67.82 67.82 67.82 67.82 67.82 67.82
Total Mean 3.36 4.10 3.73 2.67 3.16 3.77
N 317.00 317.00 317.00 317.00 317.00 317.00
Std.
0.85 0.58 0.76 1.04 0.97 0.74
Deviation
% of Total N 100.00 100.00 100.00 100.00 100.00 100.00
Source: Own Survey data (2017)

The mean values of sample response were summarized under each constructs /dimensions/.This
statistical representation was simple and one can easily deduce the overall position of the
respondents. The study revealed on table 13, that there were a perception difference between
mobile banking users and non users. From the entire response observed mobile banking users
were relatively good position than non users across each dimension. In addition, the overall
sample respondents position were measured and value in the table below.

Table 14. Survey dimensions over all Likert value

S.No Construct Mean Response Value

1 Awareness 3.36 Not Sure
2 Perceived Usefulness 4.10 Agree
3 Perceived Ease of Use 3.73 Agree
4 Perceived Risk 2.67 Not Sure
5 Perceived Trust 3.16 Note Sure
6 Intention to Adopt 3.77 Agree

54
4.6 Multiple Regression Analysis

In order to answer the research objective, Awareness, Perceived Usefulness, Perceived Ease of
use, Trust and Perceived Risk dimensions were measured to determine how individual
behavioral intention towards mobile banking adoption was influenced. In each dimensions three
to four questions were allocated to capture respondents’ perception toward mobile banking
adoption.

To explore this relationship the researcher utilized the standard multiple regression. This
involves all of the independent variables being entered into the equation at once. The results has
showed how well this set of variables were able to predict intention to adopt mobile banking;
and the result also revealed how much each independent variables associated with the
dependent variable, over and above how much the variation of the dependent variable explained
by the independent variables.

The assumptions of multiple regression that are identified as primary concern in the research
include normality, linearity, independence of errors, homoscedasticity, and collinearity
assumptions ( Dianne L. Balance, 2012).

4.7 Normality Test

The skewness value provides an indication of the symmetry of the distribution. Kurtosis, on the
other hand, provides information about the ‘peakedness’ of the distribution. If the distribution is
perfectly normal the value of skewness and kurtosis is 0, rather an uncommon occurrence in the
social sciences (Pallanta Julie, 2005).

Table 15. Skewness and Kurtosis analysis Statistics

Source: own survey data (2017)

55
A common rule of thumb test for normality is to divide Skewness and Kurtosis by their respective
standard errors. Skew should be within the -2 to +2 range when the data are normally distributed.
Kurtosis is the peakedness of a distribution. The criteria for normality distribution for relaxed
assumption within -3 to +3 ranges. (Garson G.David, 2012).
Table15 above, showed the skewness test and kurtosis test of all constructs (i.e. Awareness,
Perceived Usefulness, Perceived ease of Use, Perceived Trust, Perceived Risk and Intention to
adopt). The skewness and kurtosis value for measurement item were within the recommended
range of the assumption, thus, the research sample data is normal.

4.8 Linearity

Testing for non linearity is necessary because correlation, regression and other elements of
general linear model (GLM) assume linearity (Garson G.David, 2012).There are different
methods for example, ANOVA test of linearity. The author stated that, one can compute an
ANOVA table for linear and nonlinear component, if the F significance for nonlinear component
is the critical value (eg. <0.05), then there is significant non linearity. Thus, from the ANOVA
table value table21 of appendix A, all variables are linear since the significance value is greater
than the cutting point.

4.9 Multicollinearity Test

4.9.1 Variance inflation factor (VIF) and Tolerance

Variance inflation factor used in lieu of tolerance as VIF is simply the reciprocal of Tolerance. As
a rule of thumb is that VIF>4 and Tolerance < 0.2 when multicollinearity is a problem (Garson
G.David, 2012). In this case the entire variables were met the assumption (table 19)

To test multicollinearity, the correlation matrix Table16 below, of the variables was studied to
identify the occurrence of multicollinearity. The correlation coefficient is a measure of the
closeness of the relationships or association between independent and dependent variables. As a
rule of thumb, intercorrelation among the independents above 0.80 signals a possible problem
(Garson G.David, 2012). Therefore, there is no evidence of significant multicollinearity among
the research variables.

56
 Table 16. Correlations matrix
Awaren PU PEoU PR Trust Adoption
ess
Awareness Pearson Corr 1 .401** .698** -.580** .580** .756**
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
PU Pearson Corr .401** 1 .404** -.268** .241** .399**
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
PEoU Pearson Corr .698** .404** 1 -.629** .591** .829**
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
-
-.580** -.268** -.629** 1 -.695**
PR Pearson Corr .564**
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
Trust Pearson Corr .580** .241** .591** -.564** 1 .661**
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
Adoption Pearson Corr .756** .399** .829** -.695** .661** 1
Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
**. Correlation is significant at the 0.01 level (2-tailed).

From the above correlation matrix we can deduce that Perceived Ease of use and Intention to
adopt mobile banking has highest positive correlation coefficient which is 0.829 at p<0.05 level
of significant. This result showed that PEoU has significant positive effect on intention to adopt
mobile banking technology. Awareness and Trust have significant positive correlation with
intention to adopt mobile banking with coefficient of 0.756 and 0.661 respectively at P<0.05
significant level. On the other hand, Perceived Risk at correlation coefficient -0.695 has
significant negative correlation with intention to adopt mobile banking. Therefore, Awareness,
Perceived risk, PEoU, and PT tend to have association with mobile banking adoption.

4.10 Regression Analysis

Here under the first column labeled by R was represented multiple coefficient of correlation
between the independent variable (intention to Adopt mobile banking) and the independent
variables (Awareness, PU, PEoU , PR and Trust).
The value under model summery table17, determines the value of R2, which is a measure of the
variability in the outcome is accounted for by the predictors. The output result showed that 78.9
% of the variance on intention to the adoption of mobile banking is explained by the proposed
independent variables.

57
The second output determined by table18, is all about analysis of variance (ANOVA) and this
test is determining the model is significant at predicting the outcome of the independent
variable. This is confirmed by the Significance level of F statistics (P<0.05).

The last output summarized under table19, tells us the parameters of the model. The coefficient
of independent variables determined by the value in column B. In other word, the value under B
represents the level of each contribution in the model.

58
4.11 Hypothesis Test

H1: Perceived Ease of Use has a significant positive influence intention to adopt mobile
banking.

The results obtained in the above table 13, showed that the coefficient B and p value of Perceived
Ease of Use were positive and significant (B = 0.43, p< 0.05). Thus, Perceived Ease of Use has a
positive and significant effect on Intention to adopt mobile banking. This significant positive
relationship is seen in the positive coefficients values reflected, thus, providing solid support for
H1 that perceived Ease of use is significantly affect on intention to mobile banking adoption. This
implies that when mobile banking services are easy to use, retail banking clients feel that they will
exert less effort to operate the services, leading to the development of a positive attitude towards
usage. The finding was consistent with past studies conducted related to adoption of mobile
banking services (Abdul Kabeer Kaziia, Muhammad Adeel Mannanb,2013; Tariq Bhatti, 2007;
Imtiaz Arif Sahar A and Arshian S.,2016)

H2: Perceived Usefulness has a significant positive effect on intention to adopt mobile
banking.

The results of multiple regressions, as presented in above, revealed that Perceived Usefulness has a
positive relation but not significant effect on intention to adopt mobile banking with (B=0.05,
p=0.18> 0.05). Therefore, the researcher not support the initial hypothesis; Perceived Usefulness
has a positive and significant effect on intention to adopt mobile banking. This research finding
contradicts with many former research findings (Davis, 1989; Oluoch R. Akinyi etal, 2012).
Unfortunately, This finding was in line with the finding obtained by Karma Nancy George,
Ibrahim Siddig Ballal and Ali Abdel Hafiez(2014) on Sudanese commercial bank customers.

As presented in our findings, the most unusual finding was perceived usefulness has no significant
effect on behavioral intention to adopt mobile banking. The reasons for this finding are not clear,
but several possible reasons might exist. With respect to perceived usefulness table 8, the
descriptive statistics indicates that the majority of the respondents (63.7%) agreed that mobile
banking is convenient and performing transaction more quickly. Even though, they are more aware
of the usefulness of the technology there are other factors deterring the proper use of the

59
technology. For example, consumers decide to make transactions online, most of the time the
receiver (seller) may refuse such type of payment system for many reasons.

H3: Perceived Risk would have significant and negative effect on intention to adopt mobile
banking.

The results of table19 showed that the coefficient beta value of Perceived Risk were negative and
significant (B = -0.13, p < 0.05) effect on intention to adopt mobile banking. Thus, the research
finding confirmed the hypothesis and it was accepted that Perceived Risk has negative and
significant effect on Intention to adopt mobile banking. This was in line with many past studies by
(Ravichandra D. et al 2016, Abdul Kabeer Kaziia, Muhammad Adeel Mannanb,2013; Gizachew
kalkidan. 2016; ). Therefore, it is imperative for stake holders to plan higher security in providing
mobile banking services in order to achieve higher consumer acceptance.

H4: Awareness has a significant positive effect on intention to adopt mobile banking.

The results of multiple regressions, as presented in table 13 above, revealed that Awareness has a
positive and significant effect on intention to adopt mobile banking with (B =0.21, p < 0.05).
Therefore, the research finding leads to the conclusion that awareness has a positive and significant
effect on intention to adopt mobile banking. Customers will be rational on their decision if they
have information. Since, they have got the right information on mobile banking their attitude
changed positively. Similar results were demonstrated from previous studies by (Wakungi R.
Ndinda, 2015; Gizachew kalkidan, 2016)

H5: Perceived Trust would have significant and positive effect on intention to adopt mobile
banking.

The results of table 13, showed that the coefficient beta and p value of Perceived Trust were
(B=0.11, P<0.05). Thus, our research hypothesis, such that, Perceived Trust has positive and
significant effect on Intention to adopt mobile banking was confirmed. The study was in line with
previes study by (Tobbin, P. E. 2010, Majharul Talukder, Ali Quazi and Milind Sathye ,2014)

The overall effect of the variables under the model summary table17 above tell us how much of the
variance in the dependent variable (Intention to Adopt mobile banking) is explained by the model
(which includes the variables of Awareness, PU, PEoU, PR, Trust).

60
In this research the value of R is 0.789, this means that our model explains 78.9 % of the variance
on intention to adopt mobile banking.

Thus, those independent variables PEoU, Awareness, perceived trust have positive effect on
intention to adopt mobile banking. On the other hand, perceived risk has negative effect on
intention to adopt mobile banking. The relationship of the variables were explained by the
following multiple linear equation.
MB Adoption = 0.21Aw+0.05PU+0.43PEoU-0.13PR+0.11PT+ 1.24

Interpretation: The partial change on intention to adopt mobile banking due to one unit change in
perceived risk factor is -0.13, while other things remain constant and it is statistically significant at
95 % confidence level. Thus it can be said that people perceive risk in using mobile banking make
them reluctant to use such tool for banking.
The partial increase in the usage of mobile banking due to one unit change in Perceived ease of use
is 0.43, while other things remain constant and it is statistically significant at 95% level of
confidence.
The partial increase in the usage of mobile banking due to one percent change in awareness is 0.21.
While other things remain constant and it is statistically significant at 95% level of significance
(Table 19).
The partial increase in the usage of mobile banking due to one percent change in Perceived trust is
0.11 while other things remain constant and it is statistically significant at 95% level of confidence
(Table 19).

61
 Chapter 5
Summary, conclusion and recommendation

In this chapter the main findings obtained in the analysis part will be summarized and presented.
Explanation from academic and managerial perspectives will be forwarded. Furthermore, there
will be recommendation for commercial banks that operate particularly in Addis Ababa. Finally,
research contribution, limitation and areas for future studies will be presented.

The purpose of this research is to examine and identify factors that affect commercial banks
customers’ behavioral intention to adopt mobile banking in Addis Ababa. Specifically, sample
respondents were selected from CBE, Dashen bank, United bank and bank of Abyssinia who have
bank account. The study were factor out five constructs from TAM and IDT models integrating
with an additional variable Perceived Trust, Perceived risk and Awareness. The effect of
Awareness, Perceived usefulness, Perceived ease of use, Perceived risk and Perceived Trust on
intention to adopt mobile banking was examined.

The study was a quantitative research approach in nature. Survey strategy was employed to have
opinion of large number of respondents by distributing questionnaires. In this case, 384 sample
respondents were conveniently selected from the respective banks. Thus, the observed data were
analyzed by using descriptive and inferential statistical techniques, such as percentages and
frequency distribution table and regression analysis were executed using SPSS.

5.1 Summary
Sample respondents demographic characteristics were summarized. From the total of sample
respondents 192 sample respondents (61.1%) were male, whereas, 122 (38.9%) sample
respondents were female. The study has identified that the age group 31-40 (46.3%) were the
dominant age category followed by the second age segment 21-40 (31.5 %). The other group 41-50
accounted 16.4% and the other extreme ends accounted less than 6%. With regard to mobile
banking usage the majority (67.8%) of the respondents were not registered for mobile banking.
Whereas, the remaining 32.2% were mobile banking users.

62
The study has identified that perceived risk was the only factor that affect mobile adoption
negatively. This implies that if individuals perceived higher risks and uncertainty such as issues of
loss and theft of financial information due to system hacking, this would discourage adoption of
mobile banking by the consumers.
On the other hand, Perceived ease of use, Awareness and Perceived trust affect positively and
significantly. Perceived ease of use was the highest determinant of intention to adopt mobile
banking. Awareness is the second salient factors in determining users’ mobile banking adoption in
this study. Trust is also an important factor in determining mobile banking adoption.

In addition to these, the research has identified that perceived usefulness has no effect on intention
to adopt. The study has revealed that even if this new platform has brought more convenient, time
saving, efficient features, there exist other important factors that determine its rate of adoption.

Ingeneral, Perceived risk and Awareness, Trust and Perceived ease of use were major factors in
determining customer behavioral intention towards mobile banking adoption. Since, there were a
considerable number of non users in this study, PEou, Awareness, Trust and perceived risk will be
the dominant factor that determines behavioral intention. Whereas, perceived usefulness have no
significant effect on intention to adopt mobile banking.

The regression between dependent and independents variables obtained in the analysis part was
summarized in the following table below.
Table 20. Summary on hypothesis
Coefficient Hypothesis
Construct/Dimension B value Sig. level Status
1 Awareness 0.210 P<0.05 Supported
2 Perceived usefulness 0.050 P>0.05 Not Supported
3 Perceived Ease of use 0.430 P<0.05 Supported
4 Perceived risk -0.130 P<0.05 Supported
5 Perceived trust 0.110 P<0.05 Supported
Source: Own survey result (2017)

63
The regression result confirmed that Awareness, PEoU , PR and PT have significant effect on
customers’ intention toward mobile banking adoption. The coefficients of the variables determined
that except risk all other variables are positively related to mobile banking adoption. While,
significant level for perceived Usefulness was greater than 0.05, implied that perceived Usefulness
has no relationship with mobile banking adoption. This conceptual model has able to determine
78.9 % of the variation on intention to adopt mobile banking made by Awareness, PT, PEoU and
PR.

5.5 Conclusion
The study was successfully identified factors that affect customers’ intention to adopt mobile
banking. The study revealed that Perceived Ease of us, Awareness, perceived risk and perceived
trust are able to determine the level of mobile banking adoption in Addis Ababa.
If Commercial banks customers becomes more aware of the technology and thus the rate of
adoption increases. This means that, for a person to adopt a technology, seeing, hearing about or in
general sufficient level of level of information is required.
Mobile banking users would be concerned with the effort needed to use that application and the
difficulty of the process involved. Such perceived ease of browsing, identifying information and
performing financial transactions will enhance intention to adopt the behavior.

Lack of trust including fear of the performance of the technology and the promises made to them
are major barrier towards successful mobile banking adoption. Finally, the risk concern such as
identified personal information and financial transactions security (privacy concern), the hacking
of their money using the technology are barriers for successful implementation of. Greater the
customers perception about the risk associated with the use of internet, greater will be the
importance of security for customer.

5.6 Recommendation
Here, the effort put forth by commercial banks to improve their customer’s awareness will have
multiplied effect on motivating customers to be mobile banking users. As the level of information
increases customers become more rational on their decision. In other words, commercial banks
have to communicate to their customers about the security aspects and the safest mode of financial
transaction rather than the usual traditional banking system.

64
Commercial bank should take in to account their mobile banking technology in terms of being user
friendly. Because the research result revealed that customers more prefer if using the system free
of effort.
Safe guarding the technology from unauthorized act, possible of reduction in uncertainties,
ambiguities, risks and frauds related to financial transactions while using the technology will
enhancing the likelihood of increasing customers adopting mobile banking. Thus, creating
favorable environment in mobile banking technology will help the new emerging agent banking
technology will defuse with short period of time

5.3 Academic and Managerial Implications

The main objective of this research is for academic purpose but the implication will extended to
that organization which provides mobile banking service. The academic implications of this study
are basically technology acceptance model by itself insufficient in estimating customer’s intention
to adopt mobile banking; since the observed finding embrace from different models. And hence,
the additional variables Perceived risk and Awareness have able to determine intention to adopt
mobile banking adoption. Thus, integrating technology acceptance model with additional variables
increases the predicting power of the proposed model.

Today mobile baking services have become competitive channel where banks move on to gain
sharp edge of competitive advantage. Therefore, these research finding is important for
commercial banks to understand their customers behavior. The main findings of this study are a
valuable source of information for commercial banks that operate in Addis Ababa. Here, the study
specifically concerned on commercial banks customers who have a bank account.

The research revealed that 67.8% of respondents are not subscribed for the service and banks have
intended to minimize this gap since the service has mutual benefit. The key tools to enhance the
number of mobile banking subscribers are applying technologies that simplify the transaction steps
and other complicated procedures. The study revealed that perceived risk has negatively affects
customers intention towards mobile banking adoption. In order to increase mobile banking
subscribers’ banks should intensively communicate their customers about its mobile banking
service reliability, its simplicity and user friendly.

65
5.4 Direction for future research
The effect of basic demographic variables such as age, gender and education qualification on
intention to adopt mobile banking was not intensively investigated. Some demographic variables
are significant which might have influence on the usages of mobile banking. Furthermore, splitting
users from non users and studying their particular behavior is important. Since the study was
limited to Addis Ababa it is difficult to infer to other parts of the country to have complete
reflection. Moreover, the risk factor was significantly reducing the adoption rate further study
required in detail on specific elements of risk factors.

66
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Appendices

71
ANOVA table 21 Test for Linearity of variables

Sum of df Mean F Sig

Squares Square
Between Groups (Combined) 100.707 3 33.569 141.953 0
Linearity 99.928 1 99.928 422.564 0
Intention To Adopt * Deviation from
0.779 2 0.39 1.647 0.194
Awareness Linearity
Within Groups 74.018 313 0.236
Total 174.726 316
Between Groups (Combined) 27.937 3 9.312 19.857 0
Linearity 27.789 1 27.789 59.254 0
Intention To Adopt *
Deviation from
Perceived 0.148 2 0.074 0.158 0.854
Linearity
Usefulness
Within Groups 146.789 313 0.469
Total 174.726 316
Between Groups (Combined) 120.322 3 40.107 230.747 0
Intention To Adopt * Linearity 120.099 1 120.099 690.957 0
Perceived Ease of Deviation from
Use 0.223 2 0.112 0.642 0.527
Linearity
Within Groups 54.404 313 0.174
Between Groups (Combined) 86.001 4 21.5 75.606 0
Linearity 84.463 1 84.463 297.015 0
Intention To Adopt * Deviation from
1.538 3 0.513 1.803 0.147
Perceived Risk Linearity
Within Groups 88.724 312 0.284
Total 174.726 316
Between Groups (Combined) 78.625 4 19.656 63.816 0
Linearity 76.291 1 76.291 247.686 0
Intention To Adopt * Deviation from
2.334 3 0.778 2.526 0.058
Perceived Trust Linearity
Within Groups 96.101 312 0.308
Total 174.726 316

72
 Addis Ababa University
School of Commerce
Marketing Management Program
Survey Questionnaire

Dear Respondents
The purpose of this questionnaire is to enable me to carry out a research on
“factors influence mobile banking adoption” for the partial fulfillment of
master’s degree in marketing management. The research mainly focuses on
commercial banks customers in Addis Ababa. Your anonymity/ secrecy / will be
strictly maintained as we do not ask for your name here and will not be used for
any other purpose. Moreover, this survey should only take about 10 minutes of
your time. I am grateful for your cooperation in advance.

NB:
 Writing your name is not necessary
 Put “ √ ” for your choice in the box provided
Part I Personal Information

1. Gender Male Female

2. Age Less than 20 years old
20-30 Years old
31-40 Years old
41 -50 Years old
Older than 50 years old

3. Education High school or Below Bachelor Degree

Diploma Masters Or Above
4. Occupation Government Employee
Private Employee
Other

5. Income Less than birr 3,000 per month

Between birr 3,001 and 6,000 per month
Between birr 6,001and 10,000 per month
More than birr 10,000 per month
6. Do you Use mobile banking?
Yes No

73
 Part II : Please select the appropriate response box that best describes your
perception about mobile banking adoption.

Strongly Not Strongly

S.No Measured Constructs Disagree Disagree Sure Agree Agree
Awareness 1 2 3 4 5
1
I know about mobile banking services.
I have received enough information of how to
2
use mobile banking services.
I have received information about the security
3 system of mobile banking services from the
bank.
In general, I have received enough information
4. about mobile banking service.
Perceived Usefulness
Mobile banking makes it easier to do banking
5.
activities.
Mobile banking enables one to do banking
6.
activities more quickly.
I think mobile banking enables one to complete
7.
banking activities more conveniently.
I think mobile banking is useful in conducting
8.
banking activities.
Perceived ease of Use
I think it is easy to learn how to use mobile
9.
banking.
10.
I think it is easy to become skilful at using
mobile banking.
11.
Overall, I think mobile banking is easy to use.
Perceived Risk
I think using mobile banking services for
12.
monetary transactions will have potential risk.
I think that privacy is not guaranteed when using
13.
mobile banking services.
I believe it can rather easily happen that money
14. can be stolen if mobile banking services are
used.
I think mobile banking services are more risky
15.
than other banking option.

74
 Strongly Not Strongly
Perceived Trust Disagree Disagree Sure Agree Agree
I believe the bank’s mobile banking application
16. will keep the commitments promises made to me.

The bank’s mobile banking service is totally

17. trustworthy.
I believe in the information provided by bank’s
18. mobile banking transaction.
Intention to Mobile banking adoption
I intend to use mobile banking Continuously in
19.
the future.
To the extent possible, I would take advantage of
20.
mobile banking for my banking activities.

21.
I will regularly use mobile banking in the future.
I will adopt mobile banking as soon as possible.
22.

75
 አዲስ አበባ ዩኒቨርሲቲ
ኮሜርሺያል ኮሌጅ
ማርኬቲንግ ትምህርት ክፍል
የጥናት መጠይቅ
ውድ የጥናቱ ተሳታፊዎች
የዚህ መጠይቅ ዋና አላማ በአዲስ አበባ ዉስጥ የሚገኙ የባንክ ደንበኞች ስለ ሞባይል ባንኪንግ ዙሪያ
ያላቸውን አመለካክት ምን እንደሚመስል ለማጥናት እና የመፍትሄ ሃሳብ ለመጠቆም የሚረዳ
የመመረቂያ ፅሁፍ ለማዘጋጀት ነዉ። በዚህ ጥናት ተሳታፊ የሚሆኑት የባንክ ደንበኞች ሆነዉ የሂሳብ
ቁጥር ያላቸውን ነው። የምትሰጡን ሀሳብ ከዚህ አላማ ዉጭ የማንጠቀምበት ከመሆኑም በተጨማሪም
ሚስጥራዊነቱ የተጠበቀ ነዉ። ለምታደርጉልን ትብብር ከወዲሁ እናመሰግናለን።
ማሳሰቢያ ፦ ስም መፃፍ አስፈላጊ አይደለም

o በተቀመጡት የመልስ ሳጥን ውስጥ የእርሶ ምርጫ የሆነውን “ ” ምልክት ያስቀምጡ

ክፍል አንድ ᎓ አጠቃላይ መረጃ

1. ፆታ ወንድ ሴት
2. እድሜ ከሃያ ዓመት በታች 41 - 50 ዓመት
ከ 20 – 30 ዓመት ከ 50 ዓመት በላይ
ከ 31 -40 ዓመት
3. የትምህርት ደረጃ
ሁለተኛ ደረጃ እና ከዚያ በታች የመጀመሪያ ዲግሪ
ዲፕሎማ ማስተርስ እና ከዚያ በላይ
4. የስራ ሁኔታ
የመንግስት
የግል
ሌላ
5. የወር ገቢ ከ ብር 3,000.00 በታች ከ ብር 6,001 – 10,000
ከ ብር 3,001.00 – 6,000.00 ከ 10,001 ብር በላይ
6. ሞባይል ባንኪንግ ይጠቀማሉ ?
አዎ አልጠቀምም

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 ክፍል ሁለት᎓ ከዚህ በታች ለተዘረዘሩትጥያቄዎች አምስት ምርጫዎች ቀርበዋል። የ እርሶ ምርጫ
የሆነው ላይ “ ” ምልክት ያስቀምጡ።

በጣም እርግጠኛ እስማማ በጣም

ተ.ቁ አልስማማም አልስማማም አደለሁም ለሁ እስማማለሁ
1 2 3 4 5
ሞባይል ባንኪንግ ስለሚሰጠው አገልግሎት ግንዛቤው አለኝ
1
በሞባይል ባንኪንግ እንዴት መጠቀም እንደሚቻል ግንዛቤዉ
2
አለኝ
ባንኩ ሞባይል ባንኪንግ ስለሚሰጠው አገልግሎት
3 አስፈላጊዉን መረጃ ሰጥቶኛል
ባጠቃላይ ስለ ሞባይል ባንኪንግ በቂ እውቀት አለኝ
4.

በሞባይል ባንኪንግ የሚፈለገዉን የባንክ አገልግሎት በቀላሉ

5. ማግኘት ያስችላል
ሞባይል ባንኪንግ መጠቀም በፍጥነት የባንክ አገልግሎቶችን
6. እንድናገኝ ይረዳናል
ሞባይል ባንኪንግ በቀላሉ እና በማንኛውም ሁኔታ የባንክ
7. አገልግሎቶችን እንድናከናዉን ይረዳናል
ባጠቃላይ የባንክ አገልግሎቶቸን በሞባይል ባንኪንግ
8. መተግበር ጠቃሚ ነዉ

9.
ሞባይል ባንኪንግ አጠቃቀም በቀላሉ መማር ይቻላል
ሞባይል ባንኪንግ አጠቃቀም በአጭር ግዜ ዉስጥ በብቃት
10.
መልመድ እና ተግባራዊ ማድረግ ይቻላል
11.
ባጠቃላይ ሞባይል ባንኪንግ በቀላሉ መጠቀም ይቻላል

12
በሞባይል ባንኪንግ ገንዘብ ማዘዋወር አደጋ አለዉ ብዬ
አምናለሁ
የሞባይል ባንኪንግ አገልግሎት ሚስጥራዊነቱ የተጠበቀ
13.
አይደለም
ሞባይል ባንኪንግ መጠቀም የደንበኞች ገንዘብ ለስርቆት
14. የተጋለጠ ነዉ
ባጠቃላይ ሞባይል ባንኪንግ ለገንዘብ ዝዉዉር መጠቀም
15.
ለአደጋ የተጋለጠ ነዉ

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 ባንኩ ለሚሰጠው የሞባይል ባንኪንግ አገልግሎት የገባውን
16 ቃል ደንበኞች ከሚያገኙት አገልግሎት ጋር አንድ አይነት ነዉ

17. ባንኩ ያቀረበው የሞባይል ባንኪንግ አገልግሎት እምነት

የሚጣልበት ነዉ

በ ሞባይል ባንኪንግ የሚቀርቡ መረጃዎች አስተማማኝ ናቸዉ

18

ወደፊት ሞባይል ባንኪንግ ለመጠቀም ዝግጁነኝ

19.

በሚኖሩት አጋጣሚዎች ሁሉ ሞባይል ባንኪንግን በበለጠ

20. ሁኔታ እጠቀማለሁ
ወደፊት በመደበኛነት ሞባይል ባንኪንግን እጠቀማለሁ
21
በተቻለ ፍጥነት ሞባይል ባንኪንግን እንደ እስፈላጊነቱ ለባንከ
22 አገልግሎት ተግባር ላይ አዉላለሁ

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Report 1. Awareness=
I have received enough
information of how to use I have received information
Mobile banking about the security system of In general, I receive enough
use mobile banking services.
I know about mobile mobile banking services information about mobile
banking services. from the bank. banking service.
Yes Mean 3.97 3.47 3.53 3.40
No Mean 3.08 3.01 3.02 2.76
Total Mean 3.37 3.16 3.19 2.97
Report 2. Perceived Usefulness
Mobile banking Mobile banking I think mobile banking I think mobile banking is
makes it easier to enables one to do enables one to complete useful in conducting
Mobile banking do banking banking activities banking activities more banking activities.
use activities. more quickly. conveniently.

Yes Mean 3.96 4.09 4.15 4.28

No Mean 3.70 3.80 4.01 4.00
Total Mean 3.78 3.91 4.05 4.00
Report 3. Perceived Risk
Mobile I think using I think that privacy is I believe it can rather I think mobile banking
banking use mobile banking not guaranteed when easily happen that money services are more risky
services for using mobile banking can be stolen if mobile than other banking option.
monetary services. banking services are
transactions will used.
have potential
risk.
Yes Mean 3.00 2.65 2.63 2.54
No Mean 3.21 3.18 3.13 4.00
Total Mean 3.15 3.01 2.97 3.00

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Source: Own survey data(2017)

Report 4. Perceived Ease of Use

Mobile I think mobile I think it is easy to I think it is easy to
banking use banking is useful learn how to use become skilful at using
in conducting mobile banking. mobile banking.
banking activities.

No Mean 4.074 3.256 3.302

Total Mean 4.142 3.366 3.356
Report 5. Perceived Trust
Mobile banking The bank_s mobile I believe in the I intend to use mobile
use banking it is totally information provided banking Continuously in
trustworthy. by bank_s mobile the future.
banking transaction.

Yes Mean 3.76 3.80 3.79

No Mean 3.60 3.66 3.23
Total Mean 3.66 3.70 3.41
Report 6. Intention to Adopt
Mobile I intend to use To the extent possible, I will regularly use I will adopt mobile
banking use mobile banking I would take mobile banking in the banking as soon as
Continuously in advantage of mobile future. possible
the future. banking for my
banking activities.
Yes Mean 3.79 4.00 3.97 4.11
No Mean 3.23 3.28 3.45 3.58
Total Mean 3.41 3.51 3.62 3.75
Source: Own survey data(2017)

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