Evaluating the factors influencing electronic banking adoption in Ethiopia: analysis from customer perspective

Samuel Godadaw Ayinaddis (), Tilahun Getnet Mirete () and Birhane Wondmaneh Getahun ()
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Samuel Godadaw Ayinaddis: Woldia University
Tilahun Getnet Mirete: Woldia University
Birhane Wondmaneh Getahun: Woldia University

Journal of Innovation and Entrepreneurship, 2025, vol. 14, issue 1, 1-19

Abstract: Abstract Electronic banking (e-banking) has become an essential part of the banking industry globally, offering customers the convenience of accessing banking services anytime and anywhere. In Ethiopia, the adoption of e-banking has been a subject of extensive research due to its potential benefits and the relatively low adoption rates observed among customers. This study examined factors influencing the acceptance and use of e-banking from the customer’s perspective using a cross-sectional survey research design. The data utilized for this study were obtained from primary sources using a questionnaire for respondents. The result of this study underscored that the acceptance and use of e-banking by customers is influenced by a combination of factors including ease of use, compatibility with customer needs, accessibility, and perceived usefulness while security concerns and customer’s attitude were found to have a limited effect on e-banking adoption. The cost of e-banking services, the other variable of the study, is excluded due to the multicollinearity problem during the factor analysis. This study provides valuable contributions to the literature on e-banking adoption in Ethiopia and has important policy implications for the policy makers in the sector. By addressing the identified factors and implementing appropriate policies and measures, the policy formulators can promote e-banking adoption, improve financial inclusion of digital banking, and contribute to the growth and development of the banking sector in Ethiopia.

Keywords: Electronic banking; e-banking adoption; Digital banking; Customer perspective; Ethiopia (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s13731-025-00485-w

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