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

Author

Listed:
  • Samuel Godadaw Ayinaddis

    (Woldia University)

  • Tilahun Getnet Mirete

    (Woldia University)

  • Birhane Wondmaneh Getahun

    (Woldia University)

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.

Suggested Citation

  • Samuel Godadaw Ayinaddis & Tilahun Getnet Mirete & Birhane Wondmaneh Getahun, 2025. "Evaluating the factors influencing electronic banking adoption in Ethiopia: analysis from customer perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-19, December.
    • Handle: RePEc:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00485-w
    DOI: 10.1186/s13731-025-00485-w
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    References listed on IDEAS

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    1. Pankaj Tiwari, 2021. "Electronic banking adoption in Ethiopia: an empirical investigation," SN Business & Economics, Springer, vol. 1(9), pages 1-28, September.
    2. Samuel Godadaw Ayinaddis, 2024. "Unpacking Antecedents of Knowledge Management Success: A Key to Firm Performance in the Banking Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18858-18883, December.
    3. Satadru Mukherjee, 2020. "Access to Formal Banks and New Technology Adoption: Evidence from India," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1532-1556, October.
    4. Agarwal, Reeti & Rastogi, Sanjay & Mehrotra, Ankit, 2009. "Customers’ perspectives regarding e-banking in an emerging economy," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 340-351.
    5. Samuel Godadaw Ayinaddis & Birhan Ambachew Taye & Bantie Getnet Yirsaw, 2023. "Examining the effect of electronic banking service quality on customer satisfaction and loyalty: an implication for technological innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-18, December.
    6. Georgia Giordani & Christos Floros & Guy Judge, 2014. "Econometric investigation of internet banking adoption in Greece," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 41(4), pages 586-600, July.
    7. Zeleke Siraye, 2014. "Customers' adoption of electronic banking service channels in Ethiopia: an integration of technology acceptance model and perceived risk with theory of planned behaviour," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 8(1), pages 21-34.
    8. Samuel Godadaw Ayinaddis, 2023. "The Relationship Between Service Innovation, Customer Satisfaction, and Loyalty Intention in Emerging Economies: An Evidence from Ethio Telecom," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4045-4063, December.
    9. Georgia Giordani & Christos Floros & Guy Judge, 2014. "Econometric investigation of internet banking adoption in Greece," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 41(4), pages 586-600, July.
    10. Beza Muche Teka & David McMillan, 2020. "Factors affecting bank customers usage of electronic banking in Ethiopia: Application of structural equation modeling (SEM)," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1762285-176, January.
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