FACTORS AFFECTING USAGE OF MOBILE BANKING IN COMMERCIAL BANK OF ETHIOPIA IN WERABE TOWN.

ABSTRACT This study was conducted to assess the factors affecting the usage of mobile banking services in the Commercial Bank of Ethiopia, Werabe Town. The main objective of the research was to examine the influence of perceived trust, perceived risk, perceived usefulness, perceived ease of use, and network impact on the usage of mobile banking. The study focused specifically on customers of the Commercial Bank of Ethiopia in Werabe Town, providing a focused scope on public sector customers who are users of the CBE-Birr mobile banking service. A quantitative research design was employed, and primary data were collected using structured questionnaires. Out of 392 distributed questionnaires, 379 valid responses were analyzed, resulting in a response rate of 96.68%. Data analysis was conducted using SPSS version 23.0, employing descriptive statistics, correlation, and multiple regression analysis to identify the relationships between variables. The findings showed that perceived usefulness and network impact were the strongest predictors of mobile banking usage, followed by perceived trust and perceived risk. Perceived ease of use was not found to have a statistically significant effect on mobile banking usage. The regression model revealed an R² value of 0.659, indicating that 65.9% of the variation in mobile banking adoption could be explained by the studied variables. The study concludes that enhancing the usefulness of mobile banking services, strengthening network infrastructure, and building customer trust are critical for increasing mobile banking usage. Based on the results, it is recommended that the Commercial Bank of Ethiopia should focus on improving service functionality, network reliability, customer education, and security enhancements. Future researchers are encouraged to expand the study to other regions, include private banks, and explore additional influencing factors such as technological literacy, regulatory frameworks, and cultural perceptions.