Factors Affecting Adoption of Electronic Banking, In Ethiopian Banking Industry, A Case in Commercial Bank of Ethiopia Dire Dawa District

The benefits of any technology on the growth on an economy can only be realized when there is significant use and diffusion of the technology. Technology adoption is important because it is the vehicle that allows most people to participate in a rapidly changing world where technology has become central to our lives. It is against this background that this study investigated the factors that affect adoption of E Banking in Ethiopian banking industry in a case of Commercial Bank of Ethiopia Dire Dawa district. In order to achieve the research objective, the researcher used both descriptive and explanatory research designs. The study was conducted based on the data gathered from sample respondents from commercial bank of Ethiopia who are employees and customers. Stratified and random sampling techniques were applied. The data collected was analyzed using Stata version 2013. The study revealed E- banking were not well adopted by Ethiopian banking industry due to lack of suitable legal frameworks, low level of ICT infrastructure, lack of customers trust, lack of government support and awareness towards the technology and customers’ fear to use the technologies that holds banking industry to adopt the system. Finally based on the research findings and conclusions the researcher recommends the government to support the banking industry by investing on ICT infrastructure development, providing necessary infrastructure like electricity, road and telecom services especially in rural area of the country.