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The adoption of financial technology in Ethiopia: a study of bank customers perspective

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Abstract

Developing countries like Ethiopia in Africa highly striving to adopt financial technologies in order to modernize the financial system. However, the acceptance of financial technologies from consumers’ side faces many challenges. Financial technologies include the electronic-based platforms that designed by bankers to allow their customers for accessing financial services whenever they demand it without time and distance barriers. Those technologies considered in this study includes; internet banking, mobile banking, and card banking. The aim of this study was to identify factors that determine bank customers’ intention to adopt e-finance technologies in Ethiopia. It was confirmatory study to validate the integration of technology acceptance model (TAM) with customer awareness and subjective norm factors. Self-administered questionnaires were distributed to 412 bank customers from technologically leading banks in Ethiopia. The structural equation model (SEM) analysis was used for testing the hypotheses. The major findings of the study revealed that bank customers’ intention to adopt the financial technology was influenced positively by customer awareness, subjective norm, and perceived usefulness. The integration of customer awareness and subjective norm with the TAM results in a parsimony model to measure the acceptance intention of financial technologies. The study forwarded scientific recommendations for bank practitioners and policy makers.

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  1. Department of Accounting and Finance, Arba Minch University, Arba Minch, Ethiopia

    Wondwossen Jerene

  2. School of Management Studies, Punjabi University, Patiala, India

    Dhiraj Sharma

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Jerene, W., Sharma, D. The adoption of financial technology in Ethiopia: a study of bank customers perspective. J BANK FINANC TECHNOL 4, 53–63 (2020). https://doi.org/10.1007/s42786-020-00015-0

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