FACTORS INFLUENCING MOBILE BANKING PRACTICE፡ IN CASE OF COMMERCIAL BANK OF ETHIOPIA, CASTLE BRANCH, MEKELLE

Abstract

This study investigates the factors influencing mobile banking practice in the Commercial Bank of Ethiopia, Castle Branch, Mekelle City. Guided by the research objectives and questions. The study aims to examine how complexity, customer awareness, trust, network interruption, perceived risk, and perceived usefulness influence the practice of mobile banking in CBE, Castel Branch, Mekelle City. the study employed a quantitative research approach and utilized both descriptive and explanatory research designs. The motivation for the study arose from the slow adoption of mobile banking in Ethiopia despite the strategic direction of bank management toward digital banking transformation. From a total population of 3,500 customers, 359 respondents were selected using the Finite Population Correction formula. Convenience and purposive sampling techniques were applied. Primary data were collected from mobile banking customers through questionnaires and supported by insights from bank staff members obtained via structured interviews. The data were analyzed using descriptive statistics, correlation analysis, and linear regression. The findings reveal that Perceived Usefulness, Complexity, Awareness, Trust, Perceived Risk, and Network Interruption all have a positive and significant relationship with mobile banking practice. The regression analysis yielded an R-value of 0.899, indicating a strong positive relationship between the independent variables and mobile banking practice. The study concludes that mobile banking practice is significantly shaped by these key factors, suggesting that users’ expectations align with their perceptions of usefulness, complexity, awareness, trust, perceived risk, and network stability. The major findings are perceived usefulness, complexity, awareness, trust, perceived risk, and network interruption. Perceived usefulness and complexity positively encourage adoption, while perceived risk and low trust discourage users due to concerns about security and service reliability. Awareness has a minor positive effect, but not enough to significantly change user behavior. Overall, the regression and ANOVA results show that these factors collectively and significantly predict mobile banking practice. Although limited to a specific area and age group, the findings emphasize the need for banks to strengthen security, build trust, improve usability, and enhance network performance to boost mobile banking adoption. The findings provide valuable insights for banks, service developers, and software engineers aiming to enhance customers’ intention to adopt and continue using mobile banking services. Accordingly, the study recommends that commercial banks strengthen these factors by adopting appropriate technologies, establishing supportive legal structures, empowering human resources, and improving network capability and accessibility.