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Determinants of Mobile Banking Usage or Transaction Frequency: Evidence from Selected Branches of Commercial Bank of Ethiopia (CBE) in Addis Ababa, Ethiopia

Abel Tewolde Mehari


This study considered data collected from 150 customers of Commercial Bank of Ethiopia(CBE) in Addis Ababa, Ethiopia. Those respondents were selected randomly from five branches of CBE in Addis Ababa: Finfinne branch, Theodros branch, Arat Killo branch, Saris Branch, and TemenjaYazh Branch. In drawing the samples from those representative branches, non-probability convenience sampling method has been used where customers are intercepted at the branches of the banks until the required sample size is reached.

The objectives of this study are to assess: mobile banking usage frequency of customers,  mobile banking transaction items, customers’ perceived benefit of mobile banking, compelling factors to use mobile banking, perception and satisfaction level of customers.

Accordingly, of the distributed 150 questionnaires 113 were returned and valid for analysis. Based on this data the following are some of conclusions were made:

This study unveils that interruption of network and uneasiness to login are the major problems of mobile banking service provision in the study area.

From the ologit analysis result the study confirms usage frequency of mobile banking service is significantly affected by Age of the user (subscriber for ATM services), gender (subscriber for ATM services), and network interruption, lack of security, login difficulty, service charge and Doubt of the user about security. However, the availability of Forex information in the mobile banking service package does not have significant relationship with usage frequency. Specifically age of the user, logindifficulty, service charge and network interruption have extremely strong relationship with the usage frequency of customers towards mobile banking services.


Mobile Banking Services, Ologit, Commercial Bank of Ethiopia

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DOI: http://dx.doi.org/10.18686/mmf.v3i1.1084