Factors Affecting E-Banking Adoption and its Impact on Customer Satisfaction:A Case Study of Ethiopian Banks

Purpose: The aim of the present paper was to identify current customers of e-banking by predicting their intention to use and its acceptance and impacts on customer satisfaction in selected banks of Ethiopia.

Research philosophy and approaches: The philosophy of this research was positivism philosophy and the approach of this research is a deductive approach, the type of the research was quantitative type/cross-sectional survey design.

Design/methodology: The design of this study was conclusive/inferential research design. Data was collected from a self-administered survey from selected banks of Ethiopia. Exploratory Factory Analysis (EFA) by using SPSS 16 and Confirmatory Factor Analysis (CFA) by using AMOS 21 in order identify the factors those affect e-banking adoption. Finally, SEM analysis was done to check the impact of TAM (technology acceptance model) on customer satisfaction.

Findings: Perceived ease of use and perceived usefulness were significantly influences the intentions of electronic banking users, intentions of Electronic Banking were significantly influences the Actual usage of Electronic Banking Services and lastly actual usage of electronic banking affect customer satisfaction.

Research limitations/implications: Sampling issue (researchers select only five banks' customers (Commercial, Wogagen, Dashen, Zemen Bank, and Nib International Bank of Ethiopia purposively) but these five banks are not the only banks to provide e-bank services in Ethiopia); there are other banks as well in Ethiopia. As a result, the analytical results presented here thus may have limited generalisability and care should be taken when generalising the findings of this study.

Originality/value: This paper was a pioneer study of satisfaction with electronic banking adoption, especially of the relationships between Technology adoption factors with and its impacts on customer satisfaction.