Factors Affecting Adoption and Operation of Electronic Banking in Woliso District of Commercial Bank of Ethiopia: The Case of Woliso Town

Now days, Electronic banking has brought about uprising in the performance of banks as it offers most important opportunities to banks and customers. This thesis aims to assess the factors that affect the adoption and operation of e-banking system from bank perspective. From this general objective, four specific objectives were explored. This study integrated Technology- Organization-Environmental (TOE) model and Diffusion of Innovation theory (DOI) to achieve the objective of the study. Only primary data was used for this study. The data was collected through semi-structured interview from seven management body: five branches managers, one district manager and one IT manager. In addition to this, data was gathered though focus group discussion with six IT department staff and six Bank clerks. The data was analyzed qualitatively .The result indicates that lack of technological knowledge, lack of management support, shortage of training, infrastructural problem, perceived risk and economic factors were found as the key factors hindering e- banking adoption. The study also revealed that government support and perceived benefit influence the adoption of e-banking positively. Finally this study identified loss of power, hardware malfunction, operating system crashes, network partitions, failure of internal controls, human errors, access to systems and negligence arising out of the employees are the most important factors affecting operation of e-banking among different branches . To this end, this study recommended a number of action for various challenges identified in the thesis. These include: government needs to expand ICT infrastructure and improve the existing telecommunications infrastructure at the local and national level Keywords: E-banking, Adoption, Operation, Technology-Organization-Environmental model, Woliso Town. DOI: 10.7176/EJBM/14-17-03 Publication date:September 30th 202