ELECTRONIC BANKING ADOPTION DRIVERS IN ETHIOPIA'S BANKING SECTOR

Abstract

The global surge in Information and Communication Technology (ICT) is reshaping the landscape of organizations worldwide, and Ethiopian banks are no exception. In a rapidly expanding electronic payment (E-payment) ecosystem, Ethiopian financial institutions must align with this trend (Gardachew, 2010, p.2). Technological innovations are catalysts for value creation in the banking sector, enabling customers to execute transactions without the constraints of physical branches. Concurrently, E-banking empowers banks to compete on a global scale by extending their offerings across temporal and geographical boundaries (Turban, 2008). Nonetheless, the adoption and diffusion of electronic banking (E-banking) in Ethiopia lags behind the pace of E-commerce development.

This study explores the dynamics of E-banking adoption and diffusion in the Ethiopian financial sector, highlighting the imperative for aligning with global E-payment trends and technological innovations.