Adoption of mobile banking technology in pastoral community: A perception based study in afar regional state, Ethiopia

Abstract

The main purpose of this study was to determine factors affecting users’ intention to use mobile banking service in a scarcely distributed infrastructure, pastoral dominated demographic setting. Prior studies on this topic using different methods reported mixed results; suggesting the need for particular studies which should consider particularities of such cultural settings. A perception-based survey was conducted on 315 bank customers who have been using the service during the survey in Afar regional state, Ethiopia. So as to collect data, Likert’s-scale was adopted form prior acceptance studies. Ease-of-use, Usefulness, Trust, Social-influence, Attitude and Government-support were the constructs regressed to estimate users’ intention-to-use mobile bank. Out of the six factors, social influence, trust and government support found positive predictors of users’ intention to use mobile bank. In contrast, usefulness, ease of use and attitude did not support hypothesis. Ease of use and attitude specially, have emerged with unexpected negative regression weight. Generally, whether customers perceived mobile banking service is useful or not, they tend to use it: 1) if they perceived influential persons around them are supporting the service; 2) if government rules and regulations are assumed safe and facilities are sufficient; 3) lastly, if they trust security and confidentiality of transactions therein. The study was conducted in a new demographic and cultural settings. Hence, the combination of three trust related constructs emerged significant factors therein could be used in designing a new model of predicting users’ intention to use mobile banking in such type of regions.