WOLLO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
(GRADUATE PROGRAM)

AN EXAMINATION OF
DETERMINANTS OF ADOPTION OF
AUTOMATED TELLER
MACHINE USING TECHNOLOGY ACCEPTANCE
MODEL IN STATE OWNED COMMERCIAL BANK OF
ETHIOPIA: A CASE IN DESSIE CITY:
By
Esuyawkal Tesema
A Thesis Submitted to the college of Business and Economics Wollo University in
Partial Fulfillment of the Requirements for Degree of Master of Art in
Business Administration (MBA)

June,2016
Dessie, Ethiopia

Wollo University
College of Business and Economics
 Department of Management
(Graduate Program)

An Examination of Determinants of Adoption of Automated Teller Machine Using

Technology Acceptance Model in State Owned Commercial Bank of Ethiopia: A
Case in Dessie City:
By
Esuyawkal Tesema
A Thesis Submitted to the college of business and economics Wollo University in Partial
Fulfillment of the Requirements for Degree of Master of Art in Business
Administration (MBA)

Advisor Dr. Kassegne Damtewu(Dr)

Co-advisor Mr.Yohannes G/Mariam(MA)

June,2016
Dessie, Ethiopia
 DECLARATION
I, the undersigned, declare that this thesis is my original work, has not been
presented for degree in any other university and that all sources of materials used for
the thesis have been properly acknowledged.

Declared by:

Name : Esuyawkal Tesema

Signature
Date

Place and date of submission, Wollo University, June, 2016

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 CERTIFICATION
This is to award certificate that Esuyawkal Tesema has carried out his research work
on the topic entitled “An Examination of Determinants of Adoption of Automated
Teller Machine Using Technology Acceptance Model in State Owned Commercial
Bank of Ethiopia: A Case in Dessie City”. The work is new in nature and is suitable
for the submission for the reward of MA Degree in MBA.

Advisor: Kassegn D. (PhD):_____________________

Co-advisor Yohannes G/M: ______________________

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 APPROVAL SHEET
An Examination of Determinants of Adoption of Automated Teller
Machine Using Technology Acceptance Model in State Owned
Commercial Bank of Ethiopia: A Case in Dessie City:
By
Esuyawkal Tesema
Wollo University
College of Business and Economics

Approved by the Board of Examiners:

______________
___________ ______________________
Advisor Signature

_________________ ______________________
Co-advisor Signature
___________________ _____________________
Intern Examiner Signature
___________________ ___________________
External Examiner Signature

iii
 ACKNOWLEDGEMENTS

Research demands critical thinking, sufficient time and support and rapport from
people .This thesis was left unfinished if people did not contribute .Many people gave
hands from inception to completions of the research.

First and foremost, I am deeply grateful to my advisor Dr.,Kassegn Damtew for his
unfailing support and following up and encouragement. Both as instructor and
research advisor, he inspired and motivated me to the field of the study. My special
thanks also go to my co-advisor, Mr Yohannes G/Mariam for his precious comments
and suggestions during the journey of the thesis.

Furthermore, I have great appreciation to my friend Ebabush Yirdaw for his

constructive comments and suggestions during data analyses. He motivates and
challenges me to use my potential in my career

Face to face data gathering through questionnaires is tiresome and time consuming if
hands are not given by people. I would like to thank Fikrete Hassen and Degefawu
Wube for helping during data gathering.

I need to extend my thanks for staff of department of management, Mr. Yimer

Ayalew(The head of the dept), Dr.Abeje (the coordinator of Mater Program), Dr
Manju and Dr Babu provided me guide lines and support during my career.

My special acknowledgement also goes to my wife Banchayehu Abagena and my son

Yodahie Esuyawkal for their love and care during my work.

My special gratitude goes for customers who share their experiences for the research.
Last but not least, I would like to express my deep gratitude to the staffs and managers
of the in Dessie city who participated in this study.

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 LIST OF ABBREVIATIONS AND ACRONYMS
ATMs: Automated Teller Machines
BINT: behavioral intention to use ATMs
CBE: Commercial Bank of Ethiopia
DOL: Theory of Diffusion Innovation.
E-banking: Electronic banking
E-business: electronic business
APA: American Psychological Association
E-payment: Electronic Payment
ICT: Information Communication Technology
PEOU: Perceived Ease of Use
PoS: Point of sales
PT: Perceived Trust
PU: Perceived Usefulness
SPSS: Statistical Package for Social Science
SST: Self Service Technology (SST)
TAM: Technology Acceptance Model
TPB: Theory of Planned Behavior
TRA: Theory of Reasoned Action

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 TABLE OF CONTENT
DECLARATION.............................................................................................................................i

CERTIFICATION..........................................................................................................................ii

APPROVAL SHEET.....................................................................................................................iii

ACKNOWLEDGEMENTS...........................................................................................................iv

LIST OF ABBREVIATIONS AND ACRONYMS........................................................................v

TABLE OF CONTENT.................................................................................................................vi

LIST OF TABLES.........................................................................................................................ix

LIST OF FIGURES........................................................................................................................x

ABSTRACT...................................................................................................................................xi

CHAPTER ONE.............................................................................................................................1

BACKGROUND OF THE RESEARCH........................................................................................1

1.1. Introduction..................................................................................................................1

1.2. Statement of the Problem................................................................................................6

1.3. Objective of the research.................................................................................................8

1.3.1. General objective..........................................................................................................8

1.3.2. Specific Objectives.......................................................................................................8

1.4. Research Questions.........................................................................................................8

1.5. Research Hypothesis.......................................................................................................9

1.6. Delimitation and Limitation of the Research................................................................10

1.7. Significances of the Research........................................................................................10

1.8. Organization of the Research........................................................................................11

1.9. Operational Definition of Terms...................................................................................12

CHAPTER TWO..........................................................................................................................13

REVIEW OF RELATED LITERATURE....................................................................................13

2.1. Introduction...................................................................................................................13

2.2. Conception of E-Banking..............................................................................................13

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 2.3. Forms of e-banking.......................................................................................................15

2.4. Important Aspects of E-Banking...................................................................................16

2.5. Impediments of E-Banking...........................................................................................17

2.6. Automated Teller Machines (ATMs)............................................................................18

2.7. Banking in Ethiopia.......................................................................................................19

2.7.1. E-banking in Ethiopia.............................................................................................20

2.8. Technology Adoption Model........................................................................................22

2.9. Technology Acceptance Model (TAM)........................................................................24

2.9.1. Perceived usefulness...............................................................................................24

2.9.2. Perceived Ease of Use............................................................................................25

2.9.3. Intention Behavior..................................................................................................26

2.10. Trust towards ATMs...................................................................................................26

2.11. Technology Adoption in Developing Countries.........................................................27

2.12. Empirical Research: Determinants of E-Banking Acceptance:..................................28

CHAPTER THREE.......................................................................................................................40

RESEARCH METHODOLOGY..................................................................................................40

3.1. Research Design............................................................................................................40

3.2Conceptual Frame Work of the Research........................................................................41

3.3. Participants of the Research..........................................................................................42

3.4. Sampling Technique and Sample size...........................................................................42

3.5. Instrumentation of the Research....................................................................................43

3.5.1. Questionnaires........................................................................................................43

3.5.2. Semi-Structured Interview.....................................................................................44

3.6. Data Collection Procedures...........................................................................................44

3.7. Data Analyses Techniques............................................................................................45

3.8. Ethical Issues.................................................................................................................45

3.9. Validity and Reliability.................................................................................................46

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CHAPTER FOUR.........................................................................................................................47

ANALYSIS AND INTERPRETATION......................................................................................47

4.1. Introduction...................................................................................................................47

Part one: Demographic Character of the Participants..........................................................48

Part two Acceptances/ Adoption of ATMs in Dessie City...................................................49

Research Objective One: ATMs Service Usage of Customers............................................49

Research Objective Two: Pattern ATMS Usage Frequency................................................50

Research Objective Three: Perceived ATMS Acceptance...................................................52

Research Objective Four: Correlation among Constructs (Variables).................................55

Research Objective Five: Regression Analyses...................................................................56

Research objective six: Perceived Problems/Challenges in ATMs Adoption.....................60

Analyses of open ended and qualitative data.......................................................................61

CHAPTER FIVE...........................................................................................................................63

FINDINGS AND DISCUSSIONS................................................................................................63

CHAPTER SIX.............................................................................................................................66

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS.................................................66

6.1. Summary.......................................................................................................................66

6.2. Conclusion.....................................................................................................................67

6.3. Recommendation...........................................................................................................69

REFERENCES..............................................................................................................................72

APPENDIXES..............................................................................................................................78

Appendix One: Questionnaires for ATMs users (English version)..............................................78

Appendix Two:Questionnaires for ATMS users Amharic Version )..........................................81

Appendix Three: Semi-structured interview...............................................................................85

Appendix Four: Semi-structured Interview (Amharic version)....................................................86

Appendix Five: Letter from the University...................................................................................87

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 LIST OF TABLES

Table 1: The branches of state owned commercial bank in Dessie city.......................40

Table 2: Cronbach’s Alpha Coefficients for all Constructs in Pilot Study.................46
Table 3: Sample size and response rate........................................................................47
Table 4: Sex, age group, educational level and occupation of the respondents...........48
Table 5: Types of ATMs services used by Participants...............................................49
Table 6: Frequency of Users ATMS Visit....................................................................50
Table 7: Descriptive Statistics of ATMs Acceptance in Dessie City...........................52
Table 8 : One sample t-test for constructs (variables)..................................................54
Table 9: Summary of Inter-correlation Analysis (N= 283)..........................................55
Table 10: Multiple Regression Analyses for the Model...............................................56
Table 11: Summary of ANOVA Table, Correlation Analysis (N= 283).....................57
Table 12: Summary of Regression Analysis (Behavior Intention) (N= 283)...............58
Table 13: Summary of result of hypothesis testing......................................................59
Table 14: Status of Perceived Problem affecting ATMs adoption in Dessie...............60
Table 15: Result from qualitative data.........................................................................62

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 LIST OF FIGURES
Figure 1: Organizational Structure of the Research.....................................................11
Figure 2: Revised technology Acceptance Model (Davis,1989)..................................24
Figure 3: Extended Modified Technology Acceptance Model plus Trust...................41
Figure 4: ATMs Usage Pattern of Users......................................................................50
Figure 5: Frequency of Customers’ Visit of ATMS in the City...................................51
Figure 6 : Graphical Presentation of Perceived Problems of ATMS Adoption...........61

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 ABSTRACT
The introduction of information communication technology has made the services and
product delivery of financial institution such as banking effective and efficient and
banking industry is the early adopter of technological tools for competitive advantage to
meet the ever changing of need of customers and to maximize their profits. The growth of
e-banking adoption worldwide has made remarkably structural change in finance,
Ethiopian is not an exception. The main goal of the current research study was to
examine the determinants of ATMs acceptance in Dessie city by using Modified
Technology Acceptance Model. To achieve this objective, descriptive survey
(supplemented by one Sample t-test, correlation and regression) was used. Slightly
adapted questionnaires (containing both close and open ended items) and semi-
structured interview were used. Recruiting and attracting sufficient number of
participants from customers was made using appropriate sample size. Convenience and
purposive sampling techniques were used to select and reach the participants. From 375
sample size, 300 returned questionnaires and of which, 283 was used for analyses. The
view of customers towards ease of use of ATMs and usefulness of ATMs and trust was
favorable and their level of agreement further was computed using correlation and
regression and both techniques bring positive and significant result. Statistically
significant relationship was found on among ease of use (p<0.01), perceived usefulness
(p<0.01), and trust (p<0.01) among behavioral intention to use (p<0.01). The overall
regression model is significant F(3,279) =46.584; p < 0.01) and the predictors predicted
33.4% of the variability .The lack of knowledge /awareness, training, machine related
problems (wrong transaction. Out of cash and card), electric power fluctuation and
networking power were found to be problems that hinder ATMs adoption in the city.
Finally, the research draws conclusion and makes suggestion for practical and
conceptual intervention in the areas.
Key terms: Adoption, ATM, TAM, ease of use, perceived usefulness, trust, determinants
commercial banks

xi
 CHAPTER ONE
BACKGROUND OF THE RESEARCH
1.1. Introduction
Information and Communication Technology(ICT) has made a tremendous impact in
financial institutions and banking industry has benefited from the introduction and
development of various technological products such as internet and World Wide
Web( Engler & Essinger, 2000; Kamel, 2001) and replace face-to-face transaction(Kamel
& Assem, 2002). E-business, the application of Information technology, plays an
important role in global economy by increasing access to customers and cuts cost of
transaction (Beck et al., 1999) and facilitate and catalyze financial institution such as
banking industry to play role in economic growth and development of a country. In this
vein, Technological advancement and products such electronic banking including
( Automated Teller Machines (ATMs), Tele-banking, Mobile banking, point of sales
(POS), Internet banking which are often called e-commerce or e-payment) attract the
interest of customers and satisfy the need by offering quality service and product across
distance and geographical areas and these e-banking system bring about significant
contribution for efficient and effective financial running and ensuring of high rate of
transaction via services and products mobilization.

Therefore, e-banking system have now become the key elements for strengthening the
competitive advantage of the banks and impact national economy and improving the
performance and productivity banks though accessibility and usability become uneven
between developing and developing nations.

Automatic Teller Machines (ATM), which one of the early emerging Information and
Communication Technologies (ICT) product of electronic bank and types of Self
Service Technology(SST) , has changed the operations of the banking for communication
and transaction purposes (McPhail and Fogarty, 2004). The machines can enable
depositors to withdraw cash at more convenient times and places than during banking
hours at branches. ATMs are computer-controlled device that dispenses cash, and may
provide other services to customers who identify themselves with a Personal

1
Identification Number at any time of the day and night, unlike the traditional method
where customers have to queue for a very long time in order to withdraw cash or transfer
funds. Though ATM is a recent phenomenon in low-income countries (Olatokun
&Igbinedion 2009; Alaba, 2011), and is still being introduced in financial sectors in low-
income countries (Angeli, 2008; Alaba ,2011 as cited in Teshome Alemu ,and Tridib
Bandyopadyay and Solomon Negash,2015) The ATMs, among the more modern banking
services such as electronic banking, Internet banking, Point of Sales (PoS) transactions,
money transfer, emerged as the most popular with 96 percent awareness level. ATM
awareness also ranked higher than awareness level about current accounts and slightly
below savings account (Omankhanlen, 2007).

Across the globe, different models were developed to predict and explain the technology
acceptance behavior of customers and determine factors .One of the most robust is
Technology acceptance model. To mention, by adapting the variables of Technology
Acceptance Model(TAM),Bada ,and Karupiah (2014) examined the influence of factors
like attitude towards behavior, perceived usefulness, perceived ease of use, intention of
behavior, and actual use upon the trust of customers to accept ATMs and concluded that
TAM is valid and rigorous model to study about customers electronic banking
acceptance and similarly, Kamel and Hassan (2003) examines the application of TAM
to measure customers’ acceptance of E-banking in Egypt and they found that TAM
determine the acceptance of e-banking such as ATM.

The transaction through ATMs and installation of the machines are showing high growth
in Africa. For instants, in 2008, the adoption of e-payment systems within the Nigerian
banking structure accounted for N360 billion worth of transactions. From Interswitch
statistics, Nigeria currently has about 9000 ATM terminals installed across the Federation
that serve 30million ATM users and accounts for 100 million transactions monthly
(Adesuyi ., and Solomon, 2013).The number of ATMs has also grown from just over 500
ATMs in 2006 to over 8000 ATMs in 2009 (Launce, 2010 as cited in Adesuyi and
Solomon, 2013).Different reports indicate that technological advancement in the banking
system is not high in Africa.

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There are many factors that determine customers’ acceptance of ATMs .Both
conceptually and empirically many authors find out determinants of ATM acceptance .In
Egypt, Ismail El Naggar(2010) disclosed that ATMs are the first e–banking system and
eight factors are of relative importance in shaping the value of e-banking services in the
Egyptian environment. These factors are: e-banking services reliability, complaint
handling, front line employees‟ behavior, information availability, bank branch
features, intermediaries, e-banking services security, and social pressure.

Furthermore, determining the factors that influence the choice of customers from
traditional and electronic banking instrument is worth mentioning (Kamel & Assem,
2002).Broadly, the determinants of electronic banking instruments are grouped into
technology related, social related and economical related (Chou, Lee, & Chung, 2004;
Yu, Hsi, & Kuo, 2002).

Ethiopia, one the home of ancient civilization, according to the report by Economist
Intelligence Unit (2011), is one of the fastest growing economies. The state owned
commercial bank of Ethiopia is one of the oldest bank which is dated back to The history
of modern banking in Ethiopia goes back to 1900 when an agreement was reached in
1905 between Emperor Minilik II and Mr.Ma Gillivray, representative of the British
owned National Bank of Egypt .The bank has gone through many historic event and
improvement. The evolution of e-banking in Ethiopia started highly with the introduction
and installation of ATMs (Mohammed Arif Shaikh, 2014).

The introduction and expansion of e-banking experiences many challenges even though
national bank of Ethiopia has budgeted a lot to install ATMs sometimes without knowing
and under consideration of those potential challenges with little or no scoping the
behavior of customers , demarcating the boundary of the problem and putting the way
forwarding. In his eye-opening paper, Gardachewu (2010) observed and concluded that
low level of internet penetration and poorly developed telecommunication infrastructure,
lack of suitable legal and regulatory framework for e-commerce and e-payment, high

3
rates of illiteracy, high cost of Internet, absence of financial networks that links different
banks, lack of reliable power supply, and Cyber security issues as challenges.

The problem and challenges e-banking in Ethiopia largely grouped into social,
technological, organizational, managerial and psychological. In this regard , Philipos (as
cited in Worku G, Tilahun A, Tafa MA ,2016) specifically surveyed and mentioned a
plethora of factors affecting e-banking (ATMs) such as machine out of order, machine
out of cash, no printing statements, cards get blocked, frequent breakdown of ATM
service, unreliability of ATM service, lack of sufficient technicians in all bank who solve
breakdown of ATM machine, lack of sufficient alternative system which substitute ATM
service for the customer when temporary problem happen in the machine, lack of
convenience of E-bank service, lack of mobile banking service, lack of reliable Tele
banking, lack of credit card service, under-development of technological infrastructure,
low level of relevant knowledge creation and innovation, interruption of network, lack of
suitable and regulatory frame work for e-commerce, resistance to changes in technology
among customers and service providers as result of fear of risk, lack of fair distribution of
E-banking service in all over Ethiopia. By adapting, factors from models, such as TAM,
TPB and PR,Yitbarek ,Takele, and Zeleke,(2013) revealed that attitude; subjective norm,
perceived behavioral control, perceived usefulness and perceived ease of use and
perceived risk were significant in affecting users’ intention to use e-banking service
channels.

The ATMs machines facility is an important step in the banking sector even if the
introduction and practices of e-banking, with special attention for ATMs experiences
many challenges. The leading banks of the country have established ATMs, not only in
their head offices but also at the branches, to provide twenty four hours services to their
customers. An important remark made in Birritu showed key focus of technology. The
director noted ‘’with the network and lack of system to protect consumers and provide
financial education, capacity of institutions to use technology and manage related risk has
to be enhanced’’ (Birritu No.119, page 5).

4
In this respect, risk reduction and quality service provides due consideration both vision
and mission statement of the national commercial bank of Ethiopia

The enhancement of e-banking without close and careful observation of the factors that
determine the acceptance of technology using robust model may make the investment on
E-banking appears futile. Therefore, examining and documenting key determinants of
ATMs acceptance of customers may have practical and theoretical advantage .From the
observation, it is clear that waiting and queuing is in ATMs is lower than traditional
human teller. The main goal of the current research to investigate the Acceptance and
Adoption of ATMs as perceived by customers in 2016 in commercial bank of Ethiopia
Dessie city using modified TAM model.

5
1.2. Statement of the Problem

The shift from manual to digital and from human teller to automated teller machines in-
between demands thoughtful observational and examination of customer behaviors and
factors that affects their behavioral intention to accept the shift. Knowing what makes
customers accepts or reject in new technology in banking is given enough room in much
literature globally and unveiling the behavior of users of information system catches the
attention of much researches after the development of most vigorous and adaptive model
(TAM) .Addressing the assessment of factors that contribute for acceptance and adoption
of e-banking (ATMs)have both practical and theoretical advantages. Hence, the adoption
and acceptance of ATMs is one of the most thematic areas in E-banking research and
many researchers indicated the understanding behavior and perceptions of customers to
the new service and product is useful for better realization of the financial institution.

The assessment of determinants of ATMs appears important area of concern in much

literature though there is little research in the area of ATMs adoption and acceptance in
Ethiopian banking system since the technology is recent innovation and introduction in
Commercial bank of Ethiopia. The research carried in Ethiopia context is broader and
lack smart recommendation to approach the problem in details. Teshome , and
Bandyopadyay and Solomon (2015) stated that ATM is the most matured service in many
private and state owned banks in Ethiopia. Though ATM banking is the first type of
technology it faced many factors and the examination of e-banking makes less close
attention to each technological products and services. ATM, the first oldest and mostly
acceptable types of e-banking technology has not yet been synthesized separately and
ATMs are perceived as simple machines.

Researchers tried to study the factors that influence the acceptance or adoption of ATMs.
One of the Research done in Mekele commercial bank by Fyery Adhena (2014) made
close examination of ATMs machines by adopting Theory of Diffusion of Innovation
(DOI) model of ATMs in commercial bank of Ethiopia and found out that ATM adopters
in the bank use only limited types of services predominantly cash withdrawals and the

6
adoption of a new technology moderate and the attitude of ATM adopters towards ATM
were found to be positive. Besides Using bank employees as the only primary data
sources, in his research ‘Ethiopian Banker’s Perception of Electronic Banking in Ethiopia
– A Case of Adama City’ ,Mohammed Arif Shaik(2014) examined that bankers
perceive ,a means to save time‟ and minimize inconveniences as the most and the
least advantage of electronic banking whereas Need for expertise and training and
,charge a high cost for service are considered as the most and the least risk associated
with electronic banking.Commercial Bank of Ethiopia (CBE), the state owned bank
processes 66 percent of the nation finance bank, has about 120 ATMs operating and has a
plan to deploy additional 100 every year. (Worku, 2010; Endale, A., 2013; as cited in
Teshome, and Bandyopadyay and Solomon, 2015) and there exist lapse in the high access
of ATMs. Having such planned figure, there is still gap in using of the already installed
ATMs and knowing the acceptance of ATMs and closely examining factors is important
to be cost effective.
The commercial bank of Ethiopia , Dessie city is one of the oldest banking systems
among the branches of state owned banks found across the country and the bank installed
ATMs and provide service for the customers through manual and digital means.
According the report of the manager the number of ATMs card prepared the customers
reached 10013 of which 5906 (February 27, 2016) handled the customers and the
remaining did not distribute (4107).The ATMs currently and lately introduced service
were in 2013 in the city. Though the number of ATMs adopter increased from time to
time in branch and more ATMs are being installed, there is no systematic and organized
empirical finding in the branch to revolutionize the bank industry based on the behavior
of customers. Both formal and informal conversation and an official interview of the
branches managers, IT managers and technicians indicated that lack of information
among the customers', internet problem and electric power fluctuation matter the
adoption of ATMs and the officers further remarked and noted that the ATMs acceptance
of customers need detail study for better understanding the acceptance of ATMS service
and products and thus thrust of the current thesis is to examine determinants that
ATMSinfluence ATMS acceptance in Dessie city using modified Technology
Acceptance Model (Davis, 1989)

7
 1.3. Objective of the research
1.3.1. General objective
The main goal of the current research is to examine the determinants of ATMs acceptance in commercial
bank of Ethiopia in Dessie city as perceived by customers in 2016

1.3.2. Specific Objectives

The specific objectives of the research are to:
1. Determine customers’ most common types of ATMs service used by customers
2. Find out the state of frequency customers visit to use ATM
3. Investigate how users views factors (ease of use, perceived usefulness, perceived and
behavioral intention) that affect ATMS acceptance in as perceived by customers.
4. Examine whether there is relationship between factors (such as perceived use, perceived usefulness
perceived trust) upon ATMS intention to acceptance/adopt.
5. Explain the level of influences of factors (such as perceived use, perceived usefulness, and trust) upon
ATMS intention to acceptance/adoption.
6. Investigate the perceived problems of ATMS acceptance in Dessie city stated owned commercial bank in
2016.

1.4. Research Questions

This research intends to answer the question related with factors that affect the
acceptances of ATMs in stated owned bank of Ethiopia in Dessie City in 2016
.Specifically, the research answer the following the research questions
1. What types of ATMs service do customers use in, Dessie City?
2. How often do users visit/use ATMs , Dessie City?
3. How do customers view the determinants that affect the acceptance of ATMs in the city
4. Are there any relationship between ease of use ,perceived usefulness, trust and intent to
use towards acceptance of ATMs
5. To what extent do factors in technology acceptance model and trust explain acceptance of ATMs
6. What are the perceived challenges/problems that perceived by ATMs users in the city?

1.5. Research Hypothesis

The following hypotheses are developed and tested in the study

8
1. Ha1: There is significant and positive relationship between perceived usefulness intention behavior for
ATM acceptance
2. Ha2 :There is significant and positive relationship between ease of use and intention behavior for
ATM acceptance
3. Ha3 : There is significant and positive relationship between trust and intention behavior for ATM
acceptance
4. Ha4: Perceived usefulness will have a significant positive effect on the behavioral intention to use ATMs
5. Ha6: Perceived ease of use will have a significant positive effect on intention to use ATMs for ATM
acceptance in Dessie city, commercial bank of Ethiopia
6. Ha7: Perceived trust will have a significant positive effect on the behavioral intention to use ATMs for
ATM acceptance in Dessie city, commercial bank of Ethiopia.
7. Ha8:The combination effects of ease of use, perceived usefulness and trust upon behavioral intention is
positive and significant

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1.6. Delimitation and Limitation of the Research
Framing the research using TAM model is robust and important to explain customers
behavior towards ATMS acceptance .In this research, Thus, the three constructs in TAM
model (ease of use, Perceived usefulness and behavioral intention to use ATMS) and
perceived trust were used to predict customers behavior. The geographical boundary of
the research was Dessie city and state owned commercial .Data gathered from customers
and managers were used to triangulate. It is hard to make generalization about the he
customers behavior both in private and state owned banks of ATMs acceptance based
on the findings of the current research since the research delimited to Dessie city Stated
owned banks and using mainly convenience sampling .The four constructs are
moderately explain the behavior of customers ATMs acceptance relying on these
variables may lead to misleading and other variables as indicated in result drawn from
qualitative data are important. The effects of demographic factors (sex, age, level of
education, occupation) were not statistically tested to measure their effects on TAM
model as external variables.
1.7. Significances of the Research
The main objective of this study is to identify the factors that influence acceptance
of Automated Teller Machines (ATMs) state owned commercial bank of Ethiopia in
Dessie city .The current research has both intrinsic and extrinsic motivations Intrinsically,
the paper is done to fulfill the requirement of second degree in Master of Business
Administration and other researchers may use this research as stepping stone to have
another new look at. Extrinsically, the research is intended to provide a quick benefit for
the research to develop insight in research e-banking special for those who are in position
to make strategically and tactical decision in the banking sector. Therefore, the impact of
the study provides empirical evidence on the acceptance of ATMs in Commercial banks
in Ethiopia Dessie city and bank managers; IT technicians and administrators who are
interested in identifying indicators of success and failure may be immediate beneficiaries
to take the necessary actions to improve the adoption ATMs. The research may benefit
customers addressing their issues to and by improving the ATMs banking system and
triggers other interested researchers in the area.

10
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1.8. Organization of the Research
The main objective of the study is to examine the factors that influence
acceptance of ATMs in Commercial Banks in Ethiopia Dessie City. The paper
organized into six related chapters. Chapter One contains background about the study,
problem statement, specifies the objectives and purpose of the study,
significance, scope of the study, limitation of the study and benefits gained from this
research. Chapter two: The review of the literature is made to cover both conceptual
frame work and empirical framework of automated teller machines , general theories of
influence on Automated teller machines adoption, determinants of ATMs acceptances ,
prior studies of the area and finally it describes research in e-banking and ATMs
both globally and locally, analyses were made to show knowledge gap. Chapter three:
This chapter describes the data, identifies the sources and explains
methodology which is employed in the study. It also defines and highlights ethical
consideration, reliability and validity of the research. Chapter four discusses and
presents different methods and techniques used in the research. The fifth chapter deals
the

the

the analyses of the results of the research. Finally, chapter six provides and presents the
conclusions and recommendations.

Figure 1: Organizational Structure of the Research

11
 1.9. Operational Definition of Terms
1. E-banking: technological service and products using ICT.
2. ATMs: Automated tellers machines used to dispense money and serve as transaction by
replacing human teller.
3. Customers: users of ATMs especially those who are using and having ATM ID card in
Dessie city
4. Determinant’s: factors that influence either negatively or positively users ATM adoption
including such as ease of use, perceived usefulness, trust
5. Perceived Usefulness: refers to the degree to which a person believes that using a
particular system would enhance his or her job (Davis, 1989) performance.
6. Perceived Ease of Use: refers to the degree to which a person believes that using a
particular system would be free of effort (Davis ,198)
7. Intention behavior: System acceptance, defined by Swanson (1988 as cited in
Chandio,2011) as potential user’s predisposition towards personally using a specific
system, is considered as the predictor of system usage within the model of technology
acceptance – TAM (Davis et al., 1989).
8. Trust as “the willingness of a party to be vulnerable to the actions of another party based
on the expectation that the other will perform a particular action important to the
trust or, irrespective of the ability to monitor or control that other party” (Mayer et
al. ,1995 p.712 as cited in Dabriln,2011 ).

12
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Introduction
In section, both conceptual and empirical review of ATMs banking and related
issues are presented and the model adapted for the immediate purpose of the research is
also discussed in detail. This part of the research covers conception of e-banking, types of
e-banking, Determinants of ATMs adoption and acceptance etc. Empirical findings in e-
banking in general and ATMs in particular are furthermore included in the chapter.
2.2. Conception of E-Banking
E-banking has a variety of definitions all refer to the same meaning, the following section
show some of these definitions. E-banking is a form of banking service where funds
are transferred through an exchange of electronic signal between financial
institution s, rather than exchange of cash, checks, or other negotiable instruments
(Kamrul 2009).According to Sharma(2009) E - Banking is defined as performing basic
banking transactions by customers round the clock globally through Electronic Media. In
other words, E-banking is the application of IT infrastructure with latest equipment and
solutions and integrated networks essentially to facilitate smooth and efficient payment
and settlement, improved customer service and the resultant increase in profitability(page
,114).E banking is more of a science than an art. E banking is knowledge based and
mostly scientific in using electronic devices of the computer revolution. When most
business and commerce organization tend to become internetworking organizations,
banking has to be E-banking in the new century. Furthermore, Vadlamani (2008:1)
defined “banking technology” refers to the use of sophisticated information and
communication technologies together with computer science to enable banks to offer
better services to its customers in a secure, reliable, and affordable manner, and sustain
competitive advantage over other banks. Banking technology also subsumes the activity
of using advanced computer algorithms in unraveling the patterns of customer behavior
by sifting through customer details such as demographic, psychographic, and
transactional data

13
E-banking, also known as electronic funds transfer (EFT), is simply the use of
electronic means to transfer funds directly from one account to another, rather than
by check or cash (Malak 2007).The term of E-banking often refers to online
banking/Internet banking which is the use of the Internet as a remote delivery channel for
banking services (Furst & Nolle 2002, p.5).Another definition of E-banking is that .``E-
banking is the use of a computer to retrieve and process banking data (statements,
transaction details, etc. It should be noted that electronic banking is a bigger platform
than just banking via the internet-banking can be also defined as a variety of platforms
such as internet banking or (online banking), TV-based banking, mobile phone banking,
and PC (personal computer) banking (or offline banking) whereby customers access
these services using an intelligent electronic device, like PC, personal digital assistant
(PDA), automated teller machine (ATM), point of sale (POS), kiosk, or touch tone
telephone (Alagheband 2006, p.11).

The banking has undergone a major change due to the adoption of E-banking. One of the
latest channels of distribution to be used in the financial services organizations is
electronic banking; this method was established in the mid-1990s in some countries,
thereafter, speedily covered all the world (Allen et al, 2001). E-banking system not only
generates latest viable return, it also offers its better dealings with customers (Jannatul,
2010).

Sharma (2009,pp 115-116) made a distinction between traditional and e-banking as

made the following advantages of e- banking over traditional one .The adoption of
technology has led to the following benefits: greater productivity, profitability, and
efficiency; faster service and customer satisfaction; convenience and flexibility; 24x7
operations; and space and cost savings (Sivakumaran, 2005). Metaphorically, technology
is as much part of the banking industry today as a ship’s engine is part of the ship. Thus,
like a ship’s engine, technology drives the whole thing forward (Engler & Essinger,
2000).E-banking means the conduct of banking operations electronically. It calls for
elimination of paper-based transactions and radical change in the banking operations (1)

14
E-Banking enables the customers to perform the basic banking transactions by sitting at
their office or at home through PC or Laptop (2). With E-Banking, the brick and mortar
structure of traditional banking gets converted into a click and portal model thereby
giving a concept of virtual' or innovative banking a real shape.(3). E-banking is no longer
confined branches. Customers are being provided with additional delivery channels
which are more convenient to the customers and are cost effective to the banks. These
delivery channels include ATM, Tele Banking, Internet Banking, Mobile Banking, Home
Banking(4). E-Banking facilitates banking transactions by the customers round the clock
globally.(5). E-banking is more of a science than art, E-banking is knowledge based and
mostly scientific in using the electronic devices of the computer revolution when most
corporate tend to become internetworking organizations, banking has to be E-banking in
the new century.
2.3. Forms of e-banking
E-banking can be also defined in terms of its types and features as a variety of plat forms
such as internet banking or (online banking), TV-based banking, mobile phone banking,
and PC (personal computer) banking (or offline banking) whereby customers access
these services using an intelligent electronic device, like PC, personal digital assistant
(PDA), automated teller machine (ATM), point of sale (POS), kiosk, or touch tone
telephone (Alagheband 2006, p.11 as cited in Ayana,2012). Different forms of E-banking
system were discussed as follows.
1. Automated Teller Machines (ATM) - It is an electronic terminal which gives
consumers the opportunity to get banking service at almost any time. To withdraw cash,
make deposits or transfer funds between accounts, a consumer needs an ATM card
and a personal Identification number (PIN).
2. Point-of-Sale Transfer Terminals (POS) - The system allows consumers to pay for
retail purchase with a check card, a new name for debit card. This card looks like a credit
card but with a significant difference. The money for the purchase is transferred
immediately from account of debit card holder to the store's account (Malak 2007 as
cited in Abete,2010).

15
3. Internet / extranet banking- It is an electronic home banking system using web
Technology in which Bank customers are able to conduct their business transactions with
the bank through personal computers.
4. Mobile banking- Mobile banking is a service that enables customers to conduct
some banking services such as account inquiry and funds transfer, by using of short text
message (SMS).
2.4. Important Aspects of E-Banking
E-banking will operate through internet, extant and intranet and provides many uses for
banking industry form employees, customers and potential stakeholder’s views. in his
book, Sharma(2009)discussed the following useful aspects of e-banking in detail (i)
Easy Access to Customers: E-Banking is basically Internet based. Banking products and
services such as deposits, remittances, credit cards etc. as well as all important banking
information's can be made available with easy access to customers on internet. Thus, E-
banking is a customer-to-bank service. Customers can make use of these services with no
restricted office hours, no queues, no tellers and no waiting. Several Network innovations
for E-banking can be visualized such as smart card, Electronic Data, Interchange etc. Of
course, the banking operations have to be guarded against unauthorized access by
intruders.;(ii) Inter-bank Transactions: This form of electronic banking is for transacting
inter-bank transactions such as money-at-call etc. In other words, it is a bank-to-bank
service. This type of E-banking is driving extents, which is restricted to banks only.
Hence, it is well secured and unauthorized access is less;(iii) Electronic Central Banking:
Under electronic central banking, all banks, within the purview of a central bank, are
interconnected on extranet to facilitate clearing of cheques, management of cash
reserves, open market operations, discounting of bills etc. In fact, the Central Bank has to
be connected with the government treasury on extranet to carry out its functions as an
agent of the government. Again, the central banks of all the countries can be inter-linked
with I.M.F., World Bank and other international financial institutions through extranets.;
(iv) Intranet Procurement: For the transactions that are internal to a bank, between the
banks and its branches and subsidiaries, Intranet procurements of banking are needed. On
the other hand, Extranet permits a bank to have full control over the users of intranet and
the information to be transmitted. Sharma (2009) further discussed that following

16
advantage of e-banking (1) Convenient then Banking (2) Quality Banking (3) Round the
Clock Banking: E-banking facilitates performing of basic banking transactions by
customers round the clock globally. Worldwide 24 hours and 7 days a week banking
services are made possible. In fact, there are no restricted office hours for E-banking.(4)
Service Banking: (5) Low Cost Banking (Service),(6) Low Cost Banking (Establishment)
,(7) Speed Banking , and (8) Profitable Banking:
2.5. Impediments of E-Banking

Sharma(2009) disclosed the very barriers of e-banking technology .Although E-banking

has many advantages, however, the following factors contribute as major constraints in
the smooth implementation of E-banking. He has briefly discussed the following
challenges of e-banking and by reviewing books he has proposed 8 closely related
problems of e-banking adoption (1) Initial Cost: (i) The connection cost to the internet or
any other mode of electronic communication(ii) The cost of sophisticated hardware,
software and other related components including Modem, Routers, Bridges, Network
Management system etc.; (iii) The cost of maintenance of all equipment's, websites, skill
level of employees etc.; (iv) The cost of setting up organizational activities to implement
E-banking. For a successful E-banking, bankers need to develop a coherent perspective of
the role of network technologies and advancement of their EFT -departments with a
competitive introspection of their banking business. (2) Training and Retention of Staff:
The introduction of E-banking involves 24 hours support environment, quality service to
end-users and other partners which would necessitate a well -qualified and robust group
of skilled persons to meets external and internal commitments(3) Shortage of Skilled
Personnel: In a fast changing technological scenario, the obsolescence of technology is
fast and hence there is always a paucity of skilled personnel.(4) Restricted Business: All
the transactions cannot be carried out electronically. Many deposits and some
withdrawals need the use of postal services. Mail and distribution costs are still necessary
as the statements, cheques etc. are still mailed.(5) Restricted Clientele and Technical
Problems: The user of E-banking needs a computer and time to log on the site. (6) Legal
Issues: Legal framework for recognizing the validity of banking transactions conducted
through 'Net' is still being put in place. The legal .issues should cover unauthorized

17
access, and an unauthorized modification of data, wrongful communication, and
punishment to be meted out to combat computer crimes. To prevent computer crimes, the
country's banking legislation needs to make suitable provisions with a thorough
consultation and discussion among the legal as well as technical experts.(7) Appropriate
Security: Many problems of security are involved in paper less banking transactions. A
security threat is defined as a circumstances decision or event with potential to cause
economic hardship to data or network resources in the form of destruction, disclosure,
modification of data, denial of services, fraud, waste and abuse. There are chances that
documents such as cheque, pass book etc. can be modified without leaving any visible
trace. Distortions of information's are also possible. Providing appropriate security may
require a major initial investment in the form of application encryption techniques,
implementation of firewalls etc. Inspite of implementation of several security measures,
the possibility of a security breach cannot be ruled out.(8) Destruction of Pricing
Mechanism: It may be possible that the Internet may destroy the basic business pricing
models. The internet creates perfect market conditions where prospective consumers have
access to more information and can more readily compare rates and financial products
offerings
2.6. Automated Teller Machines (ATMs)
ATMs are the cash dispensing machines that can be seen at banks and other
locationswhere crowd proximity is more. ATMs started as a substitute to a bank to allow
its customers to withdraw cash at any time and to provide services where it would not be
viable to open another physical branch. The ATM is the most visited delivery channel in
retail banking, with more than 40 billion transactions annually worldwide. In fact, the
delivery channel revolution is said to have begun with the ATM. It was indeed a pleasant
change for customers to be in charge of theirtransaction, as no longer would they need to
depend on an indifferent bank employee. ATMs have made banks realize that they could
divert the huge branch traffic to the ATM. The benefits hence were mutual. Once banks
realized the convenience of ATMs, new services started to be added. Banks are deemed
to be the early users of technology and the main drivers of technological revolution. The
first applications of the computer age within banking were the use of mainframes, and
later minicomputers, to process data such as customer accounts, bank inventories,

18
personnel records, and accounting packages that ultimately evolved into spreadsheets.
The use of technology was as a support tool for banking operations, helping staff to do
their work faster, more conveniently, and with less human errors.

According to Jayaram Kondabagil (2007) the idea of direct customer services was less
clear, but the first ATM (automated teller machine) came into commercial use in 1968.
ATMs were the first visible face of electronic banking. From being mere currency
dispensers they have now evolved into multifunctional devices enabling customers to
conduct a whole range of transactions from account management, funds transfer, to bill
payments. It took nearly 16 years for the first 100,000 ATMs to be operational, whereas
the next 100,000 were in place in a mere four years. The day of smart ATMs that use
biometrics to recognize customers and cross-sell financial products with a fair knowledge
of the investment and purchasing preferences of customers is not far off.(pp3).
Automated teller machines (ATMs) were the first e-banking innovation to provide
electronic access to retail customers. ATM is the most popular and widely acceptable
form of branchless electronic banking worldwide that was made possible because of the
advancements in computer and telecommunication networks. ATM as the name suggests
is a substitute to the human teller. An ATM is an automated system that enables an
authorized individual to perform basic banking activities (checking one's balance,
withdrawing or transferring funds) at any time of the day. ATM’s are placed by the bank
at places that are convenient for most customers to visit and this has been made possible
because of the developments in computer networks.
2.7. Banking in Ethiopia
The size of Ethiopian population and the availability of bank is in proportional and writer
address the need of creating high access to banking industry in Ethiopia. There are
currently over 90 million Ethiopians dispersed across 1.2 million square kilometers of
land, 80 percent of which are living in the rural areas. Financial institutions have not been
able to reach a majority of those people as the bank branch to population ratio is still at 1
to 37,861.8 as at September 30, 2014.(Birritu No.119,page 5).Banking system is an old
practices in Ethiopia and history of modern banking in Ethiopia dated back to 1900
when an agreement was reached in 1905 between Emperor Minilik II and Mr.Ma

19
Gillivray, representative of the British owned National Bank of Egypt. Currently as per
National Bank of Ethiopia estimates there are more than 18 private and 3 state owned
banks. Out of these 21 banks, the state owned commercial Bank of Ethiopia (CBE) is the
largest and leading bank in financial operations. The financial sector in Ethiopia is
composed of the banking industry, insurance companies, microfinance institutions,
saving and credit cooperatives and the informal financial sector. The banking industry
accounts for about 95% of the total financial sector assets, implying that the financial
sector is undeveloped, and activities that banks could perform are legally limited, which
in turn contribute to lesser contestability. (Zerayehu, Kagnew, & Teshome,
2013).Commercial Banks as such provide all the banking services including ATM
facility, Internet Banking, Telephone Banking, SMS banking and Mobile Banking beside
the traditional banking activities. The syntheses of e-banking in the sector benefit both
the clients and banks.
2.7.1. E-banking in Ethiopia

The national bank of Ethiopia has made an effort to installed ATMs in branches found in
the country and the although the bank has made to customers to access the services and
products of the sector through different virtual technologies the diffusion of the
technology is minimal and the adoption has faced many impediments such as customers
lack of awareness, internet net working The introduction of Automated Teller. The
appearance of E-banking in Ethiopia goes back to the late 2001, when the largest state
owned, commercial bank of Ethiopia (CBE) introduced ATM to deliver service to the
local users. Electronic banking facilities provided by most Ethiopian Banks are very
basic. However e-banking facilities provided are at par with those in the region. By
overstating the necessity of technology in Ethiopia banking system,
The director underlined that efforts being made by Ethiopia financial institutions to offer
electronic financial services are quite encouraging and it is however important to think of
related challenges and risks as well. Apart from improving problems with the network
and lack of system to protect consumers and provide financial education, capacity of
institutions to use technology and manage related risk has to be enhanced, he said.
( (Birritu 2014 No.119,page 5)

20
Researchers agreed that e-banking started in Ethiopia 2001 after the installation of
ATMs. The appearance of E-banking in Ethiopia goes back to the late 2001, when the
largest state owned, commercial bank of Ethiopia (CBE) introduced ATM to deliver
service to the local users. In addition to eight ATM Located in Addis Ababa, CBE
has had Visa membership since November 14, 2005. But, due to lack of appropriate
infrastructure it failed to reap the fruit of its membership. Despite being the pioneer in
introducing ATM based payment system and acquired visa membership, CBE Lagged
behind Dashen bank, which worked aggressively to maintain its lead in E-payment
system. As CBE continues to move at a snail' space in its turnkey solution for Card Based
Payment system, Dashen Bank remains so far these role player in the field of E-Banking
since 2006. (Gardachew 2010) Dashen bank, a forerunner in introducing E-banking
in Ethiopia, has installed ATMs at convenient locations for its own cardholders.
Dashen‟s ATM is available 24 hours a day, seven days a week and 365 days a
year providing service to Debit Cardholders and International Visa Cardholders
coming to the country. At the nd of June 2009, Dashen bank has installed more than 40
ATMs in its area branches, university compounds, shopping malls, restaurants and hotels.
In the year 2011 the payment card services have witnessed significant strides,
Dashen‟s ATM service expanded to 70 and 704 POS terminals (Annual report of the
bank 2011 as quoted in Ayana,2012).

Though the introduction and development of e-banking is more one and half decades, the
system is still in neophyte. In relative speaking the introduction of e-banking such ATMs,
mobile-banking and internet banking has not yet cultured in product and device delivery
system., Commercial bank of Ethiopia (CBE) introduced ATM to deliver service
Currently, the bank gives debit card service only for 13Visa cards. Dashen bank
clients can withdraw up to 5,000 birr in cash and can buy goods and services up to 8,000
to 13000 birr per day. Expanding its leadership, Dashen Bank has begun accepting
MasterCard in addition to Visa cards. Dashen won the membership license from
MasterCard in 2008.Harnessing its leadership with advanced banking technology,
Dashen Bank signed an agreement with iVery, a South African E-payment technology
company, for the introduction of mobile commerce in April 21, 2009. According to

21
the agreement, iVery Payment Technologies has licensed its Gateway and MiCard E-
payment processing solution to Dashen Bank. Dashen‟s Modbirr users can transfer 500
birr to other Modbirr users in 24 hours a day. This would make Dashen Bank the first
private bank in Ethiopia to acquire E-commerce and mobile merchant transactions
(Amanyehun 2011). Although Dashen‟s new technology is one step ahead in that it
allows transfer of funds from one’s account to others, the first ever E-banking gateway
was signed between Ethiopian Commodity Exchange (ECX) and Dashen Bank and
CBE. The E-banking system being developed with both banks is designed to give a
secure electronic data sharing gateway between clients, banks and ECX, by
facilitating a smooth transaction (Abiy 2008)
2.8. Technology Adoption Model
Rogers (1983) defines organizational innovation as the development and implementation
of ideas, systems, products, or technologies that are new to the organization adopting it.
The adoption of innovations is a process that includes the generation, development, and
implementation of new ideas or behaviors (Rogers, 1995).TAM is derived from the
Theory of Reasoned Action (TRA) model, which was developed by Fishbein and Ajzen
to explain a broader range of behaviors based on situation specific combinations of
personal beliefs and attitudes, and the effects of beliefs of others close to the individual
(Szajna, 1996). The fundamental concept of TRA is that individuals will adopt a specific
behavior if they perceive it will lead to positive outcomes (Compeau and Higgins,
1995).Technology Acceptance Model (TAM) has been extensively incorporated as a
methodology to measure attitude towards technology adoption from users in multiple
domains, as well as within financial domain. TAM variations have also been proposed
and applied for measuring users’ attitude towards adoption of several IT based services.
An extensive body of subsequent research has confirmed the usefulness of TAM – and
various extensions and revisions – as a tool for investigating and predicting user
information technology acceptance (Taylor and Todd, 1995), (Geffen and Straub, 2000);
(Doll et al, 1998).

Many researchers have been used different frame works in the study of adopting
new technological innovation. Among frameworks and models that have been

22
developed based on the past studies includes, the Technology-organization-
Environment framework (TOE) (Tornatzky &Fleischer 1990),which identifies three
basic Factors for the adoption of technological innovation, i.e., technological factors,
organizational and environmental factors. Technology Acceptance Model(TAM) (Davis,
1989), which posit the two sets of beliefs, i.e., perceived ease of use (PEOU) and
perceived usefulness (PU) to determine individual's acceptance of a technology. PEOU
refers to the degree to which an individual believes that using a particular system would
be free of physical and mental effort, PU on the other hand is related to users' .Hannan
and McDowell‟s (1984 as cited in Licker, P., & Motts, N., 2000).) study of the adoption
of automatic teller machines (ATMs) by retail banks in the United States leads them to
conclude that larger banks, operating in more concentrated local banking markets show a
higher probability of installing ATMs than smaller banks operating in less concentrated
markets. The result, they claim, provides evidence for the Schumpeterian hypothesis. The
Schumpeterian hypothesis‟ referred to in studies on ICT diffusion relates to the
relationship between firm size, market structure and the adoption. In order to perform the
research, the researcher adopted TAM methodology and concepts, and used a revised
TAM model.

By summarizing major technology adoption /acceptance models, Chinadio(2011:12)

wrote that

Among the various user acceptance theories, Theory of Reasoned Action

(TRA), Theory of Planned Behavior (TPB) and Technology Acceptance Model
(TAM) appear to be the most widely accepted and used by the IT researchers. The
TRA andits derivatives, TPB and TAM follow the Attitude-Behavior paradigm
that suggests that behavior in question is determined through the intention toward
the behavior. Thus, the intention is influenced by attitude and finally salient
beliefs influence the attitude. However, the TAM has more clear focus on the
IT/IS usage. The TAM has been extensively used solely for the purpose of
predicting, explaining and increasing the understanding regarding individual’s
acceptance of technology in variety of fields. It is important to note here, that the

23
 present study applies TAM-based findings as the basis for the theoretical model
development.(2011:12)

2.9. Technology Acceptance Model (TAM)

Technology acceptance model (TAM) was first developed by Davis (1989) to
study issues associated with customers’ acceptance and use of technology related
systems. This model has proven to be the backbone in explaining and predicting
customers’ behavior on electronic related systems . The model was later extended by
Davis et al.(1989) to explain the acceptance and use of information technology (IT), and
also to predict customers’ acceptance of electronic systems in general. This theory argued
that when customers in an organization are presented with a new technology system, a
number of factors influence their decisions about how and when to use it (Davis,1989).
Even though many models have been proposed to explain and predict customers’
use of electronic systems, TAM has been the only one that has captured the most
attention of the information systems community manifestation of customers’ behavior on
issues associated with the usage. TAM comes up with the following variables:

Figure 2: Revised technology Acceptance Model (Davis,1989)

2.9.1. Perceived usefulness

Perceived Usefulness is a good factor to measure the success of E-banking adoption.

Hoppe et al. (2001) indicated that perceived relative advantage has a positive influence

24
on the adoption of Internet Banking and it is compatible with their values to be adopted
by users. Individual tends to attach positive or negative feeling towards the usefulness of
an event or phenomenon such as an electronic system. Therefore, customers’ perceived
usefulness could be defined as the degree in which the user believes that using the
information system can improve his/her work performance (Davis, 1989). Customers
need to develop positive feeling towards the usefulness of electronic related system such
as ATM in order for the banking sector to be more productive [26]. Hence, customers’
perceived usefulness of electronic banking (ATM) services will motivate them to
patronize it more [27]. Godoe and Johansen [31] indicated that customers’ perceived
usefulness of technological innovations significantly contributes in determining its
adoption and usage. Meanwhile, Bhattacherjee [32] argued that customers’ willingness
to perform a transaction on electronic banking is considered as perceived usefulness.
2.9.2. Perceived Ease of Use

Perceived ease of use is defined as the degree that an individual believes it is simple to
use electronic related systems .Likewise, Davis et al. (1989) argued that perceived
ease of use is the degree to which a customer agrees with the notion that using
electronic systems such as ATM services for banking transaction is easy. Similarly,
Zeithaml et al.[36] stated that the level to which an innovation is easy to understand or
use could be considered as perceived ease of use. Consult [37] noted that perceived ease
of use refers to the ability of customers to experiment with electronic banking in order to
evaluate its benefits. Other than that, he also affirmed that the factors of growth in
electronic banking are determined by the customers’ perceived ease of use of the system.
Previous research conducted on electronic banking revealed that customers’ perceived
ease of use influenced directly or indirectly on bank customers’ usage of electronic
related systems such as ATM services [38-41]. Chen and Barnes [42] were adamant that
perceived ease of use greatly influenced customers’ acceptance and use of electronic
banking (ATM).One of the basic benefits related with the use of E-banking system is the
perceived ease of use. Giglio (2002) suggests that adopting online banking services
reduce the workload over the banking staff and it’s easy to have more satisfied
customers. On the other hand Robinson (2000) indicated that online banking provides
convenience not only to bank and also to customers. The data obtained from the survey in

25
this study also confirms the finding of Giglio (2002) and Robinson (2000) and the result
were shown in table 4.8 as follows. In addition to this, Wu and Wang (2005) suggested
that ease of use and usefulness are both significant factors that affect customers’ use of
electronic banking. However, Ouet al(2009) asserted that operating scale, banking
deposit service and operating cost are determinants of customers’ usage of ATM. Adeoti
(2011) revealed that card jamming, shoulder surfing and stolen ATM cards affect
customers’ use of ATM services. The literature reviewed above shows that there are
different factors that can affect customers’ actual usage of ATM services. Likewise,
Guriting and Ndubisi (2006 )indicated that perceived usefulness and ease of use are
strong determinants for actual usage of electronic banking. Meanwhile, Thayammal and
Rajagopal (2012 as cited in Olowookere & Olowookere, (2014) posited that perceived
ease of use, usefulness, attitude towards behavior and behavioral intention affect
customers’ ability to actually use ATM services.
2.9.3. Intention Behavior

Intention behavior can be defined as an indication of a person’s readiness to perform a

given behavior (Davis, 1983).Researches indicated that intention to use affected many
factors Teimouriet al.(2012)found that the influence of confidence and satisfaction on
customers’ behavioral intention to use electronic related system and Amin (2010 )
revealed that perceived usefulness, ease of use, credibility and religion are important
variables in predicting customers’ intention behavior to use ATM services. Besides,
Sahi and Gupta (2013) argued that loyalty and attitude of bank customers determine their
behavioral intention to use electronic banking (ATM).Brunneret al.(2004) and Adepoju
and Alhassan (2010) indicated that issues related to fraudulent activities strongly
influence customers’ actual usage of ATM services. Adesuyi et al. (2013) found
that lack of security affect customers’ use of ATM services.
2.10. Trust towards ATMs
In brief, privacy and security were found to be significant obstacles to the adoption of
online banking in Australia (Sathye, 1999). Roboff and Charles (1998) found that
people have a weak understanding of online banking security risks although they
are aware of the risks. These authors noted that consumers often rely that their bank is
more concerned about privacy issues and protect them. Perceived trust is also consumers'

26
confidence in their bank was strong, their confidence in technology was weak (Howcroft
et al., 2002).Therefore, the research considered the effect of trust on the adoption and
usage of advanced banking technologies as an extension to the basic TAM. Within the
literature, organization theory provides a cross-disciplinary definition of trust that applies
to a large range of relationships among individuals and organizations. In that context,
trust implies benevolence, integrity, and ability in an exchange relationship (Mayer et al.,
1995 as quoted in Kamel and Hassan2003).This conception of trus is also adapted for the
immediate purpose of the research.

Lee et al. (2000 as cited in Chandio,2011) included risk with TAM in a study
explaining the factors affecting consumers’ online purchase behavior. In the proposed
e-commerce adoption model, they divided perceived risk into transaction risk and product
performance risk. Their findings showed that transaction risk had a negative effect
on PU and purchase behavior while Performance risk negatively influenced the
purchase behavior but it had no effect on the PU and their conceptual model explained
approximately 34% of the overall variance in electronic-commerce adoption model (Lee
et al. (2000). Pavlou (2003) also expanded TAM by adding trust and perceived risk
factor in a study on customers’ online purchase intentions. The conceptualmodel
included trust, risk, and TAM core constructs (i.e. PU and PEOU). The results of the
study supported the hypothesized model. Finding of the study suggested that apart from
PUand PEOU, trust and risk had major impact on behavioral intentions to purchase
online. In addition, Gefen et al. (2003) incorporated trust into TAM in an empirical study
that examined factors affecting customers’ decisions to return to an electronic vendor and
their findings indicated that trust, PEOU and PU had strong influence on behavioral
intentions to transact online. Trust was also included in the TAM model by Suh and Han
(2002) and their results confirmed that trust was very significant determining factor
in the acceptance of internet banking in South Korea. While studying the influence
of trust on internet banking acceptance, Khalil and Pearson (2007) revealed that trust
significantly influenced attitude towards internet banking acceptance
2.11. Technology Adoption in Developing Countries

27
There is a big gap in internet and other technologies adoption between the developed and
developing countries (Licker & Motts, 2000); thus creating a digital divides. Digital
divide is defined as the „differential capabilities of entire social (or region) groups to
access and utilize electronic forms of knowledge‟ (Sraub, 2000), segregating the „haves
and have-nots‟ in the information society. Mbarika et al., (2005), state that much of the
discussion on digital divides has focused on that which occurs among different social
groups; they note the existence of international digital divide between countries.
According to them, this digital divide is abundantly clear when comparing Sub-Saharan
Africa with countries of the west like US or UK. The main obstacles that prevent
developing countries from leveraging the technology are lack of adequate communication
infrastructure, technical know-how, and information processing about the economy and
environment. The lack of adequate banking infrastructure is also considered as one of the
problems faced by developing countries in building technological innovation solutions
(Khalfan & Akbar, 2006).Tan and Teo (2000) note that the challenge to expand and
maintain banking market share has influenced many banks to invest more in making
better use of the internet and other related technologies in developing countries. Adopting
an innovation, organizations E-Banking provides various e- channels for using banking
services like ATMs, credit cards, debit cards, internet banking, mobile banking,
electronic fund transfer (EFT), electronic clearing system etc. However, as per the Indian
e- banking scenario ATM is the most acknowledged as compared to than any other e-
channels. The Indian ATM industry has seen explosive growth in recent times (Kumbhar
2011-12).
2.12. Empirical Research: Determinants of E-Banking Acceptance:
There are many factors defined by researchers as determinants of e-banking adoption in
generally and ATMs adoption in particular. Broadly, factors that determine e-banking
adoption are grouped into environmental, social and technological Kimberly and
Evanisko (1981) identified three groups of predictors of innovation: characteristics of
organizational leaders, characteristics of organization, and characteristics of environment.
In summary, four categories of factors can be found in technological innovation
literature: (1) managerial; (2) organizational; (3) technological; and (4) environmental.
However, all these identified factors are based on perception, lacking quantitative

28
backing. Researchers have identified the following common environmental factors
relating to technological adoption pressure from competitors, customers or suppliers; the
role of government (incentives); partners‟ alliances; technological infrastructure;
technology consultants; image of internet technology; and users‟ expectations (Aguila-
Obra & Padilla-Melendez, 2006) technological factors include complexity, compatibility,
relative advantage, ease of use and usefulness (Davis,1989; Rogers, 1995). The
technological factors are related to barriers to technology adoption and its perceived
benefits. The perceived benefits for managers could be direct, such as cost savings or
income generation, or indirect, such as potential opportunities in new markets, marketing,
or publicity (Poon & Swatman, 1999).

Research determined accessibility of ATM services positively influence

Nigerian University student usage while, cost and fraudulent activities negatively
discourage them from using ATMs (Olowookere & Olowookere ,2014) and card
jamming, shoulder surfing and stolen ATM cards affect ATM usage were also defined as
factors affecting (Adeoti ,2011). Khan (2010) shows that convenience, efficient
operation, security, privacy, reliability, responsiveness are significant dimensions of
ATM service quality and that ATM service quality positively contribute towards
customer satisfaction, contrary to Alaba (2011) who reveal that internet fraud, cultural
beliefs and misconception, lack of skill to operate it, frustration, pains and bad
experience report about ATM and discrimination against ATM issued affect its adoption.
Sawalqa (2012 as cited in Bello and Karupiah,2015 ) shows that privacy, security, cost
and lack of training for users affect their usage of ATM. Mashadi, Tofighi &
Nasserzadeh (2007 as cited in Bello and Karupiah,2015 ) indicate that perceived
usefulness, trust, interpersonal influence and self -efficacy are the determinants of
electronic banking adoption.

In Ethiopian context (locally), researches are carried to assess and examine the
determinants of e-banking adoption in Ethiopia commercial banks including private and
public banks. Challenges and promises (prospects) are appearing the common thread that
ties research conducted in technology adoption in Ethiopia in different context. From his

29
experiences and personal observation, Gadrachwe(2010) reviewed and found out that the
most recurring challenges of e-banking system in Ethiopia banking system .There are a
few research empirical finding and reviews e-banking in general and automated teller
machines(ATMs) in particular in Ethiopia. Gardachew (2010) conducted research on
the opportunities and challenges of E-banking in Ethiopia. The aim of his study was
focused on analyzing the status of electronic banking in Ethiopia and investigates
the main challenges and opportunities of implementing E-banking system. The author
conducted a survey on the existing operating style of banks and identifies some
challenges of using E-banking system, such as, lack of suitable legal and regulatory
frame works for E-commerce and E- payments, political instability in neighboring
countries, high rates of illiteracy and absence of financial networks that links different
banks.

Using cross sectional research design ,Abenet (2010) revealed that demographic
factors including age, income, education level and occupation have a relationship with
the adoption of internet banking. Besides, He disclosed that psychological factors
such as perceived relative advantage, perceived compatibility, perceived complexity,
perceived risk, and perceived cost have a strong and positive influence upon the
adoption of internet banking. The researcher further more unveiled that opinions of
friends, parents and colleagues were not found to be significant social related factors that
determine to the adoption of internet banking in the Ethiopian context. He also reviewed
and used age as one determinants of e-banking adoption. Stone man (2001,p.4 as quoted
in Abnet,2010), the greatest concentration of computer owners who have banked
online in the USA are in the 18 to 34 year age group and represent 30% of the market. By
way of contrast only 15% of the population in 55to 64 year age group owns a computer
and only 9% of this group banks online. Karjaluoto, et al. (2002, p.271 as cited in ,
Abenet,2010) show that age has an impact on the use of internet banking. The results
imply that the typical user is between 35 and 49. Therefore this study undertakes to
determine whether age has an impact on consumer acceptance of internet banking.
Differences in occupations, education and income are determinants of e-banking (Wilkie,
1990, p.105 as cited in Abenet, 2010).

30
Ismail El Naggar (2010) found out that improving e-banking services perceived value
can significantly and positively strengthen the relationship between banks and
customers. And Antecedents of value were identified to be a combination of the explicit
involvement of service suppliers in supporting face-to-face service encounters, e-
banking services quality, and the role of external environment in promoting e-
banking services. He also indicated that

The ability of banks to create and deliver value of e-banking services is affected by their
positioning strategy, bank branch design, employment scheme, criteria of recruiting
front-office employees, and criteria of evaluating front-office employees‟ performance.
The nature of the Egyptian economy, output of education system and legal system
development were defined as highly influential within this process. Research delineated
that adoption internet banking is influenced by customers’, perceived usefulness, ease of
use, attitude, behavior control and trust .

Research by Beza(2010) revealed that: balance inquiry, cash withdrawal, funds

transfers, statement printing are among the major practice of e-banking among
those banks that are providing the service to the customer. He also found out that
customer received services such as are ATM card, debit card, credit card, salary card,
visa card, master card, Internet banking and Mobile or SMS banking. Using Bank
employees his major and sole data sources, Mohammed Arif Shaikh(2014) showed and
observed that bankers perceive „ a means to save time‟ and „minimize inconveniences‟
as the most and the least advantage of electronic banking whereas „Need for expertise
and training‟ and „ charge a high cost for services‟ are considered as the most and the
least risk associated with electronic banking.According to Olatokun and Igbinedion
(2009) the demographic characteristics of the respondents revealed that most of them
were students and youths. From the factor analysis, it was revealed that the respondents
believed in their safety in using ATM; that ATMs were quite easy to use and fit in with
their way of life; that what they observed about ATMs convinced them to use it and that
ATM was tried out before they use it.

31
 Through archival research, Batiz-Lazo and Barrie (2005) investigated the impact
of the introduction of Automated Teller Machines (ATM) in British retail banking.
ATMs were originally a British innovation but U.S. (e.g., IBM and NCR) and German
manufacturers (e.g., Siemens) took the lead as ATMs became a global technology. The
evolution of ATM showed how banks adopted on-line, real-time computing for the entire
branch network and highlights the role of network externalities in financial markets.
From a business history perspective, ATM characterized a shift in bank strategy, namely
how applications of computer technology moved from being potential sources of
competitive advantage to being a minimum requirement for effective competition in retail
finance

Omondis (2003 as cited in Berulava and Lezhava ,2008) study of the adoption of
automatic teller machines (ATMs) by retail banks in Kenya led him to conclude that
larger banks, operating in local banking markets show a higher probability of installing
ATMs than smaller banks.

Simmel’s argued that the concept of trust is imperative as its provides sociological
paradigm on individuals’ impersonal business interaction with an organization (Simmel,
1990; Deflem,2003). Simmel’s Sociological perspective on trust developed by customers
in an interaction with an organization that they lack in-depth knowledge over its
operating nature could be labeled as impersonal business relationship (Simmel, 1990;
Berulava and Lezhava2008).Besides that, trust tends to hold different organizations such
as the banking sector, and also the use of its products and services together (Paxton, 2007
and Simmel,1950).Howcroft (1991)noted that dissatisfaction among customers is
associated with frequent interruption and breakdown of ATM.

Hone et al. (1998) found that in spite of the success and widespread use of ATMs, a
significant proportion of bank customers could not or would not use them, or experience
difficulties in their interactions. Batiz-Lazo and Barries’ study argued that during the

32
1990s, Information Technology in banking (as measured by ATM) led to reduced
operating costs, coupled with increased output (number of transactions) that resulted in
greater efficiency. They concluded that the introduction of ATM was profitable for banks
as well as customers. Their study indicated that banks’ adoption of ATM was overall
beneficial for banks. In another study in Bangladesh, Shamsdouha, Chowdhury and
Ahsan (2005 as cited in Adeniran and Junaidu,2010) found that 24 hours service,
accuracy, and convenient locations are the main predictors of customer satisfaction. The
study also indicates lack of privacy in executing the transaction, fear of safety and
complexity of the machine as the major cause of concern for the customers.

Arunkumar (n.d) applied TAM and found out that of Perceived ease of use, Perceived
usefulness and perceived enjoyment are the three factors which influence the attitude and
intention towards using Internet banking. It has been widely recognized that
demographic factors have a great impact on consumer attitudes and behavior
regarding online banking (Sathye, 1999; Karjaluoto et al.,2002).

Khan (2010) shows that convenience, efficient operation, security, privacy, reliability,
responsiveness are significant dimensions of ATM service quality and that ATM
service quality positively contribute towards customer satisfaction, contrary to Alaba
(2011) who reveal that internet fraud, cultural beliefs and misconception, lack of skill to
operate it, frustration, pains and bad experience report about ATM and discrimination
against ATM issued affect its adoption. Sawalqa (2012) shows that privacy, security, cost
and lack of training for users affect their usage of ATM. Mashadi, Tofighi &
Nasserzadeh (2007 as cited in Bada,and ,2015) indicate that perceived usefulness,
trust, interpersonal influence and self- efficacy are the determinants of electronic banking
adoption.

Chanidio(2011)studied the acceptance of online banking information system and found

out that that, in order of importance, PU, PEOU and trust explained 45.7 % of the
variance in the acceptance behavior. The trust and the TSE predicted 28.1 % of the
variance in the PU.

33
Using 182 sample size for questionnaires and another twelve (12) respondents for survey
and in-depth interviews respectively and by collecting data and analyzing through
quantitative and qualitative methods, Okafor, Emeka E.,and Ezeani.,F. N(2012) found
out respondents were utilizing the machine for various purposes. Also, respondents
mentioned convenience, quick funds transfer, and time saving as the real benefits of the
machine. Some respondents mentioned fear of armed robbery attack, technical hitches,
invalid debit and perennial network failure as the challenges of utilizing the machine. On
the whole, most respondents (67.0%) evaluated the machine as having benefited them
more than it had cost them. They also analyzed the relationship between demographic
variables with constructs and showed that more female bank customers (χ2 =6.469;
p<0.05); more relatively younger customers (χ2=66.846; p<0.05); more customers with
relatively higher level of education (χ2 =26.892; p<0.05) and more student customers
(χ2 =61.196; p<0.05) agreed the machine had benefited them more than other
groups.

Using 100 respondents and cross sectional descriptive survey type and analyzing by
multiple logistic regression model, Adeniran and Junaidu (2014) revealed that, the
impact of ATM services in terms of their perceived ease of use, transaction cost and
service security is positive and significant. And they have also indicated that the
impact of ATM services in terms of availability of money is positive but insignificant.

Bada and Karupiah (2014) found out that Correlation analysis was conducted on 300
customers of some selected banks (Guaranty Trust Bank, Zenith Bank, First Bank, Eco
Bank and Mainstreet Bank) in Sokoto State, Nigeria. The result shows that attitude
towards behavior, intention behavior, actual usage, perceived ease of use and
usefulness has a significant and positive relationship with customers’ trust in the use of
ATM services

Olowookere & Olowookere (2014, as cited in Bada,andKarupiah ,2015) argue that,

accessibility of ATM services positively influence Nigerian University student usage

34
while, cost and fraudulent activities negatively discourage them from using it. Contrary to
Adeoti (2011as cited in Bada,2015) who found that card jamming, shoulder surfing and
stolen ATM cards affect ATM usage.

Dilijonas, Krikscuiunen, Sakalauskas and Simutis (2009 as cited in Adeniran and Junaidu
,2014) on the other hand mention that adequate numbers of ATMs, convenient and
secure location, and user-friendly system, speed, minimum errors, high uptime, cash
backup, cost and service coverage are essential service quality aspects of ATM service.

Joseph and Stone (2003 as quoted in Adeniran and Junaidu ,2014), through focus group
study in the United States, found that easy access to location, user-friendly ATM and
security, are important factors that influence majority of bank customers’ perception of
ATM service quality.

Bada,A. B., a Karupiah,P. (2015) recommended that study on these variables:

customers’ perception on security, privacy, perceived usefulness and ease of use,
knowledge efficacy, convenience, intention behavior and actual behavior will help in
narrowing the gap on the literature reviewed. Thus, future study should use the above
variables as independent variable while trust as dependent variable.

Using around 300 participants, Omari, Richard Kwaku Bamfo(2012) studied use of
ATMs in Ghana and found out that major problem found through the study was that there
is a high perception that the branch ATM is associated with technical problems such as
frequent network failures and frequent breakdowns. He also found out that the ATM
withdrawal charges for savings account holders were high. It was therefore concluded
that majority of ATM subscribers have a good knowledge on the services offered by the
branch ATM. The motivating factors for using the branch ATM services are privacy in
carrying out banking transactions, time saving element and the flexibility in use. The
demotivating factors that prevented respondents from using the branch ATM are high
charges, technical failures and unfavorable daily withdrawal limit.

35
Through analyzed the data using Structured Equation Modeling (SEM) among the
constructs including perceived ease of use and perceived web security as independent
variables, Perceived Usefulness and Attitude as intervening variables, and Intention to
use as the dependent variable. The results provide support of the extended TAM model
and confirm its robustness in predicting customers’ intention of adoption of IB and
Edwin Cheng,T.C., David, Y.C. Lam and Andy C.L (n.d) concluded that Perceived
Usefulness is a major determinant of customer’s intentions to use IB, Perceived Ease of
Use is a significant secondary determinant of customer’s Intention. However, it is
mediated through Perceived Usefulness instead of having a direct impact on Intention.
The researcher found out that results provide support for TAM.

Using ethnography approach by recruiting about 43 bank ATMs adopter, De Angeli.,

Athavanka., Coventry., and Johnson, . (n.d) common challenged the assumption that
illiteracy and lack of expertise with technology are major deterrents to technology
adoption. They found out that a few people who fell into these categories, but were
regular users of ATMs and could perform complex operations like depositing cash. In
addition to that they unveiled also found that ATMs could allow people to escape from
the discomfort of the class system. Some people from lower classes preferred using
ATMs rather than the teller. These findings show that potentially technology can act as a
means to transcend class barriers. In this sense, technology may have an important and
unexpected effect on culture whose long-term effect warrants further research.
Pikkarainen et al. (2004) and Chan and Lu (2004) investigated acceptance of internet
banking in Finland and Hong Kong, respectively. Both studies reached the same
conclusion that perceived usefulness is more influential than perceived ease of use in
explaining technology acceptance of internet banking.Fyery Abrehe Ahena(2015)
assessed the adoption of ATMs in Mekel by adopting theory of diffusion of innovation
which has been initiated since 1962 by Rogers Everett. The result has shown that
ATM adopters in the bank use only limited types of services predominantly cash
withdrawals. It was also found that mean of mean for the five attributes that determine
the adoption of a new technology becoming below 4.00. This indicates there is no strong

36
agreement of the users on each attributes of ATM technology. In addition the attitude of
ATM adopters towards ATM were found to be positive.

The research by Ayana summed that Ethiopian banking industry faces in the adoption
of Electronic banking are, security risk, lack of trust, lack of legal and regulatory
frame work, Lack of ICT infrastructure and absence of competition between local
and foreign banks are major chalets in adopting e-banking . He also identified
perceived ease of use and perceived in usefulness as a driver of adopting E-banking
system(Ayana,2012).

Sundaram and J. Premalatha (2012) studied the overall satisfaction level of the customers
of the various banks in Vellore district, and concluded that customers felt that bankers
must improve the safety, provide accurate, timely information and make the use of ATM
services easy in order to retain the customers. They concluded that the majority of the
customers are highly satisfied in using the ATM services of their banks. Singh and
Saxena (2011) conducted a study on customer satisfaction regarding the use of ATMs
and revealed that the ICICI Bank, being the largest private sector bank, must make its
customers satisfied to sustain in this world of competition.

Using an integration of TAM, TPB AND PR ,Yitbarek Takele and Zeleke (2013) examine
customers’ behavior in Bahir Dar .They found out that that attitude, subjective norm,
perceived behavioral control, perceived usefulness and perceived ease of use and
perceived risk were significant in affecting users’ intention to use e-banking service
channels. They also concluded that the construct perceived behavioral control emerged as
a dominant factor followed by attitudes and perceived usefulness in predicting an
individual’s intention to adopt e-banking service channels. And the y finalized that
attitude is jointly predicted by perceived behavioral control, perceived usefulness,
perceived ease of use and perceived risk while perceived ease of use contributed more for
the variation in attitude.
Kamala (2008) has made a detailed survey regarding the customer satisfaction
towards ATM services in Tirunelveli city of Taminadu. She observed that the

37
respondents were conscious about more innovative techniques in ATM services. Khan
(2010) concluded that the key dimensions of automated banking service quality include
reliability, ease of use, privacy, convenience and responsiveness. He concludes that ATM
facility resulted in speed of transactions and saved time for customers. Al-Hawari et al.
(2006 ,as cited in Sunita,2013 ) compiled a list of five major items about ATM service
quality that includes convenient and secured locations, functions of ATM, adequate
number of machines and user-friendliness of the systems and procedures. Mcandrew
(2003 , as cited in Sunita,2013) talked about the various utilities of ATMs, which has
given worldwide popularity. The utilities include withdrawal of cash as per convenience
of the customers than during the banking hours at branches. Besides providing off time
and off shore services, there is reduction of cost of servicing.

Research in local context also indicated factors e-banking adoption in Ethiopia. for
example. Wondwossen & Tsegai (2005 as cited in Ayana,2012 ) observed the
following reasons which may be considered as hindrance factors for the use of
electronic payment system in Ethiopia. These hindrance factors include, lack of
appropriate infrastructure for E-payment, lack of internet facilities with customer
and learning how to interact with bank website. Moreover, factors that can affect
adoption of E-banking in the country regarding the technological factor,
organizational factor and Environmental factor were analyzed in the following
sections. The results of the study regarding problems while using ATM services found
that 'machine out of cash', 'machine out of order', 'no printing of statement' and 'poor
visibility of statement slip' were the important issues.

It was clearly reflected from the study that there was no significant difference of opinion
between male and female and public and private sector Bank ATM users regarding
various problems while using ATM services. The level of education has a significant
bearing on the issue 'machine out of cash'. The respondents' age was significantly
associated with the issues 'machine out of cash', 'wrong amount on the slip', 'no printing
of statement', 'poor visibility of the statement' and 'difficulty in retrieving cards'. Further
the study found that annual income has significant association with the issues 'cards get

38
blocked', 'machine out of cash' and 'no printing of statement'. Occupation of the
respondents has significant impact on the issues namely 'balance reduced without cash
receipt' and 'difficulty in retrieving cards'. The place of residence of respondents has
significant association with the issues namely 'machine out of cash', 'no printing of
statement' and 'poor visibility of the statement slip'. Further the association with bank has
shown significant association with the issue 'machine out of order.

39
 CHAPTER THREE

RESEARCH METHODOLOGY
3.1. Research Design
The descriptive survey and causal research were developed to examine the determinants
of ATMs adoption as perceived by customers in stated own commercial banks in Dessie
city in 2016 and Dessie is one of the oldest city in Ethiopia which is 401 Km away from
the capital city and the city is one of the growing city and divide into sub-cities .Banking
is especially stated owned banking is an old practice staring form the emperor Haile
silasie (Table 1) and assumed to start 1943. Table one provided background information
about the research setting as gathered from ATM banking is started in 2013 in main
branch of state owned branch found in the city and there about nine ATM machines use
by customers in the city

Table 1: The branches of state owned commercial bank in Dessie city

Branches Date of Number of Number of ATM cards
Name Establishment ATM(S)
Prepared Handled Ordered/cash
Dessie Branch 5/04/1943
Mugad branch 11/2/1972
Banbuha 30/9/20111
branch
Ayiteyef 17/12/2013 Nine
branch machines* *10013 *5906 *4107
Dawudo 10/11/2014
branch
Gerado 28/9/2013
branch
Tosa branch 27/12/2011
Note: *the total number of the machines is nine and the ATM has officially installed and started
in September 2013
Source: Own survey, march 17,2016
As shown above, The total number of branches in Dessie city is seven and their
prospective establishing date is indicate the table above .There are three types of research

40
designs identified from the literature: (1) exploratory, (2) descriptive, and (3) casual
or explanatory design (Cooper and Schindler, 2001 as cited in Chandio,2011). The
current research adopt mixed types of resource approach (quantitative supplemented by
qualitative) and descriptive survey type and cross sectional nature deploys to gather
primary data (Babbie, 2010). The Mixed research approach opens door to multiple
methods of data collection and helps to generate the findings to a population and develop
a detailed view of the meaning of a phenomenon or concept for individuals (Creswell,
2008).The target population of the study is the customers of commercial bank of Ethiopia
in Dessie city who use ATM. Since the design of research is descriptive survey and
guided by the assumptions of both quantitative and qualitative paradigm survey
questionnaires and semi-structured tools were used to collect. The research employed
descriptive survey (supplemented by inferential statistics) for quantitative data and
narration, content analyses and thematic analyses for qualitative data. This study used
cross-sectional research design by collecting data at a particular period of time Purposive
sampling technique was used to select commercial bank IT expert and managers for
semi-structured interview of the current research.
3.2Conceptual Frame Work of the Research

Ease of Use of ATMs

Behavioral Intention to
Perceived usefulness of ATMs
Use ATMs

Perceived Trust on ATMs

Figure 3: Extended Modified Technology Acceptance Model plus Trust

41
The research considers more than two constructs: dependent and independent variables
.In this research. Ease of use, perceived usefulness, and perceived trust were used as
independent variables and behavioral intention to use ATMs as dependent variables. The
research variables tested that were directly extracted from TAM include perceived ease of
use (PEOU), perceived usefulness (PU), and technology acceptance (TA). PEO and PU
were simultaneously acting as dependent and independent variables, while TA was
merely a dependent variable that depended on PEOU and PU. Moreover, trust (T) was
used as an independent variable, which was indirectly affected by TA through its direct
effect on variables PU and PEOU (Appendix 1).
3.3. Participants of the Research
The record of Commercial bank of Ethiopia reveals that 5906 customers are presently using ATMs in
Dessie city as on February 2016. Dessie But it is known that these numbers are indicating customers and
ATM users at one point in time and these numbers are increasing even within a day. Using convenience
sampling techniques 375 customers are used. The participants of the current research include Information
communication technicians, IT managers, branch managers, customers in commercial bank Ethiopia Dessie
city branch. Convenience sampling was used to access respondents of the research. The participants in this
study were customers who have had, who fit well with the aim and context of this study.

3.4. Sampling Technique and Sample size

While it is difficult to get responses from a whole population, sampling is an attempt to
draw a conclusion based on a small representation in a given population (Yamane, 1963).
The sample in this survey is considered a subset of customers in Dessie city comprised of
some customers selected using convenience sampling techniques and non-probability
convenience sampling to ensure a better response rate in a short amount of time and
convenience sampling was the optimal technique for the purpose of this study. Hair et al.
(1998 as cited in Chandio.2011) recommended that a sample size of at least 200 and not
exceeding 400 is considered appropriate. Thus, as general rule, a sample of minimum 200
is needed to give parameter estimates with any degree of confidence (Gerbing and
Anderson, 1993 as cited in Chandio, 2011).For populations that are large, Yamane
(1967:886) provides a simplified formula to calculate sample sizes When population is
large.
N 5906
n= 2 2
=375
1+ N ( e) 1+5906 (0.05)

42
Where in
n= is the sample size, N= is the target population and e 2 =is the desired level of
precision,
3.5. Instrumentation of the Research
Questionnaires(containing both close and open items ) and interview(semi-structured
one) are found to useful to gather data for the researches and survey questionnaires
saves researchers time and expenses by overcoming geographic distance. Moreover, they
assist in accessing unique subjects. Face-to face mode of gathering data can be used from
different participants.
3.5.1. Questionnaires

To ensure the validity of this study, constructs were adapted from previous studies
conducted on automated teller machine (ATM) services. Items selected for perceived
usefulness, ease of use, behavioral intention to use and perceived trust were taken and
adapted The questionnaire developed for TAM by Davis (1989) – adapting the scales for
Perceived Usefulness and Perceived Ease of Use, trust and behavioral intention from
(Chandio,2011). Chandio (2011) established the validity and reliability of their
instrument, particularly the TAM instrument, which has been replicated and widely used
in other studies. Using a 5-point Likert scale for each item (with 1 = strongly disagree, 2
= disagree, 3 = neutral, 4 = agree, and 5= strongly agree). A 25 Likert scales items are
adapted to measure in accordance with the current study’s research objectives. The
measured items include perceived ease of use (6 items), perceived usefulness (6 items),
intention to use (5 items), and trust (8 items) and 10 rating scale items to measure
problems and two general open ended items to probe more problems and propose
solutions From existed literature and informal conversion with IT technical and managers
common problems were identified and prepared into yes-no type questions (slightly
adopted, Okafor, Emeka and Ezeani.,2012).The questions identifies respondents’ basic
demographic characteristics. It contains 4 items such as sex, age, occupation, level of
education (Appednix, 1).
3.5.2. Semi-Structured Interview

43
Qualitative data were also used to supplement and validate the quantitative data. After making in themes,
the open-ended items some additional questions were developed to have depth insight on the determinants
of the ATMs adoption and 7 items were used to probe more information about the issues (Appendix 3)

3.6. Data Collection Procedures

After having official permission from the district manager bank (Appendix 7), the researcher employed
different ways for administering questionnaires; face to face contacts were made with the participants by
visiting and conducting bank in selected in the city schools, hospitals, college, university shopping center
and different offices. After identifying potential users who were capable of using ATMs researcher
distributed questionnaires among them. After adapting by reviewing from existed literature and testing the
reliability of each items, preparing the instruments, the questionnaire was available at the year 2016. They
were distributed when customers available using the ATMs a convenient sampling of 375 customers to the
survey. Participants were approached through the support of the bank managers and colleagues and the
questionnaires were also distributed to the entire sample framed .The questionnaires and interview items
were translated from English to Amharic ( Appendix 2 and 4) and was found to be important to minimize
language barriers among bank clients. Some of the questionnaires were gathered on the spot and some
others after having an appointment. This affects the response rate of the questionnaires.

44
3.7. Data Analyses Techniques
Statistical Package for Social Sciences (SPSS) version 19.0 was used to compute and
analyze the data. The statistical tests used in the analysis of data include descriptive
statistics and correlation analysis and regression. After coding each variable and
identifying undesirable questionnaires not properly filled, the data were analyzed both
qualitatively and quantitatively. The descriptive nature of the data needs largely
descriptive statistics and in these research statistical tools such as mean, standard
deviation, frequency (count), percent, correlation, one sample t test and multiple
regressions was applied to analyses the data. After collecting the data ,analyses were
made using SPSS and as well narration and content analyses were deployed for interview
items .the qualitative data were analyzed using content analyses and narration of
verbatim. Tabulations and graphs were sued to summarize using APA (version 6 table
format)

3.8. Ethical Issues

Ethical clearance was obtained prior to the study. Participation in this study was voluntary and data was
collected anonymously. This study did not involve personal information about participants. Prior to
commencing the survey in this study, all participants were made aware of the research significance and
type of information being collected. The researchers explained that the participation in this research is
based on their interest, and when they lack interest and confidence they are left free to stop completing the
questionnaires as ethical guide by APA. The researcher made participants confirming the purpose of the
research they may decline to participate at any time. Further, data confidently was assured.

45
3.9. Validity and Reliability.
Having informal conversation with IT manager, experts and psychologist was used to
validate the items and the creditability of the research. Therefore, the reliability of 33
items that are critical determines the effect of acceptance of ATMs was tested using
Cronbach’s alpha by recruiting sample from excluded participants (4 females and 6
males) from the research. According to Haire et al. (2005) the reliability coefficient
which are more than or equal to 70 % (A> 0.7) is acceptable. Thus, the reliability
coefficient of research item was70% and/or the overall reliability test for the item is (α
less or equality 70%) for 25 items. This implies that the item were reliable and
understandable to the respondents. Table two showed the internal consistency of each
when alpha value set at α less or greater than 0.7 and the internal consistency of each of
the construct is moderately accepted

Table 2: Cronbach’s Alpha Coefficients for all Constructs in Pilot Study

Variables Number of items Cronbach’s alpha (α)
Perceived Usefulness (PU) 6 .72
Perceived Ease of Use (PEOU) 6 .73
Trust (TR) 8 .75
Intention behavior or Behavioral 5 .77
Intentions (BI)

46
 CHAPTER FOUR

ANALYSIS AND INTERPRETATION

4.1. Introduction

As indicated in chapter three, data are analyzed using descriptive survey (percent, mean,
standard deviation) supplemented by inferential statistics tools (one sample t test and
correlation, and multiple regression). The correlated data was also made for further
analyses using regression model. Triangulation was made by supplementing the
qualitative data and using multiple perspectives. A total of 375 questionnaires were
distributed to ATMs users and of which 300 retuned with 80% return rate. Out of the
total 300 questionnaires, 283 were found to be useable and valid. In addition to
questionnaire, the researcher conducted semi structured interview with potential
Information technology experts and managers formally and informally(about 5 people
were participated in the interviewed ) .Table three showed the overall state of respondents
rate of the questionnaires .An interview with only ATMs IT technicians for the reason
that it was not well-situated to interview all bank managers; and reviews some bank
documents regarding E-banking system were left to forbidden by managers for safety and
security purpose. Statistical Package for the Social Sciences (SPSS) software is used .to
apply to compute descriptive measures and inferential measures of each scales and
questions with tabulations are presented in the following sections. The chapter contained
two parts the first part discussed demographic and the second part dealt with
determinants of ATM adoption using relevant and appropriate statistical tools.

Table 3: Sample size and response rate

Target Sample size Response rate Unreturned rate Valid cases
population
ATM users 375 80% 20% 283(76%)

47
Part one: Demographic Character of the Participants

Table 4: Sex, age group, educational level and occupation of the respondents
Variable category Frequency Percent(%)
Sex Female 119 41.9
Male 164 57.7
Total 283 100
Age 18-24 32 11.3
25-35 164 57.7
36-45 69 24.3
46 more than years 18 6.3
Total 283 100
Level of educationPrimary school 3 1.1
Secondary school 22 7.7
Diploma 74 26.1
Master and above 42 14.8
Total 283 100
Occupation
Unemployed 4 1.4
Student 16 5.6
Self-employed 61 21.5
Civil servant/government 140 49.3
Private business 62 21.8
Total 283 100
Source, researcher survey data result, 2016
From the data presented in table four, the majority 164 (57.7%) of the respondents was
male and the Remaining 119(42%) their female counter parts. Therefore, with pattern
variation both male and female customer visit CBE and obtain banking services.

From the data presented in table four above, the majority 164 (57.7%) of the respondents
were under age group of 25-35 old;32(11.3%) of the respondents were under age group
of 18-24 years,69(24.3% )is under age of 36-45 and the remaining 18( 6%) was aged 46
and more than that. It seemed from the table above the majority of the customers who
visit CBE are youngsters and the distribution of age is uneven

48
Regarding educational level of the research participants, table 4 portray that the
majority142 (50%) of the respondents were BA/BSC holders, 74(26.1%) were diploma
and certificate and the remaining 42(14.8%), 22(7.7%) &3(1.1%) of the respondents were
masters & above, high school primary &below and respectively. Therefore, the
educational background of most customers is BA/BSC holders and/or
diploma/certificate holders. Table disclosed the distribution research participants in their
respective occupation ,accordingly, respondents’ 61(21.5%) are self-employed ,
62(21.8%) are private(business),the majority of 140(49.3%) are civil
servants(government officer ) , unemployed 4(1.4%) ,16(5.6%) are students. To sum up,
as shown in the table four, the vast majority of the research participants are male, BA
degree holders, civil servants and young age group.
Part two Acceptances/ Adoption of ATMs in Dessie City
Research Objective One: ATMs Service Usage of Customers

Table 5: Types of ATMs services used by Participants

Frequency Percent
Types ofwithdraw cash 96 33.9
check balance 14 4.9
ATMs
pay service/like water, power 1 .4
Service Other 1 .4
withdraw and balance 171 60.4
Total 283 100.0
Source, researcher survey data result, 2016
Table five indicated that 96(33.9%) of the participants replied that they use ATMs to
withdraw cash of which as shown in table. From table five, it was clear those users
171(60.4%) which is the largest number of all use ATMs to withdraw cash and check
balance. As shown in table five 14(4.9.%) use the machines to transfer cash customers
and insignificant number of participants replied that they use ATM for services charge
1() bankers used ATMs to withdraw and balance cash.
As shown in figure four ,60.4% of participants used ATMs to check balance and
withdraw cash and 33.9% participants use ATMs to withdraw cash and the rest 4.95%
and 0.35% applies ATMs to check balance and for other purposes

49
Figure 4: ATMs Usage Pattern of Users.
Source, researcher survey data result, 2016
Research Objective Two: Pattern ATMS Usage Frequency

Table 6: Frequency of Users ATMS Visit

Frequency Percent(%)
Rate of ATMNever 13 4.6
sometimes 148 52.3
usage
Often 55 19.4
Always 67 23.7
Total 283 100.0
Source, researcher survey data result, 2016
Table six demonstrated that 67(23.7%) always use ATMs to access their banking system
applies According to table six the second major score of the participants response on the
frequency of ATM visit showed that .the high number of research participants
148(52.3%) responded they visit ATMs sometimes and the behavior of customers visit of
the ATMs machine is sometimes Though the machines used from about 24 hours per day
and seven days in A week. Without limiting service times, the ATMs, According to the
response of the respondents, they were not frequently used to visit acceptance of ATMs
found to be approximately moderate

50
Figure 5: Frequency of Customers’ Visit of ATMS in the City
Source, researcher survey data result, 2016
Figure five has also duplicated the same result about the adoption behavior of the ATMs
users and the figure indicated that more half percent of the participants of the current
research replied that the visit the ATMs not often, but sometimes.

51
Research Objective Three: Perceived ATMS Acceptance
Table 7: Descriptive Statistics of ATMs Acceptance in Dessie City
N Minimum Maximum Mean Std. Deviation
Perceived trust on ATMs 283 9.50 30.00 23.1620 4.50509
Behavioral intention to283 10.00 30.00 25.6816 3.99008
ATMs
Perceived ease of useful283 8.00 30.00 25.7184 3.64499
of ATMs
Perceived usefulness of283 17.00 30.00 26.6608 3.17092
ATMs
Source, researcher survey data result, 2016

Table seven unveiled the perceive level of agreement by users of ATM towards ATMs
acceptance or adoption .The table showed descriptive the sample size, maximum
,minimum mean, and standard deviation for bankers and customers’ acceptance towards
automated teller machines in the city. As depicted in table seven, participants of the
research viewed that ATMs are perceive trust and the mean score of this construct is
slightly lower than other constructs and 23.16(±4.5) and mean is larger than the expected
mean value with low standard deviation and the data seemed distributed around the mean.
According to the table seven, mean and standard deviation of perceived usefulness is
moderately larger than the other constructs. Besides, the table portrayed that mean and
standard deviation of perceived ease of ATMs and behavioral intention are25.71 (±3.64)
and 25.68(±3.99) Participants of the research viewed that ATMs are important and useful
banking system 26.66(±3.17).When the expected value (cutting point for the four
constructs was 15 and the perception of participants indicated that they have agreed with
ease of use, perceived usefulness, trust and intention to use ATMs. The average of
Perceived trust on ATMs about more than and they vary a little more around their
average. In addition to the above descriptive statistics qualitative narrations were used to
support the data collected from questionnaires. The qualitative data also validated the
quantitative one as followed. Some probing question like description of users acceptance
of ATMs and views of trust (Appendix, three) were asked to probe important idea from
bank managers, IT technician and manager
One of the IT expert noted out that

52
 I feel that the issue is important and found to be area of research concern. In the
city, there are some ATMs machines used by customers. The customers sued the
ATMs not frequently and most of them have no difficulty in adopting the
machines but some of them did not properly use the machines even they
forcefully used the machines which in turn causes the damaging of the matches.
The other respondents replied that
Customers often enjoyed using the machines and the machines helped them
access their account for cash withdrawing or balancing checking or any other
uses. Some customers did put trust on the machines .this may the reasons for not
adopting the machines. There exist also peer influence for not adopting the
machines by undesirable murmur for example about safety and security
According to the other respondent, trust is important fast and easy adoption of the ATM
machines. Here goes the full narration of the respondent.
Some users take time to adopt the machines because they did not want to test the
machines first. There are some ATM cards prepared but not taken by ATM holder
though the bank made repeated calls for these users .I hope this is due lack of
trusty or any other thing else. Some other potential users develop truth gradually.
On the other hand people may not aware of the full poetical of ATM and they ask
for support from other
One of the questions asked during the interview was description of overall behavior of
users
I feel that adult and old age group are potential users due to change resistance
and may be lack of trusts I mentioned before customers are upset by card
jamming, power fluctuation, poor networking and other related issues with
machines and transaction most important of all, users have positive disposition or
feeling towards the adoption and they viewed that ATM are important for them
and as [we] all know the matches is easy to adopt and most of the customers are
using .however, this still knowledge gap in how to operate the machines. In short,
the users use the machines though there appears gap in fast adoption of the
machines

53
 Similarly, the other respondent described the overall behavior of ATM adopter in the city
as in
Most of ATM users are elite/educated and they are easily adopted the machines. I
do not think that the machines are accessible and reachable for all bank
accountholders in the city. Need must be met to promote and attract more
potential users if you go and observe the users while using ATM machines, you
infer that they are dominantly young group
From the narration of the qualitative data it is possible to imply that ease of use; trust and
usefulness are potential determinants of ATM adopter in the city.

Table 8 : One sample t-test for constructs (variables)

Test Value = 15
95% Confidence Interval of
Mean
the Difference
t df Sig. (2-tailed) Difference Lower Upper
perceived usefulness of 61.864 282 .000 11.66078 11.2897 12.0318
ATMs
perceived ease of useful 49.468 282 .000 10.71837 10.2919 11.1449
of ATMs
Perceived trust on ATMs 30.478 282 .000 8.16201 7.6349 8.6892
behavioral intention to 45.035 282 .000 10.68163 10.2147 11.1485
ATMs
*Significant at p=0.01
Source, researcher survey data result, 2016
As depicted in table eight One sample t-test was computed to examine the mean score
differences among the four constructs and the results of the research showed that mean
there exist statistically significant among constructs with perceived
usefulness(t=61.85,DF=282,P<0.01),ease of use (t=49.46,df=282,), perceived trust
(t=30.47,df=282,p<0.01) and intention behavior(t(45.03,df=282,p<0.01).As shown in
table eight above the observed mean score of the four constructs each ATM acceptances
are significantly larger than15 on the average. As shown in the table, the four constructs
disputed the higher result that the set average. As shown table seven and eight the ease of
use of ATMs, perceived usefulness, perceived trust and behavioral intention are found to

54
favorable accepted factors to determine ATMs acceptance in Dessie city. It is possible to
draw conclusion safely that safely users have favorable perspective to the variables
Research Objective Four: Correlation among Constructs (Variables)

Table 9: Summary of Inter-correlation Analysis (N= 283)

PU PEOU PT BINT
Perceived 1
usefulness(PU)
Perceived ease of .545** 1
.000
use(EOU)
Perceived trust (PT) .404** .454** 1
.000 .000
Behavioral intention .409** .428** .518** 1
.000 .000 .000
(BINT)
Source, researcher survey data result, 2016 significant at **P<0.01
Table 9 showed the correlation among research variables. As shown table 9 in the
correlation matrix intention to adopt ATMs service is positively and significantly related
to perceived usefulness of ATMs (r = .409, p<0.01). There is also a strong, significant
and positive relationship between ease of use, (r=0.428, p<0.01), perceived trust(r=0.518,
p<0.01), with intention to use ATMs adoption in the city. The constructs perceived trust
(r =.545), and perceived ease of use (r = .404) are positively and significantly related with
perceived usefulness of ATMs machines. From this it can be inferred that the relationship
among research variables are found to be significant and positive. The result revealed that
when trust is high ,the inclination to ATM will be high and when the new machines are
introduce ease and friendly to use, the adopters use the machines and the increment of the
ease of use, perceived usefulness, and trust directly ,significantly and positively affect
users adoption of e-banking, ATM banking.
Research Objective Five: Regression Analyses
Multiple regressions was iterated to determine the extent of influences the assumption
made to distribute normally with zero mean and σ standard deviation and is independent
of the error terms associated with all other observations. Regression as opposed to other
techniques as it is widely accepted model in many of the studies carried in the e-banking
service adoption (Alireza et al., 2010 and Alenezi et al., 2010 as cited in Yitbarek and

55
Zeleke, 2013).According to Muijs (2004). R square also lies between 0 and 1 and
Regression model R value <0.1: poor fit, 0.11–0.3: modest fit, 0.31–0.5: moderate fit,>
0.5: strong fit.
Model one
INT = β0+β1PU+ β2 PEOU+ β3TR+ε
Wherein:
INT = participants’ intention to accept e-banking,
PU = perceived usefulness,
PEOU = perceived ease of use,
TR = perceived trust
ε = is the error term for any missing variable

β0 = the intercept value of the regression surface

Table 10: Multiple Regression Analyses for the Model

Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .578a .334 .327 3.27437
Predictors: (Constant), Perceived trust on ATMs, perceived usefulness of ATMs,
perceived ease of useful of ATMs
Source, researcher survey data result, 2016

As shown in table 10, it can be inferred that 33.4% of the variance in the model can be
predicted from the independent variables, ease of use, perceived usefulness, and
perceived trust to ATMs machine towards the acceptance of ATMs in Dessie City.
Multiple regression analysis was used to test if ease of use, perceived usefulness and
perceived trust significantly predicted ATMS users’ acceptance /behavior intention. The
results of the regression indicated the two predictors explained 35.8% of the variance
(R2=.334, F (3, 279) =46.584, p<0.01). The hypothesis testing that indicate the influence
of the independent variables (ease of use, perceived usefulness, perceived trust and) upon
dependent variable (behavioral intention to use ATMs) was iterated using multiple
regression analyses.
Table 11: Summary of ANOVA Table, Correlation Analysis (N= 283)

56
 Sum of
Model Squares Df Mean Square F Sig. R2
1 Regression 1498.344 3 499.448 46.584 .000a .334
Residual 2991.305 279 10.722
Total 4489.649 282
Predictors: (Constant), Perceived trust on ATMs, perceived usefulness of
ATMs, perceived ease of useful of ATMs
b. Dependent Variable: behavioral intention to ATMs
P is significant at *0.01

Table 11 presents the ANOVA report on the general significance of the model. As p is
less than 0.05, the model is significant. Thus, the combination of the variables
significantly predicts the dependent variable (F=46.584; p < 0.05). Perceived usefulness,
perceived ease of use and perceived trust significantly predict the dependent variable
Intention to adopt acceptance of ATMs.

Table 12: Summary of Regression Analysis (Behavior Intention) (N= 283)

Unstandardized Standardized
Coefficients Coefficients
Model 1 B Std. Error Beta t Sig.
(Constant) 7.718 1.760 4.385 .000
Perceived Usefulness .209 .075 .166 2.785 .006
Perceived Ease of Useful .182 .067 .166 2.719 .007
Perceived Trust .333 .050 .376 6.697 .000

57
From Table 12, it can be inferred that perceived trust has the highest effects on the
dependent variable (β = 0.376, p<0.01). In addition to this, perceived ease of use and
perceived usefulness of ATMs have positive correlation with behavioral intention to
adopt or accept ATMs and beta and alpha value (β = 0.166, p < 0.01) and (β = 0.166, p
< 0.01) respectively. The result implies that the three constructs have positive and
significant contribution on the adoption of ATMs machines.

Table 13: Summary of result of hypothesis testing

58
 Hypotheses Result
1. Ha1: There is significant relationship between perceived usefulness intention behavior
(r = .409, p<0.01).
for ATM acceptance
Ha2 :There is significant relationship between ease of use and intention behavior for
ATM acceptance (r=0.428, p<0.01),

2. Ha3 : There is significant relationship trust and intention behavior for ATM
acceptance (r=0.518,p<0.01),

3. Ha4: Perceived usefulness will have a significant positive effect on the behavioral
β = - 0.166, p < 0.01
intention to use ATMs
4. Ha5: Perceived ease of use will have a significant positive effect on intention to use
β = 0.166,p<0.01
ATMs for ATM acceptance in Dessie city, commercial bank of Ethiopia
5. Ha6: Perceived trust will have a significant positive effect on the behavioral intention
β = 0.376, p<0.01
to use ATMs for ATM acceptance in Dessie city, commercial bank of Ethiopia.
6. Ha7:The combination effects of ease of use, perceived usefulness and trust upon R2=.334, F (3, 279) =46.584,
behavioral intention is positive and significant p<0.01
Source, researcher survey data result, 2016
As shown in table 13, the entire formulating hypotheses were tested and the result
showed there are positive and significant relationships among constructs of the research.
The perceived usefulness has positive and significant relationship with perceived trust
and perceived ease of use.

The ease of use, perceived usefulness and perceived trust separately determines the
variability of the criterion variable (intention to use ATMs).All in all the regression
model brought positive and significant result

The variability of the combined effect of research variables (ease of use, perceived trust
and perceived usefulness) predicts the variability of the intention to use ATMs.

59
Research objective six: Perceived Problems/Challenges in ATMs Adoption

Table 14: Status of Perceived Problem affecting ATMs adoption in Dessie

Yes-response No response
Perceived challenges of ATMs
# % Case # % Case
1 Network problem 189 10.9% 68.5% 94 8.6% 31.5%
2 Card jamming 115 6.6% 41.7% 168 15.3% 58.3%
3 Lack of knowledge 136 7.9% 49.3% 147 13.4% 51.7%
4 Wrong service charge 134 7.7% 48.6% 147 13.4% 52.4%
5 Stealing/robbing/fraudulent 140 8.1% 50.7% 143 13.0% 49.3%
6 Lack of safety or security 164 9.5% 59.4% 119 10.8% 40.6%
7 ATMs machines out of cash 213 12.3% 77.2% 70 6.4% 22.8%
8 ATMs for modern people 228 13.2% 82.6% 55 5.0% 17.4%
9 Lack of experiences 206 11.9% 74.6% 77 7.0% 23.4%
10 Lack of training 206 11.9% 74.6% 77 7.0% 25.4%

Source, researcher survey data result, 2016

Table14 showed the common problems that users face while using ATMs in Dessie city
stated owned commercial bank. There are about ten problems identified in the literature
as potential problems .In the table, the highest percentage of participants in this study
replied that perceiving ATMs as sign modernization affecting them
228(82.6%),206(74.6%) of the respondents viewed that lack of experiences and lack
training as potential problems. The table depicted that network problem in using ATMs
189(68.5%).Slightly higher than half of the participants viewed that safety and security
(164, 59.4%) the problem in the commercial bank. Nearly less than half of the research
respondents agreed that card jamming 115(41.7%), lack of awareness136 (49.3%), wrong
service charge 134(48.6%), fraudulent 140(50.75%) are common problem in using the
bank. In line with literature discussed that these area. As shown figure 6,the Highest
perceived problem is considering ATMs as sign of modernization and followed by
perceived training, experiences, , fraudulent

60
 problmes of ATMs adoptions in Dessie city
250
200
150
100
frequncy of problmes

50
0
rd dge rge g ur sh le es ng Yes
em ca ein sec f ca op ienc aini
obl le h a b e NO
r ow ec ob or to p pr tr
kp kn rvic ng/r fety s ou der
n
ex k of
or f e i f
tw k o g s teal a
ity chin
e o
m ack
o lac
ne lac ron s f s
a fo
r l
w k o s m Ms
al c M A T
AT

types of problems facing in ATMs adoption

Figure 6 : Graphical Presentation of Perceived Problems of ATMS Adoption

Source, researcher survey data result, 2016
Analyses of open ended and qualitative data
The two open-ended and semi structured interview held with IT managers and other
concerned body reviewed that following result. There are two questions in the open
ended items. Users were asked to mention other problems in relation with ATMs
adoption in the city and they were required to suggest possible for wards for future
intervention. The following tables showed the themes and descriptions of the data. They
are categorized into social related problems, psychological problems, financial related
problems and technology related problems. Table 15 disclosed the most recurring
problems with different category from qualitative data and the number of occurrences of
the problem after carefully counted. As shown in the table technological related problem
is commonly faced by ATM users’ poor network and electric power breaking

61
 Table 15: Result from qualitative data
Theme/category Issues and frequency Descriptions
The machines jam card(20) Electric power, internet network and
Technology related The machines wrongly charge(3) ATM transaction close related, the
Poor network access(78) bank need to deal with
Electric power fluctuation(65) telecommunication arrange another
Jamming of money(6) alternative power source like
Lack of technical skills(25) generator.
Machines out of cash downloading(
The machine is temporary is the most
Lack of monitoring(34)
frequent signal
Social related Lack of support(6) Although the ATMs is as easy as
Lack of trust(27) tying shoe lace ,many users do have
Fear of fraudulent(34) problems because of enough
Peer pressures(8) orientation
The machine is temporary out of
service the frequent signal..
Psychology related Fear of the machines(15) Lack of trust, fraudulent feeling are
lack of positive feeling(17) common among users, the bank need
Lack of awareness(45) to think about mechanism to develop
Lack of preference(12) trust
Not inclusive (visual impaired,5). Although there are ATMs ideal, many
users use human teller because of
fears.
Finance and bank related Limited transaction(11) The machine transact limited cash this
Improper service charge(23) may confine many potential user not
old paper money in the ATM(11) use the machines.
Unequally distribution of ATMs in When facing problems off working
the city and Poor access (4) time, it is very difficult
Lack of trained manpower(11)

Source, researcher survey data result, 2016

62
 CHAPTER FIVE
FINDINGS AND DISCUSSIONS

The objective of the current research was to examine he determinants of Automated

Teller machines in commercial bank of Ethiopia, Dessie City. The current research used
TAM and trust constructs to assess the perceived factors in the city. By adapting TAM
model (specially using the three constructs in TAM, ease of use of ATMs, perceived
usefulness, behavioral intention framework) plus perceived trust. This study has
identified a number of problems in E-banking adoption, ATMs in Dessie.

The demographic character of the research revealed that the age group 25-35 which
contains the young group accounts relatively greater proportion of the total research
participants percent of internet banking users. The majority (58.3%) of the
respondents was under age group of 25-35 old; 11.3% of the respondents were under age
group of 18-24 years, 24.4% is under age of 36-45 and the remaining 6% was aged 46
and more than that. Relatively high number of respondents was male and the figure of the
male was slightly higher than their female counterpart. The level of education was
another component of the demography data. According to the findings of the current
research the more dominant group of Education levels are regarded as an influential
factor in consumers’ ATMs banking services with high education levels being
particularly significant. The study unveiled that the majority(50.2%) of the respondents
were BA/BSC holders, 26% were diploma and certificate and the remaining 14.8%,7.8%
&1.1% of the respondents were masters & above ,high school &below and respectively.
This supports by many findings in the research .The high impact of education levels on
the use of internet banking in this study. The demographic features of the research similar
has similarity with (Olowookere & Olowookere,2014, and Abinet,2012)

Users/customers ATM services preference and the status of frequency of the use of ATM
were analyzed .and the result of the research showed that large number of users use
ATMs to withdraw and check balance .the result also showed that users use ATMs

63
banking sometimes. The findings of the research is consistence with a research by go
with (Fyery 2015)

One of the research objective was about users perceptions of the determinants in TAM
and finding showed that the voice of participants clearly delineated that mean and
standard deviation of perceived ease of ATMs, behavioral intention and perceive d trust
are M=25.71 (SD±3.64) and M=25.68(SD±3.99) and M=23.16(SD±4.5) are
respectively .Participants of the research viewed that ATMs perceived usefulness with
M=26.6608(SD3.17092) important and useful factor to determine adoption of ATMs.
From this the descriptive statistics ,the result showed that users views towards ease of
use, perceived usefulness, behavioral intention to use ATMs and trust ATMs are above
the expected value(average result which is 15 points) and Ayana(2012) and Zheng , Lu
Nancy (2010) has also found similar result. The behavior of user’s adoption or
acceptance is determined by those factors. The research also found out that there is
strong, significant relation between constructs in the research. Ease of use and perceived
usefulness have statistically positive and significant effect/influence upon users
behavioral adoption of ATMs next to perceived trust as indicated by multiple regression
analyses. The regression model indicated that the ease of use, perceived usefulness,
perceived trust as independent variables predict 33.4% variation of behavioral intention
to accept ATMs. and from the regression analyses, it was revealed that perceived trust
contribute high variation than the of This findings supported by many research
(Olowookere& Olowookere, 2014,Yitbarek and Zeleke ,2013.)

The research has also tried to answer questions related with problems in adoption of e-
banking; ATMs in Dessie city, stated owned commercial bank branches. There are many
factors which accounts for affecting adoption of technology .in this research, 10 factors
were used to check the prevalence of challenges affecting adoption technology .The
technological barriers, identified in this study, were security risk and lack of trust on the
technological innovation used by banking industries. Table13 showed the common
problems that users face while using ATMs in Dessie city stated owned commercial

64
bank. There are about ten problems identified in the literature as potential problems .In
the table, the highest percentage of participants in this study replied that perceiving
ATMs as sign modernization affecting them 228(82.6%),206(74.6%) of the respondents
viewed that lack of experiences and lack training as potential problems. The table
depicted that network problem in using ATMs 189(68.5%).Slightly higher than half of
the participants viewed that safety and security (164, 59.4%) the problem in the
commercial bank. Nearly less than half of the research respondents agreed that card
jamming 115(41.7%), lack of awareness136 (49.3%), wrong service charge 134(48.6%),
fraudulent 140(50.75%) are common problem in using the bank .In line with literature
discussed that these are. As shown figure 6, the highest perceived problem is considering
ATMs as sign of modernization and followed by perceived training, experiences,
fraudulent. Gardachew (2010), Beza (2010) and Ayana(2012) also arrived at similar
findings .

The qualitative data also witnessed result findings the common problem emerged from
qualitative data were related with technology, social, finance and psychological. The find
of the section was in consistence with result by under technological factor were also
consistent with other studies on technology adoption in different
countries(Omari,2012) and Ayana and Gardachew(2010) both of them found that security
risk is the major barrier for the adoption of E-banking system. In the case of
organizational factor, financial cost as well as human resource is considered, in this
study financial cost were not considered as barrier for the adoption of E -banking
in Ethiopia and it is consistent with the finding of Rasoulina (2006 as cited in
Ayana,2012).

In short, the findings enabled the research to shed light about the factors affecting users’
adoption of ATMs in Dessie city. Factors such as perceived usefulness, perceived ease of
use and perceived trust predicted the as ATM acceptance. At the same time this
finding supports the study of Giglio(2002) and Robinson (2000).

65
 CHAPTER SIX
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
6.1. Summary
The main purpose of the current research was to examine determinants of ATMs adoption in
Dessie city. The current research applied mixed types of research approach (quantitative
supplemented by qualitative research).Two instruments to collect data, adapted
questionnaires and self-administered interview .the data were analyzed using descriptive
statistics (frequency, percent, mean, standard deviation, correlation) and some inferential
techniques (multiple regression).the data was analyzed using SPSS version 19.The
qualitative data was analyzed using content analyses and narration. Tabulation and graphs
were used summarize the data. The objectives of the research were to
1. Determine customers’ most common types of ATMs service used by customers
2. Find out the state of frequency customers visit to use ATM
3. Investigate how users views factors (ease of use, perceived usefulness, perceived
and behavioral intention) that affect ATMS acceptance in as perceived by
customers.
4. Examine whether there is relationship between factors (such as perceived use, perceived
usefulness perceived trust) upon ATMS intention to acceptance/adopt.
5. Explain the level of influences of factors (such as perceived use, perceived usefulness, and trust)
upon ATMS intention to acceptance/adoption.
6. Investigate the perceived problems of ATMS acceptance in Dessie city stated owned commercial
bank in 2016.
The major findings indicated that the users view that ATMs are user friendly, trusty,
useful machines and they decide to continue using ATMs. Respondents replied that they
used ATMs to withdraw cash and check balance and they responded they did not use
ATMs usually and the majority of them said that they used ATMs sometimes. The result
of current research also showed that ease of use, perceived usefulness and perceived trust
positively and significantly affect the acceptance of by determining the behavioral
intention of ATMs. The research also unveiled that there is positive and statistically
significant relationship between dependent and independent variables.

66
6.2. Conclusion
Acceptance of technology in financial institution in general and banking industry in
particular may benefit both the bankers and customers appear as important aspect of
research and practitioners in information technology, management and other related field
of study. The main objective of the current research was to assess the major determinants
of ATMs adoption/acceptance. Knowing the acceptance of new technology is important
to assure quality of technological products and service and assume important decision
about organizational performances. Descriptive survey type was used as plan of the
study.

The potential users of ATMs in the city were male, young age group and civil servant and
other client’s employees from private business and trade covers small proportion of the
current research and the level of education of the customers’ large educated (diploma,
degree) and the proportion of the potential customers students are recruited much. The
bank need to reach all age group (defined in the research) and across different level of
education ,gender disparity and

Clients did not frequently used ATMs and most of them only used the machines for cash
withdraw and check balance and the full potential of the machines were not exhaustively
used by the customers. This may be due to lack of knowledge, lack of confidence and
self-efficacy and trust on the machines.

There are many factors that determine the acceptance of ATMs .The current research
found out that ease of use, perceived usefulness and perceived trust are important
determinants of Ethiopian bank users, Dessie city commercial bank. And, importantly
both correlation matrix and multiple regressions indicated that independent variables
affect the dependent variable in this case behavioral intention to use ATMs possesses
both positive and significant effect in ATMs acceptance. The bank need to reconsider
those factors for tactical and strategically purpose since the bank strives to achieve
technology based world class bank in 2025.In this competitive global market situation,

67
the bank need to assess the potential factors when introducing new innovation for
competitive advantageous.

The applications of such behavioral sciences theories or models (TAM) are able to
predict and explain the significant predictor (perceived ease of use and perceived
usefulness). The relationship between construct variable and target behavior can also be
determined. Consequently, the implication of the model would bear fruit to some
strategies to be used in intervention programs. The present study demonstrates both
constructs, perceived ease of use and perceived usefulness is significant predictors in
predicting behavioral intention to use ATMs. Perceived ease of use is determined as the
stronger predictor than perceived usefulness. Moreover, the model postulates that there is
a significant relationship between behavioral intentions to use ATMs. In connection to
this, new approach model (TAM) to be proposed with a new intervention ATMs when
banks introduce new innovation and expand the access of ATMs.

Problems are also useful research in this paper. Technological factors, social,
psychological, financial and organizational factors were unveiled from both quantitative
and qualitative data. Potential challenges such psychological, social. Technological and
organizational related problems demand thoughtful observational and continuous follow
up. Installation of technology without the assessment of the need of potential customer
and determinants of technology acceptance might make the attempt of reaching to the
formulated mission and vision of the organization unrealistic and any investment on the
newly introduced technology in banking demands series scanning of the external and
internal environment. The challenges that hinder the adoption of the ATM are mentioned
well in the research.

68
6.3. Recommendation

An expansion of e-banking impacts on the over performance of the banks and bring about
positive feedback from clients or customers. The very complex and ever growing need of
customers require the financial institution like banks expand extraordinary increase in
the e-banking and its benefits (e.g. communications, distribution, and online
transactions) banking system to develop new working in transaction systems to offer
users access, anytime and anywhere, to perform online transactions using e-banking,
ATMS for competitive advantages . Given the large investment in developing new
information systems, an understanding of the factors influencing users’ acceptance of
ATMS banking enables banking system to be customers-sensitive and is useful for the
banks so they can priorities their resources in an effective way. And the current
research used TAM models to assess factors that affect customers’ adoption of ATMS.
Although the banks have invested to install ATMs more customers visit human teller
more often that ATMS. The current research unveiled that ease of use; perceived
usefulness and trust are important factors that determine the acceptance of ATMs. Factors
perceived usefulness ,ease of sues and trust were significant factor that have strong
impact on users’ intention towards acceptance e- banking systems in general and
ATMs banking in particular.

Addressing and attracting customers from different age, sex, level of education groups
needs useful strategies to reach and accessible for the potential users without helping
developing awareness on the different features of ATM, banks did not harvest the
outcome of the interventions this respect the profit maximization and customer’s
satisfaction

Increasing perceptions of usefulness, ease of use and perceived trust of ATM when
inviting new customers towards different technological produces and service may enables
the bank to infuse technology easily and developing the insight of the users when coming
up with new innovation or feature may help the users adopt the system quickly. To be
practical, the bank need to enhance technology adoption using motivational sessions and

69
educate users about potential threats to the security and privacy of themselves and
their transactions.

As per the findings from the analysis of the collected data; the following practical and
feasible recommendations are forwarded in order to promote and develop ATMs
acceptance in the Dessie city .

The bank need to consider ease of use of ATMs, usefulness of, all customers trust and
behavioral intention when new ATM machines install and attract potential clients
Meaningful sustainable efforts should be made to make customers aware of about the use
of ATMs and techniques of suing technology products

The bank should develop trust and make adopter to use the innovation are found to be
important needs thus, managers and IT expert in Banking need to revisit their
intervention of technology relying of technology adoption model such TAM technology.
This helps financial service providers introduce innovative products currently in use
around the world which are cost effective, efficient and safe.

Electric Power fluctuation, new work problem and safety and security problems related
with ATM demands decision maker to develop appropriate strategy as way out and
working with Telecommunication Corporation and Ethiopia electric power corporation
to expand ICT .the concerned bodies should work for sufficient, reliable and valid power
and network supply to meet the ever growing need of users.

Making the ATMs use its potential and accessing all services and products that ATMs
provides for users requires some detail technical knowledge and creating awareness of
bankers and users .This needs day to day promotion and communication follow up
through both electronic and printed media by developing users ‘manuals (leaflet,
brushers, pamphlets and ad). Capacity building activities for banks regarding e-
banking operation and provide incentives for bankers to invest rigorously on ICT and
use of e-banking.

70
 Reaching out the technology for disadvantageous(visual impairs, all branches, churches,
bus station and ) may enable to have fair and equal service for users
 Making need assessment in the area helps the bank to improve the quality of service and
products of e-banking, ATMs.
 Making the mechanism to control the ATMs machines transaction (limited transaction,
wrong service charge, proper transaction) and make remedial action helps the bank.
Recommendation for future research
 The perception of ATMS users and non-users of ATMs in ….
 Factors determine acceptance of Internet banking, mobile banking and POSE
 Large scale study may be done in District level
 Assessing the profitability of ATMs…
 Relationship of investment and e-banking in the area
 Replicating this research by recruiting participants from both private and public banks
 Effectiveness of promotion and advertisement in e-banking….

71
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 APPENDIXES
Appendix One: Questionnaires for ATMs users (English version)
Wollo Univestiy
College of Business and Economics
Department of management: Post graduate program
This questionnaire is intended to gather information about the ATMs acceptance/adoption
the main purpose of the research is to assess the determinants of Automated teller
machines (ATMs)adoption/acceptances in state owned commercial bank of Ethiopia
Dessie city the immediate the result of the study to suggest solutions and as partial
fulfillment of the requirements for the degree in Master of Business Administration
(MBA). Hence, you are kindly requested to provide genuine respond by carefully reading
each item. The questionnaire does not take 10 minutes. And all the information are kept
confidential and anonymous used for the
I thank you in advance
The researcher
A. Background information
Sex Male  Female
Qualification not forma education diploma degree Master and above
Age  18-24 years  25-35 years  36-45 years  46 and above years
Occupation  unemployed studentself -employed  public servantbusiness
B. Pattern ATM usage
How often do use ATMs always usually  sometimes rarely

Types of ATMs services Cash withdrawalsBalance inquiryFund transferbills pay

Level of agreement
Show your level of agreement by putting  mark
SA=strongly agreed A=Agreed U=undecided D= disagreed

78
 Perceived Usefulness S A U D S
A D
1 PU1. Using ATMs enhances the productivity of my banking
activities.
2 PU2.Challenges
Using the facing
ATMswhile
makes it easier
using ATMsto do my banking Yes No
activities.
I think …..
3 PU3.Using
1 Networking the ATMs enables
problem me to accomplish banking
is common
2 Trapping
activities and jamming of ATMs card during transaction is a
more quickly.
4 PU4.Using
challenge ATMs improves my performance of banking
the
3 Lack of awareness is problem
activities.
4 Wrongthe
5 PU5.Using service
ATMs charge is a problem
enhances my effectiveness of banking
5 Being victim of fraud is challenge when using ATMs
activities.
6 Lack of safety and security
6 PU6.Overall, I find the ATMs useful for my banking
7 Wrong debating of Account by ATMs banking is common
activities.
problem
S A U D S
8 ATMsease
Perceived is more forofmodern
of use ATMspeople
9 Lack of experiences A D
1 PEOU1.
10 LackLearning to operate ATMs easy for me
of training
2 PEOU2. I find it easy to get ATMs to do what I want it do.
3 PEOU3. My interaction with the ATMs is clear and
understandable.
4 PEOU4. I find the ATMs to be flexible to interact.
5 PEOU5. It is easy for me to become skillful at using the
ATMs.
6 PEOU6. Overall, I find ATMs easy to use

S A U D S
Trust towards ATMs
A D
1 TR1. The ATMs banking is trustworthy.
2 TR2. I am quite certain what to expect from ATMs.
3 TR3. I trust the ATMs.
4 TR4. The ATMs would do the job right even if not
monitored.
5 TR5. The ATMs offers secure personal privacy.
6 TR6. I trust in the ability of the ATMs to secure my
privacy.
7 TR7. I believe that the ATMs would act in my best
interest.
8 TR8. ATMs keep its promises and commitments
Behavioral intention to ATMs S A U D S
A D
1 B1. I intend to use the ATMs as often as needed.
2 B2. I intend to continue using the ATMs in the future.
3 BI3. Assuming I have access to the ATMs, 79I intend to use it.
4 BI4. Given that I may have access to ATMS in the future, I
predict that I will use it.
5 BI5. I will strongly recommend others to use the ATMs.
11. If you experience other problem please mention it….12.What do you recommend for
improvement

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 Appendix two:Questionnaires for ATMS users Amharic Version )
ወሎ ዪኒቨርሲቲ
በቢዝነስና በኢኮኖሚክስ ኮሌጅ
በማናጅመንት ትምህርት ክፍል የድህረ ምረቃ መርሃ ግብር
ይህ የጽሑፍ መጠየቅ የተዘጋጀው በኤ ቲ ኤ ም አገልግሎት ላይ ተጽዕኖ የሚያሳዳሩ ነገሮችን
ለመመርመር መረጃዎችን ለመሰብሰብ ነው፡፡.የጥናቱ ዋናና ተቀዳሚ ዓለማም በኢትዮጵያ ንግድ ባንክ
የደሴ ቅርንጫፍ በኤ ቲ ኤም አገልግሎት ስርጸት/ቅበላ ላይ ተጽዕኖ የሚያሳድሩ ነገሮችን በመዳሰስ
የመፍትሄ ሃሳብ ማፍለቅ ነው፡፡ጥናቱ በአጠቀላይ የንግድ ስራ አስተዳደር የሁለተኛ ዲግሪ ማማያ
አገልግሎት ይውላል፡፡ ስለሆነም እርሰዎ የሚሰጡት መረጃ አገልግሎቱን ለመሻሻል ከማገልገም በላይ
ለጥናቱ ትክክለኛነት ከፍተኛ አስተዋጽኦው የላቀ ነው፡፡እያንዳንዱን ጥያቄ በጥንቃቄ በማንበብ
ትክክለኛ መለስ እንዲሱጡኝ ስጠይቅ አጠቀላይ መጠይቁን ለመሙላት ከ 10 ዲቂቃ የበለጠ ጊዜ
እንደማይወድበዎትም በማሳሰብ የሚሰጡት መረጃ ሚስጥራዊነት የሳይሳዊ ምርምር ባህል የተላበሰ
መሆኑን በመግለጥ ጭምር ነው፡፡ስለሆነም ትክክለኛዉን መረጃ በመስጠት ለዚህ ጥናት መሳካት
እንደተባበሩን ስጠይቅ ከከፍተኛ መስጋና ጋር ነው. ማንነትን የሚገልጽ ነገር አይጻፉ(ሰልክ ስም…)፡፡
ስለተባበሩኝ መስጋናዬ የላቀ ነው
ተመራማሪው

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ሀ.አጠቃላይ መረጃ
መረጃዉን በሳጥኑ ውስጥ የ  በማስቀመጥ የሳያ
ጾታወንድሴት

የትምህት አንደኛ ደረጃሁለተኛ ደረጃዲፕሎማዲግሪ ማስተርና ከዚያ በላይ

እድሜ 18-24 years  25-35 ዓመት 36-45 ዓመት46 ና ከዚያ በላይ ዓመት
ስራስራ ፈላጊተማሪየግል ተቀጣሪመንግስት ሰራተኛየግል ቢዝነስ/ንግድ
የሚጠቀሙት የኤቲኤም አገልግሎት ገንዘብ ማውጣትቀሪ ሂሳብ ማየትገንዘብ
ማስተላለፍየአገልግሎት ክፍያ(ውሃ መብራት ስልክ..) መክፈል  ሌላ…

ኤ ቲ ኤም ምን ያሕል ጊዜ ይጠቀማሉ  ሁልጊዜ ዘወትር  አልፎ አልፎ በጭራሽ

ቀጥሎ በተሰጠው ሰንጠረዥ የተሰጡት ሃሳቦች በማንበብ የስምምነት ደረጃዎትን በማስቀመጥ

ያሳዩ፡፡
5.በጣም እስማማለሁ(በእ) 4.እስማማለሁ(እስ) 3.መወሰን አልችልም(መ) 2.አልስማማም(አል)
1.በጣም አልስማማም(በአል)

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 ከኤ ቲ ኤም ጠቄሜታ ጋር ተያያዝ ጥያቄዎች በእስ እስ መ አል በአል
1 ኤ ቲ ኤም የባንክ ተጠቃሚነቴን ለማፋጠን ጠቅሞኛል
2 ኤቲኤም የባንክ ተግባራት በቀላሉ እንድሰራ አግዞኛል
3 ኤቲኤም መጠቀሜ የባንክ ተግባር በተሻለ በፍጥነት እንደሰራ
አግዞኛል
4 ኤቲኤም መጠቀሜ የባንክ ውጤታማ የባንክ አግልግሎት
አስገኝቶኛል
የኤቲኤም አገልግሎት ከባንክ ጋር ያለኝ ተግባር ጤታማነት
5 አጠናክሮልኛል.
6 በአጠቀላይ የኤቲኤም አገልግሎት በጣም ጠቅሞኛል .
ከኤቲም አመችነት/ቀላልነት ተያያዥ ጥያቄዎች በእስ እስ መ አል በአል
1 ኤቲኤም መጠቀም ለኔ ቀላል ነው
2 ኤቲም መጠቀም ስፈልግ በቀላሉ መጠቀም እችላለሁ
3 ኤቲኤም ለኔ በጣም ቀላልና ግልጽ ነው
4 ከኤቲኤም ጋር የሚኖር ግንኙነት በቀላሉ ይወረሳል.
5 ኤቲኤም ለመጠቀም ክህሎትን በቀላሉ ነው ያዳበርኩት
6 አጠቃላይ ኤቲኤምን መጠቀም ለኔ በጣም ቀላል ነው፡፡
ከኤቲኤም አሜኔታ ጋር ተያያዝ ጥያቄዎች በእስ እስ መ አል በአል
1 የኤቲኤም ባንኪንግ ተማኝነት አለው፡፡
2 ከኤቲም በማገኘው አገልግሎት በጣም ርግጠኛ ነኝ፡፡
3 በኤቲኤም ላይ ዕምነት አለኝ
4 ኤቲኤም ያለምንም ቁጥጥር በራሱ ስራ ሊሰራ ይችላል
5 ኤቲኤም ደህነቱ የተጠበቀ ግላዊ አገልግሎት ይሰጣል፡፡.
6 ኤቲኤም የግል ሚስጥሬን ይጠብቃል ብዬ አምናለሁ
7 ኤቲኤም የኔ ፍላጎት መሰረት አድርጎ ይሰራል ብዬ አምናለሁ
8 ኤቲም የታዘዘውን የሚሰራ ሃላፊነት የሚወጣ ማሽን ነው
ኤቲኤምን ለመጠቀም ካለባህሪይ ጋር ተያያዥ ጥያቄዎች በእስ እስ መ አል በአል
1 ኤቲኤምን ለመጠቀም ባሰብኩ ጊዜ እጠቀማለሁ
2 ኤቲኤም በመጠቀም ለመቀጠል አስቢያለሁ
3 እድሉ እስካለ ድረስ ኤቲኤምን ከመጠቀም አላቆምም
4 ለወደፊትም የኤቲኤም አገልግሎት አስካለ ድረስ
እጠቀማለሁ
5 ሌሎች ኤቲኤም እንዲጠቀሙ አመክራለሁ፡፡
ከኤቲኤም አገልግሎት ጋር ተያያዥ ችግሮች
እኔ…አስባለሁ.
1 አስተማማኝ የኔትወርክ ችግር አለ ብዬ አዎ አይደለም
2 የኤቲኤም ካርድ በማሽን መያዝ ችግር ነው ብዮ….
3 ኤቲኤም ሙሉ በሙሉ ለመጠቀም የዕውቀት ማነስ ችግር ነው ብዬ
4 የተሳሳተ የአገልግሎት ክፍያ የኤቲኤም ችግር ነው ብዬ
5 ኤቲኤም መጠቀሜ ለመጭበርበር ያጋላጣል ብዬ
6 የኤቲኤም አገልግሎት የደህነት/የስጋት ችግር አለበት ብዬ
7 የኤቲኤም ማሽን ካሽ/ብር አለመኖር ችግር ነው ብዬ
8 ኤቲኤም መጠቀም የስልጣኔ ምልክት ነው ብዬ
9 ኤቲኤም ለመጠቀም ልምድ ያስፈልጋል ብዬ
10 የስልጠና ችግር ኤቲኤም ለመጠቀም እንቅፋት ነው ብዬ

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11.እባከዎትን ኤቲኤምን ተገልጋዩ እንዳይቀበል እንቅፋት ነው የሚሉት ነገር ካለ ይጻፉ፡፡

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 Appendix Three: Semi-structured interview

1. What are the factors that determine ATMS users?

2. How do you describe the pattern of users ATMS usage?
3. what do you talk about ease of ATMS in the city
4. How you explain the users trust towards ATMS
5. What do you think about the general behavior of ATM users in the city
6. What are the problems that users facing while using ATMs?
7. How does the bank develop trust on users

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 Appendix Four: Semi-structured Interview (Amharic version)

1. በኤቲኤም አጠቃቀም ላይ ተጽዕኖ የሚሳድሩ ነገሮች ምንድን ናቸው?

2. የደንበንቾን የኤቲኤም አጠቃቀም ባህሪይ በተለመከተ ምን ይሰማወታል?
3. ኤቲኤም ለአጠቃቀም ቀላል ነው ብለው ያስባሉ ከደንበኞቸች አንጻር እንዴት ያዩታል?
4. ደንበኞች በኤቲኤም ያላቸውን እምነት እንዴት ይገልጹታል?
5. በደሴ ከተማ የደንበኞችን የኤቲኤም አጠቃቆም ባህሪይ እንዴት ይገለጹታል?
6. ደንበኞች ኤቲኤም በሚጠቀሙበት ጊዜ የሚገጥማቸው ምን ዓይነት ችግር ነው?
7. የደሴ ከተማ ንግድ ባንክ በኤቲኤም አጠቃቀም ላይ በደንበኞች ላይ ዕምነት እንዴት ያሳድራል
ያብራሩ?

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Appendix Five: Letter from the University

87