HINDRANCES OF INTEREST FREE BANKING ADOPTION IN ETHIOPIAN BANKING INDUSTRY AND ITS CUSTOMER’S ...

The aim of this study is to determine the barriers to interest-free banking adoption, use, and customer satisfaction in the Ethiopian banking industry, with a focus on commercial banks.Primary data were collected from managers of a few selected commercial banks via unstructured interviews, as well as from customers via standard questionnaires, in order to achieve the study's goal. Secondary data was gathered from bank records and journals to supplement the responses obtained from primary data sources. The data was analysed using descriptive and inferential methods. Economic factors such as unemployment and saving practises are influencing banks' acceptance of interest-free financial products and services, according to the findings. Other factors influencing financial product acceptance include the obsoleting of technical environments, the inflexibility of government regulations, the educational history of consumers, and the diverse cultures of societies. Furthermore, because of their lack of knowledge, consumers do not fully use interest-free financial products and services.

the established banking system's perceived relative advantage, perceived compatibility, perceived difficulty, and perceived confidence Based on the findings, it is suggested that banks properly implement interest-free financial products and services while taking external factors into account.

Furthermore, banks should engage in aggressive marketing to inform consumers of their interest-free goods and services, and the government should develop policies and regulations that reduce the bureaucracy associated with bank technology adoption.

Please see the link - https://ikprress.org/index.php/JET/article/view/5124