The Effect of Internet Banking on Financial Inclusion: The Case of Commercial Banks in Jimma Zone, Ethiopia

Internet banking is a financial technology product through which customer executes their transaction. This study investigated the effect of internet banking on financial inclusion based on primary data collected from internet banking user customer in Jimma zone, Ethiopia. Cross sectional study designs such as quantitative and qualitative approaches were used. A simple random sampling method was used to select internet banking users of nine commercial banks. Data was collected from 1,076 customers through five-point Likert scale questionnaires and analyzed using an explanatory research and linear regression model. The result of the study show that ease of internet banking use creates simplicity and understandability so that users are more attracted to internet banking which has a remarkable result for financial inclusion. An increase to accessibility to internet banking also increases the rate of financial inclusion. Additionally, the findings demonstrated that information security and privacy and behavioral intention of using internet banking have significant and positive influence on financial inclusion. Thus, the collaboration of banks and telecommunication should be enhanced to expand the coverage of internet so that anyone can access to internet banking.