The incorporation of information system into organizations for the purpose of getting competitive advantage, easing workload, providing intangible (soft) work place and coping up with technological advancement has become an indispensable for organizations. Due to these many companies (like banks) are getting advantages of information communication technology implementation like Mobile Banking (M-banking), Internet banking, Automatic Teller Machine, etc. Accordingly Ethiopian commercial banks have implemented Mbanking system into their service system. This research examine adoption of M-banking system in Ethiopia focusing on Cooperative bank of Oromiya with respect to the challenges which can influence the bank from taking advantage and expected benefits of M-banking system derived by adopting the system. The result of the research indicated that, drivers of M-banking are relative advantage, perceived ease of use and perceived usefulness while challenges are perceived risks, trust reliability and lack of ICT infrastructure
