CHALLENGES AND OPPORTUNITIES OF CARD-BANKING PRACTICE IN COMMERCIAL BANK OF ETHIOPIA

Abstract

The majority of banks in Ethiopia have now implemented card-banking channels in order to provide convenient and affordable banking services. However, this effort may not bring much result especially through card-banking technology have not been well-known. The main objective of the study is identifying the challenges and opportunities of card-banking practice in Commercial Bank Ethiopia. Under these studies the researcher used primary and secondary source of data, to collect the necessary data the researcher used non probability sampling which is a judgmental sampling technique. The sample size was taken based on Taro Yamane formula. The result of the study indicated that, the major challenges faces in card- banking are, illiteracy of customers, customer resistance to change by various factors, lack of various languages that supports card-banking, lack of bond between e-payment departments, security issues, lack of legal and regulatory frame work, Lack of ICT setup and, government infrastructures facilities. On the contrary side, issues related with opportunities of card-banking expansion of electric power, ICT, road, higher institution, economic development and improvement in GDP, deposit mobilization increment and expansion of microfinance institutions are opportunities of card-banking. The study suggests the bank, having a well integrated team, give immediate service to customers and timely adjustment of refused transaction, facilitate card-banking awareness creation program on a continuous base and also the bank customizes the language to the local people.