ASSESSMENT OF CORE BANKING SYSTEM PRACTICE AND CHALLENGES IN BANK OF ABYSSINIA

Abstract

The objective of the research is to make an assessment on the practice and challenges of core banking system in Bank of Abyssinia.Descriptive survey research methodology was employed for the study. Seven standard core banking system practice and challenge determining variables were used to measure the practice and challenges.Both primary and secondary data sources were used for the study.The studyrevealed thatthere were number of challenges faced during the introduction of the new system such as: complication in selection of external consultants, resource scarcity and data migration process from the old legacy system to the new one, power interruption and frequent network failure were among major challenges identified in the practice of the new system. On study it’s found that the new system is successful in fulfill the old system service gap. The study also revealed that NBE, still not issued adequate legal and operational frame work for electronic banking service in Ethiopia.The study recommended that the bank should make further critical care and stronger protection mechanisms to safeguard the system security from current hackers.’ It is also recommend the bank should work in collaboration with other banks in the industry and with the government to resolve the current power interruption and frequent network failure as it is significantly affecting the successful implementation and smooth operation of the new system