MOBILE BANKING IN ETHIOPIA: PRACTICES, CHALLENGES AND OPPORTUNITIES

Abstract

As the growth of mobile banking technology in the world, Ethiopian banks are putting their maximum exertion to be part of this global technological advancement of mobile banking services. However their efforts are full of challenges and opportunities. This research is mainly investigating the current practice, challenges and opportunities of mobile banking services in Addis Ababa by focusing on selected commercial Banks. Four sample banks were selected to strengthen the findings of the study and because they started using mobile banking services sometimes ago. Information was gathered from the IT Managers of the selected four Banks through interviews and also from the customers of each bank by open and closed-ended questionnaires. Descriptive research approach has been applied to analyze the data that are collected from the respondents. Tables are also prepared to summarize the responses. Directives and periodical bulletins of the National Bank of Ethiopia have also been considered while making conclusions and recommendations. From the analysis of the collected data, the findings revealed that: balance inquires, cash withdrawals, and fund transfers within same bank, are some of the widely applicable services of mobile banking by most of the customers. Lack of skilled man power, chances of risk, Lack of suitable legal and regulatory framework, absence of financial networks that links different banks, low level of internet penetration and poorly developed telecommunication infrastructure, high cost of internet, security concerns are found out to be among the major challenges for the improvement of mobile banking service. People in the city of Addis Ababa are showing improving interest to use more out of the mobile banking service