ASSESSMENT OF THE OPPORTUNITY AND CHALLENGES OF INTERNET-BANKING ON COMMERCIAL BANK OF ETHIOPIA

Abstract

The challenging for financial service market results more pressure on banks to develop and utilize alternative delivery channels, with a view to attracting more customers and improving customer perceptions and encouraging loyalty. The study is aimed at dealing with the opportunity and challenges of internet banking on commercial bank of Ethiopia. The study used descriptive research method that incorporated qualitative research approaches. In conducting this research, data was obtained from both primary and secondary sources. A descriptive case study that makes use of a combination of questioners that is taken account of 50 from employees and 80 from customers that are used because it helped the researcher clarify and explain the existing phenomenon in a meaningful, justifiable and numerical manner. Based on this research paper research problem it concerned on commercial banks that do not have an insight into how their customers perceive and evaluate internet banking service quality. Large number of CBE customers Disagreed on that customers have enough information about internet banking. Great Majority of CBE employees and most customers highly aware on the importance of internet banking to save time and money. Majority of CBE employees strongly agree on that internet banking is more accessible to users and customers are neutral. Great Majority of the CBE employees and majority of customers responded on that the service is very low to be adoptable to disable and elder people. Large number of CBE employees and customers responded on that CBE never provides a training to enhance awareness of customer. Great majority of employees and majority of customers agreed on that customers encounter problems related with Internet while using the service. Large no of employees and customers responded on that CBE seldom provides an alternative way when the Internet is slow. Majority of employees agreed on that CBE has experienced and skilled IT professionals to administer latest technology and Majority of customers disagreed on that CBE has experienced and skilled IT professionals to administer latest technology. CBE should have to create awareness and provide sustainable information in order to increase how to use/access internet banking since the study shows there is a gap b/n CBE and customers as CBE is only trying to fulfill the targeted percent .Internet banking service providers ought to look out for indicators of innovative ways of creating awareness about the service through participation in trade organizations, exhibitions as well as adoption of new technologies of Internet banking. In addition, it would be useful to study the corporate client’s diverse satisfaction needs in order to respond to them precisely. Further studies need to be carried out knowing that the Internet banking service is still new in most of the developing countries thus, new issues, needs and demands may arise as the banks continue to implement the strategy.