Assessment on the Challenges and Prospects of E- Banking: In the case of Awash Bank

Abstract

developed countries and is rapidly expanding in developing countries. In the face of rapid expansion of electronic payment systems throughout the developed and the developing world, Ethiopia’s financial sector cannot remain an exception in expanding the use of the system. Thus, this study was conducted with a general objective of assessing the Challenges and Prospects of EBanking at Awash Bank. The specific aims of the study involved identification of the driving forces and barriers towards the adoption of E-Banking and assessing the benefits of adopting E-Banking from the View point of the bank and customer. The current practice and extent of E-Banking service application was also investigated. To achieve the objective, descriptive research design was employed while using both qualitative and quantitative techniques. Data was collected from primary sources that involve questionnaire and interview, while secondary data included journals articles and the like. By using the sampling technique by Yamane (1967), sample size of 190 was selected from the target population of 11,298. The collected data was analyzed with the use of Descriptive Statistics. The result indicated that ease of performing transactions, reduction of load at branches, ease of account access and a better management of financial transactions were revealed to be prospects. The study also revealed that security concern is a huge challenge that requires fast action. In addition decreased readiness of customers, infrastructural problems, language obstacles and inadequate skill of bank staffs were revealed as challenges. Thus, key recommendations like implementation of Cybersecurity, increased emphasis on employee skill and dedication were given. In addition increased language options, and giving incentive to customers that use E-Banking were also stated as recommendations. .