ASSESSMENT ON OPPORTUNITIES AND CHALLENGES OF E BANKING ADOPTION THE CASE OF DASHEN BANK

Abstract

This thesis aims to examine benefits and challenges in the adoption of E-banking services with respect to Dashen Bank S.C. A mixed research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in the context of E-banking system in Dashen bank. 155 Samples were taken from Dashen Bank clerical staffs’ using convenience sampling technique and the study statistically analyzed data obtained from the survey questionnaire. Integrated research framework developed based on technology-organization-environment framework (TOE) and Technology acceptance model (TAM) to guide the study. The study also identified perceived ease of use and perceived usefulness as a driver of adopting E-banking system. The findings of the study were all consistent with prior researches. The study revealed areas of improvement with possible solutions that mitigate the identified major challenges, which includes continuous reviewing and up grading of the existing security system, emphasis for appropriate promotion, and collaboration with other banks to have government support especially to the environmental factors of ICT infrastructure. The study suggests a series of measures which could be taken by the bank and by the government to address various challenges identified in the thesis. These measures include, establishing a clear set of legal frame work on the use of technology in banking industry, supporting banking industry by investing on ICT infrastructure and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank competition.