THE PROSPECT AND CHALLENGES OF E-BANKING FROM CUSTEMER PERSPEPECTIVE: THE CASE OF COMMERCIAL BANK OF ETHIOPIA IN SOUTH ADDIS ABABA DISTRICT

Abstract

The growth of e-banking is worldwide, Ethiopian banks continue to conduct most of their banking transactions going to use digital or electrical payment system. The general objective of the study was to analyze the prospect and challenges of e-banking from customer perspective in commercial bank of Ethiopia specifically in south Addis Ababa district. From this general objective, three specific issues were explored. A descriptive research design was employed to conduct this study. Both primary and secondary qualitative and quantitative data were collected for the purpose of this study from the five selected branch of customer manager’s service and sales total of ten and a representative of two in each branch and total of 350 respondent of e banking customers in the five selected branches. The collected data was analyzed by using descriptive analysis such as mean score and standard deviation, tables and percentages. The study identified the prospect and challenge of electronic banking from customer perspective, which a customer gets as a result of using e-banking services. It also investigated the major challenges for the electronic banking services in commercial bank of Ethiopia as of infrastructural, legal and regulatory, socio-cultural, illiteracy and administrative and operational related challenges. To address various challenges identified on the study, the researcher suggests a series of measures which could be taken by government as well as commercial bank of Ethiopia. These measures include: Establishing a clear set of legal framework on the use of technology in banking industry, supporting banking industry by investing on Information communication technology, seat clear rule and regulation on e banking and infrastructure and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank competition.