| 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. |
