| Abstract: | The study assesses the adoption and development of Real Time Gross Settlement(RTGS) transfer technology in the Ethiopian banking industry. Population of the study consist all 18 commercial banks that currently operated in 2020. The study was conducted based on the data gathered from 6 private commercial banks in Ethiopia using Purposive sampling method. Both quantitative and qualitative research or mixed research approach was employed to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the RTGS transfer technology in Ethiopia. The study found that high cost of implementation of RTGS, lack of customer awareness, limitation in network infrastructure and internet related support services, low levels of computer literacy, legal and regulatory differences with cross-country security risk and lack of trust are the Challenges of RTGS adoption. The study identified operational benefits from developing of RTGS transfer technology such as increase productivity, reduces paper work, reduce transaction cost, increase reliability, reducing errors, facilitate development of new products reduce long queues in banking halls. Among the different driving forces that initiate Ethiopian banks to adopt and extend RTGS transfer technology; desire to improve performance, desire to improve the relationship with customers, rapidly changing customers’ needs and preferences, desire to improve organizational performance, desire to build organizational reputation and desire to reduce transaction cost are among others. The study recommended banks to facilitate proper and continuous training for their employees, increasing security electronic transfers, create deep awareness about RTGS transfer technology to the community while the government should support banking sector by facilitating sufficient ICT infrastructure development and issue clear and workable legal frameworks to ease the adoption and growth of RTGS transfer Technology in Ethiopia. |
