| Abstract: | Electronic banking is a term used for new age banking system, represents an automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. This study was intended to show opportunities and challenges of e-banking service focusing on Nib International Bank. The concurrent mixed research design was used. This study used primary and secondary source of data. The collected data was analyzed using quantitative and qualitative techniques. A total of 88 respondents were involved at head office of NIB International bank in both staff and customers. The questionnaire prepared for staff and customer were different. In order to analyses the collected data were entered into Statistical Package for the Social Sciences (SPSS) software. The study indicated that the basic benefits of E-banking for the staff and customers of Nib international Bank main branch available. The benefits of E-banking for staffs are Operational Benefits such as reduces paper work, improving transaction speeds, increase reliability and reducing errors, facilitates development of new products and new business in the banking industry, convenient, enhance accessibility of the bank's services, overcome geographical limitations, improves customer service and has low transaction cost. Although benefits of E-banking is identified by respondents, there are also some challenges. The majority of the respondent agreed that the challenge of E-banking are technological innovations used, lack of managerial skills in implementation and development of e-banking technology, high cost of implementation of e-banking and resistance to changes in technology by higher managers, lack of educated and efficient staff in e-banking context and Money laundering and other financial crimes easily facilitated through e–banking. Furthermore, lack of social awareness, Inadequate ICT infrastructure, risk of security, customer reluctance, no help in any query online, service deliver is not exactly as promise were also the identified challenges in using e-banking. It is concluded that Basic operational benefits of E-banking for the customers are convenience, accessibility, ease of use, low cost of using banking activity, providing real time information and getting quality service. Based on the finding it is recommended to exploit the benefit of E-banking system, the Nib international bank should have strategies to create awareness for customers to familiarize the service and enjoy the benefit. |
