Abstract: | The paper aims to examine the major challenges and opportunities for the adoption of E banking system in case of Abyssinia bank so that they can know the major obstacles why customers are not adopting E banking system as well as to have a very good insight on the customers perspective. The major objective of this study will be assessing the challenges and prospects of adoption of E-banking in Abyssinia bank in Eastern district branches.The researcher will collect data from Abyssinia Bank E-banking customers by distributing questionnaires which will measure their agreement and disagreement on adoption of E-banking challenges and opportunities in the bank by using five point Likert scale. Additionally,Statistics are used to analyze the survey questionnaire data.The study's findings showed that poor inter-bank connectivity, a lack of managerial and technical know-how to use and implement the system, a lack of customer trust, a dearth of adequate national legal frameworks, a lack of competition between domestic and foreign banks, and a lack of government support are the main obstacles Ethiopian banks face in adopting electronic banking. Other significant obstacles included a low level of internet penetration, a poorly developed telecommunications infrastructure, high internet costs, frequent power outages, and network failures. The study also identified certain fundamental advantages a business could get from implementing an e-banking system,Additionally, the study strongly recommends that government and private banks must cooperate in order to lessen the obstacles to the adoption of e-banking systems by splitting the cost of setting up ICT infrastructure and establishing a specific legal framework of rules and regulations extra so that customers' confidence in using e-banking systems can grow. |