CHALLENGES AND OPPORTUNITY OF ELECTRONIC BANKING IN PRIVATE BANK (A CASE OF AWASH BANK WOLKITE BRANCH)

Abstract

This study is conducted with the purpose of analyzing the opportunities and challenges of electronic banking in commercial bank of Ethiopia in Wolkite branch. It was conducted based on the data collected from Employee and customers of the bank through questionnaires. The study identified opportunity of E-banking services that the customers get as a result of using e-banking services as well as the opportunity the bank gets as a result of providing e-banking services. Also the response that got from questioner shows that there are certain issues that become a challenge for the electronic banking services in Awash bank of wolkite branch. In this regard, the result of the study indicated that the major challenges for the electronic banking services as of infrastructural and knowledge related challenges, legal and security issue related challenges, cash shortage challenge, system failure challenges, network failure challenges and bank policy on withdrawal challenges. The study suggested a series of measures which could be taken by the Awash bank of wolkite branch to address various challenges identified in the study. These measures include: making of agreement with the ethio-telecome manager of wolkite town on the improvement of weak telecommunication and network failure, reducing improper use of technology, prepare or give to its employee different training on the technical skill to maintain and repair the ATM machine and other e-banking infrastructures, reducing problem of power failure, system failure and shortage of cash in ATM machines using different mitigation mechanisms.