CHALLENGE AND PROSPECT OF ELECTRONIC BANKING IN ETHIOPIA EVIDENCE FROM SELECTED COMMERIAL BANKS (IN CASE STUDY ON WOLKITE BRANCH)

Abstract

This study was conducted with the purpose of analyzing the challenges and prospects of electronic banking in commercial bank of Ethiopia in Wolkite branch. It was conducted based on the data collected from staff and customers of the bank through questionnaires response of interviews and the focused group discussion shows that there are certain issues that become a challenge for the electronic banking services in commercial bank of Ethiopia. The different e banking channels by which banks are using to provide these services to their customers are ATM, debit card, Internet banking and Mobile banking. In addition to this some banks start to provide different type of card services. On the View point of the bank Cost reduction, coverage of wide geographical area, customer satisfactions are some of the benefits of using e-banking. In this regard, the result of the study indicated that the major challenges for the electronic banking services as of infrastructural related challenges, illiteracy related challenges. The study suggests a series of measures which could be taken by the government as well as commercial bank of Ethiopia Wolkite branch to address various challenges identified in the study. However, late adopter prospects, improvements in the banking habit of the society, commitment of the governments to facilitate the expansion of ICT infrastructure and willingness among banks to cooperate in building infrastructure are the major prospects for the implementation of system in the banking industry This study was conducted with the purpose of analyzing the challenges and prospects of electronic banking in commercial bank of Ethiopia in Wolkite branch. It was conducted based on the data collected from staff and customers of the bank through questionnaires response of interviews and the focused group discussion shows that there are certain issues that become a challenge for the electronic banking services in commercial bank of Ethiopia. The different e banking channels by which banks are using to provide these services to their customers are ATM, debit card, Internet banking and Mobile banking. In addition to this some banks start to provide different type of card services. On the View point of the bank Cost reduction, coverage of wide geographical area, customer satisfactions are some of the benefits of using e-banking. In this regard, the result of the study indicated that the major challenges for the electronic banking services as of infrastructural related challenges, illiteracy related challenges. The study suggests a series of measures which could be taken by the government as well as commercial bank of Ethiopia Wolkite branch to address various challenges identified in the study. However, late adopter prospects, improvements in the banking habit of the society, commitment of the governments to facilitate the expansion of ICT infrastructure and willingness among banks to cooperate in building infrastructure are the major prospects for the implementation of system in the banking industry