ASSESSMENT OF CUSTOMER AWARENESS AND USAGE OF E-BANKING TRANSACTION THROUGH MOBILE PHONE (IN CASE OF COMMERCIAL BANK OF ETHIOPIA IN WOLKITE TOWN).

Abstract

Ethiopian banking system is still underdeveloped compared to the rest of the world. In Ethiopia Cash is still the most dominant medium of exchange and electronic payment systems are at an embryonic stage. This study is aimed to assess Customer Awareness and Usage of E-banking on Mobile phone in Commercial bank of Ethiopia Wolkite branch. Qualitative and quantitative research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the E-banking system in Ethiopia. The study statistically analyses data obtained from the survey questionnaire and interview. The study used descriptive statistics. Result of the study indicated that recently the E banking practice is growing in a significant level and NBE is also trying to support such activity by introducing different payment infrastructure. The study also identified basic benefit E-banking for the customers, banks and for the economy which helps to enhance other banks to engage in such activity. it also indicated that the major barriers Ethiopian banking industry faces in the practice of Electronic banking are, Absence of skilled man power, absent well organized ICT infrastructure, Cost incurred during the purchases of the software and the device, lack of Support from government, absence of legal frame work, High rates of illiteracy, frequent power interruption, fear of risk and unavailability of competent and skilled employee. The study suggests a series of measures which could be taken by the banking industry and by government to address various challenges identified in the thesis. It is suggested that the bank should take necessary steps to improve their e banking products awareness through customers awareness camp or training, attractive media of advertisement, government transaction through electronic mode, allowing customers to withdraw money from any bank ATM at anytime, incentivizing net banking, mobile banking and other electronic payments, creating confidence in the minds of customers about e-banking benefits and safety, simplified infrastructure for easy accessibility of internet etc., which can improve the level of awareness, usage and satisfaction