The Assessment of Opportunities and Challenges of E-Banking; In Case Of United Bank of Ethiopia in Wolkite Branch.

Abstract

Despite the growth of e-banking adoption worldwide, Ethiopian banks continue to conduct most of their banking transactions using traditional methods. The general objective of the study was assessment of the current extent and practices, benefits realized by banks, driving forces, opportunities and challenges for the adoption of e-banking service in Ethiopia under Wolkite area on United bank. From this general objective, three specific issues were explored. An exploratory research design was employed to conduct this study. The primary source data is used for study. The collected data was analyzed by using descriptive analysis such as tables and percentages. From an analysis of the collected data, the findings revealed that: balance inquiry, cash withdrawal, funds transfers, statement printings are among the major practice of e-banking among those banks that are providing the service to the customer. The different e-banking channels by which banks are using to provide these services to the customer are ATM card, debit card, credit card, salary card, visa card, master card, Internet banking and Mobile banking. Cost reduction, coverage of wide geographical area, customer satisfactions etc are among the benefits of adopting the system. Among the different driving forces that initiate banks to adopt e-banking services: existence of high competition in the banking industry, desire to improve organizational performance and, desire to reduce transaction cost.