CHALLENGES AND PROSPECTS OF E- BANKING SERVICE IN ETHIOPIA: THE CASE OF SELECTED COMMERCIAL BANKS AT WOLKITE TOWN.

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 this study is to assess the challenges and prospects towards the implementation of E-banking technology in Ethiopian banking industry. Descriptive research design was employed to conduct this study and Both primary and secondary data were used. The collected data was analyzed by using descriptive analysis such as tables, mean and mode. The study was conducted based on the data gathered from five purposive sampled commercial banks at wolkite town from those sampled commercial banks the total of 200 clerical staff. Questionnaire were distributed to 170 clerical staff and used the research purpose. A mixed research approach was employed. In order to analyze the research results, SPSS V. 16.0 tool software and 5 Likert Scale used to gather respondents answer. The result of the study indicated that, the major challenges Ethiopian banking industry faces in the adoption and development of E-banking technology are, high cost of implementation of E-banking, lack of customer awareness, limitation in network infrastructure and internet related support services, security risk and lack of trust. The study also indicated existing prospects for E-banking such, as improvement in the banking habit of the society, late adoption of E-banking, commitment of the government to facilitate the expansion of ICT infrastructure and commitment of the government to strengthen the banking industry. And The xii study recommended banks to facilitate proper and continuous training for their employees, increasing security for E-banking products, create deep awareness about E-banking technology to the community while the government should support banking sector by facilitating sufficient ICT infrastructure development and issue clear and workable legal frameworks to ease the adoption and growth of E-banking Technology in Ethiopia