The Assessment of Challenges and Prospect of Mobile-banking in the Commercial Bank of Ethiopia in the Case of Joka Branch in Wolkite town

Abstract

Mobile banking is a developing mobile technique that has combined information technology and commerce applications together. Since mobile banking was introduced, consumers have been able touse it to obtain special services 24 hours a day without having to visit the traditional bank branch for personal transactions. Even though in their efforts of introducing new ways of reducing cost, modernizing the banking system, adoption of new technologies and trying to develop the mbanking outreach, there are stillmajor challenges hindering m-banking systems from fully functioning andbeing effective and efficient regarding reaching its stated goals in commercial banks of Ethiopia. This study adopted Mixed research approach which is both qualitative and quantitative. The design of thestudywas descriptive type. Inorder to undertakethe study,theresearcher used probabilityand non- probability sampling design, purposive sampling for the employees and simple random sampling to select respondents. 15 employees and 38 users were selected totaling the sample size 53. In order to collect sufficient data so as to answer the research questions the researcher used data collection instrument like; questionnaire to get quantified results. In this study structurally designed questionnaire was used. Which included both close-ended and open ended questions which helped the respondents express their views deeply? The relevant information was obtained in a standard form using tables, frequencies and percentagestoanalyzeandinterprettheinformation.ThefindingsofthestudyrevealedthatadoptionanddevelopmentofM-bankingtechnologyinsomeCBE Joka branch stretches wide across the two extremes of the challenges and prospects where the concerted effort by stakeholders to overcome the challenges will bring about immense opportunities to the dominant players in the field with the ultimate result. The Bank should create deep awareness to community concerning the M-banking products they offer and the benefits associated with using M- banking services through advertising their products and services on the internet, mass media as well as through organizing public exhibition, universities and talk shows. Besides, the bank should attract the communitytousethetechnologybydiverseincentivecampaigns.Thisway,customers’interestwouldbearoused