ABEBE FEKEDE2025-06-032025-09https://rps.wku.edu.et/handle/123456789/46096The banking industry in Ethiopia is now booming due to the allowed free competition, a total of thirty two banks are now licensed to give financial services in Ethiopia and the competition is becoming intensive so that banks are now trying to achieve competitive advantage by differentiating their service quality like digitalization. In this study, an attempt was made to assess and compare the similarities and differences of private and public banks by using primary data comparative performance as perceived by head office employee of each selected banks in terms ATM, pos machine, mobile banking money transfer and internet banking of digital was used to meet the objective of the study. The data were collected using close ended questionnaires with a sample of 178 respondents were taken using simple random sampling technique from head office employee of selected bank. The secondary data was collected in central bank. The collected data from the employee was analyzed using descriptive and inferential statistical tools like mean, T-tes and panel regression of the year from 2016-2023. The results of the study revealed that the individual private bank study with Public bank, public bank has significant difference compare to Private banks except Dashen in the case of internet banking. In group study, the result of ATM, internet banking and pos machine has insignificant difference indicates that the number of customer use digital is similar. But in the case of mobile banking public bank has significant difference compare to private bank. The private banks are more profitable compare to public bank. The regression result indicates that internet banking and Posm have positive and significant effect on ROA and ATM and Mobile banking have negative and insignificant effect on ROA. ATM and internet banking have positive and significant effect on ROE and mobile bank has significant and negative effect on ROE. Finally as a whole, individually observed that public bank on the digital bank performed better than private bank and in the group both banks have similar capacity on digital bank utilization performance. Digital bank has significant effect on the performance of bank.enThesis