Mikiyas Solomon2024-04-122024-04-122019-06E-banking is the most resent delivery channel of banking service in developing nations. This research paper is prepared to meet the objective of assessing the prospects and challenges of e-banking service in commercial bank of Ethiopia in fiche city. To meet this objective, data were collected from both the bank employees and customers. Here, by the primary data collection method, the researchers used questionnaires that contain open and close ended questions, and the data are analyzed by using qualitative and quantitative method, using tables and percentages. The result of this research was analyzed based on the data collected through questionnaires. The study showed that benefits of using e-banking services that the customers get and benefits of providing e-banking services that the bank get. Also the study, the result of the study indicated that, the major challenges of providing e-banking service are infrastructural challenge and socio cultural challenges. The study tries to recommend the possible and practical measures that the bank should take in order to achieve maximum customer satisfaction and to meet its targeted objectives. Among our important recommendations, one is that the bank should improve the low level of internet penetration problem through cooperative work with Ethiopian Telecommunication CorporationenThesis