CHALLENGES AND OPPORTUNITIES OF ELECTRONIC BANKING: A CASE DASHEN BANK AND NIB INTERNATIONAL BANK

Abstract

This study is conducted with the purpose of examining the challenges and opportunities of electronic banking in Ethiopia in the case of Dashen and Nib International Banks. The study was conducted based on data collected from staff and customers of the two banks through questionnaires and interviews. The response of interviews and the survey show that there are certain issues that become a challenge for the development of electronic banking in Ethiopia. In this regard, the result of the study indicated that the major challenges for the development of electronic banking in Dashen and Nib International Banks are lack of information, security risk, lack of trust, lack of legal and regulatory framework, lack of infrastructure, shortage of skilled professionals and lack of awareness. The study also identified perceived ease of use and perceived usefulness as benefits for the development of E-banking in Ethiopia. The study suggests a series of measures which could be taken by the two private commercial banks and to address various challenges identified in the study. These measures include: enhancing the awareness level of individuals on E-banking, implementing powerful security programs, establishing a clear set of legal framework on the use of technology in banking industry, supporting banking industry by investing on telecommunication infrastructure and hiring well trained and experienced IT professionals to handle the E-banking business competently with adequate knowledge.