DETERMINANT FACTORS INFLUENCING THE IMPLEMENTATION OF ELECTRONIC BANKING IN COMMERCIAL BANK OF ETHIOPIA, ADDIS ABABA

Abstract

Electronic banking enhances the development of the banking service, and it is considered as a strategic weapon for banks. Although it provides various benefits for both banks and customers, low level of customers' adoption ofE-banking services has been noted.The General objective of the study wasto investigate the determinant factors influencing the implementation of E-banking in Commercial Banks of Ethiopia. In order to get a comprehensive data 337 employees of the bank was purposely selected and included in the study. Primary data were collected through a semi-structured questionnaire, & interview. Data was analysed using descriptive statistics and inferential statistics that include both correlation and multiple linearregression. The study focusedon the major factors influencing the implementation of E-banking which includesorganizational factors, environmental factors, technological factors and strategic factors. The study schemed that there wasinadequate technical and managerial skill for the implementation of E-banking, the bank didn’t have enough physical support and equipment, insufficient government support, unsatisfactory network infrastructure, inadequate computer skill and technology.Based on these findings, the study recommends that Managers and all staff of CBE should be familiar with concepts, application and advantages of e-banking, government should support banking sector by investing on ICT infrastructure development.