CHALLENGES AND OPPORTUNITIES OF ELECTRONIC BANKING IN THE CASE OF COMERCIAL BANK OF ETHIOPIA

Abstract

This study is conducted with the purpose of examining the challenges and opportunities of electronic banking in the case of commercial bank of Ethiopia. The general objective of the study was to determine the challenge and opportunities of E--banking in the case of commercial bank of Ethiopia. The study was conducted based on data collected from customers of commercial bank of Ethiopia through questionnaires. Population of the study consists 4 district branches of commercial bank of Ethiopia. Convenience sampling method was employed to draw the sample from the population. The result of the study indicated that the major challenges of electronic banking in commercial bank of Ethiopia are network problem, internet infrastructure, cost of internet, security risk, lack of trust, lack of educated and efficient staff. The study also identified opportunities of electronic banking in commercial bank of Ethiopia as Electronic banking is more accessible and faster than other banking method, using electronic banking would enable to complete E-banking activities more quickly and easily, electronic banking is useful for banking needs., There is no time limit to access bank account and information, using electronic banking facility saves their time and money, learning to use electronic banking would be easy, it is easy to use electronic banking to accomplish banking tasks, The services are adapted to disable and elder people who are lacking computer experience, have a high degree of trust on Commercial bank of Ethiopia and are satisfied with security of electronic banking service, trust the use of electronic banking, Using E-banking fits well with the way you like to control and manage banking transactions and using the current banking service now because these are already a part of daily life. The study suggests a series of measures which could be taken by the 4 district branches of commercial bank of Ethiopia and to address various challenges identified in the study. These measures include: implementing powerful security programs, modifying the bank infrastructure and hiring well trained and experienced IT professionals to handle the E-banking business competently with adequate knowledge.