THE CURRENT CHALLENGES AND OPPORTUNITIES OF E-BANKING IN ETHIOPIAN BANKING SYSTEM (THE CASE OF WEGAGEN AND UNITED BANKS)

Abstract

Modern and efficient E-banking system is a pre requisite for the growth of the banking system in the cotemporary business world. By using both primary and secondary data this paper analyzed the current challenges and opportunities of E-banking in the case of United and Wogagen bank. The study employed descriptive research method to investigate the challenges and opportunities of E-banking in the selected private banks. The study used purposive sampling techniques to address the research problem. Quantitative data were collected through structured questionaries’ and the qualitative data were collected through the help of focused group discussion. The study identified three major challenges for the current E-banking in of the banking system of the selected banks. These are organizational challenges, environmental challenges and technological challenges. The quantitative data summery revealed that Ebanking the organizational challenges are the major challenge for growth of E-banking. The study also showed that technological challenge is the second most important challenge for the growth of EE-banking. In addition, the environmental challenge was identified as the third Ebanking challenge that influences the growth of E-banking of the selected private banks in Ethiopia. From the study results, this paper recommends that banks should have to invest adequate resource on E-banking technology, needs to work with the government to solve infrastructural challenges, and should create deep awareness to community concerning the Ebanking product. Government also in collaboration with banks should educate and inform the community on the work ability and effectiveness of E-banking technology, need to subsidize the high cost for ICT equipment that challenges banks in introducing EE-banking, should support banking sector by facilitating development of sufficient ICT infrastructure for the successful implementation and development of E-banking services.