Examining the Effect of Electronic Banking on Bank’s Performance: The Case of Bank of Abyssinia

Abstract

Electronic banking is a term used for new age banking systems, represents an automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. It is a service that provides customers the opportunity to gain access to their accounts, execute transactions, and obtain information on financial products and services through a public or private network, including the internet. This study aims to analyze the relationship between the application of E-Banking and the financial performance of Bank of Abyssinia. The data used is sourced from the annual report for 2014-2022. Profit before tax was used as the dependent variable and as independent variable number of atm, number of pos and number of USSD users were used. The data analysis technique used is descriptive statistics and multiple regression. The findings of this research revealed that E-banking influences financial performance of the bank positively except in the case of mobile banking. The adoption of Ebanking by the bank has a high potential of improving financial performance and hence better returns to the shareholders.