ASSESSMENT ON THE CHALLENGES AND PROSPECT OF INTERNET BANKING: IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA (WEST ADDIS ABABA DISTRICT)

Abstract

This study attempts to understand and evaluate the challenges and prospects internet banking facilities in Commercial bank of Ethiopia west Addis Ababa district. IT Infrastructure and Competitive pressure it is tried to investigate their influence on the challenges and prospects of internet banking service. The study used mixed research approach. The quantitative data was gathered from 370 respondents out of 399 distributed questionnaires for the bank customers and 310 respondents out of 324 distributed questionnaires for the bank professional staffs. Meanwhile the qualitative aspect of the study used an indepth interview with the selected bank officials and reviews different literatures which are related to the internet banking and supplement the overall research. Bank employees and customers of Commercial bank of Ethiopia west Addis Ababa district were the primary source of data for working this paper. Also the review of existing literature and the experiences of the researcher in respect of the internet banking system in Commercial bank of Ethiopia west Addis Ababa district. Data is presented through tables, graphs, pie charts and figures. The study identified attitudes of customers and staffs, challenges, prospects and overall performance of Commercial bank of Ethiopia west Addis Ababa district. As per the findings of this study it is observed that prospects include: excellent Banking transactions can be performed from the comfort of the home or office or from the place a customer‘s wants to, internet banking is the best means to reduce customer over load, internet banking technology helps customer for quickly access account, reduces time spending in the bank and other services and internet banking service is better managing of financial transaction. According to findings the challenges include: customers Lack of awareness on the benefits of new technologies related with internet banking, not literate enough to understand the usage of internet banking service, network and electric power interruption and Languages are an obstacle to use internet banking. The study suggests a series of measures which could be taken by the bank. The measures include, detail training of employees about internet banking, localize language for his customers, internalize electric and network problems, and familiarize their customers with the processes and benefits of the system.