ASSESSMENT OF CHALLENGES AND OPPORTUNITIES OF INTEREST FREE BANKING IN ETHIOPIA IN THE CASE OF BANK OF ABYSSINIA, ADDIS ABABA CITY ADMINISTRATION

Abstract

The aim of this research was to analyze the challenges and opportunities of interest-free banking in the context of Bank of Abyssinia S.C. the study approach of the study was a mixed based study approach and the study design for the study was descriptive based study design. The population of this study included directors, managers, and officers, of Bank of Abyssinia S.C those have a direct relation with interest free banking service. A descriptive study was done on respondents from of Bank of Abyssinia S.C by distributing structured questionnaires to the study participant of Bank of Abyssinia S.C who had direct contact to interest-free banking service; conducted by collected data from 109 respondents at Bank of Abyssinia. The findings showed that lack of awareness among potential customers on interest-free banking services, and a shortage of trained professional to operate were the primary challenges of interest-free banking. On the other hand, opportunities like untapped market on interest-free banking may be taken as an advantage or opportunity to its products and services, which would specialize in providing interest-free banking products and services using customer happiness as a specialism.