THE EFFECT OF DIGITAL SYSTEMS IN CORE BANKING ON ENHANCING PERFORMANCE IN COMMERCIAL BANKS OF ETHIOPIA.

Abstract

Over the past ten years, the banking industry has undergone significant digital transformation, changing how financial services are offered and accessed. When it comes to implementing digital solutions like ATMs, CBE Birr, internet banking, mobile banking, and API integration, the Commercial Bank of Ethiopia (CBE) has led the way in Ethiopia. This study looks at how CBE's performance is affected by these digital systems in core banking. In particular, it examines how they affect customer performance assessment, transaction volume, and transaction value. Utilising secondary transaction data from CBE and structured surveys, a quantitative research approach was adopted. In order to assess established hypotheses, the data was analysed using regression, correlation, and descriptive statistics. The findings demonstrate that, despite ongoing challenges with digital literacy and infrastructure limitations, digital systems significantly improve the bank's operational performance. For banking institutions and regulators looking to enhance digital banking strategies and advance financial inclusion in developing nations like Ethiopia, the study offers crucial viewpoints.