| Abstract: | This study employs a convergent parallel mixed-methods design to comprehensively assess digital
lending at Wegagen Bank S.C., integrating quantitative customer perceptions with qualitative
insights from bank managers and staff. It addresses a significant research gap by evaluating the
specific features, operational realities, influencing factors, and challenges of digital lending within
the Ethiopian commercial banking sector. Findings indicate that Wegagen Bank offers a
strategically diversified portfolio of short-term digital loans (WASE, Edget, Melegna, & Mekoya)
and possesses a strong understanding of digital lending's role in financial inclusion and SME
development, with customers largely valuing the speed of process and information accessibility.
However, the study reveals pervasive variability in customer experience, particularly regarding
awareness and application clarity, often linked to underlying challenges in digital literacy and trust.
Operationally, while processes are streamlined, the bank faces hurdles from outdated core banking
systems, fragmented data, manual interventions, and skill gaps, impacting. Customer concerns
about low loan limits and unclear repayment processes underscore the need for product and user
experience refinement, while external pressures. The study concludes that sustainable growth for
Wegagen Bank's digital lending hinges on a holistic strategy addressing both customer-centric pain
points and internal operational and infrastructural limitations |
