Electronicbanking in ethiopia practices, opportunities. Electronic banking has been widely used in developed countries and is rapidly expanding in developing countries. On top of that, it is essential to delimit the study from the standpoint of managing. Pdf impact of electronic banking on customer satisfaction a. The ethiopian central bank issues banking licenses and supervises banks in ethiopia. Through reducing bank costs, electronic banking can increase bank incomes. E banking definition of e banking electronic banking, also known as electronic funds transfer eft, is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. To establisheffect of accessibility of digital banking on customer satisfaction case of national bank of kenya, bungoma county. The effect of using electronic banking on profitability of. Ethiopian banking system is one of the most underdeveloped compared to the rest of the world. A theoretical discussion of electronic banking in jordan.
Despite the growth of ebanking adoption worldwide, ethiopian banks continue to conduct most of their banking transactions using traditional methods. Ethiopia s electronic banking system needs suitable legal and regulatory frameworks to make the sector internationally competitive, economic experts say. In ethiopia cash is still the most dominant medium of exchange and electronic banking is not well known, let alone used for transacting banking business. Opportunity and challenges of electronicbanking system in. Ethiopian banking system is still underdeveloped compared to the rest of the world. Electronic banking is the use of electronic means to transfer funds directly from one account to another, rather than by check or cash. These measures include 1 the privatization of the dominant stateowned commercial bank of ethiopia.
The result of the study also indicated that, the major barriers. To analyze the status of electronic banking in ethiopia to investigate the main challenges and opportunities for e banking in ethiopia. To assess the availability of internet banking facilities at gcb bank, koforidua. Impact of atm banking performance on customer satisfaction. This study examines the impact of electronic banking products on customer satisfaction of commercial bank customers in addis ababa and trivandrum cities. Net banking unveiled the world of banking and financial services is in the midst of dramatic change. Banks in ethiopia overview and guide to banks in ethiopia. The case of commercial bank of ethiopia, nekemte branch the main objectives of the study will be to electronic banking practices, opportunities, and challenges. Customer satisfaction with atm banking is therefore the feeling developed from an evaluation of the atm banking use experience whether the atm banking performed relatively well or poorly against expectations. Ebanking definition of ebanking electronic banking, also known as electronic funds transfer eft, is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.
A debit card is similar to an atm card in that both allow you to deposit cash into and withdraw money from your checking account at atms. With the potential for many more, the financial sectors gross value. Electronicbanking in ethiopia practices,opportunities and. In ethiopia cash is still the most dominant medium of exchange and electronicbanking is not well known, let alone used for.
Electronic banking, more commonly known as ebanking, is the newest delivery channel for banking services. Electronicbanking in ethiopia practices,opportunities. The fragile and inefficient statedominated banking sector that existed in ethiopia during the military government 19741991 was a major hindrance to economic growth. Assessing the status of ebanking and its effect on employees. Practices, opportunites and challenges the paper examines the practices, opportunities and challenges of. Gardachew worku 2010 on electronic banking in ethiopia.
Accessibility of digital banking on customer satisfaction. Have your paycheck deposited directly into your bank or. The effect of electronic banking on the financial performance. Factors affecting adoption of electronic banking system in ethiopian banking industry ayana gemechu bultum1 abstract the aim of this paper is to identify factors that affect adoption of e banking in the ethiopian banking industry. This piece of survey and descriptive study is conducted primarily by using secondary data. Ethiopian banking sector needs to be tuned to the following additional marketoriented reforms in order to benefit positively from the harmonization of financial intermediation with economic growth. The introduction of e banking services has improved banking efficiency in rendering services to customer. According to the definition provided by the current romanian legislation, ebanking refers to a system that allows bank customers to. A theoretical discussion of electronic banking in jordan by integrating technology acceptance model and theory of planned behavior seif obeid alshbiel1 muhannad akram ahmad2 1head of accounting department, faculty of finance and business administration, al albayt university, mafraq, jordan, 1email. A mixed research approach was used to answer the research questions that emerge. The study used both quantitative and qualitative mixed research approach with a survey design to collect and analyze the data. If you would like, print this study aid for future reference. To assess the knowledge and patronage of electronic banking products by customers. Target populations of this study are customers and branch managers of the commercial banks in gondar city.
What are the threats and the opportunities of electronic banking. However e banking facilities provided are at par with those in the region. For instance, in 1994, the government legalized domestic. Electronic banking in ethiopia practices, opportunities and.
Challenges and prospect of ebanking in ethiopia aauetd. S professor of finance, dilla university, ethiopia abstract electronic banking helped in modernizing the financial systems, creating economic. Assessing the status of ebanking and its effect on. Electronic banking the ultimate guide to business and. National bank of ethiopia started championing centralized, online, realtime electronic banking and the national payment system, which helps to use a shared platform to facilitate the payment services.
Since it took power in 1991, the current government has implemented a number of reforms. Electronic banking, or ebanking, is the term that describes all transactions that take place among companies, organizations, and individuals and their banking institutions. In general the trend is to move away form a dominant public sector towards a financial structure where the role of the. Ovia, 2001 argued that electronic banking is a product of ecommerce in the field of banking and financial services. E banking includes the systems that enable financial institution customers, individuals or. Impact of mobile banking on service delivery in the. Nowadays, the banks are mainly focusing on promoting the concept of ebanking among their customers since it can provide speedier, faster and reliable services to the customers better than traditional banking. Factors affecting adoption of electronic banking system in ethiopian banking industry ayana gemechu bultum1 abstract the aim of this paper is to identify factors that affect adoption of ebanking in the ethiopian banking industry. Automated teller machine banking has become a significant channel for banking products and services behind branch banking in malawi and banks continue to invest in new and efficient technologies that can handle more functions that include cash depositing to attract more customers and achieve customer satisfaction with the banks. National bank of ethiopia started championing centralized, online, realtime electronic banking and.
The electronic banking system being developed with both banks is designed to give a secure electronic data sharing gateway between clients, banks and ecx, facilitating a smooth transaction abiy demilew, 2008 as the cbe continues to move at a snails pace in its turnkey solution for card based payment system, dashen bank remains so far the. Ethiopian banking system is one of the most underdeveloped. The paper examines the practices, opportunities and challenges of e banking services in ethiopia. Pdf factors affecting e banking adoption in ethiopia. Investigate challenges to epayment in ethiopia legalregulatory, infrastructure, socioculture. Abstract this study aimed at identifying factors that affect ebanking adoption in ethiopia, in case of the commercial banks in gondar city.
In ethiopia cash is still the most dominant medium of exchange and electronicbanking is not well known, let alone used for transacting banking business. Banks are also offering payment services on behalf of their customers who shop in different eshops. Secondly, it critically assesses the validity of the research question in light of the stated research problem. The appearance of e banking in ethiopia goes back to the late 2001, when the largest state owned, commercial bank of ethiopia cbe introduced atm to deliver service to the local users. Ebanking conceptual framework remote banking, considered representative for the new economy, consists of electronic transactions between customers and their bank. Even though, cbe has implemented the e banking system before a decade there are challenges in adopting this system internally and externally. The study conducted based on the data gathered from four branches of cbe, one district office and head office. Pdf problems and prospects of electronic banking system. The definition of electronic banking varies among researchers, because electronic banking refers to several types of services through which bank customers can request information and carry out most retail banking services via computer, television or mobile phone daniel, 1999. As per the findings of this study it is observed that bankers perceive a means to save time. In the banking context the technological advancement has changed how banking products and services are delivered, the point of contact of. The definition of electronic banking used in this study is.
Factors affecting adoption of electronic banking system in. Ethiopian banking industry faces in the adoption of electronic banking are. Virtual banking includes all non traditional and electronic means of banking such as atm, phone banking, internet banking ib, credit cards and debit cards etc. The appearance of ebanking in ethiopia goes back to the late 2001, when the largest state owned, commercial bank of ethiopia cbe introduced atm to deliver service to the local users. The study aims at examining the impact of mobile banking on. Fornell 1992 defines customer satisfaction as the overall post purchase or usage evaluation.
Electronic banking services have become an important practice among commercial banks in nigeria. National bank of ethiopia made core banking system mandatory since june 2011 in order to facilitate the payment of the banking system and also a mandatory to use electronic banking that is enable banks to provide mobile, internet and card banking services. The target population for the study was bank customers and banking staff from national bank. Challenges and opportunities of epayment in ethiopia. Electronic banking can also be defined as a variety of following platforms. Many researchers appreciate that electronic banking e banking is defined to include the provision of retail and small value banking products and services through electronic channels as well as large value electronic payments and other wholesale banking services delivered electronically georgescu, 2005. Banking as he was involved in the study hence he gainedfirsthand information. First conceptualized in the mid1970s, some banks offered customers electronic banking in. In ethiopia cash is still the most dominant medium of exchange and electronic payment systems are at an embryonic stage. The paper examines the practices, opportunities and challenges of ebanking services in ethiopia. Driven by deregulation, consolidation and information technology, the financial services industry is busy reshaping itself moving away from traditional brickandmortar branches to focus on new. Electronic banking services included under the umbrella term of ebanking are divided into three categories. To recommend appropriate actions to be taken to promote ebanking in ethiopia. To recommend appropriate actions to be taken to promote e banking in ethiopia.
Electronic banking facilities provided by most ethiopian banks are very basic. Pdf the adoption of automatic teller machines in commercial. Citeseerx document details isaac councill, lee giles, pradeep teregowda. To analyze the status of electronic banking in ethiopia to investigate the main challenges and opportunities for ebanking in ethiopia. Practices, opportunites and challenges the paper examines the practices, opportunities and challenges of e banking services in ethiopia. The study was conducted based on the data gathered from.
Ebanking services features, challenges and benefits 51 2. The structure and performance of ethiopias financial. The study aims at examining the impact of mobile banking on service delivery in the nigeria commercial banks. Bank employees were the primary source of data and the data so collected was analyzed using mean score analysis.
Burr 1996 describes it as an electronic connection between the bank and. Challenges and opportunities of epayment in ethiopia banking. Established in 1963, the national bank of ethiopia nbe started its operations in 1964. Determinants of mobile banking adoption in the ghanaian. The main objective of the study is to examine the determinants of mobile banking adoption as a communication in the banking industry with specific emphasis on the access bank ghana limited. Electronicbanking in ethiopia practices, opportunities and. The general objective of the study is to assess the contribution of electronic banking to customer satisfaction. He says, what digital essentially does is that it uses technology to design experiences, both seen and unseen. The study was conducted based on the data gathered from four banks in ethiopia. Know a days, electronic banking has become the way for the advance of banking system, and its role is increasing in many parts of the world. This study attempts to understand and identify bankers perception of benefits and risks associated with electronic banking facilities in ethiopia. The world of banking and financial services is in the midst of dramatic change, moving away from traditional brick and mortar branches and focusing on new delivery channels, to improve customer service and give 24hoursaday access to information and transactions. Propose and test an epayment system that can be used in ethiopia. Factors influencing customer satisfaction with atm banking.
The aim of this paper is to identify factors that affect adoption of e banking in the ethiopian banking industry. After the directive has been issued all commercial banks operating in. In fact in ethiopia were started to use electronic payment system, however, cash is still the most dominant medium of exchange, and electronic payment systems are at an embryonic stage and face different challenges. Ethiopias electronic banking system needs suitable legal and regulatory frameworks to make the sector internationally competitive, economic experts say. Ethiopian bankers perception of electronic banking in. Adoption of electronic banking system in ethiopian banking. Modeling external events for insurance and finance, new york. In order to promote and develop viable ebanking in ethiopia, they should clearly. Electronic banking in ethiopia practices, opportunities.
A special feature of virtual banking is the physical absence of the person seeking banking services at the premises and out of premises even abroad. The rapid development of technology has greatly affected the fate of human life including the financial sector. Ebanking includes the systems that enable financial institution customers, individuals or. E banking a study on awareness and satisfaction of customers with reference to commercial bank of ethiopia dr subramanian. Practices, opportunites and challenges the paper examines the practices, opportunities and challenges of ebanking services in ethiopia. The advent of ebanking in ethiopia goes back to the late 2001, when the largest state owned, commercial bank of ethiopia.
The adoption of automatic teller machines in commercial bank of ethiopia article pdf available october 2017 with 2,769 reads how we measure reads. Electronic banking and profitability of commercial banks in. Electronic banking and profitability of commercial banks. Electronic banking services included under the umbrella term of e banking are divided into three categories. Even though, cbe has implemented the ebanking system before a decade there are challenges in adopting this system internally and externally. According to the definition provided by the current romanian legislation, e banking refers to a system that allows bank customers to. Impact of mobile banking on service delivery in the nigerian. Ebanking a study on awareness and satisfaction of customers with reference to commercial bank of ethiopia dr subramanian. The structure and performance of ethiopias financial sector 5 clearly there is evolving structural shift when deposit is observed by institutions.
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