PRACTICES AND CHALLENGES OF E-BANKING SERVICE DELIVERY: THE CASE OF BANK OF ABYSSINIA

Abstract

The general objective of the study is assessing of the service deliverypractice, and the associated challenges of e-banking in the case study organization, BOA in Ethiopia. Traditionally banks are in the forefront in harnessing and using technology to improve their products and services. Over a period of time they have grown to use electronic and telecommunication infrastructures extensively to provide products and services to the customers efficiently. To achieve the stated objective asemi-structured questionnaire was distributed to 185 central Addis district branches and for e-banking department staff the sample is determined by using a stratified random sampling technique. Additionally, a structured interview was conducted with the e-banking manager. Descriptive research design was employed and mixed research approach was used to answer the research questions. The data obtained from the survey questionnaire was analyzed statistically and the interview result was interpretative. The study used descriptive statistics and data was analyzed using a statistical package for social sciences (SPSS version 25). As per the findings of the study, it is observed that lack of awareness, non- availability of demonstration and lack of differentiated products are the factorsthat affect the bank’s goalto grow e-banking service. On the other hand, privacy and security issues coupled with ICT infrastructure shortage are among the major challenges in the adoption of e-banking service in the country. However, increasing demand and commitment of the government to improve the policy framework are the major opportunities for the adoption of the service in the banking industry. Based on the major findings the study suggests the bank should train employees on e-banking service and policies and procedures should be improved continuously.