The research is undertaking on the effect of electronics banking on the customers’ satisfaction in Zemen Bank. Since customer satisfaction is a high priority as one of the goals of Zemen bank, this study aims to investigate the effect of e banking on customer satisfaction. This study has been explanatory research regarding purpose and/or research design. Qualitative and quantitative research approach was used. The statistical population consists of 384customers of CBE. Moreover, structured questionnaires were used to collect the information. The questionnaires were developed in two sections by the researcher. Inferential and descriptive data analysis technique has been used. The validity of the questionnaire was confirmed by a group of experts. Furthermore, SPSS version 20 software has used to analyze the data. The major findings of this study were service performance and service security of e-banking has been significant factor on customer satisfaction. The researcher concludes that there was a linear relationship between e-banking and customer satisfaction. There is the need to create awareness and educate majority of the banking population or users on e-banking especially in mobile and internet banking as a recommendation.