The Role of Digital Banking in Improving access to Financial Services: The Case of Selected Commercial Banks in Ethiopia

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Date

2025-08

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Publisher

Addis Ababa University

Abstract

This study,The Role of Digital Banking in Improving Access to Financial Services: The case of selected commercial Banks in Ethiopia , investigates how digital banking improves access to financial services in Ethiopia by concentrating on three commercial banks in Addis Ababa. Employing a quantitative explanatory design, the study gathered 215 valid responses drawn via purposive sampling from customers and staff through structured questionnaires and analyzed the data in STATA 15.1 using descriptive statistics, factor analysis, and regression. Results show that digital channels, especially mobile applications, markedly expand access by off ering convenience, 24/7 availability, and remote reach, though lower transaction costs are not widely perceived and obstacles such as limited digital literacy and infrastructure deficits remain. While the Addis Ababa only sample constrains generalizability , the research underscores the need for targeted literacy initiatives, infrastructure investment, and user centered platform design to close inclusion gaps. As one of the few empirical studies on D igital B anking’s contribution to financial access in Ethiop ia, it offers original insights for banks, policymakers, and development agencies seeking to leverage digital finance for broader economic empowerment

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Keywords

Keywords: digital banking, financial inclusion, Ethiopia, factor analysis, regression.

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