The Impact Digitalization on Financial Performance of Private Commercial Bank (in Case of Bank of Abyssinia)
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Date
2023-06-03
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A.A.U.
Abstract
This study made to investigate the impact of digitalization on financial performance of bank of Abyssinia in Addis Ababa, Ethiopian. The main objective of study was to establish the impact of digitalization on financial performance of BOA. Specific objective were to identify the factors that influence customers to use digital banking, to study impact of digitalization of return on investment and to describe effect of digitalization risk or challenge on return on asset of organization. Quantitative and qualitative research methodologies were used. Quantitative researches were correlation and regression analysis. Data collection was used in data collection Pearson correlation coefficient helped the impact of digitalization on financial performance. On the other hand, inferential test linear regression analysis was used to analyze the impact of digitalization on financial performance. Descriptive survey was used while a questionnaire was used to gather primary data. The target study units for this paper were conveniently selected bank of Abyssinia. The study sample in term of the respondent covered the staff bank of Abyssinia and a sample of 111 was administered with the questionnaire and 63 % response rate was achieved. Statistical analysis was done with the aid of SPSS software and Stata software. These studied digitalization address internet banking automated teller machine, mobile banking, point of sale, and interactive teller machines. Based on the finding of study, it can be concluded that digitalization influence financial performance of BOA positively. The study showed that return on asset bank of Abyssinia increase in upward trends due to an increasing digitalization. These studies concluded that digitalization significantly and positively affect return on asset that digital transaction led to increase ROI. This paper didn’t include all bank digitalization and a future study is recommended to include Apollo, gize ,pay, and their impact of financial performance of bank of Abyssinia.