Barriers and Benefits of Electronic Banking System in Ethiopia
No Thumbnail Available
Date
2015-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This thesis aims to examine implementation of E-banking in Ethiopian banking industry with
respect to the barriers which can influence firms from taking advantage of E-banking system and
expected benefits derived by adopting the system. The study was conducted based on the data
gathered from seventeen banks in Ethiopia; sixteen private banks and one state owned bank.
Descriptive research approach was used to answer the research questions that emerge through the
review of existing literature and responses from participants through questionnaire. The study
statistically analyzes data obtained from the survey questionnaire. A research framework is
developed based on technology-organization-environment (TOE) framework to guide the study.
The result of the study indicated that, the major barriers Ethiopian banking industry faces in the
implementation of E-banking are technology infrastructure being not easily available and low
level of telecommunication network, lack of participation of employees in the implementation
process, lack of training, absence of management support, lack of government support and
absence of legal framework. The study also revealed direct and indirect benefits from E-banking
implementation which are low cost in performing transaction, high speed and efficiency in
service delivery, increased productivity and profitability of banks and improvement in customer
service. The study suggests a series of measures which could be taken by the banking industry
and by government to address various challenges identified in the thesis. These measures
include: government support in providing technology infrastructure for ICT development and
setting the necessary legal framework, banks to modernize their service by mobilizing all their
resources through participating their staffs and providing trainings, and banks to create
awareness to customers on how to make use of E-banking products and the benefits that will
come out of it.
Description
Keywords
Benefits of Electronic