The Role of Telebirr Service on The Performance of Selected Private Banks, Addis Ababa, Ethiopia

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Date

2024-02

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Addis Ababa University

Abstract

Ethio Telecom, the government-owned telecommunications provider in Ethiopia, launched the mobile money service called Telebirr, which facilitates cashless transactions and allows phone owners to deposit, transfer, and withdraw money without a bank account, distinguishing it from mobile banking. This study aimed to assess the role of telebirr on the performance of selected private banks. A cross-sectional analysis was conducted using purposive sampling and a questionnaire, with data analyzed through SPSS version 26. Descriptive statistics were used to examine socio-demographic characteristics, while linear regression analysis assessed the relationship between telebirr implementation and key performance indicators such as operational efficiency, financial inclusion, and transaction volumes. The findings revealed that telebirr had a significant positive impact on operational efficiency, financial inclusion, and increased transaction volumes within the banking sector. Keywords: telebirr, financial inclusion, operational efficiency, Transaction volume and values Bank performance

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