The Challenges and Prospects of E-Banking System in Commercial Bank of Ethiopia: A Case Study of CBE-Birr Agent banking
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Date
2020-06
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A.A.U
Abstract
This research intends to examine the challenge and prospects of e-banking system in
Commercial Bank of Ethiopia, specifically focusing on CBE-Birr agent banking service. To
achieve this objective and answer the research questions, the researcher adopts both qualitative
and quantitative research approaches. The study was conducted based on the data collected
from four branches of commercial bank of Ethiopia: Finfine, Gofasefer, Nifas-Silk, and Senga-
Tera. To select survey respondents (employees, customers and agents) from the selected
branches, proportional random sampling method was applied. The collected datawas analyzed
using descriptive and exploratory methods of data analysis. The study found that organizational
factors/attributes (system quality, service quality, security, institutional capacity, innovativeness,
reachability, and support system), environmental factors (access to internet, access to power,
network stability, institutional and legal supports), and customer-related factors (exposure to
new technology and risk taking behavior) determines the challenges as well as prospects of
adopting agent banking services. The response gathered from agent banking providers (bank
and agents) and service users (customers) show that there are limitations related to system
quality, service quality, security, support system, access to power, network stability, exposure to
new technology and risk taking behavior of customers. Any effort by the bank to promote
adoption and expansion of CBE-Birr agent banking service should find solutions to such
limitations and challenges. The study also revealed that government’s commitment to support the
sector coupled with the nature of CBE-Birr agent banking, innovativeness, reachability, and
problem-solving are the main contributing factors and prospects for wider adoption of CBE-birr
and related agent banking services. Therefore, the study recommend to the bank to utilize these
supports and enabling factors to deal with challenges of adoption and use of agent banking
service/products.
Description
A Thesis Submitted to Partial Fulfillment of the Requirement for the Award of
Master of Business Administration (In Finance)
Keywords
Agent banking, Adoption, CBE-Birr, Challenge and prospects