Financial Technology in Ethiopia: The Strategies of Development and How It Has Challenged The Status Quo Focusing on Commercial Bank of Ethiopia.
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Date
2024-05-03
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A.A.U
Abstract
This thesis explores the development and implications of financial technology (FinTech) in
Ethiopia, with a focus on the strategies employed by the Commercial Bank of Ethiopia
(CBE). FinTech involves innovative technologies that enhance and automate financial
services using specialized software and smartphone algorithms. The study examines how
FinTech has disrupted traditional banking practices and evaluates the strategies CBE has
adopted to navigate and leverage these changes. Key objectives include identifying
significant FinTech strategies, understanding the challenges they pose to the existing
banking system, and assessing the role of digital payment systems such as mobile banking.
The research also considers the impact of infrastructure, connectivity, cybersecurity,
financial literacy, and the dominance of conventional banking on FinTech development
within CBE. Utilizing a qualitative methodology with purposive and snowball sampling,
the findings demonstrate FinTech's potential to boost customer satisfaction, financial
inclusion, and operational efficiency. The study highlights critical issues such as
technological infrastructure gaps, inadequate financial literacy, cybersecurity threats, and
resistance from traditional banking sectors. It provides practical recommendations for
decision-makers and financial institutions to effectively harness FinTech's benefits while
mitigating associated risks. Ultimately, this research aims to contribute to the
modernization and efficiency of financial services in developing countries by offering
insights for developing robust FinTech strategies in Ethiopia and similar contexts.