The Impact of Digitalization on Financial Performance of Private Commercial Bank (In Case of Bank of Abyssinia)
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Date
2023-06-05
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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 o f
digitalization on financial performance of BOA. Specific objective were to identify the factors
that influence customers to use digital banking, to study impact o f digitalization of return on
investment and to describe effect of digitalization risk or challenge on return on asset o f
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 o f t he respondent covered the s ta ff 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 conclude that
digitalization influence financial performance of BOA positively. The study showed that return
on asset bank o f Abyssinia increase in upward trends due to a n increasing digitalization. These
studies concluded t hat digitalization significantly and positively a 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.