The Impact of Information & Communication Technology on Ethiopian Private Banks’ Performance: The Case of Two Selected Ethiopian Private Banks
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Date
2015-05
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Addia Ababa University
Abstract
This research aimed at finding out the impact of Information and Communication Technology (ICT) on performance of Ethiopian Private Banks using Dashen Bank S.C. and United Bank S.C. as a case study. It used customers’ satisfaction and employees’ performance/efficiency as independent variables to measure performance of the banks. In addition the research tried to investigate major challenges encountered by customers in using Technology-based services/products. Structured questionnaire was used to collect relevant data for the research. The data gathered through the questionnaire was analyzed by Statistical Package for Social Science (SPSS) version 16. T-statistic test was carried out to determine the significance of the independent variables on dependent variable. Simple linear regression analysis was also carried out to determine the effect of the independent variables on dependent variable. It was found from the research that Information and Communication Technology indeed has a positive significance impact on performance of Ethiopian Private Banks in respect with satisfying their customer and improve their employees’ performance. The simple linear regression analysis also showed a positive coefficient of 0.803 and 0.725 for customer satisfaction and employees performance respectively, which simply mean that there is strong positive relationship between Information and Communication Technology and customers’ satisfaction and employees’ performance of the banks. The research also identified that the major challenges discouraging customer to use Technology-based services/products of the banks are; mobile and internet connectivity problem and lack of Information and Communication infrastructures. In general, Information and Communication Technology has positively impacted performance of Ethiopian private banks.
Key Words: ICT, Customer satisfaction, Employee performance, bank performance, challenges.
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Keywords
ICT, Customer satisfaction, Employee performance, bank performance, challenges