Aggressive Branch Expansion versus ATM and POS machine use (The case of Awash International Bank S.C in Addis Ababa)
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Date
2015-05
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Addis Ababa University
Abstract
In this project, the aggressive branch expansion of Awash International Bank S.C in Addis Ababa vis-à-vis modern banking technologies of ATM/POS was studied to investigate if the aggressive branch expansion of AIB is advantageous. The cause of the aggressive branch expansion is identified to be the introduction of NBE bills which eroded the fund to be used for customer lending.
The study used descriptive research design to gather qualitative and quantitative data. Both primary and secondary data were used for the data analysis and for the study findings. The primary data were collected through questionnaires from customers and employee of the bank. The secondary data are collected from published and unpublished documents of AIB and NBE. Questionnaires were distributed to each class of branches to collect data from the bank's customers. One branch was selected from each class of branch using lottery method to collect data from the bank’s customer. Questionnaires were distributed to all department managers and above department positions as well as to relevant division and branch managers.
The research found that aggressive branch expansion is not advantageous for AIB. Moderate branch expansion along ATM/POS expansion is better for AIB from profit perspective.
The study will help the bank to reconsider its aggressive branch expansion. It will also help the bank to correct problems identified in the ATM/POS usage. The study will also help as an input for further study.
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Keywords
Branch Expansion versus, ATM