Effects of Electronic Banking on the Financial Performance of Commercial Banks in Ethiopia
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Date
2016-06
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Addis Ababa University
Abstract
Ethiopian commercial banks are at infancy stage to use technology based banking system and
training of manpower to handle new technologies. Nonetheless, the adoption and usage of ebanking
is at promising stage to enhance the performance and efficacy of banks. This
research investigated the efficacy of Electronic banking in the area of automated teller
machines, debit cards and point of sale terminals on 10 (1 government and 9 private owned)
commercial banks found in Ethiopia using’ financial performance indicators namely: profit
before tax and return on assets. A quantitative survey method is used to gather data.
Statistical analysis made with the aid of E-views 9 software. The findings envisaged that
Electronic banking had statistically significant impact on return on assets and
profitability of commercial banks of Ethiopia. Based on the findings of the study, it is safe
to conclude that electronic banking influence financial performance of commercial banks in
Ethiopia positively. Since the study do not include all electronic-banking so that it is strongly
recommended further study on innovations like agency banking, mobile banking and internet
banking impact on the financial performance of commercial banks.
Key Words: E-banking, ATM. POS, ROA, PBT, Debit Card and E-views 9
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Keywords
E-banking, ATM, POS, ROA, PBT, Debit Card and E-views 9