Research on Effect of Adopting Financial Technology on The Operational Efficiency of Ethiopian Banking Service A Case Study on Selected Commercial Banks
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Date
2025-02
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Addis Ababa University
Abstract
This study investigates the impact of financial technology (Fin-tech) adoption on the operational efficiency of Ethiopian banking services, focusing on selected commercial
banks. The research examines key dimensions of Fin-tech adoption, including technological integration, cost efficiency, process automation, and customer experience.
Employing a quantitative approach, data was collected from bank employees using structured questionnaires and analyzed through statistical methods such as correlation
and multiple regression analysis.Findings reveal that technological adoption has the most substantial influence on operational efficiency, with 85.5% of respondents acknowledging
improvements in transaction processing, risk management, and workflow productivity. Additionally, 83.4% of participants reported significant reductions in operational costs
due to Fin-tech-driven automation. Process automation enhances transaction speed and accuracy, as confirmed by 84.5% of respondents, leading to a 40% increase in employee
productivity. Moreover, Fin-tech solutions significantly enhance customer experience, with 87.1% of respondents indicating improved service accessibility and efficiency.Despite the
numerous benefits, challenges remain, including regulatory constraints, cybersecurity risks, and digital literacy gaps among employees and customers. To maximize Fin-tech’s
impact, the study recommends comprehensive technological integration, investment in digital infrastructure, workforce training, and supportive regulatory frameworks. Future
research should explore the long-term effects of Fin-tech adoption and the role of emerging technologies like blockchain and artificial intelligence in further transforming
the banking sector.
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Keywords
Fin-tech, Operational Efficiency, Process Automation, Ethiopian Banking, Digital Transformation, Financial Inclusion.