Laxmikantham Padakanti (PhD)Nitsuh Asheber Enyew2025-04-082025-04-082024-06-05https://etd.aau.edu.et/handle/123456789/5304This study was conducted to investigate the impact of digitalization on the profitability of selected private banks in Ethiopia. The study employed a quantitative research approach, which relies on numeric data to test hypotheses and draw conclusions. An explanatory research design was adopted variables. To select the sample, a purposive sampling technique was utilized. In this case, banks were chosen from a list according to specific characteristics relevant to the research questioned, employing descriptive statistics, ordinal regression, and Spearman rank correlation to assess the relationship between these variables and bank profitability. The primary method of data collection was made using 5 points Likert scale questionnaire. Importantly, ATMs, point of sale terminals, mobile banking, and mobile wallets exhibited a highly significant impact on profitability, with p-values of 0.000. This study suggests that these channels play a crucial role in driving financial success for Ethiopian private banks. However, internet banking, despite showing a positive correlation, did not demonstrate a statistically significant impact on profitability. The result of this study shows the need for banks to re-evaluate their Internet banking strategies, potentially focusing on optimizing existing functionalities and ensuring seamless integration with other digital channels. By addressing these areas, banks can unlock the full potential of Internet banking and maximize its contribution to overall profitability. Banks should prioritize investment in ATMs, POS terminals, mobile banking, and mobile wallets due to their highly significant impact on profitability. This includes expanding the infrastructure, enhancing security, and providing user-friendly interfaces to facilitate wider adoption and usage.enThesis