Buze Proposal New

OPPORTUNITIES AND CHALLENGES OF ELECTRONIC BANKING SYSTEM:
THE CASE OF COMMERCIAL BANK OF ETHIOPIA
RESEARCH PROPSAL
By: BUZAYEHU MULUGETA ID NO. 0387/19
ADMAS UNIVERSITY
DEPARTMENT OF ACCOUNTING AND FINANCE
COURSE TITLE: RESEARCH METHODS
Submitted to Mr. DEREJE
March 10, 2022 GC.
Addis Ababa, Ethiopia

TABLE OF CONTENTS PAGE NO.
ABSTRACT............................................................................................................................................................3
CHAPTER ONE.....................................................................................................................................................4
INTRODUCTION..................................................................................................................................................4
1.1 Background of the Study................................................................................................................................4
1.2 Statement of the Problem...............................................................................................................................5
1.3. Objective of the Study...................................................................................................................................6
1.3.1 General Objective....................................................................................................................................6
1.3.2. Specific Objectives.................................................................................................................................6
1.4. Research Questions.......................................................................................................................................6
1.5. Scope of the Study.........................................................................................................................................7
1.6 Significance of the Study...............................................................................................................................7
1.7 Organization of the Study..............................................................................................................................7
CHAPTER TWO....................................................................................................................................................8
REVIEW OF LITERATURE...............................................................................................................................8
2.1 Theoretical Review........................................................................................................................................8
2.1.1 Definition of E- Banking.........................................................................................................................8
2.1.2. Forms of Electronic Banking.................................................................................................................8
2.1.3 Characteristics of E-Banking..................................................................................................................9
2.1.4. Benefit of E-Banking in Business........................................................................................................10
2.1.5 Challenges on Expansion E-Banking in Ethiopia.................................................................................11
2.2 Empirical Review.........................................................................................................................................11
2.3 Research Gap................................................................................................................................................13
CHAPTER THREE.............................................................................................................................................14
RESEARCH METHODOLOGY........................................................................................................................14
REFERENCES.....................................................................................................................................................14
OPPORTUNITIES AND CHALLENGES OF E- BANKING SYSTEM: THE CASE OF COMMERCIAL BANK OF ETHIOPIA
ABSTRACT
This proposal paper mainly focusses on investigating opportunities, challenges and customer
preferences of E-banking services in Commercial Bank of Ethiopia found at Megenagna
branch. To achieve this objective, both primary and secondary data will be collected from e-
banking practice in commercial bank that will be selected purposively based on the role and
involvement of e-banking system. Primary data will be collected through questionnaires and
interviews, whereas secondary data will be collected through documentary evidence and
analyzed by using different descriptive statistical tools.
CHAPTER ONE
Research proposal/2022 GC. Page 3

INTRODUCTION
1.1 Background of the Study
Electronic banking (e-banking) is the newest delivery channel of banking services. The
definition of e-banking varies amongst researches partially because electronic banking refers
to several types of services through which a bank’s customers can request information and
carry out most retail banking services via computer, television or mobile phone (Daniel
1999). The e-banking use of computer and telecommunication to enable banking transaction
to done by telephone or computer rather than human interaction. E-banking is an electronic
connection between the bank and customer in order to prepare, manage and control financial
transactions (Bello and Dogarawa 2005).
Electronic banking has a variety of platforms such as: (a) Internet banking (or online
banking), (b) telephone banking, (c) TV-based banking, (d) mobile phone banking, and (e)
PC bank (or offline banking). E-banking has many advantages and interesting diversities
including more number of customers, services in higher quality and lower price, preservation
and enhancement of share in market, unlimited space for market, concentration in new
distribution, making Challenges and Opportunities of Electronic Banking in Ethiopia
competition between commercial brands, concentration on expenses and improvement of
revenue, providing extensive services, improvement in management system, decreasing the
expenses of contractions, close intra banking connection, controlling ecological pollution
(Havasi, Meshkany et al. 2013)
The appearance of E-banking in Ethiopia goes back to the late 2001, when the largest state
owned, commercial bank of Ethiopia (CBE) introduced ATM to deliver service to the local
users. In addition to eight ATM located in Addis Ababa, CBE has had Visa membership
since November 14, 2005. But, due to lack of appropriate infrastructure it failed to reap the
fruit of its membership. Despite being the pioneer in introducing ATM based payment system
and acquired visa membership, CBE lagged behind Dashen bank, which worked aggressively
to maintain its lead in E-payment system. As CBE continues to move at a snail's pace in its
turnkey solution for Card Based Payment system, Dashen Bank remains so far the sole player
in the field of E-Banking since 2006 (Worku 2010). The opportunities for the private sector
in the banking sector open the door for competition of each other through introducing new

services delivery channel like E-banking services. Currently majority of commercial banks
are introduced some e-banking services in Ethiopia.
Banking in Ethiopia faces numerous challenges to fully adopt and adapt E-Banking
applications and seize the opportunities presented by ICT applications in general. According
(Worku 2010). In addition, (Wondwossen and Tsegai 2005) mentioned lack of skilled
manpower and frequent power disruption are challenges observed in the industry during that
time. There are few studies which investigated the challenge, opportunities and Features of
adopting e-banking system in Ethiopia. In this paper opportunity and challenges of e- banking
and customer’s preference of E-banking technology in commercial bank of Ethiopia will be
investigated.
1.2 Statement of the Problem
In the face of rapid expansion of electronic payment systems throughout the developed and
the developing world, Ethiopia’s financial sector remain behind in expanding the use of the
system. Certainly, the banking industry in Ethiopia is underdeveloped. With a growing
number of import-export businesses and increased international trades, increase the demand
of the customer and international relations, the current banking system is short of providing
efficient and dependable services (Fetu 2019).
The Commercial Bank of Ethiopia, as other banks in the country, has hugely entered into the
implementation of e-banking but to some extent suffered from problem of e-banking
rejection. Lots of researches on E-banking system have been done in different countries in the
world. Different factors in the adoption of E-banking have been taken as the main factors of
the adoption of new technology by different researchers such as environmental factors (like
lack of suitable legal and regulatory framework for e-commerce, poor ICT infrastructure, lack
of competitive pressure in the industry), organizational factors (Lack of skilled man power,
resistance to changes in technology among staff) and technological factors (security risk and
functionality). However, despite the importance of these adoptions and development of E-
banking, very limited number of research has been done on the challenges and opportunities
of E-banking in developing countries like Ethiopia. Therefore, more studies are still required
to assess challenges and prospects of E-banking in the country to identify areas in which the
country lags behind that inhibit their E-banking adoption and diffusion (Bultum 2014).

To the best of my knowledge there are few studies which analyze the challenge, opportunities
and Features of adopting e-banking system in Ethiopia, for instance, (Gardachew 2010),
(Bultum 2014) and (Fetu 2019). However, those previous studies mainly focused on the
adoption of E-banking service they didn’t tries to see the challenge and customer preference
on E-banking product but this research would go further to investigate the practical issues
banks ginned and suffered due to the adoption of e-banking service. Additionally, most
studies did have been either case studies of specific banks or survey of all Commercial banks.
This study mainly tries to consider the dimensions of e- banking of interest in the CBE.
Hence, this study may fill the gap of time, location/area and customer preference which was
not covered by the previous researcher. Therefore this research tries to investigate the
opportunity & challenges of e- banking on commercial bank of Ethiopia.
1.3. Objective of the Study
1.3.1 General Objective

The main objective of the study was to assess the opportunity & challenges of E- banking
service in commercial bank of Ethiopia.
1.3.2. Specific Objectives
The specific aims of the study are: -
1. To identify customer preference of the electronic banking products of the bank.
2. To identify opportunities associated with the use of electronic banking facilities.
3. To identify challenges of E-banking users.
4. To identify the way to enhance E-banking usage in Addis Abeba.
1.4. Research Questions
Based on the above stated objectives, the following research questions will be answered: -
1. Why customers prefer some E-banking products over others?

2. What opportunities do E-banking users have?
3. What are the challenges of E-banking users?
4. Is enhancement of E-banking usage possible among non-users?

1.5. Scope of the Study
This research is limited to the opportunity and challenges of E-banking in Ethiopia with
special reference to CBE in Addis Ababa, Megenagna Branch. It is the CBE branch of the
city selected for this study because of this branch has more e- banking users. Although E-
banking is issues that deserve the involvement of the service providers in the aforementioned
bank, the scope of the study is limited investigation like Customers preference, opportunity,
challenges and enhancement.
1.6 Significance of the Study
Provide an opportunity for decision-makers and managers of the Bank’s particularly CBE
S.C to consider and evaluate the opportunities and problems observed in the existing
practices, in order to take appropriate corrective measures in the area or to accelerate the
positive factors (if any) for the promotion of E-banking practices. The finding will provide a
framework for the Banks for the design of their future directions and to adjust their goals and
objectives as per real opportunities and challenges. The study will also enables the
government organizations and trade associations to develop banks E-banking assistance
programs that are designed to address the factors will be identified by this research.
1.7 Organization of the Study
The study has been organized in to three chapters. The first chapter deals with introduction
and it includes back ground of the study, statement of the problem, objective of the study,
significance of the study, scope of the study. The second chapter deals with review of related
Literature to the under investigation. The third chapter deals with the methodology of the
research.
CHAPTER TWO
REVIEW OF LITERATURE

This chapter contained theoretical review, empirical review and conceptual framework
studies on opportunity and challenges of e banking on CBE. The theoretical section discuss
over view of e- banking, types of e- banking and opportunity and challenges of e-banking.
However, the empirical review covered various research papers in the area of e-banking,
conceptual framework is where welling theoretically with this proposal.
2.1 Theoretical Review
2.1.1 Definition of E- Banking

A common definition for electronic banking comes from the Basel Committee on Banking
Supervision: “e-banking includes the provision of retail and small value banking products and
services through electronic channels as well as large vale electronic payments and other
wholesale banking services delivered electronically” (Drigă and Isac 2014). E-Banking is
defined as using electronic devices like internet, wireless connection networks, ATM, phone
and cell phone in banking services. These services were parts of providing currency for and
economic system for the country (Eze and Egoro 2016). The simple definition of E-payment,
a part of e-commerce, means electronic payment for buying and selling goods or services
through the Internet (Okifo and Igbunu 2015). E-payment has grown steadily by replacing the
traditional payment ways mainly because of wide spread use of technology and sense of
security that technology is making it possible.
2.1.2. Forms of Electronic Banking
Different forms of E-banking system were discussed as follows.
Automated Teller Machines: An automated teller machine (ATM) is an electronic

computerized telecommunications device that allows a financial institution's customers to
directly use a secure method of communication to access their bank accounts, order or make
cash withdrawals and check their account balances without the need for a human bank teller.
Point of Sale (POS): POS system allows consumers to pay for retail purchase with a check
card, a new name for debit card. This card looks like a credit card but with a significant
difference.
Electronic Funds Transfer (EFT) System: is a system of transferring money from one
bank account directly to another without any paper money changing hands.

SMS Banking: SMS banking uses short text messages sent through the client’s mobile
phone. SMS text messages can be used for both passive and active operations similarly as
with classic telephone banking.
Internet Banking: Internet banking refers to systems that enable bank customers to get
access to their accounts and general information on bank products and services through the
use of bank’s website, without the intervention or inconvenience of sending letters, faxes,
original signatures and telephone confirmations (Thulani, Tofara et al. 1970).
Mobile Banking: Mobile banking involves the use of mobile phone for settlement of
financial transactions. It supports person to person transfers with immediate availability of
funds for the beneficiary. The services covered under this product include account enquiry,
funds transfer, recharge phones, changing of passwords and bill payment which are offered
by few institutions.
E-CHEQUE: An e-Cheque is the electronic version or representation of paper cheque. The

Information and Legal Framework on the E-Cheque is the same as that of the paper cheques.
The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the
e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the
check writer's account for the check (Sumanjeet 2009).
2.1.3 Characteristics of E-Banking
E-banking includes the systems that enable bank customers to access accounts, transact
business, or obtain information on financial products and services through a public or private
network, including the Internet. Customers access E-banking services using an intelligent
electronic device, such as a Personal Computer (PC), Personal Digital Assistant (PDA),
Automated Teller Machine (ATM), or telephone (Daka and Phiri 2019).
2.1.4. Benefit of E-Banking in Business
E-banking offers ease of access, secure transactions and 24-hour banking options. From small
start-up companies to more established entities, small businesses rely on e-banking to
eliminate runs to the bank and to make financial decisions with updated information. The
Opportunity of E-Banking are as follows:

A. Benefit of E-banking for Banks
Primary benefits of E- Banking are listed as follow:-
 Price- In the long run a bank can save on money by not paying for tellers or for
managing branches. Plus, it's cheaper to make transactions over the Internet.
 Efficiency- Banks can become more efficient than they already are by providing
Internet access for their customers.
 Customer Service and Satisfaction- A person can print of information, forms, and
applications via the Internet and be able to search for information efficiently instead
of waiting in line and asking a teller.
 Image- A bank seems more state of the art to a customer if they offer Internet access.
A person may not want to use Internet banking but having the service available gives
a person the feeling that their bank is on the cutting image.
 Activity Review Business owners, accounting staff and other approved employees can
access routine banking activity such as deposits, cleared checks and wired funds
quickly through an online banking interface.
 Errors or delays can be noted and resolved quicker, potentially before any business
impact is felt.
B. Benefit of E-banking for Customers
 Reduced costs in accessing and using the banking services.

 Increased comfort and timesaving transactions can be made 7x24, without
requiring the physical interaction with the bank.
 Quick and continuous access to information: Corporations will have easier access
to information as, they can check on multiple accounts at the click of a button.
 Better cash management: E-banking facilities speed up cash cycle and increases
efficiency of business processes as large variety of cash management instruments
is available on internet sites.
 Productivity E-banking leads to productivity gains. Automating routine bill
payments, minimizing the need to physically visit the bank and the ability to work
as needed rather than on banking hours may decrease the time involved in
performing routine banking activities.

2.1.5 Challenges on Expansion E-Banking in Ethiopia
According to (Gardachew 2010) Ethiopian banking industry faces numerous challenges to

adopt E-banking system and grab the opportunities presented by ICT applications in general.
The Key Challenges for E-banking applications are: low level of internet penetration and
poorly developed telecommunication infrastructure, lack of infrastructure for
telecommunications, lack of suitable legal and regulatory framework for e-commerce and e-
payment, Inadequate banking system, high rates of illiteracy, high cost of Internet, absence of
financial institutions networks that links different banks, frequent power interruption,
confidence and trust for secure electronic trading and so.
2.2 Empirical Review
A lot of related studies were conducted by different researchers in different countries.

Nevertheless, there are limited numbers of studies were conducted in Ethiopia on the
adoption and development of the technological innovation particularly on E-banking services.
According to (Gardachew 2010), Opportunities offered by ICT through e-learning programs
and Commitment of the governments on development of ICT infrastructures is considered as
drivers of using E-commerce and E-payment systems. (Bultum 2014)also conducted research
on factors affecting adoption of E-banking System in Ethiopian Banking industry. This study
was conducted based on the data gathered from four banks in Ethiopia. The result of the
study indicated that, the major barriers Ethiopian banking industry faces in the adoption of
Electronic banking are: security risk, lack of trust, lack of legal and regulatory framework,
lack of ICT infrastructure and absence of competition between local and foreign banks.
Another study was conducted by (Khalfan, AlRefaei et al. 2006) on ‘Factors influencing the
adoption of internet banking in Oman. Data, used in their study were collected using semi
structured interviews and survey questionnaire as well as reviewing some bank documents.
The results of their study provide a Pragmatic picture about the adoption of E-Commerce
applications in the core financial sector domain of Oman. One of the main findings is that
security and data confidentiality issues have been a major challenge. The banking sector was
reluctant to use E-commerce applications as they felt that transactions conducted
electronically were open to hackers and viruses, which are beyond their control.

The challenges for the adoption of E-banking in Africa are security, human face i.e.
customers still value personalized and responsive services from their bankers, poor and/or
lack of technological infrastructure especially in the rural areas, lack of proper legislation
governing e-transactions and preference to paper money, as opposed to “virtual” cash in
transactions etc.(Beza 2010).
The primary challenge for banks is to provide consistent service to customers irrespective of
the kind of channel they use. The more a bank relies on electronic delivery channels, the
greater the potential for reputation risks. There are some serious implications of international
e-banking. It is a common argument that low transaction costs potentially make it much
easier to conduct cross border banking electronically. For many banks, cross-border
operations oﬀer, an opportunity to reap economies of scale. But cross-border finance also
needs a higher degree of cross-border supervision. Such cooperation may need to extend to
similar supervisory rules and disclosure requirements (for efficiency and to avoid regulatory
arbitrage) and some harmonizing of legal, accounting and taxation arrangements (Nitsure
2003)
Major concerns of electronic transactions are the issues of security and privacy. In the
developed countries like France, 3 out of 40 purchases online and the remaining 37 are
reluctant to use online services and the reason is security and privacy which is the major
threats to perform online business (Abbasi and Rajabi Myandareh 2014). It is not only the
duty of industry but also the duty of government assuring people to perform secure electronic
transactions.
According to (Worku, Tilahun et al. 2016) when we see the challenges and opportunities of
e-banking in Ethiopia only 20% of the Ethiopian households are connected to IT network and
a large number of people are served by one bank branch even compared to other African
countries. Un-served market, stable and secure political environment, rapidly growing mobile
infrastructure, availability of delivery channels (outlets), safe and sound financial sector are
the most important opportunities in Ethiopia. In recent years the Ethiopian government has a
grand plan for the improvement of ICT infrastructures hoping for Ethiopia to leapfrog into
the information age. Ethiopia has not yet enacted legislation that deals with e-commerce
concerns including enforceability of the validity of electronic contracts, digital signatures and
restricts the use of encryption technologies.

Low literacy rate is a serious impediment for the adoption of e-banking in Ethiopia as it
hinders the accessibility of banking services. For citizens to fully enjoy the benefits of E-
banking, they should not know only how to read and write but also possess basic ICT literacy
(Worku 1970).
The cost of internet access relatively to per capita income is a critical factor. Compared to the
developed countries, there is higher cost of entry in to e-commerce market in Ethiopia. These
include high start-up investment costs of computers and telecommunication and licensing
requirements. Absences of financial networks that link deferent banks, frequent power
interruption: lack of reliable power supply is a key challenge for smoothly running e-banking
in Ethiopia. Resistance to changes in technology among customers and staff due to lack of
awareness on the benefits of new technologies, fear of risk, lack of trained personnel in key
areas, tendency to be content with the existing structures and people may be resistance to new
payment systems (Muvva and Sisay 2011).
2.3 Research Gap
Much documentation on E-banking services has been carried out elsewhere. However, in
developing countries like Ethiopian, there is little evidence concerning E-banking. Based on
my knowledge, a very limited number of researches have been done on E banking in
Ethiopian Banking like that of (Bultum 2014), (Gardachew 2010) and (Wondwossen and
Tsegai 2005). Therefore, more studies are still required to assess challenges and opportunity
of E-banking in the country to identify areas in which the country lags behind their E-banking
adoption and diffusion. The previous studies focused on factors influencing adoption of E-
banking technology. This study focused on different factors affecting not only adoption but
also Customers preference of E-banking technology in Ethiopian Banking industry. Secondly,
this study also conducted following almost all type of E-banking products is being provided
by almost all commercial banks in Ethiopia. This study is, therefore, intending to fill the gap
by describing the challenges and opportunities of Ethiopian commercial banks in adopting
and developing E-banking technology.
CHAPTER THREE
RESEARCH METHODOLOGY

The study will follow descriptive research design. In this study, both the primary and
secondary data will be use. Primary data sources: Since the primary sources have the
advantage of providing detail information, high accuracy and understandable units in which
the data are recorded, the researcher rely on the primary data. Primary sources are more
closely related with the problem under study. Primary data will collect from sample
respondents who are living in the selected study areas using questionnaires and interview
both open-ended and closed-ended questions. The questionnaires and interviews will be
prepared in line with the opportunity and challenges of e- banking system. Secondary data
sources will use to substantiate primary data. These data will extract from CBE service
providers and from other sources, such as government reports, journals, published and
unpublished research works.
REFERENCES
Abbasi, E. and A. A. Rajabi Myandareh (2014). "A survey of E-loyalty effective factors and barriers to E-
banking services in private banks customers in Golestan province." Journal of Business Management
6(4): 827-844.
Bello, D. A. and K. Dogarawa (2005). "The impact of E-banking on customer satisfaction in Nigeria."
University Library of Munich, Germany.
Beza, M. (2010). Assessment of the Opportunities and Challenges for the Adoption of E-Banking
Service in Ethiopia: A study with reference to selected commercial Banks, Mekelle University.
Bultum, A. G. (2014). "Factors affecting adoption of electronic banking system in Ethiopian banking
industry." Journal of Management Information System and E-commerce 1(1): 1-17.
Daka, C. and J. Phiri (2019). "Factors driving the adoption of e-banking services based on the
UTAUT model." International Journal of Business and Management 14(6): 43-52.
Daniel, E. (1999). "Provision of electronic banking in the UK and the Republic of Ireland."
International Journal of bank marketing.
Drigă, I. and C. Isac (2014). "E-banking services–features, challenges and benefits." Annals of the
University of Petroşani. Economics 14: 49-58.
Eze, G. P. and S. Egoro (2016). "Electronic banking and profitability of commercial banks in
Nigeria." Journal of Finance and Economic Research 3(1): 202-222.
Fetu, A. (2019). "Opportunity and challenges of electronic-banking system in commercial bank of

Ethiopia (a case study on Gurage zone)."
Gardachew, W. (2010). "Electronic-banking in Ethiopia: practices, opportunities and Challenges."

Journal of internet Banking and commerce 15(2): 1-8.
Havasi, F., F. A. Meshkany and R. Hashemi (2013). "E-banking: Status, implementation, challenges,
opportunities." IOSR Journal of Humanities and Social Science 12(6): 40-48.

Khalfan, A. M. S., Y. S. AlRefaei and M. Al-Hajery (2006). "Factors influencing the adoption of
Internet banking in Oman: a descriptive case study analysis." International journal of financial
services management 1(2-3): 155-172.
Muvva, B. and T. Sisay (2011). "E-Business: Application of software and technology in selected
Ethiopian Banks: Issues and Challenges." IJCSI International journal of Computer science Issues
8(6): 2-9.
Nitsure, R. R. (2003). "E-banking: Challenges and Opportunities." Economic and Political weekly:
5377-5381.
Okifo, J. and R. Igbunu (2015). "Electronic Payment System in Nigeria: Its Economic Benefits and
Challenges." Journal of Education and practice 6(16): 56-62.
Sumanjeet, S. (2009). "Emergence of payment systems in the age of electronic commerce: The state
of art." Global Journal of International Business Research 2(2).
Thulani, D., C. Tofara and R. Langton (1970). "Adoption and use of internet banking in Zimbabwe:
An exploratory study." The Journal of Internet Banking and Commerce 14(1): 1-13.
Wondwossen, T. and G. Tsegai (2005). "E-payment: challenges and opportunities in Ethiopia."

Economic commission for Africa.
Worku, G. (1970). "Electronic-banking in Ethiopia-practices, opportunities and challenges." The

Journal of Internet Banking and Commerce 15(2): 1-8.
Worku, G. (2010). "E-Banking in Ethiopia practices, opportunities and challenges." Lecturer of

Accounting and Finance at Gonder University.
Worku, G., A. Tilahun and M. Tafa (2016). "The impact of electronic banking on customers’
satisfaction in Ethiopian banking industry (The case of customers of Dashen and Wogagen banks in
Gondar city)." Journal of Business & Financial Affairs 5(2): 1-18.
APPENDIX 1
ADMAS UNIVERSITY
I. QUESTIONNAIRES
The researcher is a student of the Accounting and Finance, learning a first degree program in Admas
University. We are undertaking a research on the topic: Assessment opportunity and challenges of
Electronic Banking in Ethiopia - A case study of commercial bank of Ethiopia, Megenagna district.
Important Note: Information supplied by you will be treated as strictly confidential.
Identity of position will not be revealed. Information will be used for only academic work. We
greatly appreciate your co-operation.
Thank you in Advance for taking your valuable time!
Part 1

Demographic Characteristics
1. Sex of respondent: Male [ ] Female [ ]
2. Educational level of respondents
University graduate level [ ] Professional Certificate [ ] Polytechnic / HND [ ]
Vocational / Technical [ ] Secondary school / SSS [ ] Middle school / JSS [ ]
Informal [ ]
3. Category of respondents: IT staff [ ] other staff [ ] Customer [ ]
4. What type of banking services do you know about?
Traditional banking [ ] E-banking [ ] both [ ]
5. Have you heard about E-banking? : Yes [ ] No [ ]
6. If yes, what do you know about E-banking?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
……………………
7. Have you used any E-banking facility before? Yes [ ] No [ ]
8. If yes, where?
..........................................................................................................……………………………………
9. Do you have any E-banking facility from Megenagna district? Yes [ ] No [ ]
10. If no why?
……………………………………………………………………………………………………………
……………………………………………………………….…………………………………………
11. What type of E-banking facility do you have or use?

ATM [ ] Personal Computer Banking (PC) [ ] O n l i n e banking [ ] M o b i l e banking [ ]
12. Why are you using this facility?
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………………………………………………….……………………………………………………
13. When did you start using the E-banking facility?

< one year [ ] 1- 5 years [ ] 6- 10 years [ ] 11- 15 years [ ] > 15 years [ ]
14. Which of the E-banking facility do you prefer?
……………………………………………………………………………………………………………
15.why.....................................................................................................
……………………………………………………………………………………………………………

…………………….
……………………………………………………………………………………………………………
………
16. Rank the facility in order of preference? Using 1 as the lower rank
ATM [ ] Personal Computer Banking (Pc) [ ] Online banking [ ] Mobile banking [ ]
Part 2
Questions regarding E-banking challenges and opportunities below are lists of questioners. Please
indicate whether you agree or disagree with each statement by ticking (√) on the spaces that specify
your choice from the options that range from ’’strongly agree‟ to ‘’strongly disagree‟. Key
SA=strongly agree A=Agree N= Neutral D= Disagree SD= Strongly Disagree
Section 1 Opportunities of e-banking
Items SA A N D SD
5 4 3 2 1
I do get the service of electronic banking

24 hours per day and 7 days a week
Minimize customer service cost
Opportunity of Time saving and

convenience
Electronic banking minimizes the risk of

carrying cash
Facilitates quick response
Section 2.Challenges of e-banking

1.Strongly Disagree=1, Disagree=2, Neutral=3, Agree =4and Strongly agree=5
Items SA A N D SD
5 4 3 2 1
High internet cost
Frequent network/internet/ interruption
Security and Complexity
lack of awareness about e-banking
Unable to withdraw large amount of

money from ATM
Lack of ICT knowledge
Slow banks response to correct erroneous

transactions
E- banking can be frustrating users to

make decision to use
PART 3
1 What ways do you think E-banking can be enhanced in Megenagna district?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………
II. INTERVIEW QUESTIONS
A. Name of the Bank

B. Your Position please____________________________________________________
1. What type of Electronic banking service do you provide? ATM, Internet banking, mobile banking
or others Please specify?
2. What are Customers Preference of E-banking products over others ?
3. What are the existing opportunities in the country that initiates to use of E-banking technology?
4. What are the basic challenges of e banking like ATM, internet banking and mobile banking in your
institution?
5. As your opinion, How to enhance E-banking Usage ?
THANK YOU!

Buze Proposal New

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Buze Proposal New

Uploaded by

Copyright:

Available Formats

OPPORTUNITIES AND CHALLENGES OF ELECTRONIC BANKING SYSTEM:

THE CASE OF COMMERCIAL BANK OF ETHIOPIA

By: BUZAYEHU MULUGETA ID NO. 0387/19

DEPARTMENT OF ACCOUNTING AND FINANCE

COURSE TITLE: RESEARCH METHODS

Submitted to Mr. DEREJE

March 10, 2022 GC.

Addis Ababa, Ethiopia

1.1 Background of the Study................................................................................................................................4

1.2 Statement of the Problem...............................................................................................................................5

1.3. Objective of the Study...................................................................................................................................6

1.3.1 General Objective....................................................................................................................................6

1.3.2. Specific Objectives.................................................................................................................................6

1.4. Research Questions.......................................................................................................................................6

1.5. Scope of the Study.........................................................................................................................................7

1.6 Significance of the Study...............................................................................................................................7

1.7 Organization of the Study..............................................................................................................................7

2.1 Theoretical Review........................................................................................................................................8

2.1.1 Definition of E- Banking.........................................................................................................................8

2.1.2. Forms of Electronic Banking.................................................................................................................8

2.1.3 Characteristics of E-Banking..................................................................................................................9

2.1.4. Benefit of E-Banking in Business........................................................................................................10

2.1.5 Challenges on Expansion E-Banking in Ethiopia.................................................................................11

2.2 Empirical Review.........................................................................................................................................11

2.3 Research Gap................................................................................................................................................13

Research proposal/2022 GC. Page 3

1.1 Background of the Study

Research proposal/2022 GC. Page 4

1.2 Statement of the Problem

Research proposal/2022 GC. Page 5

1.3. Objective of the Study

1.3.1 General Objective

1.3.2. Specific Objectives

The specific aims of the study are: -

1. To identify customer preference of the electronic banking products of the bank.

2. To identify opportunities associated with the use of electronic banking facilities.

3. To identify challenges of E-banking users.

4. To identify the way to enhance E-banking usage in Addis Abeba.

1.4. Research Questions

1. Why customers prefer some E-banking products over others?

Research proposal/2022 GC. Page 6

1.5. Scope of the Study

1.6 Significance of the Study

1.7 Organization of the Study

Research proposal/2022 GC. Page 7

2.1 Theoretical Review

2.1.1 Definition of E- Banking

2.1.2. Forms of Electronic Banking

Different forms of E-banking system were discussed as follows.

Automated Teller Machines: An automated teller machine (ATM) is an electronic

Research proposal/2022 GC. Page 8

E-CHEQUE: An e-Cheque is the electronic version or representation of paper cheque. The

2.1.3 Characteristics of E-Banking

2.1.4. Benefit of E-Banking in Business

Research proposal/2022 GC. Page 9

A. Benefit of E-banking for Banks

Primary benefits of E- Banking are listed as follow:-

B. Benefit of E-banking for Customers

 Reduced costs in accessing and using the banking services.

Research proposal/2022 GC. Page 10

2.1.5 Challenges on Expansion E-Banking in Ethiopia

According to (Gardachew 2010) Ethiopian banking industry faces numerous challenges to