Abstract:
Services in banking industry are frequently changing as information and communication
technology is advanced and knowledge based economy and society emerged. The general
objective of this study was assessing opportunities, challenges and practice of adoption
of digital banking in CBE Holeta area ten branches. Descriptive research design was
applied to this study. Data used to conduct this study was collected from a sample of 127
employees. Simple random sampling method was used to select sample respondents. Data
for the study was collected from primary and secondary sources. Quantitative and
qualitative data were collected for the purpose of the study. Survey was used to collect
quantitative data and semi- structured interview was used to collect qualitative data.
Data analysis was done with the help of Statistical Package for the Social Sciences
(SPSS).Frequency and percentages were employed to analysis the data. The finding of
the study revealed that: cash withdrawal, balance enquiry, fund transfer between
accounts, mobile top up, statement printing and making utility payment are major
practice of digital banking services. ATM, mobile banking internet banking and CBE birr
are alternative channels customers are using for digital banking. Improving speed and
efficiency, low operation cost, reducing work load of bankers, coverage of wide
geographical area and attracting high value customers are among the benefits of digital
banking from the view point of bank. Enhancing customer relationships, enlarging
service provision, building organizational reputation, and reducing queues in the
banking hall are some of opportunities of digital banking from the view point of bank.
Poor developed ICT infrastructures, frequent power interruption, security problem
associated with e-banking are major challenges of adoption of digital banking. Based on
these findings it was recommended that CBE in collaboration with concerned bodies
should build reliable ICT infrastructure, supply adequate and uninterrupted power
supply create a well organized legal frame work for security issue and digital banking
particularly ATM should be programmed to help users making foreign currency
exchange to facilitate adoption of E-banking practice.
