Opportunities, Challenges And Practices Of Digital Banking (The Case Of Cbe Holeta Area Branches, Oromia, Ethiopia)

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.