Abstract:
Commercial Bank of Ethiopia is the pioneer mover towards the adoption of electronic
banking in Ethiopia. The purpose of this study was the impact of electronic banking service
quality on customer service and bank performance. The study used quantitative research
approach and secondary financial data are analyzed using multiple linear regressions
models for the two bank performance measures; Return on Asset (ROA) and Return on
Equity (ROE). Beside this, the study used primary data analysis to obtain customers
perception on service quality of the bank after the adoption of electronic banking; and
interview is also made to solicit officials’ perception towards the effects on customer
service and bank performance obtained as a result of electronic banking. The findings
from both customers and bank officials’ indicated that, electronic banking has positive
influence on customer service. Both internal and external Secondary data analysis and
bank officials also confirmed that electronic banking has improved performance of
the bank. However, it is also indicated that, there are some challenges such as
machine downtimes, preventing the bank from enjoying benefit of electronic banking
system to the maximum. This study suggests that, the bank should process cards as
fast as possible, empower the support system as per customers’ expectation, promote
usage of cards and adopt alternative electronic banking features.
