Adoption, Challenges And Prospects Of E-Banking From Customer Perspective: (The Case Of Commercial Bank Of Ethiopia Kolfe District

Abstract

This study investigated the adoption, challenges, and prospects of e-banking from the customer perspective, focusing on the Commercial Bank of Ethiopia (CBE) in the Kolfe District of Addis Ababa. The research aimed to assess the current level of e-banking adoption, identify barriers hindering wider usage, and explore potential improvements. Despite the global trend toward digital banking, e-banking adoption in Ethiopia remained relatively low due to factors such as inadequate infrastructure, low digital literacy, and security concerns. Utilizing a quantitative research approach, data were collected through structured questionnaires administered to a sample size of 381 respondents. The findings indicated a moderate level of e-banking adoption, with customers expressing satisfaction regarding convenience but highlighting significant challenges, particularly technical issues like app crashes and server downtime. Concerns about the security and privacy of personal information were prevalent among respondents, revealing a critical barrier to adoption. The study established a strong positive correlation between e-banking adoption and customer satisfaction, emphasizing the necessity of addressing security concerns and enhancing customer support services to foster a more positive user experience. Respondents suggested that improving the user interface and expanding the range of services could significantly boost customer engagement and likelihood of adoption. In conclusion, while there is moderate awareness and usage of e-banking services, significant barriers remain that hinder broader adoption. The study recommends that the Commercial Bank of Ethiopia invest in technological improvements to minimize technical issues and enhance the reliability of e-banking services. Additionally, implementing robust security measures and providing comprehensive training programs aimed at improving digital literacy among customers is essential. Enhancing customer support services and refining the user interface will contribute to higher satisfaction and increased adoption rates. By addressing these areas, the bank can foster greater financial inclusion and improve the overall banking experience for customers in the region