THE EFFECT OF UTILAIZATION OF E-BANKING ON CUSTOMERS

SATISFACTION IN SOME SELECTED COMMERCIAL BANKS IN ETHIOPIA

A PROPOSAL SUBMITTED TO DEPARTMENT OF BUSINESS ADMINISTRATION

FOR PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MSC DEGREE IN BUSINESS ADMINISTRATION

BY: Fiteh Kebede

Advisor: Dr. Alazar A.

NOVEMBER, 2024

ADDIS ABABA, ETHIOPIA

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 ACKNOWLEDGEMENT

I am most grateful to almighty God gave me strength throughout the duration of the program and
on my life. Then I am Special grateful to my advisor, Dr. Alazar A. for his precious comments,
guidance. I would like to thank my friends who helped me in my research thesis. Finally, I would
like to thank customers and employees of Nib International Bank, Dashen Bank and Awash
Bank for their willingness to participate in the survey study and response the questionnaires and
Interview duly.

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 Abstract
This study aimed at identifying the factors that affect utilization of Electronic Banking on
customer and case study deliberately selected banks this are Nib International Bank S.C, Awash
Bank S.C and Dashen Bank S.C. The study will use Qualitative and quantitative research
approach and explanatory research design to answer the research questions that emerge
through the review of current literature and the familiarities of the researcher in respect of the
E-banking system in Ethiopia. The study statistically analyses data will be obtained from the
survey questionnaire and interview. The study will use descriptive statistics and Data will be
analyzed using a statistical package for social sciences (SPSS). The researcher will use a total
of 150 number of customer as a sample. A well-structured questionnaire and interview will be
used to collect the relevant information.

TABLES OF CONTENTS
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ACKNOWLEDGEMENT..................................................................................................................................ii
Abstract......................................................................................................................................................iii
CHAPTER ONE..........................................................................................................................................7
1.1. Background of the Study.............................................................................................................7
1.2. Statement of the Problem.............................................................................................................8
1.3. Objective of the Study...............................................................................................................10
1.3.1. General Objective of the Study..........................................................................................10
1.3.2. Specific Objectives............................................................................................................10
1.4. Research Question.....................................................................................................................10
1.5. Significance of the Study...........................................................................................................10
1.6. Scope and Limitation of the Study.............................................................................................11
CHAPTER TWO.......................................................................................................................................12
REVIEW OF RELATED LITERATURE.................................................................................................12
2. Introduction...................................................................................................................................12
2.1. Definition of E-banking.............................................................................................................12
2.2. Electronic Banking in Ethiopia..................................................................................................13
2.3. Types of E-banking....................................................................................................................14
2.3.1. Internet Banking................................................................................................................14
2.3.2. Mobile Banking.................................................................................................................14
2.3.3. Automated Teller Machine (ATM)....................................................................................14
2.3.4. Point of Sale (POS)............................................................................................................15
2.3.5. Electronic Data Interchange (EDI).....................................................................................15
2.3.6. Electronic Fund Transfer (EFT).........................................................................................15
2.3.7. Debit Card..........................................................................................................................15
2.3.8. Credit Card........................................................................................................................15
2.3.9. SMS Banking:....................................................................................................................15
2.4. Advantage and challenges of E-banking in Ethiopia..................................................................16
2.4.1. Advantage of E-banking....................................................................................................16
2.4.2. Challenges and prospects of E-Banking Adoption.............................................................22
2.5. Factors or Variable affect Utilization of Electronic Banking.....................................................24
2.5.1. Dependent variables...........................................................................................................25
2.5.2. Independent Variable.........................................................................................................25

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 2.6. Logical Frame work...................................................................................................................25
CHAPTER THREE...................................................................................................................................27
Research Methodology..........................................................................................................................27
3. Introduction...................................................................................................................................27
3.1. Research Approaches.................................................................................................................27
3.2. Research Design/method...........................................................................................................28
3.3. Sampling Technique..................................................................................................................28
3.4. Population and Sample Size.......................................................................................................29
3.5. Method of Collection and Data type..........................................................................................29
3.6. Methods of Data Analysis..........................................................................................................29
3.7. Variable Description..................................................................................................................29
CHAPTER FOUR..........................................................................................................................................31
COST AND TIME PLAN...............................................................................................................................31
4.1. Time schedule........................................................................................................................31
4.2. Financial Budget....................................................................................................................32
REFERENCE............................................................................................................................................33
APPENDIX..................................................................................................................................................36
Interview Questions..................................................................................................................................46

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CHAPTER ONE

1.1. Background of the Study

E-banking is a blanket term used to indicate a process through which a customer is allowed to carry out,
personal or commercial banking transactions using electronic and telecommunication network. It is a
product offered by banks which facilitates online banking, with the help of which the customer can have
access to the bank account in just one click. E-banking covers facilities such as – fund transfer, checking
account statements, utility bill payments, opening of bank account, locating nearest ATM, obtain
information on financial products and services, applying for loans, etc. using a personal computer,
smartphone, laptop or personal digital assistant (Business Jargon Copyright © 2021).

Banking industry in Ethiopia has still underdeveloped compared to the rest of the world. In Ethiopia Cash
is still the most dominant medium of exchange and electronic payment systems are at an developing stage.
Electronic banking services have not been widely used by most bank customers in Ethiopia; most bank
customers continue to conduct most of their banking transactions using traditional methods (Beza Muche
Teka 2020).

According to (Gardachew worku 2010) Information technology is considered as the key driver for the
changes taking place around the world. Due to a pervasive and steadily growth of information and
communication technology, the world banking industry is entering into new phenomena of unprecedented
form of competition supported by modern information and communication infrastructure.

E-commerce has become a buzzword for companies over a couple of years with increased awareness
about the use of computers and internet. The Internet is the driving force for the growth of e-commerce
the information and communication applications are paramount concern to the banks in today’s business
environment and Internet has become the major platform for all financial, banking and commercial
transactions (Gardachew worku 2010).

Electronic Banking has been widely used in developed countries and is rapidly expanding in developing
countries. In Ethiopia, however, cash is still the most dominant medium of exchange, and electronic
payment systems are at an embryonic stage. In the face of rapid expansion of electronic payment systems

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throughout the developed and the developing world, Ethiopia’s financial sector cannot remain an
exception in expanding the use of the system. A strong banking industry is important in every country and
can have a significant effect in supporting economic development through efficient financial services. In
Ethiopia, the role of the banking industry needs to change to keep up with the globalization movement,
both at the procedural level and at the informational level. This change will include moving from
traditional distribution channel banking to electronic distribution channel banking. E-Banking transactions
have opened up new window of opportunity to the existing banks and financial institutions. It permits
business process re-engineering, serving borderless market, to achieve zero latency leading to
improvements in customer service levels and better risk management because of real-time settlement. The
growth rate is higher in Developed Countries, and comparatively lower in least developed countries
(Chang, 2003 & Gallup, 2008)

E-banking is not fully adopted in Ethiopia; and Cash is the most dominant medium of exchange (Girma,
2016). While the basic transactions, Cash withdrawal and Fund transfer, can be done using other
electronic channels, people are still preferring to visit the narrow teller windows. The number of
transactions using E-banking channels comparing to 18 the traditional way of banking is remarkably very
low. This situation doesn’t meet business specialists’ expectation of returns on huge investments, which in
turn might negatively affect further expenditures on new technology acquisition. There are different
factors associated with this problem. Demographic factors, lack of awareness, security issues and low
levels of computer literacy are among the most common factors (Girma, & Zeleke 2016; Muche, 2017)

In order to this most of the researcher study about factor that affect adoption of E-banking and the other
challenge and opportunities of E-banking and this paper will study about factors that affect utilization of
E-banking and the main objective of this study is to identify the factors that affect the usage of electronic
banking services among the banking customers (user) in Ethiopia case study selected private commercial
banks of NIB international Bank S.C ,Awash Bank S.C and Dashen bank S.C .

1.2. Statement of the Problem

Information technology is changing radically the way in which people live and particularly banks offer
their products and services in most developed countries, studies conducted in Ethiopia to identify factors
that affect users’ adoption of new technology (e-banking) are remaining scarce. Therefore, the main
objective of this study is to identify the factors that affect the usage of electronic banking services among

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the banking customers (only users’) in Ethiopia. This would deepen the knowledge of the factors which
influence either positively or negatively the customers’ attempt to use electronic banking services. In
order to achieve this main objective a research model was developed from both theoretical and empirical
literature search. Accordingly, this study proposes a comprehensive research or conceptual model that
integrates the constructs derived from the Technology Acceptance Model (TAM) and Theory of Planned
Behavior (TPB) together with perceived risk, availability and quality of internet/network connection and
awareness. This integration is credible fill limitation of previous empirical studies and so that to increase
the body of knowledge in this area and to apply structural equation modeling (SEM) method of analysis.
(Beza Muche Teka 2020).

Electronic banking is a product designed for the purposes of online banking that enables to have easy and
safe access to bank account and carry out online banking service 24 hours a day and 7 days a week. It is
gaining all-round adoption in banking industry across developed and developing countries. Banking
industry today rapidly changing and more advanced in technology even though in Ethiopia cash is the
most medium of exchange. The product of e-banking technologies that include automated teller machines
(ATMs), internet banking, mobile banking and point of sale (POS) agent banking i.e. branchless banking
in the delivery of banking products and services to their customers has become an essential aspect of
modern banking system. (Sebele Admasu 2019)

According to (Sebele Admasu 2019) E- banking is significant role for developing country like Ethiopia
where the bank branches are limited it is believed that by providing E- banking service it is possible to
reduce the number of customers that visit bank branches every day and maximize customer satisfaction as
well. Thus it is essential for delivering quality service. Quality service delivery and customer satisfaction
are interrelated. Quality service delivery is a key factor for satisfying customer and it assures profitability
and competency of the organization. And the main objective of this study was identifying the factors that
affect the utilization of electronic banking on customers of some selected private commercial banks in
Ethiopia.

While different researchers have study about E-banking in different way and many other case Kassahun
(2016) identified challenges and opportunities in adoption and development of Electronic Banking in
Ethiopian banking industry in the case of selected private banks. (Bisrat Alebachew 2015) assessed the
influence of culture on the intention of customers to adopt online banking services. (Meaza
Wondimuc2013) study the practice of electronic banking in Ethiopia study intended to identify what are
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the major practice available in Ethiopia and what are the major challenges which hinder the effective
application of E-banking in Ethiopia and to comprehend the extent use of E-banking in the country and
identify the possible factors responsible for shifting growth of this service.

The previous research study more emphasis on factor that affect adoption of E-banking and some other
researchers also accompanied challenge and opportunities of E-banking. But, most of the researches
doesn’t give more emphasis about factors that affect utilization of Electronic banking services in banking
industry customers (only user) in Ethiopia and increment of branch expansion does affect the usage of
electronic banking and the researcher was tried to investigate this gap.

1.3. Objective of the Study

1.3.1. General Objective of the Study

 The general objective of this study is to assess the factors that affect utilization of Electronic
Banking on customer on case study of purposely sampled banks; Nib International Bank S.C,
Awash Bank S.C and Dashen Bank S.C.

1.3.2. Specific Objectives

 To examine demographic factors that affect utilization of E-banking on customer.
 To examine the increment of bank branch size affects utilization of E-banking.
 To list the major challenges and opportunities of e-banking from customers point of view.

1.4. Research Question

 What are the main factors that affect utilization of E-banking on customers?
 Does the increment of banking branch size affect the customer’s utilization of E-banking?
 What are the main challenges and opportunities of e-banking?

1.5. Significance of the Study

The study will analyze the factors that affect utilization of E-banking on customer and this study
determined the most important factors that are related with the usage of electronic banking product and
services. The study will help banks to know the main problem of way the customer is did not use E-
banking services. This study is expected to help other researchers who was interested to conduct further
study regarding the issue under investigated by providing use full information.

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 1.6. Scope and Limitation of the Study
This research will be focused on identifying and analyzing the factors that affect E-banking service
utilization in banking industry customer’s case study on customers of three Ethiopian Commercial Banks
this are Nib international bank, Awash Bank S.C, Dashen Bank S.C. The scope of the study is also all
Electronic Banking products for instance Mobile banking and Internet banking, ATM banking, agent
banking and POS terminal.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2. Introduction
This chapter presents an overview of the Electronic banking product and services and review of literature ,
articles, the researcher will present definition of E-banking, products of E-banking , Perception of E-
banking in Ethiopia and examine the factors of utilization of electronic banking in Ethiopia.

2.1. Definition of E-banking

The term electronic banking can be described in several ways. In very simple terms it means the provision
of information or services by a bank to its customers, via a computer, television, telephone, or mobile
phone. It as an electronic connection between bank and customer in order to prepare, manage and control
financial transactions. (Daniel, 1999)

E-banking can be simply defined to mean a process where banks create a platform for its customers to
generally access information and to transact businesses electronically through an electronic device without
necessarily being present at the bank (Annin et al., 2013).

Electronic banking is a form of banking in which funds are transferred through an exchange of electronic
signals rather than through an exchange of cash, checks, or other types of paper documents. Transfer of
funds occurs between financial institution such as banks and credit unions. They also occur between
financial institutions and commercial institution such as stores whenever someone withdraws cash from
an automated teller machine (ATM) or pay for groceries using a debit card; the funds are transferred via
electronic banking using laptop or mobile phone (Encyclopedia.com)

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 2.2. Electronic Banking in Ethiopia
According to National Bank of Ethiopia website there are 19 registered commercial banks of which some
of them are providing Internet banking services. Internet banking service is beneficiary for both the
customers as well as the banks. It provides a lot of services like viewing account balance and transaction,
making fund transfers between a customer's own current accounts and saving accounts, effecting payment
to third parties, viewing and downloading current and saving account statements, requesting for stop
payments on cheque, applying for a letter of credit, and more .

Electronic banking has been widely used in developed countries and is rapidly expanding in developing
countries. In Ethiopia, however cash is still the most dominated medium of exchange and electronic
payment system are an embryonic. 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. Despite being the pioneer in introducing ATM based payment system, CBE lagged behind
Dashen Bank, which worked aggressively to maintain its lead in E-payment system. As CBE continued to
move at a snail‟s pace in its turnkey solution for card based payment system, Dashen Bank remained so
far sole player in the field of E-banking since 2006. The first E-banking gateway was signed between
Ethiopian Commodity Exchange (ECX) and Dashen Bank and CBE. The E-banking system being
developed with both banks is designed to give a secure electronic data sharing gateway between clients,
banks and ECX, facilitating a smooth transaction. As the 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. The agreements signed by other private banks to introduce e-banking are
welcoming (Gardachew, 2010)

Dashin bank comes to the picture in the year 2006 with its ATMs that provide service for local Dashen
Visa Card holders and international Visa Cardholders coming to Ethiopia. United Bank S.C is the first to
introduce tele-banking, including text messages or SMS by the end of 2008. Then, United Bank starts to
deliver E-banking services like ATM, internet, mobile and agent banking (Abebe, 2016).

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 2.3. Types of E-banking
Electronic banking service is a range of banking and other services or facilities that use electronic
equipment and include Internet (Online) banking , ATM and debit card service , Mobile banking ,point of
sale banking (POS), Agent banking, electronic data interchange (EDI), electronic fund transfer(EFT)…

2.3.1. Internet Banking

A banking facility provided to the customer s through which the customers are able to perform a number
of monetary and non-monetary transactions using the internet through the bank’s website or application.

Internet banking is to give customers access to their bank accounts via a web site and to enable them to
enact certain transactions on their account, given compliance with stringent security checks (Essinger,
1999)

Internet banking services enable customers to transfer funds, download and print statements, request for
cheque book and savings withdrawal booklet, establish and modify standing orders and make payments
through the internet (Kwashie 2012 ).

2.3.2. Mobile Banking

Almost all the banks have designed their mobile applications with which you can perform transaction at
your fingertips for this four things are required a smart phone , internet, mobile application, and mobile
banking service enabled in your bank account. It used for performing balance checks, account
transactions, payments, credit applications and other banking transactions through mobile banking.

2.3.3. Automated Teller Machine (ATM)

Automated teller machine popularly known as ATM is one of the most common and initial service,
provided under e-banking. It is not just a machine with which you can withdraw cash as and when
required, but it also allows you to check your account status, transfer fund, deposit fund, change debit card
PIN.

ATM is a machine where cash withdraw can be made over the machine without going in to the banking
hall. It also sells recharge cards and transfer funds, it can be assessed 24 hours/7 days with account
balance enquiry (Fenuga, 2010). The banks can use these ATMs as media for publicity by displaying
products on the screen. And the cost of setting up ATMs is much lesser than the branch (Devamohan,
2002).
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 2.3.4. Point of Sale (POS)
Point of sale system refers to the point, in terms of data, time and place( retail outlet) where the customer
make a payment using aplastic card, for the purchase made or service received.

It allows customers to perform the following services: Retail Payments, Cashless Payments, Cash Back
Balance Inquiry, Airtime Transaction, Printing mini statement etc. (Kumaga, 2010).

An advanced payment system, which enables customers to use an ATM card to pay for goods and
services, electronically debiting the cardholders account and crediting the account of the merchant
(Rahman, 2006).

2.3.5. Electronic Data Interchange (EDI)

EDI is a new mode of communicating information between businesses electronically using a standardized
format, which was conventionally paper –based.

2.3.6. Electronic Fund Transfer (EFT)

When money is transferred electronically from one bank to another, it is called as electronic fund transfer.
It covers direct debit, direct deposits, wire transfers NEFT, RTGS, IMPS.

2.3.7. Debit Card

Debit cards are used in our day to day life so as to perform end number of transactions. Debit cards are
linked to the customer’s bank account and so the customer only needs to swipe the card, in order to make
payment at point of sale (POS) outlets, online shopping, and ATM withdrawal. In this way, the amount is
deducted from the customer’s account directly.

2.3.8. Credit Card

Just like a debit card, accredit card is also a payment card which the banks issue to the customers on their
request, after checking their credit score and history. It enables the cardholder to borrow funds up to the
pre-approved limit and make payment. The limit is granted by the bank which issues the card .The
cardholder promise to repay the amount within a stipulated time, with some charges, for the use of credit
card.

2.3.9. SMS Banking:

SMS banking is a service permitting banks to do selected banking services from the users mobile by the
sms messaging .SMS banking services have push and pull messages. Push messages are sent by the banks
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for alerting customer about new offers, marketing messages, alerts to events happening in customers
account such as large amount of withdrawals from ATM or credit card etc.

Pull messages are those that are sent by the customer to bank for having some information or to perform a
transaction in their account. Examples include account balance enquiry, requesting for current exchange
rates and for new offers that are launched. The customer has a choice to select the list of services he need
to be informed. This can be done by integrating to internet banking or speaking to the customer care
representative of the bank call center. (Information Technology 2018)

2.4. Advantage and challenges of E-banking in Ethiopia

2.4.1. Advantage of E-banking

The usage of e banking by the enterprises came into existence in mid-90’s.e banking came into existence
in greater numbers because of low operating costs. First it is in the form of ATM’s and phone
transactions. Recently it transformed to internet a new channel between customers and banks which
benefits both. The main aim of e- banking services is to provide the customers a much faster services with
low cost. From the last twenty years, banking sector has chosen a new method of banking based on the
progress of information technology. In addition to these customers, transaction and communication
abilities are fastened based on information technology. The progress of electronic banking started with use
of automatic teller machines and afterwards it developed to online banking. In the future it will be done in
mobile phones (wap-enabled).Anyway online banking continues to be the best for financial transactions.

The delivery channels include direct dial-up connections, private networks; public networks etc. and the
devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the
popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by
banks as a channel for receiving instructions and delivering their products and services to their customers.
This form of banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication. (Singer, Daniel,
Douglas Ross and Albert Avery, 2001)

 Benefit of E-banking for Banks

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It should be noted that E-banking can bring about various benefits for banks and their customers as well.
It is obvious that cost savings, efficiency, gaining new segments of customers, improvement of the banks
reputation and better customer services and satisfaction are primary benefits to banks (Jayawardhena&
Foley, 2000).

Under the view of Robinson (2000), relevant costs for conducting a banking transaction via online are
much lower than via a brick and mortar branch. Moreover, Sheshunoff (2000) contends that one of the
most important factors influencing the practice of E-banking by banks is the need to build up strong
barriers to customer exiting. Under the view of the author, once customers become familiar with the
utilization of full service E-banking, it is unlikely that they will change to another financial institution.

Specifically, banking industry has also received numerous benefits due to growth of E-Banking
infrastructure. There are highlighted below: Mols (1998).

 The growth of E-banking has greatly helped the banks in controlling their overheads and operating
cost
 Many repetitive and tedious tasks have now been fully automated resulting in greater efficiency,
better time usage and enhanced control.
 The rise of E-banking has made banks more competitive. It has also led to expansion of the
banking industry, opening of new avenues for banking operations. 
 Electronic banking has greatly helped the banking industry to reduce paper work, thus helping
them to move the paper less environment.
 Electronic banking has also helped bank in proper documentation of their records and
transactions.
 The reach and delivery capabilities of computer networks, such as the Internet, are far better than
any branch network

 Benefit of E-banking for Customers

The benefit of E-banking is not limited to banks but also to their customers. Thanks to the emergence of
the Internet, banking transactions are no longer limited to time and geography. It is very easy for
consumers throughout the world to access to their bank accounts 24 hours per day and seven days a week.
Customers can enjoy a variety of services, especially services which are not provided by traditional bank

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branches (Pham 2010).It is argued that one of the greatest benefits that E-banking brings about is that it is
not expensive or even free for customers to utilize E-banking products/services. However, some people
believe that prices appear to be one factor that is impedimental to the diffusion of E-banking (Sathye
1999). The price debates often revolve around geographical differences and disparities between costs of
Internet connections and telephone call pricing. It has also been believed that E-banks have been changing
to respond to customers‟ increasingly changing demands (Pham 2010). There has been a tendency that
customer don’t want to travel to or from a bank branch to conduct some banking transactions. In other
words, they want to utilize E-banking to save time and money. E-banking can bring about convenience
and accessibility, which will have positive effects on customer satisfaction and loyalty (Pham 2010). It is
totally possible for customers to manage their banking transactions whenever they want and to enjoy
improved privacy in their interactions with the bank.

In addition, customers can enjoy more benefits at lower cost levels by utilizing E-banking (Mols 1998). It
is contended by Turban (2008), that E-banking is really beneficial to customers such as:-

 Services Technology has made it extremely convenient for the bank and for the customer to access easily
by simply logging in on the banks website. e-services include vast services such as financial planning
capabilities, functional budgeting and forecasting tools, loan calculators, investment analysis tools and
equity trading platforms .Beside this most banks also provide the facility of online tax forms and tax
preparation.
 Convenience – By e-banking, customers can carry out their banking activities whenever you
want. E-banking is a 24 hour service, so customers are no longer tied to the branch’s hours. On
top of that, they don’t have to take the time to travel to the branch and wait in the inevitable lines,
thus giving you more time to do what you want.
 Mobility – e-banking can be done from anywhere, as long as customers have an Internet
connection.
 No Fees – Because an e-bank doesn’t have to worry about funding an actual bank location with
all of those additional costs, fees can be reduced and are often non-existent. Those checking and
savings accounts that are offered by completely online banks usually have no fees at all.
 Online Statements – Most online banks try to be as paper-free as possible. Most statements and
correspondence is done online, reducing the amount of paper used and sent out to you. This again
will help reduce the costs of the online bank. As an added bonus, this makes online banking a

18
 great environmental choice. Be warned, some banks do charge if you do want a paper copy of
something.
 Direct Deposit With any incoming money, such as salary, customers can arrange for it to be
directly deposited into the bank account by the company sending the money. This is actually a
double benefit, as customers don’t have to take the time to deposit the check, plus the money goes
into customers account faster allowing them to earn interest that much quicker.
 Automatic Bill Paying With automatic bill paying, customers can automate paying their
monthly bills.
 Real Time Account Information Because customers can access their accounts anytime, they
can get up to date, real time information on the money in your accounts.
 Transfers. Transfers between accounts with the same financial institution online can be done
almost instantaneously. Not only is there no hold on the money being moved around, you can do
it whenever you like and from wherever.
 Benefits to General Economy

Electronic Banking as already stated has greatly serviced both the general public and the banking industry.
This has resulted in creation of a better enabling environment that supports growth, productivity and
prosperity. Besides many tangible benefit in form of reduction if cost, reduced delivery time, increased
efficiency, reduced wastage, e-banking electronically controlled and thoroughly monitored environment
discourage many illegal and illegitimate practices associated with banking industry like money
laundering, frauds and embezzlements. (Pham 2010).

Benefits from the economical’ point of view E-banking served so many benefits not only to the bank
itself, but also to the society as a whole. (Pham 2010).

E-banking made finance economically possible: this are :- Lower operational costs of banks , Automated
process, Accelerated credit decisions and. Lowered minimum loan size to be profitable.

Potentially lower margins:

i. Lower cost of entry

ii. Expanded financing reach
iii. Increased transparency.
iv. Expand reached through self-service:
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The cost can be reduced to zero in some services like information and manufactured goods information.
Transaction of low cost and easiness provides to adopt the new trend of technology to trade information
among different groups and business parties. Information and Communication technology transformed
business to go from local and global. However it has been said that E-banking is vital in the banking
sector of developing countries (Polatoglu and Ekin 2001).

a. Reduction of the cost for printing cash notes and its related distribution

In a cash based economy, governments are required to invest a great deal of fund on printing of cash notes
and distributing same to the public. Due to manual transfer of currency between individuals, the life of
cash notes is very minimal. As a result of this frequent wear and tear, the magnitude and frequency of the
investment on cash note printing as well as its related distribution is significant. In the case of electronic
payment systems the transaction values are transferred from one account to another using electronic
means, reducing the need for cash note distribution. Thus, by encouraging acceptance of payment cards,
governments can achieve huge cost saving for their economy in terms of reducing cash note printing and
related expenditure.

b. Enhancement of Aggregate Deposit

When people start to increase the proportion of their saving compared to their daily consumption, the
saved money can be utilized for investment purposes that in turn will create employment opportunities.
This is a great benefit for the economy as a whole. However, individual savings could not bring this kind
of impact. The benefit can only be obtained when savings are made in a banking system whereby the
saved fund can be deployed to the economy in the form of loan to encourage the required investment .In
an electronic payment card infrastructure people do not need to carry cash notes for their day to day
expenditures as well as contingencies. They rather are encouraged to deposit their fund in the banking
system and obtain a single plastic to access this fund at any time of the day when the need arises. This
implies that unused funds are always in the banking system that helps to facilitate economic growth.

c. Banking the Un-Banked

While the electronic payment card infrastructure is diversified, payroll for employee’s can be handled
through this system. Besides creating ease and convenience, both for the employer as well as the
employee, it enables individuals to enter into the banking system which they may not be interested

20
otherwise. Such impact of banking the unbanked depopulation also has a benefit in increasing aggregate
deposits as indicated above.

d. Increasing the potential for hard currency generation

Especially in developing economies, earning of hard currency is very essential to manage a country’s
balance of payment. The payment card system can bring a good potential of enabling economies to earn
more foreign currency. This can be realized by attracting tourists and by encouraging them to spend more.
In today’s world, availability of payment card infrastructure is one of the criteria that tourists set while
they decide which country to visit. As a result countries that maintain a developed electronic payment
card system has a better potential of being visited by tourists than those which do not establish the
infrastructure. Hence, more tourists and increased hard currency as a result of diversifying payment card
business.

E-banking covers all these ways of banking business electronically. Since e-banking offers some smart
services benefiting both banks and customers compared with traditional banking system, it has become
imperative to make necessary room for banks to flourish e- banking. Among others, attractiveness of e-
banking includes: it lowers transaction cost; provide 24- hour services; ensure increased security and
control over transactions; reduces fraud risk; performs higher volume of transactions with less time;
increases number and volume of value payment through banks; allows remote transactions facilities that
replace physical presence of a customer in a bank branch and; increases transaction speed and accuracy.
On the other hand, traditional banking is time-consuming and more costly and therefore, e-banking is
replacing traditional banking all over the world (Chitura Tofara 2008).

Surafel (2016) identified that the Social and cultural barriers such as High rate of illiteracy, less awareness
and customer acceptance are the challenges of E-banking in Ethiopia. It is logical that the low literacy
level of computer can be a barrier in fast acceptance of internet and that influence the customer to be away
from electronic delivery channels. Furthermore, Economic factors such as high cost of internet, low
income and heavy investment and cost of technology; Legal and security issues such as Cyber security
issues and lack of suitable legal, regulatory frame works of E-payment and restricted business;
Management and banking issues like Resistance to change in technology among staffs and customers and
E-banking possess risks and less proper Organization Structure; Infrastructural barriers like Low level of
internet penetration, weak telecommunication and frequent power interruption; Knowledge barriers such

21
as Lack of trust by customer, lack of technological knowledge and language barriers were the identified
challenges of E-banking in Ethiopia.

2.4.2. Challenges and prospects of E-Banking Adoption

The concept of e-banking includes all types of banking activities performed through electronic networks.
It is the most recent delivery channel of banking services, which is used for both business-to-business and
business-to-customer transactions. However, in true sense, e-banking includes activities like payment of
bills and invoices, transfer of funds between accounts, applying for a loan, payment of loan installments,
sending funds to third parties via emails or internet connections regardless of where the client is located.
Leow, Hock Bee (1999) state that the terms PC banking, online banking, Internet banking, telephone
banking or mobile banking refers to a number of ways in which customer can access their banks without
having to be physically present at the bank branch.

Gardachew (2010) found in his study that the banking industry in Ethiopia is underdeveloped and the
study identified Key Challenges for E-Banking applications such as; low level of internet penetration and
poorly developed telecommunication infrastructure, lack of suitable legal and regulatory framework for e-
commerce and e-payment, high rates of illiteracy, high cost of Internet, absence of financial networks that
links different banks, lack of reliable power supply, and Cyber security issues are the most important
Challenges for development of e-banking in Ethiopia.

The study by Ayana (2010) explored the challenge of E-banking in Ethiopia. E-banking system were not
well adopted by Ethiopian banking industry due to low level of ICT infrastructure and lack of legal frame
work at NBE, which can initiate banking industry to implement the system. Moreover, the study reported
that security risk and lack of trust on the use of technological adoption were other major barriers for the
system. In addition, Abebe (2016) also identified security risk, customer familiarity with the service,
technical, managerial and implementation skills of E-banking, maintenance capability up on failure,
promotion, public awareness, ICT infrastructures and low internet access as major challenges of E-
banking service.

Surafel (2016) identified that the Social and cultural barriers such as High rate of illiteracy, less awareness
and customer acceptance are the challenges of E-banking in Ethiopia. It is logical that the low literacy
level of computer can be a barrier in fast acceptance of internet and that influence the customer to be away
from electronic delivery channels. Furthermore, Economic factors such as high cost of internet, low

22
income and heavy investment and cost of technology; Legal and security issues such as Cyber security
issues and lack of suitable legal, regulatory frame works of E-payment and restricted business;
Management and banking issues like Resistance to change in technology among staffs and customers and
E-banking possess risks and less proper Organization Structure; Infrastructural barriers like Low level of
internet penetration, weak telecommunication and frequent power interruption; Knowledge barriers such
as Lack of trust by customer, lack of technological knowledge and language barriers were the identified
challenges of E-banking in Ethiopia

M., M Rahman (2008) Government’s emphasis on setting up ICT park, raising allocation for developing
ICT infrastructure, waiving taxes on computer peripherals and other measures including the automation
program of banking sector and competition among the scheduled banks in improving customer services
have accelerated the prospects of e-banking. In addition, as investigated by Alhaji Ibrahim H. (2009)
using exploratory study, the following are among the critical challenges for the adoption of e-banking in
developing counties this are :-

 Lack of Technological Infrastructure – the implementation of e-payment is been impeded by

unavailability of ICT infrastructure. Most rural areas where majority of small and medium scale
industries are concentrated have no access to internet facilities .Infrastructure is the other obstacle
to implement E-banking in the banking industry. For the effective deployment of e-banking, it is
necessary to have a reliable, sustainable and cost effective infrastructure that can be accessible to
the majority of the population. The most common communication infrastructure for E-banking is
computer network such as Internet

 ICT Equipment Costs – where available, the cost of ICT is a critical factor relative to per capital
income. This makes the cost of entry higher compared to developed countries.
 Regulatory and Legal Issues – inexistence of proper legal and regulatory framework.
 Resistance to changes in technology among customers and staff due to. National, regional or
international set of laws, rules, and other regulations are important prerequisites for successful
implementation of E-banking services. Some of the main elements include rules on money
laundering, supervision of commercial banks and financial institutions by supervisory authorities,
payment system oversight by central banks, consumer and data protection, cooperation and
competition issues (European Central Bank, 2002).

23
  Non-readiness of banks and other stake holders (acceptability) – even though some have
shown impressive willingness, some banks are still not fully ready to for this new payment regime.
Non-readiness of banks and other stake holders (acceptability) – even though some have shown
impressive willingness, some banks are still not fully ready to for this new payment regime.
 Resistance to changes in technology among customers and staff due to:
 Lack of awareness on the benefits of new technologies,
 Fear of risk among banks
 Lack of trained personnel in key organizations and
 Tendency to be content with the existing structures
 People are resistant to new payment mechanisms
 Security – where disclosure of private information, counterfeiting and illegal alteration of
payment data may be rampant.
 Frequent connectivity failure in telephone lines
 Frequent power interruption

Factors influencing Banks to practice E-banking system

There are different factors that affect the practice and adoption of technological innovation in general and
specifically E-banking. For the adoption and practice of new technology there are two well-known models
which describe the factors which affect the adoption and practice of E- banking such as Technology-
organization-environment (TOR) and Technology acceptance model (TAM). The Technology-
organization-Environment framework (TOE) (Tornatzky & Fleischer 1990), which identifies three basic
Factors for the adoption of technological innovation, i.e, technological factors, organizational and
environmental factors. Technology Acceptance Model(TAM) (Davis, 1989), which posit the two sets of
beliefs, i.e., perceived ease of use (PEOU) and perceived usefulness (PU) to determine individual's
acceptance of a technology. PEOU refers to the degree to which an individual believes that using a
particular system would be free of physical and mental effort, PU on the other hand is related to users

2.5. Factors or Variable affect Utilization of Electronic Banking

This study composed of both dependent and independent variables through which the independent
variables counter acts on the dependent variables.

24
 2.5.1. Dependent variables
Utilization of customer

2.5.2. Independent Variable

i. Awareness: is customer’s information or knowledge regarding what electronic banking is and
what benefits can be obtained from using E- banking system.
ii. Computer experience: is the ability of bank customers to do or handle financial activities on
computer, mobile phone or any other electronic device through the internet or network.
iii. Demographic factors: includes Gender, Age and Education level of the respondents.
iv. Technological Factor: The issues raised in this study in relation with technological factor are the
relative advantages (perceived benefit) the firm gained from utilization of E-banking system and
the relative disadvantages (perceived risk) which hinder banking industries from the adoption of
new technological innovations.
v. Availability of infrastructural facilities: is a perception of customers regarding the availability
of infrastructural facilities that enables to use E-banking system like Network interruption
vi. Perceived security: is the extent to which consumers are certain or less risky about the
consequences of the system (E-banking) they are using intended to use.
vii. Perceived ease of use Customers Perception towards its Ease of Use & the degree to which the
innovation is thought to be simple or less complex to understand and use.
viii. Perceived risk there is several situations that influence the consumer’s perception of uncertainty
or consequences and, thus, the perception of risk. These are: uncertainty regarding buying goals;
uncertainty regarding which alternatives (such as product, brand, or model) will best match or
satisfy the purchase goals.

2.6. Logical Frame work

From the previous empirical studies in the above sections, factors that affect utilization E-banking in the
study area were divided into demographic related factors and Customers’ related factors that affect their
E- banking utilization. Thus, this study has constructed the following logical framework based on the
reviewed empirical findings as follows

25
 Dependent Variable Independent Variables
Age

Educational level
Demographic factor

Technological factor
Utilization of
Customer

Perceived security

Customer relation Awareness

factor
Availability of
Infrastructure

Figure 2.1 Conceptual framework

26
 CHAPTER THREE

Research Methodology

3. Introduction
This chapter presents the detail research methodology, showing the logical frame work that discusses
research purpose, research approaches, Research strategy, data collection and data analysis method was
presented.

3.1. Research Approaches

A research approaches provides a framework for the collection and analysis of data. According to Mouton
(2001), it is a plan or blueprint of someone intending to conduct research. Research approaches involves
how the researcher has planned to carry out the research And it is the overall plan for connecting the
conceptual research problems to the pertinent and achievable empirical research. In other words, the
research approaches articulates what data is required, what methods are going to be used to collect and
analyze this data, and how all of this is going to answer the research question. There are three types of
research approaches qualitative, quantitative and mixed.
A qualitative research is a subjective assessment of a problem and takes the form of an opinion, view,
perception or attitude towards objects (Alan Bryman and Emma Bell 2015) Quantitative research is a
means for testing objective theories by examining the relationship among variables. These variables, in
turn, can be measured, typically on instruments, so that numbered data can be analyzed using statistical
procedures (Alan Bryman and Emma Bell 2015)
Mixed methods research is an approach to inquiry that combines or associates both qualitative and
quantitative forms. It involves philosophical assumptions, the use of qualitative and quantitative
approaches, and the mixing of both approaches in a study. Thus, it is more than simply collecting and
analyzing both kinds of data; it also involves the use of both approaches in tandem so that the overall
strength of a study is greater than either qualitative or quantitative research.
The researcher will use Mixed methods research approach to conduct the study this means both qualitative
and quantitative method. The primary and secondary sources of data will be collected through interview,
questioners and document reviews.

27
 3.2. Research Design/method
According to researcher chooses a framework of methods and techniques to be used and applied in the
research process. This framework is usually referred to as the research design it allows the researchers to
decide on the research methodology that is suitable for the topic of their study and to properly set up their
research. Research design also supports the specific type of research (experiment, survey, review, case
study, correlation, and so on) that needs to be done. In this regard, research can be classified as:
descriptive, explanatory, or exploratory research

Descriptive This is a theory-based design, where the researcher is primarily interested in describing the
topic that is the subject of the research. It is applied to case studies, naturalistic observations, surveys, and
so on.

Explanatory is used to further expand, explore, and explain the researcher’s ideas and theories. This type
of research design is used to elaborate on the unexplored aspects of a particular topic and try to explain
the missing pieces.

Exploratory Is conducted when there are few or no earlier studies to which references can be made for
information and provides insights into and comprehension of an issue or situation for more rigorous
investigation later.
Therefore in conducting this research on prospect and challenges of E-banking in the case of selected
private banks, the researcher will use explanatory type of research design approach which enabled the
researcher to discover ideas that may be potential opportunities.

3.3. Sampling Technique

Sampling is the process of using a small number or part of a larger population to make conclusion about
the whole population. It provides a valid alternative when it is impractical to survey the whole population
and when there is a budget and time constraint to surveying the entire population. There are two types of
sampling techniques, probability and non-probability techniques.

Therefore, this researcher will use a non- probability sampling technique. Among the probability
sampling methods, Judgment (purposive or deliberate) sampling technique was chosen because the
researchers have a complete freedom to select elements which are typical or representative of the
population on the sample size.

28
 3.4. Population and Sample Size
The population and the sample size of this study use only three Commercial Banks in Ethiopia this are
Nib international bank, Awash Bank S.C and Dashen Bank S.C. The researcher selected these three banks
based on their age on market and based on their number of customers from each category of E-banking
products the researcher will use sample units that can be based on the utilization of E - banking and
overall the total number of customers of the bank.

3.5. Method of Collection and Data type

The study will be conducted by collecting data from both primary and secondary sources. Primary data
will be collected from the respondents based on a both structurally and unstructured designed
questionnaire. Questionnaire is used as primary data. It will include close ended and open-ended
questions and interview, observation and report and website used as a secondary data.

3.6. Methods of Data Analysis

The data collected through questionnaires and interviews will be analyzed with descriptive data and also
reviews of documents will be interpreted qualitatively that accordingly data obtained from survey will
analyzed through statistical package for social science (SPSS) and descriptive type of analysis will be
presented through tables and percentages.

29
 CHAPTER FOUR

COST AND TIME PLAN

4.1. Time schedule

It describes the plan of assessing the ongoing progress toward achieving the research objectives. It
specifies how each project activity is to be measured in terms of completion, the time line for its
completion. Therefore, to enable Me and the advisor to monitor project progress and provide
timely feedback for research modification or adjustments i provide the following time plane.

2024

NO. Activity SEP OCT NOV DEC

1 Topic selection

2 Submittion of Proposal

3 Preparations of Research

4 Collection of useful material

5 Data collection

6 Data analysis and writing

of final research
7 Submission of research

8 Presentation research Of
Final Research

30
 4.2. Financial Budget

It will show how much it will cost to answer the question. I explicitly state cost for every budget
item that should be quantitatively shown. Typically, my proposal budget reflects:-
Direct costs: Personnel, consumable supplies, Travel, Communication, Publication etc. 2024

Stationary Item Quantity Per Total

unit(Birr) cost(Birr)
and
equipment

PAPER 1 package 300 300

Pen 3 20 60

Pencil 1 20 20

Binder 1 20 20

Total cost 400

Personal cost

transportation 4 TRIP 40 160

contingency 340

Overall total cost 900

31
 REFERENCE
Abebe, Z. (2016). Opportunities and Challenges in the Adoption of E-Banking Services: The Case of
Dashen Bank S.C., EMBA thesis, Addis Ababa University

Ayana G., 2012, ‘Adoption of Electronic banking system in Ethiopian Banking industry: Barriers and
Drivers’, MA thesis, Addis Ababa University, Ethiopia

Alan Bryman and Emma Bell 2011. The moral rights of the authors have been asserted. Database right
Oxford University Press (maker). First edition 200

Annin et al.(2013) E-Banking, Banks and Internet Banking | ResearchGate, the professional network for ... without
necessarily being present at the bank

Beza Muche Teka | (2020) Factors affecting bank customers usage of electronic banking in Ethiopia:
Application of structural equation modeling (SEM)
Bisrat Alebachew (2015) Factors Affecting the Adoption of Internet Banking in Addis Ababa Addis
‘Ababa University School Of Graduate Studies MBA Program.

Chang Y.T. (2003) “Dynamics of Banking Technology Adoption: An Application to Internet Banking,
Department of Economics”, Workshop Presentation, University of Warwick, Coventry, UK.

Chang, et al 2007, ‘Factors affecting the adoption of electronic signature: Executives Perspective of
hospital information department’, Decision Support Systems, 44(4):350-359.

Chitura T., Chuma W., Dube T and Runyowa L (2008). “Electronic Commerce benefits and adoption
barriers in small and medium enterprises in Gweru, Zimbabwe”, Discussion Paper University of
KwaZulu Natal, South Africa.

Daniel, E. (1999). “Provision of electronic banking in the UK and Republic of Ireland", International Journal
of Bank Marketing, Vol. 17 No. 2, pp.72-82.
Devamohan A. (2002). E-Banking Problems and Prospects. Mimeo
Essinger, J. (1999). The virtual banking revolution: the customer, the bank and the future 1st ed. London,
UK: International Thomson Business Press.
Fenuga, O. (2010). The effect of electronic payment on customer service delivery. International Journal of
Economic Development Research & Investment, 1.
32
Gardachew (2012).”Banking in Ethiopia-Practices”, opportunities and challenges, Journal of internet
banking and commerce, vol.15, no.2.A J Joshua and Moli P Koshy, 2009 Usage Patterns of
Electronic Banking Services by Urban Educated Customers
Girma, K. (2016). Challenges and opportunities of electronic banking in Ethiopian banking Industry.
(Master’s thesis), Addis Ababa University, School of Business & Public Administration,
Accounting and Finance

Alhaji Ibrahim H. (2009). Understanding the e-payment system in Nigeria. Allen, L. And Rai A. (1996).
Operational Efficiency in Banking

Jayawardhena, C & Foley, P 2000, ‘Changes in the banking sector: the case of Internet banking in the UK‟
Internet Research’, Electronic Networking Applications and Policy, 10(1):19- 30.
Kumaga, D. (2010).The challenges of implementing Electronic Payment Systems – The Case of Ghana’s E-
zwich Payment System. Unpublished
Leow, Hock, Bee. (1999), New Distribution Channels in Banking Services, Bankers

Meaza Wondimu, 2013, 'The Practice of Electronic Banking in Ethiopia;' St.Mary's university school of graduate
studies Addis Ababa Ethiopia

Mols, K 1998, ‘Thebehavioural consequences of PC banking’, International Journal of Bank Marketing,

16(5):195-201.
Pham, L 2010, ‘A conceptual framework for E-banking service quality in Vietnam’, The Business 53
Studies Journal, 4(3):1-19.
Polatoglu, V &Ekin, S 2001, ‘An empirical investigation of the Turkish consumers Acceptance of Internet
banking services’, International Journal of Bank Marketing, 19(4):156-165.

Rahman, M.(2006). Innovative Technology and Bank Profitability: The Bangladesh Experience.

Sheshunoff, A 2000, ‘Internet banking: an update from the frontlines’, ABA Banking Journal, 92(1):51-55.

Surafel, E. (2016). Impact of Electronic Banking Service on Customers‟ Satisfaction in Addis Ababa (The
Case of selected Commercial Banks) ST. Mary`s University.

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Tornatzky, G & Fleischer, M 1990, The Process of Technology Innovation, Lexington, MA, Lexington
book.

Zeleke, A. (2016). Opportunities and challenges in the adoption of e-banking services: The case of Dashen
Bank S.C. (master's thesis), Addis Ababa University, Executive Masters of Business
Administration (EMBA).

34
 APPENDIX
QUESTIONNAIRE
Dear Respondents,
This questionnaire is designed to gather information about the factors that affect utilizations of E-Banking
on the selected private commercial banks. All responses will be used to conduct a study for the partial
fulfillment of the requirements for the award of MSC Degree in Accounting and Finance at Rift Valley
University. I would like to assure you that you will be guaranteed anonymity as I do not ask your name
here and your responses will not be used for any other purposes other than the intended purpose. Besides,
this survey should only take about 10 minutes of your time. I am grateful for your cooperation in advance!
N.B Please put a “√” mark to all your responses in the circle provided beside each statement.

If you do not use, at least, any one of Electronic Banking services/products of the bank, please
do not fill out the questionnaire.
I.Demographic information

1. Gender

□ Male □ Female

2. Age (years old)

□ 18 or below □ 19~28 □ 29~38 □ 39 or above

3. Marital Status

□ Single □ Married □ Divorce

4. Education background

□ Primary School □ High School □ Diploma □ Bachelor’s degree

□ Master’s degree □ other

35
 5. Occupation

□ Public Servant □ Self Employed □ Private Employee □ Unemployed □ Student

□ Unemployed □ Others

6. Which of the E-Banking services/products of the bank do you use?

□ ATM card □ Mobile Banking □ Internet Banking □ All E-banking Product □ ATM card

& Mobile Banking □ ATM card & Mobile Banking □ other

7. Length of E-Banking services/products use:

□ Less than 1 year □ 1-2 years □ 2 years and above

II. This part of questionnaire covers about factors that affect utilizations of E-Banking on the
selected private commercial banks in relation with E-Banking services/products and benefits of
E-Banking provided by this bank. E-Banking services/products include: connectivity of branches
over the internet, ATM, POS, Mobile banking and Internet Banking. Please indicate how much
you agree or disagree with each of the following statements by “√” mark that best represents your
opinion. 1 indicates strongly disagree (SDA), 2 indicates disagree (DA), 3 indicates neutral (N),
4 indicates agree (A) and 5 indicates strongly agree (SA).

S.No. Research Question SDA DA N A SA

A. E-banking Service and product

36
 safe and the risk associated with them is low.
2. The E-Banking services/products allow me to complete
transactions quickly and save me a lot of time, especially when I am
pressed for time.
3. This bank provides most of E-Banking services/products
And the services are almost always available.
4. The E-Banking services/products minimize inconvenience by
providing anywhere and anytime banking (banking at home/office at
24/7).
5. The E-Banking services/products provide precise and sufficient
information I need (account statement and balance enquiry).
6. The E-Banking services/products provided by this bank work
accurately and are error-free and reliable.
7. The charges associated with E-Banking services/products are
reasonably fair and minimize the transaction cost of banking.

B. Benefit of E-banking
1. E-banking allows me to manage my finances better

2. I feel safe and secure while making transactions through E-

banking
3. E-banking is more accessible to users than visiting a bank

4. I'm satisfied with E-banking ability to perform the

promised/ordered service dependable and accurately
5. This bank resolves my complaints quickly and offers a fair
compensation for its mistakes.
6. I am satisfied with E-banking service that is provided by the
bank

III. This part of the questionnaire covers about challenges which discourage customers to use E-Banking

37
 services/products of the bank frequently or at all. Please indicate how much the following challenges
affect the customers’ decision to use E-Banking services/products by “√” mark that best represents your
opinion. 1 indicates strongly disagree (SDA), 2 indicates disagree (DA), 3 indicates neutral (N), 4
indicates agree (A) and 5 indicates strongly agree (SA).

S.No. Challenges
SDA DA N A SA
1. I trust the E-Banking services/products provided by the bank

2. I am confident with the security on E-Banking

services/products

3. The system doesn’t work efficiently every time as we need it, as

the bank promised.

4. Using the E-Banking services/products of the bank is

inexpensive.

5. I may prefer branch service than E-Banking services/products.

6. Mobile and Internet are well connected every time (24/7).

7. There is available Information and Communication technology

infrastructure (access to internet, mobile phone and computers)

8. Customers are not familiar with the E-Banking

services/products of the bank

9. The bank is fast to respond/rectify when transactional errors

occur (like: when ATM jammed payment cards or customers’
accounts deducted without being paid the full or part of the
amount).

10. Sufficient technical and managerial support of the bank

38
 IV.
1. Other benefits (if any), please specify
__________________________________________________________________________________________
________________________________________________________________________________
________________________________
2. Other challenges (if any), please specify
____________________________________________________________________________________________
______________________________________________________________________________
________________________________
3. If you have a comment
____________________________________________________________________________________________
______________________________________________________________________
___________________________________
Thank you.

አባሪ

39
 ጥያቄ

ውድ መልስ ሰጪዎች
ይህ መጠይቅ በኢ-ባንኪንግ አጠቃቀም ላይ ተጽዕኖ ስለሚኖራቸው ምክንያቶች መረጃ ለመሰብሰብ የተቀየሰ ነው በተመረጡት የግል የንግድ ባንኮች
ላይ ፡፡ ሁሉም ምላሾች ለከፊል ጥናት ለማካሄድ ያገለግላሉ በሬፍት ቫሊ ዩኒቨርሲቲ ለሂሳብ አያያዝ እና ፋይናንስ ማስትሬት ዲግሪ ማሟያ
ጥናታዊ ፅሑፍ መረጃ ለመሰብሰብ የተዘጋጀ ነው፡፡

እዚህ እና የእርስዎ ምላሾች ከታቀደው ዓላማ ውጭ ለሌላ አገልግሎት አይውሉም ፡፡ በተጨማሪም ፣ ይህ የዳሰሳ ጥናት ጊዜዎን 10 ደቂቃ
ያህል ብቻ መውሰድ አለበት ፡፡ በቅድሚያ ስለ ትብብርዎ አመስጋኝ ነኝ!

N.B. እባክዎን ከእያንዳንዱ መግለጫ ጎን ለጎን በተሰጠው ክበብ ውስጥ ለሁሉም ምላሾችዎ “√” ምልክት ያድርጉ ፡፡

የባንኩን ቢያንስ ማንኛውንም የኤሌክትሮኒክ የባንክ አገልግሎት / ምርቶች የማይጠቀሙ ከሆነ እባክዎን መጠይቁን አይሙሉ ፡፡

ክፍል 1፡ ግለ መረጃ

1. ፆታ

□ ወንድ □ ሴት
2. እድሜ

□ከ 18 በታች □ከ 19~28 □ከ 29~38 □39 በላይ

3. የጋብቻ ሁኔታ
□ ያላገባ □ ያገባ □ የፈታ
4. የትምህርት ደረጃ
□ የመጀመሪያ ደረጃ □ ሁለተኛ ደረጃ □ ዲፕሎማ □ ዲግሪ □ ማሰተርስ□ሌላ
5. የስራ ሁኔታ

□ የመንግሰት ሰራተኛ □ የግል ሥራ □ የግል ቅጥረኛ □ ሥራ ፈት □ ተማሪ □ሥራ አጥ □ሌላ

6. ከተዘረዘሩት የ ኢባንኪንግ ዘርፎች የትኛውን ይጠቀማሉ?

□ ኤቲኤም ካርድ □ ሞባይል ባንክ □ ኢንተርኔት ባንክን □ ሁሉንም □ ኤቲኤም ካርድ እና ሞባይል ባንክ □
ኤቲኤም ካርድ እና ኢንተርኔት ባንክን □ ሌላ

7. ለምን ያህል ግዜ ኢባንኪንግ ዘርፎች ተጠቅመዋል:

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 □ ከ 1 በታች □ ከ 1-2 □ 2 በላይ

II ይህ የመጠይቁ ክፍል የኢ-ባንኪንግ አጠቃቀምን የሚመለከቱ ጉዳዮችን ይሸፍናል ከኢ-ባንኪንግ አገልግሎቶች / ምርቶች እና ጥቅሞች ጋር
በተያያዘ የተመረጡ የግል የንግድ ባንኮች ኢ-ባንክ በዚህ ባንክ የቀረበ ፡፡ የኢ-ባንክ አገልግሎቶች / ምርቶች የሚከተሉትን ያካትታሉ-
የቅርንጫፎች ትስስር በበይነመረብ ፣ በኤቲኤም ፣ በፒኦኤስ ፣ በሞባይል ባንኪንግ እና በይነመረብ ባንክ በኩል ፡፡ እባክዎን ምን ያህል
እንደሆነ ያመልክቱ የእናንተን በተሻለ በሚወክል በ “√” ምልክት በሚከተሉት እያንዳንዱ መግለጫዎች ተስማምተዋል ወይም አይስማሙም

አስተያየት. 1 በጥብቅ አለመግባባትን ያሳያል 2 አለመስማማትን ያሳያል 3 ገለልተኛ ን ያሳያል

4 መስማማትን ያሳያል እና 5 ደግሞ አጥብቀን መስማማትን ያሳያል ።

የምርምር ጥያቄ
ተ.ቁ. 1 2 3 4 5
ሀ. የባንክ አገልግሎት እና ምርት

1. ይህ ባንክ የሚሰጠው የኢ-ባንክ አገልግሎት / ምርቶች እንደሆኑ ይሰማኛል

ደህንነቱ የተጠበቀ እና ከነሱ ጋር ያለው አደጋ አነስተኛ ነው።

2. የኢ-ባንክ አገልግሎት / ምርቶች እንድጠናቀቅ ያስችሉኛል ግብይቶች በፍጥነት እና በተለይም

እኔ ስሆን ብዙ ጊዜ ይቆጥቡኛል ለጊዜው ተጭኗል፡፡

3. ይህ ባንክ አብዛኛዎቹን የኢ-ባንኪንግ አገልግሎቶችን / ምርቶችን ይሰጣል

እና አገልግሎቶቹ ሁልጊዜ ማለት ይቻላል ይገኛሉ ፡፡.

4. የኢ-ባንኪንግ አገልግሎቶች / ምርቶች በችግር ላይ ችግርን ይቀንሰዋል

በማንኛውም ቦታ እና በማንኛውም ጊዜ የባንክ አገልግሎት መስጠት (በቤት / በቢሮ ውስጥ የባንክ

አገልግሎት በ 24/7) ፡፡

5. የኢ-ባንክ አገልግሎቶች / ምርቶች ትክክለኛ እና በቂ ናቸው የምፈልገውን መረጃ (የሂሳብ

መግለጫ እና የሂሳብ ምርመራ).

6. በዚህ የባንክ ሥራ የሚሰጡት የኢ-ባንክ አገልግሎቶች / ምርቶች በትክክል እና ከስህተት ነፃ

እና አስተማማኝ ናቸው።.

7. ከኢ-ባንኪንግ አገልግሎቶች / ምርቶች ጋር የተያያዙ ክፍያዎች ናቸው

በተመጣጣኝ ሁኔታ ሚዛናዊ እና የባንኮች የግብይት ወጪን ለመቀነስ

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 1 2 3 4 5
ለ-የኢ-ባንክ ጥቅም

1. ኢ-ባንክ የእኔን ፋይናንስ በተሻለ ሁኔታ ለማስተዳደር ያስችለኛል

2. በኤባንኪንግ በኩል ግብይቶችን በምፈጽምበት ጊዜ ደህንነት እና ደህንነት ይሰማኛል

3. ባንክ ከመጎብኘት ይልቅ ኢ-ባንኪንግ ለተጠቃሚዎች የበለጠ ተደራሽ ነው

4. ኢ-ባንክ ቃል የተገባ / የታዘዘ አገልግሎት በአስተማማኝ እና በትክክል የማከናወን ችሎታን

ረክቻለሁ
5. ይህ ባንክ ቅሬታዎቼን በፍጥነት በመፍታት አውደ ርዕይ ያቀርባል

ለስህተቶቹ ካሳ
6. በሚሰጠው የኢ-ባንክ አገልግሎት ረክቻለሁ

III. ይህ የመጠይቁ ክፍል የባንክ ደንበኞችን ኢ-ባንኪንግ አገልግሎቶች / ምርቶች በተደጋጋሚ ወይም በጭራሽ እንዳይጠቀሙ የሚያደርጋቸውን
ፈተናዎች ይሸፍናል፡፡ እባክዎንተግዳሮቶች ተከትለው ደንበኞቹ የኢ-ባንክ አገልግሎቶችን / ምርቶችን በ ምን ያህል እንደሆነ ያመልክቱ

የእርስዎን አስተያየት በተሻለ የሚወክል “√” ምልክት ያድርጉ። 1 በጥብቅ የማይስማማ መሆኑን ያሳያል 2 ያመለክታል

አልስማማም 3 ገለልተኛ 4 መስማማትን እና 5 አጥብቆ መስማማትን ያሳያል

(ኤስኤ)

ተግዳሮቶች 1
2 3 4 6
1. በባንኩ የቀረቡትን የኢ-ባንክ አገልግሎቶች/ምርቶች አምናለሁ

2. በኢ-ባንክ አገልግሎቶች/ምርቶች ላይ ባለው ደህንነት እርግጠኛ ነኝ

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 3. ባንኩ በገባው ቃል መሠረት ስርዓቱ በሚያስፈልገን ጊዜ ሁሉ በብቃት አይሰራም

4. የባንኩን የኢ-ባንክ አገልግሎቶችን/ምርቶችን መጠቀም ርካሽ ነው

5. ከኢ-ባንክ አገልግሎት/ምርቶች ይልቅ የቅርንጫፍ አገልግሎትን እመርጣለሁ

6. በእያንዳንዱ ጊዜ (24/7) ሞባይል እና በይነመረብ በደንብ የተገናኙ ናቸው

7. የመረጃ እና የግንኙነት ቴክኖሎጂ መሠረተ ልማት (የበይነመረብ መዳረሻ ፣ የሞባይል ስልክ

እና ኮምፒተሮች) አለ

8. ደንበኞች ከባንኩ የኢ-ባንክ አገልግሎቶች/ምርቶች ጋር አያውቁም

9. የግብይት ስህተቶች ሲከሰቱ ባንኩ ምላሽ ለመስጠት/ለማረም ፈጣን አይደለም (ለምሳሌ -

ኤቲኤም የታጨቀ የክፍያ ካርዶች ወይም የደንበኞች ሂሳቦች ሙሉውን ወይም ከፊሉን ሳይከፍሉ
ሲቀነሱ)።

10. የባንኩ በቂ የቴክኒክ እና የአስተዳደር ድጋፍ.

V.
11. ሌሎች ጥቅሞች (ካለ) ፣ እባክዎን ይግለጹ
___________________________________________________________________________________________________
_______________________________________________________________________________________________
_______
12. ሌሎች ተግዳሮቶች (ካሉ) እባክዎን ይግለጹ
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
.

13. አስተያየት ካለዎት

__________________________________________________________________________________________________
__________________________________________________________________________________________________
______
አመሰግናለሁ

43
Interview Questions
Section one: Interview questions designed for the Manager and E- channels staff of the three selected banks .

1. What type of Electronic banking service do you provide?

2. How many customers do you have who use e banking?
3. How many ATM devise, POS and agent does your bank have?
4. What is the basic benefit of E-banking?
5. What are the main factors that affect utilization of E-banking?

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45