Perceived Benefits and Challenges of Electronic Banking Adoption in Ethiopian Private Commercial Banks

Abstract

The main objective of this study is to identify Perceived benefits and challenges of e- banking adoption on Ethiopian private commercial banks. Mixed research design was employed and primary data was collected through questionnaires from employees and analyzed using quantitative (statistical) and qualitative methods. The study reveals that e-banking service provides benefit for both customers and banks in improving their public image and retain customers for long. Despite the benefit of e-banking service and investment on adopting; the system is not well strengthen in providing services due to several challenges. From these, low level of infrastructure, lack of legal frame works, security risk which lessen confidence of customer to use those technologies, lack of trust on the use of technological innovation and limited top management support are the major challenges of Ethiopian private commercial banks in respect to technology adoption. This study suggested that the government should issue laws that govern e-banking operation, security technologies should be strengthened. Awareness about e- banking should be created using different approaches. Moreover e- banking technologies should be given in a simple and easy to use way.

Keywords: E-Banking, technological adoption, Private Banks in Ethiopia