| Abstract: | The paper aims to examine the major challenges and opportunities for the adoption of E
banking system in case of Abyssinia bank so that they can know the major obstacles why
customers are not adopting E banking system as well as to have a very good insight on the
customers perspective. The major objective of this study will be assessing the challenges and
prospects of adoption of E-banking in Abyssinia bank in Eastern district branches.The
researcher will collect data from Abyssinia Bank E-banking customers by distributing
questionnaires which will measure their agreement and disagreement on adoption of Ebanking challenges and opportunities in the bank by using five point Likert scale.
Additionally,Statistics are used to analyze the survey questionnaire data.The study's findings
showed that poor inter-bank connectivity, a lack of managerial and technical know-how to
use and implement the system, a lack of customer trust, a dearth of adequate national legal
frameworks, a lack of competition between domestic and foreign banks, and a lack of
government support are the main obstacles Ethiopian banks face in adopting electronic
banking. Other significant obstacles included a low level of internet penetration, a poorly
developed telecommunications infrastructure, high internet costs, frequent power outages,
and network failures. The study also identified certain fundamental advantages a business
could get from implementing an e-banking system,Additionally, the study strongly
recommends that government and private banks must cooperate in order to lessen the
obstacles to the adoption of e-banking systems by splitting the cost of setting up ICT
infrastructure and establishing a specific legal framework of rules and regulations extra so
that customers' confidence in using e-banking systems can grow. |
