CHALLENGES IN IMPLEMENTING ELECTRONIC BANKING: PERSPECTIVES FROM ETHIOPIAN FINANCIAL INSTITUTIONS

Abstract

The rapid advancement of information and communication technology (ICT) has ushered in a new era for organizations worldwide, including Ethiopian banks. In light of the widespread adoption of electronic payment (Epayment) systems globally, it is imperative for Ethiopia's financial sector to embrace this transformative technology. Technological innovations are reshaping the banking industry, offering customers the convenience of conducting transactions without the constraints of physical branch visits. Simultaneously, E-banking empowers financial institutions to compete globally by expanding their product and service offerings beyond traditional boundaries. However, despite the evolution of E-commerce, the adoption and diffusion of electronic banking (Ebanking) systems in Ethiopia lag behind. This delay calls for Ethiopian banks to swiftly integrate technological advancements into their operations and establish a clear timeline for implementation. Some banks in the country still lack basic online presence, such as websites, which hinders them from providing essential information about their financial services. It is crucial for Ethiopian banks to catch up with the technological wave to stay competitive and meet the evolving needs of their customers