INJIBARA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

THE CHALLENGES AND PROSPECTS OF ELECTRONIC BANKING IN COMMERCIAL BANK

OF ETHIOPIA (A CASE STUDY OF COMMERCIAL BANK OF ETHIOPIA, KOSSOBER
BRANCH), INJIBARA TOWN, ETHIOPIA

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF ACCOUNTING AND FINANCE IN

PARTIAL COURSE FULFILLMENT OF THE REQUIREMENT FOR RESEARCH METHODOLOGY IN
ACCOUNTING AND FINANCE.
PREPARED BY: GROUP- 2 STUDENTS

NAME ID NO
1. HAREGEWEYN ABERA…......................USSR 0482/14
2. WALELGN AZAZH...................................USSR 0903/14
3. SAMUEL JEMANE...................................USSR 0760/14
4. HELEN SISAY….........................................USSR 0508/14
5. TADELE ANIMAW.....................................USSR 0834/14

SUBMITTED TO: AYTENEW T.(MSc.)

SUBMISSION DATE: JANUARY /22/2025 G.C

INJIBARA, ETHIOPIA

I
 Acknowledgement
First and for the most thanks the almighty God, for his glorious support to full fill our heart
desire and helping us to accomplish our study. Next our special thanks to our advisor, Mr.
Aytenew T. for his valuable advises and ultimate supports and comments in the time of
undertake this proposal, we would like to thanks to our relative friends for their support in idea.
Special thanks go to the employees and EPS users of kossober and Injibara main branches, who
provide all the necessary information about E-banking. Finally, we would like also to express our
gratitude to our families for their unlimited advice giving as well as moral support starting from
the beginning up to the end. And also, we would like to thank all people involved directly or
indirectly for the accomplishment of this proposal.

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 Summary
Background: E-banking is the provision of retail and small value banking products and services
through electronic channel. It implies a service that allows customers to use some form of
computer to access account-banking includes varies banking activities conducted from sites other
than a physical bank location.

Objective: The main aim of this research pproposal will attempt to assess the prospects and
challenges of E-banking service in commercial bank of Ethiopia in Kossober branch in Injibara
town. To reach this objective, data will be collected from the bank.

Methods and materials: descriptive research design will be conducted by using primary and
secondary data sources. Purposive sampling will be conducted and here, by the primary data, the
researchers will be used structured questionnaires that contain open and close ended questions
and the data will be analyzed by using both qualitative and quantitative method (tables and
percentages). Based on this, the study intended to suggest possible solution to the problem
identified.

Work plan and budget: The study will be conducted from Nov, 2024 to June, 2025 and will
costed a total of 680 ETB

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 Acronyms

ATM=Automated Taller Machine

CBE=Commercial Bank of Ethiopia

E-banking=Electronic banking

EFT=Electronic Fund Transfer

ICT=Information Communication Technology

SME=Small and Medium Enterprise

POS=Point of sale

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Table of Contents
Acknowledgement............................................................................................................................I
Summary.........................................................................................................................................II
Acronyms.......................................................................................................................................III
List of tables and figures................................................................................................................VI
CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.1 Back ground of the study........................................................................................................1
1.2 Statement of the study............................................................................................................2
1.3 RESEARCH QUESTIONS....................................................................................................2
1.4 Objectives of the study...........................................................................................................3
1.4.1. General Objective...............................................................................................................3
1.4.2. Specific Objectives.............................................................................................................3
1.5 Significance of the study........................................................................................................3
1.6 Scope of the study..................................................................................................................4
1.7 Organization of the study.....................................................................................................4
CHAPTER TWO.............................................................................................................................5
REVIEW OF RELATED LITRATURE.........................................................................................5
2.1 Definition of Electronic banking............................................................................................5
2.2. Electronic banking classification...........................................................................................5
2.2.1 Telephone banking (Tele banking)..................................................................................5
2.2.2 Internet banking...............................................................................................................6
2.2.3 Mobile banking................................................................................................................6
2.3 Advantages of electronic banking..........................................................................................6
2.3.1 Banks „point of view‟.....................................................................................................7
2.3.2..................................................................................................Customers‟ point of view; 7
2.4 Advantages and Disadvantages of internet banking..............................................................7
2.4.1. Advantage.......................................................................................................................7
2.4.2. Disadvantage...................................................................................................................8
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 2.5 Delivery channels of E-banking.............................................................................................8
2.5.1 Automated Teller Machines (ATMs)..............................................................................8
2.6 Point of Sale (POS)................................................................................................................9
2.7 Challenges of E-banking........................................................................................................9
2.8 Prospects of E-banking.........................................................................................................10
CHAPTER THREE.......................................................................................................................12
RESEARCH METHODOLOGY...................................................................................................12
3.1 Research Design...................................................................................................................12
3.2 Data type, Data source..........................................................................................................12
3.3 Method of data collection.....................................................................................................12
3.4 Target and total Population..................................................................................................13
3.5 Sample size and Sample Technique.....................................................................................13
3.6 Method of Data analysis.......................................................................................................13
4. Work plan..................................................................................................................................14
5. Budget Breakdown.....................................................................................................................15
6. REFERENCES.......................................................................................................................16
Appendix I.....................................................................................................................................17
Appendix II....................................................................................................................................19
Appendix III...................................................................................................................................22

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List of tables and figures
Table 1: Work plan to assess the challenges and prospects of electronic banking in commercial bank of
Ethiopia, 2025..............................................................................................................................................14

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CHAPTER ONE

1. INTRODUCTION
1.1 Back ground of the study
E-banking is defined as the provision of retail and small value banking products and services
through electronic channel. It implies a service that allows customers to use some form of
computer to access account-banking includes varies banking activities conducted from sites other
than a physical bank location. For instance, all over the world customer relay on ATMs to
withdraw money from their demand deposit accounts at any hour (Mescon,2002).

Electronic fund transfer (EFT) is another form of electronic banking .These computerized
system allows users to conduct financial transaction efficiently from remote location.
(WWW.eurojournals.com).

In addition to ATM and EFT, most major banks and money thrifts and community banks now
offer internet or online banking to accommodate the growing number of individuals and
businesses that want to transfer money between accounts, check account balance, pay bills, apply
for loans, and handle other transactions at any hour. Online banking is not only fast and easy for
customers but also extremely cost efficient for banks. (MichaelH.Mescon2002). The Commercial
banks of Ethiopia provides the E-banking services for their users. Some of the electronic
technologies that has provided by the bank are automated teller machines technology, internet
banking, point of sale, and mobile banking.

Banks are focusing on their electronic banking activities and are globally expanding E-banking
activities exploring the use of wireless networks and venturing in to some new areas of electronic
commerce. Banks offer E-banking services to expand market share or as a cost saving strategy to
reduce paper work and personnel (WWW.ehow.com).

In this context, the study will attempt to trace the present status of E-banking service on
commercial bank of Ethiopia in Injibara town, visualize the opportunities and looks at the
challenges faced in providing the service.

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1.2 Statement of the study
Now a day‟s business environment are changing rapid .The competition among industries is
becoming intense. Information technology is a key aspect which may be considered as a force for
such change (Kaleem& Ahmad, 2008). Such phenomena affect either negatively or positively.
The modern E-banking method like ATM banking ,which refers to the use of modern technology
that allow customers to access banking service electronically . Whether it withdraws cash or
transfer funds, there is a little knowledge in Ethiopia (Mobile and Agent Banking Directive).
unavailability of the backbone network connections is also another problem, inadequacy
infrastructure especially telecommunication blurred of information commutation and technology
(ICT) penetration in banking sector insufficient legal and regular form of support and etc. are the
major challenges (Diligonasetal, 2009). Apart from above many studies indicate that there are
link between customer satisfaction, service quality and profitability. In order to meet customer
demand many companies need to better service their customer. Tzazu (2012) has made a survey
on service quality in relation to customer satisfaction in commercial bank of Ethiopia at kossober
branch Mesay (2012) also investigated bank service quality, customer satisfaction and loyalty in
Ethiopian bank sector. But, there is no such prior research conducted to assess the role of ATM
service in Ethiopia with relation to customer satisfaction. Thus, this proposal appears to be one
of the academic investigations the ATM service customer satisfaction.

1.3 RESEARCH QUESTIONS

The research will attempt to answer the following questions:

1. What are the benefits of adopting E-banking service from the viewpoints of banks?

2. What are the major challenges of the adoption of E-banking in commercial bank of
Ethiopia in Injibara town?

1. What are the accessible opportunities for the adoption of e-banking services in commercial
banks of Ethiopia in Injibara town?

2. What is the level of understanding of customers about E-banking?

3. What is the competitive advantage of the market share of the banking by providing E-banking
system?

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1.4 Objectives of the study

1.4.1. General Objective

The main objective of the study is to assess the challenges and prospects of E- banking on
commercial banks of Ethiopia particularly in kossober branch in Injibara town.

1.4.2. Specific Objectives

The specific objectives of the study are;
1. To identify the benefits realized by commercial banks in the adoption and practice of E-
banking.

2. To examine the major challenges in the adoption of E-banking service in commercial

banks.

3. To identify the accessible opportunities for the adoption of E-banking service in

commercial banks.

4. To identify the contribution of E-banking system to increase customer satisfaction.

5. To analyze the competitive advantage of market share of the bank by providing E-

banking services.

1.5 Significance of the study

First of all, the study will be useful for Ethiopian commercial banks of kossober branch in order
to see the prospects and challenges of E-banking on banks in comparison with the ordinary
mortar and brick banking system. Also it helps to identify what actions should the banks take in
order to benefit from the opportunities and how to overcome the challenges. and for our the
researchers it helps us to implement the research that we have learned. Moreover, it will be used
as an initiation for those who are interested to conduct a detailed and comprehensive study
regarding with the challenges and prospects of E-banking in commercial banks of Ethiopia.

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1.6 Scope of the study
The study will conduct at Kossober branch of commercial bank of Ethiopia in Injibara town and
also the research will be conducted in 2025 .the research will employ the descriptive research
design.

1.7 Organization of the study

The study will be organized into five chapters: Chapter one focuses on the back ground of the
study, statement of the problem, research questions, objective of the study, significance of the
study, scope of the study, and organization of the study. Chapter two include: literature review,
Chapter three include methodology of the study. Chapter four includes method of data analysis
and interpretation, Chapter five will include conclusions and recommendation.

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CHAPTER TWO

REVIEW OF RELATED LITRATURE

2.1 Definition of Electronic banking

Electronic banking is the modern topic in the era of science and technology. Though electronic
banking started in 80‟s but the revolution has taken place in 20 th century. Since then electronic
banking concept is flourished with populous model, theory and practical concept. So, before
going to discuss any core content of electronic banking, it is good to memorize the fundamental
concept of electronic banking which helps to realize basic concepts of electronic banking.
According to Abide and Noreen electronic banking defined as any use of information and
communication technology and electronic means by a bank to conduct transactions and have
interaction with stakeholders (Abraham,2012).

Different authors have defined it in different ways based on their understanding of the
application of electronic banking. According to Daniel (1999), electronic banking is electronic
connection between the bank and customer in order to prepare, manage and control financial
transactions.

In the opinion of Daniel (1999), E-banking is online banking (or Internet banking) which allows
customers to conduct financial transactions on a secure website operated by their retail or virtual
bank, credit union or building society. This implies that E-banking is a service that allows an
account holder to obtain account information and manage certain banking transactions through a
personal computer via the financial institution web site on the internet.

2.2. Electronic banking classification

In the view point of use and access media, electronic banking can be classified in to three narrow
sections (Mescon, 2003). Such as; Telephone banking (the oldest and poorest one), Internet
banking (online banking) and Mobile banking.

2.2.1 Telephone banking (Tele banking)

Telephone banking is a service provided by a financial institution that enables customers of the
financial institution to perform financial transaction over the telephone, without the need to visit
a bank branch or automated teller machine.

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It allows consumers to phone their financial institutions with instructions to pay certain bill or to
transfer funds between accounts (FTC, 2006). Bank‟s point of view, telephone banking reduces
cost of handling transactions by reducing the need for customers to visit a bank branch for non-
cash withdrawal and deposit transaction.

2.2.2 Internet banking

Internet banking refers to systems that enable bank customers to get access to their accounts and
general information on bank products and services through the use of banks website, without the
intervention or inconvenience of sending letters, faxes, original signatures and telephone
confirmations (Thulani et al, 2009). For those that have access to the internet and a computer all
you need to do is proceed to your banks website and login. From there you have access to all of
your accounts that you have at that bank. Transfer funds between your accounts with ease. You
can also use online banking to see how much money you have in your accounts and where the
money you have spent has gone.

2.2.3 Mobile banking

Mobile banking is a term used for performing balance checks, account transactions, payments,
credit applications and other banking transactions through a mobile device such as a mobile
phone or personal digital assistant (Michael H.mescon, 2002).

2.3 Advantages of electronic banking

After getting the number of services provided by the Ethiopian banks through electronic banking
it is easy to what advantages we are getting by establishing and using electronic banking. The
advantage can be classified in three category, these are; National point of view ,Banks‟ point of
view and Customers‟ point of view, (Robert,2002).

Electronic banking systems provided easy access to banking services. Electronic banking (E-
banking) reduces the transaction costs of banking for both Small and Medium Enterprises
(SMEs) and banks. SMEs need not visit banks for banking transactions, providing round the
clock services (Cheng, 2006). Banks can benefit from lower transaction costs as E-banking
requires less paper work, less staffs and physical branches (Cheng, 2006)

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2.3.1 Banks ‘point of view’
From the banks‟ view point, banks are getting some specific advantages after starting the
electronic banking services. These benefits are; E banking reduces the capital expenditure and
staff cost of the bank.

“Profit maximization; the main goal of every company was to maximize profits for its owners
and banks were not any exception. Banks are increasing its profit by reducing the cost of paper,
time, etc. by using electronic banking. Thus automated electronic banking services offered a
perfect opportunity for maximizing profits. “Increase services quality; features of electronic
banking services include less time, complete transaction, no human conflict and presence etc.
thus the quality of services of bank is increasing day by day.

“Increased customer rate; It is the most noticeable change in bank after starting E-banking
services. Customers are accepting this medium beside a traditional account. Ultimately, the profit
of bank is increased.

2.3.2Customers’ point of view;

The main benefit from the bank customers‟ point of view was significant saving of time by the
automation of banking services processing and introduction of an easy maintenance tools for
managing customer‟s money. The main benefits of E-banking were as follows; Reduce costs: in
accessing and using the banking service, Increased comfort and time serving: Transaction can be
made even after banking hour without the physical interaction of the bank 24 hours a day, Speed:
The response of the medium was very fast therefore customers actually waited till the last
minute before concluding a fund transfer, Convenience: all the banking transaction performed
from the comfort of the home or office or from the place a customer wants to, Better cash
management. E-banking facilities speed up cash cycle and increases efficiency of business
processes as large variety of cash management instruments is available on internet sites of banks
and Corporations had easier access to information as they checked on multiple accounts at the
click of a button.

2.4 Advantages and Disadvantages of internet banking

2.4.1. Advantage
You can make transfers and other changes while the bank is closed, To reconcile your statement
with your financial management software It is easy to view recent transaction and monitor your
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account, It removes the traditional geographical barriers as it could reach out to customers of
different countries / legal jurisdiction and Thousands of Customers can be dealt with at once.

2.4.2. Disadvantage
If the bank‟s server is down, you can‟t use it, only some places will charge you for online access
and your internet connection must be working indoor for you to have access.

2.5 Delivery channels of E-banking

E-Banking services are delivered through various electronic means collectively called
electronic delivery channels. Electronic Banking is really not one technology, but an
attempt to merge several different technologies. The various delivering channels for E –
banking is discussed as follows:

2.5.1 Automated Teller Machines (ATMs)

ATM is also called 24-hour tellers are electronic terminals which give consumers the opportunity
to bank at almost any time (FTC, 2006).

It is described as a combination of a computer terminal, record-keeping system and Cash vault in

one unit, permitting customers to enter the bank‟s book keeping system with a plastic card
containing a Personal Identification Number (PIN) or by punching a special code number into
the computer terminal linked to the bank‟s computerized records 24 hours a day (Rose, 1999).

To withdraw cash, or transfer funds between accounts, a consumer needs an ATM card and a
personal identification number. Once the customer login, access to transactions are displayed on
the screen. It offers several retail banking services to customers.

Advantages of ATM for the banks:

There is a saving in costs because staffs are not needed for routine tasks, the machines have
capacity to handle with very high volume of works and outlets for banking services can be
provided in a wide choice of location not restricted to branch sites.

Disadvantage of ATM for the banks:

There is a loss of personal contact with customer which may make selling other services more
difficult.

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Advantage of ATM for customers:

Service is very quick and Machines are available in many locations and also in operation when
branches are shut.

Disadvantage of ATM for customers:

Services are impersonal and may be difficult to keep track of transaction because machines don‟t
always web (Handerson, 1998).

2.6 Point of Sale (POS)

Point of sale is an online system that allows customers to transfer funds instantaneously from
their bank accounts to merchant accounts when making purchases (at purchase points). It is an
electronic payment type that allows credit/debit card holders make payments at sales or purchase
outlets. It allows customers to perform the following services: Retail Payments, Cashless
Payments, Cash Back Balance Inquiry, Airtime Transaction, printing mini statement etc. (Kuma)

2.7 Challenges of E-banking

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.

Since E-banking offers some smart services benefiting both banks and customers compared with
traditional banking system, it has become essential to make necessary room for banks to increase
E-banking. Among others, attractiveness of E-banking includes: it lowers transaction cost;
provide 24- hour services; 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.

Banking in Ethiopia faces numerous challenges to fully adopt and adapt E-banking applications
and seizes the opportunities presented by information communication technology applications in
general.

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Key challenges for E-banking applications are:

Low level of internet penetration and poorly developed telecommunication infrastructure: lack of
infrastructure for telecommunication, internets and online payments slow down smooth
development and improvements in e-commerce in Ethiopia. Most rural areas of the country,
where the majority of small and medium scale business are concentrated, have no internet
facilities and are unable to engage in e-commerce activities.

High rate of illiteracy: low literacy rate is a serious obstacle for the adoption of E-banking in
Ethiopia as it hinders the accessibility of banking services. For citizens to fully enjoy the benefits
of E-banking, there should not only know how to read and write but also possess basic
information communication technology literacy.

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 and information communication
technology equipment.

Costs – where available, the cost of information communication technology 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: Lack of awareness on the
benefits of new technologies, Lack of trained personnel in key organizations and frequent
connectivity failure in telephone lines.

Frequent power interruption: lack of reliable power supply is a key challenge for smoothly
running E-banking in Ethiopia.

2.8 Prospects of E-banking

Apart from the developed countries, the developing countries are experience strong growth in e-
banking. The government‟s emphasis on setting up information communication technology park,
raising allocation for developing information communication technology infrastructure, waiving

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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.

Specially country like Ethiopia which have a huge potential customers for such service coupled
with a fast growing economy will be the main advantages of the banking service to offer
different products with the help of technology to their customers. The fact that the overall
commercial banks branch in Ethiopia compared to the size of the population and the area of the
country is very minimal, it creates a good advantage to expand E-banking facilities and reach the
wide spread population of the country through fundamental banking system.

We can see the following as some of the prospects of E-banking:

Opportunities offered by information communication technology through E-learning programs:

the school net program introduced in Ethiopia to connect more than 500 schools creates
opportunities to citizens to be familiar with information communication technology applications
and increases the awareness of the public (Yayehyirad Kitaw, 2006).

Late adopter opportunities: the commercial banks in Ethiopia should take advantage of already
developed best and existing software applications.

Commitment of government: the Ethiopian government considers information communication

technology as an indispensable tool to alleviate poverty and facilitate state transformation aiming
an effective and efficient service delivery.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

In this research the study will employ the descriptive research design because this research will
focus on describing the current situations of the problem and examining the main challenges and
opportunities of E-banking. And also it helps us to explain the phenomenon and assess the
current situations of E-banking.

3.2 Data type, Data source

3.2.1 Data type

In this study we will use qualitative data type to find out how researchers feel or what they think
about the situation and do not any involves collecting and analyzing data and applying statistical
tests.

3.2.2 Data source

In this study we will use both primary and secondary data source. The primary data will be
collected from the customers and employee of the bank. And the secondary data will be collected
from different books, reports, and magazine that related with our problem

3.3 Method of data collection

The researchers will rely on both primary and secondary data sources. The following instrument
will be used in the study.

Questionnaire- it will prepare accurately and distribute to the respondents to get adequate answer
the question that the researchers needs. Open-ended and closed-ended questions will be used for
the research.

Interview- it will be conducted to the related employees, bank managers and customers of those
selected banks. As a supplement to the questionnaire, the researchers will use interview to make
out some of the information that couldn‟t be assessed using the questionnaire.

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3.4 Target and total Population
The target population is the collection of elements or objects that possess the information sought
by the researcher and about which inferences are to be made. The target population should be
defined in terms of elements, sampling units, extent, and time. In this research the target
populations are 5 branches of commercial bank of Ethiopia in Injibara town.

3.5 Sample size and Sample Technique

We believe that, higher customer branches will satisfy our study. The sample of this study will
be chosen, based on the largest customer daily users, which are more than 2,000 customers per
day. Due to this the research will focus on two branches; which is Injibara main branch and
kossober branch. Respondents will be taken from E-banking service providers and mostly users
in this selected branch, by using purposive non-probability sampling technique. The sample size
for qualitative study will be determined or decided based on the point of saturation.

3.6 Method of Data analysis

The data after being collected from the interview and questionnaire, missing or incomplete data
will be managed before analysis and later on data will be analyzed using descriptive statistics
such as mean, standard deviation, frequency and percentage depending on the type of variable
and for background data which is data collected by Appendix I and II questions. The result of the
study will be reported using texts, figures and tables. The qualitative data will be analyzed using
thematic analysis.

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4. Work 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 us and the advisor to monitor project progress and provide
timely feedback for research modification or adjustments we use the following time plan.

Table 1: Work plan to assess the challenges and prospects of electronic banking in
commercial bank of Ethiopia, 2025
No Activity Time period(month)
Nov Dec Jan Feb Mar Apr May
2024 2025 2025 2025 2025 2025 2025
1 Title selection
2 Preparation of proposal
3 Collection of usefull
materials
4 Data collection
5 Data analysis and writing
final proposal
6 Submission of proposal

7 Presentation of proposal

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5. Budget Breakdown
It will show how much it will cost to answer the question. We are explicitly state cost for every
budget item that should be quantitatively shown. Typically, our proposal budget reflects as
follows;

No Equipment and personnel items .Budgeted cost

1 Transportation cost 300

2 Printing 120

3 Telephone 100

4 Internet 50

5 Other miscellaneous expense 110

6 Total 680

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6. REFERENCES
1. -Ainin, S, Lim C.H., & Wee, A. (2005). Prospect and challenge of e-banking in
Malaysia.

2. -Cheng.T. C. E., (2006). Adoption of internet banking.

3. Creswell, John W (2007), “Research design: Qualitative, Quantitative, and Mixed

Methods Approaches”, 2nd ed, Sage Publications, London, UK.

4. Federal Trade Commission, FTC, (2006) FTC facts for consumers.

5. Abraham H (2012) Challenges and Opportunity of Adapting electronic banking in

Ethiopia.

6. http; ivy thesis typepad.com

7. Business today, Michael H. Mescon, 2002 (4thedition) USA.

8. Robert, 2002 (6th edition), the new international money game, London

9. Rose, P. S. (1999). Commercial bank management, (4thedition) Irwin/McGraw. Hill,

Boston, USA

10. Thulani, D., Tofara, C & Langton, R. (2009). Adoption and use of internet banking in
Zimbabwe: An explanatory study .Journal of internet banking and commerce, Vol14
(1).WW.eurojournal.com

11. Yayehyirad Kitaw (2006). E-government in Africa, prospects, challenges and practices.

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Appendix I
Injibara University

College Of Business and Economics

Department Of Accounting and Finance

Dear Sir/Madam

We are a group of, 2025 senior students at Injibara university Department of Accounting and
Finance and the aim of this questionnaire is to collect data for our proposal entitled
“CHALLENGES AND PREOSPECTS OF E-BANKING”

Purpose is only academic purpose

No need of writing name

More than one choice can be selected

Part One: Demographic Variable for Questionnaire Designed for Employees of the Branch
Background Data

1. Sex Male Female

2. Age between 18-25 26-35 36-45 above 46
3. Education level Diploma Degree MA/MSc
Other specify

Job position

4. Job experience in relation to E-Banking (EPS, Electronic payment system)

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 Part Two Questions Related to Proposal Topic

5. How do you evaluate factor influence of adopting of E- banking in CBE in the branch
If we lose customers ATM--------------------------------
If you properly use it
6. How to fill current condition of infrastructure and skilled manpower?
When customers are lack of application/illiterate man ------------------------------------------
When ATM device expensive how to obtain in your bank----------------------------------------------

7. What are the common problems of electronic payment system?

8. Are there employees to use of application CBE in open of ATM unskilled manpower?

Yes No

9 If your question number (8) is yes explain your reason

10 What are problem to increase attitude of customer in use of E-banking? (For this question
you can select more than one option)

Lack of experience use of ATM

Lack of skilled manpower
Cause of suspicious from that bank
If there is other reason, please specify ----- -----------------------------------
11 What are the challenges of customer are as prospect and enjoy from using E-banking?

Thank you for your willingness to response and taking your time.

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Appendix II

Injibara University

College Of Business and Economics

Department Of Accounting and Finance

Dear Sir/Madam

We are a group of 2025 senior student at Injibara university Department of Accounting and
Finance and the aim of this questionnaire is to collect data for our proposal entitled
“CHALLENGES AND PREOSPECTS OF E-BANKING”

Purpose is only academic purpose

No need of writing name

More than one choice can be selected

PART ONE Questionnaire Designed for EPS/Electronic Payment System Users

Background Data
1. Sex Male Female

2. Age between 18-25 26-35 36-45 above 46

3. Education level Diploma Degree MA/MSc

Other specify

4. How many years you used E-Banking (EPS, Electronic payment system)?

Up to 5 years 6-10 years more than 10 years

5. Type of job you are doing

Employee in governmental organization

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 Employee in private organization
Employee in NGO/non-governmental organization
Private business runner
Not employed in any organizations
Employee in religious institutions
Specify if other

PART TWO Questions Related to Proposal Topic

6. Are there any challenges in terms of the inadequate of infrastructure?

7. Why do you select CBE in the Branch from many bank lives in Injibara town? For this
question you can select more than one option.
Because it is near to my residence
Because it gives quick service
Because it uses latest technology
Because it gives EPS service
If there is other reason, please specify
8. Why do you choose to use EPS? For this question you can select more than one option.
To save time
To make more secured my money
Because it is convenient to make payment
Because it is convenient to receive cash from my account anywhere and anytime
If there is other reason, please specify
9. What is your source of information to be customer using
EPS? Different media - From
the Bank
Informal way - From internet
If there is other reason, please specify

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10. What are feeling to you when without any stay or wait that bank gives service for you?

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 -Highly satisfy -satisfy -average
-Not satisfy -highly not satisfy
11 What are factors influences as adopting E- banking?

Because of illiterate man

Because of not free use

Because of have problem to save

If there is other reason, please specify

12. What are the challenges you faced when you are using EPS?

13 when you lost your ATM that bank to pay money for obtain other ATM?

Yes No

Thank you for your willingness to response and taking your time.

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 Appendix III
Injibara University

College Of Business and Economics

Department Of Accounting and Finance

Dear Sir/Madam

We are a group of 2025 senior students at Injibara university Department of Accounting and
Finance and the aim of this questionnaire is to collect data for our proposal entitled
“CHALLENGES AND PREOSPECTS OF E-BANKING”

Interview Designed for Managers of the Branch

N.B: -The objective of designing and asking this interview is to collect the information needed
relating to the proposal topic about factors affecting the effectiveness of Electronic Payment
System from Managers for the purpose of conducting proposal as partial course fulfillment of
the requirement for research methodology in accounting and finance.

1. Your position in the branch:

2. Numbers of ATM machine in the branch: ---------------------------------------------------
3. Numbers of EPS users in the branch:
4. When did you start providing EPS service in your branch?

What are EPS types of the services? For this question you can select more than one

option ATM POS E-Mobile Banking

Internet Banking

If other, please mention

1. What activities are you performing in rising awareness for the public how to use the EPS in
your branch?
2. How to see factors in influence adopting E-banking in CBE Branch?

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3. What are problem the current condition infrastructure and skilled manpower?

4. What are problem customers attitude towards EPS?

9. What are your plans to solve the problems of EPS in your branch?

Thank you for your willingness to response and taking your time.

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