CHALLENGES AND OPPORTUNITIES OF E-BANKING SYSTEM IN COMMERCIAL BANK OF ETHIOPIA (CBE MAIN DISTRICT OFFICE ) IN MEKELLE CITY

Abstract

The aim of this research was to investigate the challenges and opportunities of electronic banking users in the Commercial Bank of Ethiopia in Mekelle city at the main district office. The Researcher used 180 samples of e-banking users that were conveniently found around the Commercial Bank of Ethiopia, Mekelle main district office. The researcher employed a questionnaire instrument of data collection to analyze the opinions of electronic banking users regarding the challenges and opportunities of electronic banking. The researchers findings, the opportunities and benefits were increasing habit of customers to use e-banking, governments role on by establishment of directive and guideline of e-banking like limiting cash withdrawal and commitment and expansion of ICT infrastructure, denial of unauthorized access,provision of speed and convenient service were among the main opportunities of electronic banking. and also, beyond the opportunities electronic banking play important role on customers by better provision of service at low cost,low transaction error and mistakes, provision of bank service with minimum cycle time, safe, facilitate e purchasing, satisfy customers with speed of service, updating account.in addition to the above challenges of e banking was lack of reliable power and weak internet penetration, fear of security , lacks of trust of by customer ,fraud and scamming, lack of legal frame of e-banking to resolve dispute, poor inter banking network connectivity, providing weak and suspect able password to users, outdated software application was among the challenges of e-banking. Hence, the research found the above-listed opportunities and challenges. The researcher recommends as following: Create awareness on customers that e-banking is easy to use, fast and convenient, so as to avoid the fear and worry of customers. the bank should build strong e-banking network connectivity to provide fast, reliable and convenient e-banking service to customers. Monitor and track the online-banking system to protect unauthorized access of scammers and to avoid/reduce financial fraud and update new information to customers via social media, SMS or main stream media channels to aware, Provide strong PIN and pass word to users that is not vulnerable and easily suspect able or teach to user to change their password with strong code and not to show to anyone. The bank uses blockchain security protection tools such as biometric authentication methods, facial recognition, and fraud detection to meet regulatory framework, strengthen cyber security defence, and build lasting trust with customers.