This study is aimed to test the effect of e-banking on the profitability of commercial banks in Ethiopia during the period 2011-2015. The study sample consists of six commercial banks in Ethiopia.
Percentages are used to test the effect on profitability; these percentages are Return on Assets and Return on Equity as profitability measures. Other used as independent variables are: ATM, Debit cards, and POS. Regression analysis is used to test the effect of e-banking services on the Profit .The regression analysis showed that there is positive effect of e-banking services on the profitability of commercial banks in terms of ROA, and ROE.
The last decade of the 20th century witnessed profound technological changes among which is the advent of electronic commerce, or the exchange of products and services and payments via telecommunication systems consequently according to Gunasekaran and Love (1999) most industries have been influenced, in one way or another, by this promising new technology. In addition to that according toJyotiVijet al, (2014) the new millennium has opened a plethora of opportunities in information technology and has made tremendous impact in Banking. The business environment globally has changed and it has been characterized by stiff competition among the players and the banking industry is no exception.
Inhaltsverzeichnis (Table of Contents)
- Chapter One: Introduction
- 1.1 Background of the Study
- 1.2 E-Banking History in Ethiopia
- 1.3 Statement of the Problem
- 1.4 Objectives of the Study
- 1.4.1 General Objective
- 1.4.2 Specific Objective
- 1.6 Significance of the Study
- Chapter Two: Review of Related Literature
- Introduction
- 2.1 Theoretical Review
- 2.1.1 Definition of E-Banking
- 2.2 The Concept of E-Banking
- 2.3 Economic Rationale of E-Banking
- 2.4 Technology-Organization-Environment (TOE) Framework
- 2.4.1 Technological Factors
- 2.4.2 Organizational Factors
- 2.4.3 Environmental Factors
- 2.5 Technology Acceptance Model
- 2.6 Innovation Diffusion Theory
- 2.8 Type of Electronic Banking
- 2.8.1 Mobile Banking
- 2.8.2 Internet Banking
- 2.8.3 Telephone Banking
- 2.8.4 Electronic Card
- 2.8.5 Automated Teller Machine (ATM)
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research project aims to quantitatively analyze the effect of e-banking services on the profitability of commercial banks in Ethiopia between 2011 and 2015. The study uses Return on Assets (ROA) and Return on Equity (ROE) as measures of profitability and considers the impact of ATMs, debit cards, and POS systems as independent variables.
- Impact of e-banking on bank profitability
- Relationship between specific e-banking services (ATMs, debit cards, POS) and bank performance
- Analysis of e-banking adoption in the Ethiopian banking sector
- Application of regression analysis to assess the impact of e-banking
- Contribution to the limited empirical research on e-banking's effects in Ethiopia
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter One: Introduction: This chapter sets the stage for the research, establishing the context by highlighting the limited empirical studies on e-banking's effect on bank performance in Ethiopia. It clearly defines the problem—the lack of quantitative analysis on this relationship—and articulates the study's objectives: to investigate the impact of e-banking services on the profitability of Ethiopian commercial banks using ROA and ROE as key performance indicators. The chapter also briefly touches on the significance of the study and its potential contribution to the field. The background section likely provides historical context regarding the adoption and growth of e-banking within the Ethiopian banking sector, setting the stage for the empirical analysis that follows.
Chapter Two: Review of Related Literature: This chapter presents a comprehensive review of existing literature relevant to the study’s focus. It likely starts with definitions of key concepts like e-banking and its various forms. Then it delves into the theoretical frameworks, possibly including models like the Technology-Organization-Environment (TOE) framework and the Technology Acceptance Model. This section aims to contextualize the study within existing research and theories of technology adoption and its effect on organizational performance. The review should systematically analyze the economic rationale for e-banking, summarizing existing research on its benefits and challenges. It likely covers various aspects of e-banking, such as mobile, internet, telephone banking, and electronic card systems, explaining their features and potential impact on profitability. It lays the groundwork for the methodology and analysis chapters that follow.
Schlüsselwörter (Keywords)
Electronic banking, Return on Assets (ROA), Return on Equity (ROE), Automated Teller Machine (ATM), Point of Sale (POS), Debit cards, Ethiopian Commercial Banks, Bank Performance, Profitability, Regression Analysis.
Frequently Asked Questions: E-Banking and Bank Profitability in Ethiopia
What is the main topic of this research preview?
This research preview presents a comprehensive overview of a study investigating the quantitative relationship between e-banking services and the profitability of commercial banks in Ethiopia between 2011 and 2015. The study uses Return on Assets (ROA) and Return on Equity (ROE) as key performance indicators.
What are the key objectives of the research?
The primary objective is to quantitatively analyze the impact of e-banking services (ATMs, debit cards, and POS systems) on the profitability of Ethiopian commercial banks. Specific objectives include examining the relationship between these e-banking services and bank performance, analyzing e-banking adoption in the Ethiopian banking sector, and applying regression analysis to assess the impact.
What are the key themes explored in the research?
Key themes include the impact of e-banking on bank profitability, the relationship between specific e-banking services and bank performance, analysis of e-banking adoption in Ethiopia, and the application of statistical methods (regression analysis) to support the findings. The limited empirical research on e-banking's effects in Ethiopia is also a significant theme.
What e-banking services are specifically examined?
The research focuses on the impact of ATMs, debit cards, and POS (Point of Sale) systems on bank profitability.
What metrics are used to measure bank profitability?
The study uses Return on Assets (ROA) and Return on Equity (ROE) as key performance indicators to measure the profitability of the banks.
What is the time period covered by the research?
The research analyzes data from 2011 to 2015.
What theoretical frameworks are used in this research?
The research preview mentions the use of the Technology-Organization-Environment (TOE) framework and the Technology Acceptance Model. These frameworks likely help explain the adoption and impact of e-banking technologies.
What types of e-banking are discussed?
The research considers various types of e-banking, including mobile banking, internet banking, telephone banking, electronic cards, and ATMs.
What is included in the "Review of Related Literature" chapter?
This chapter provides a comprehensive review of existing research on e-banking, its various forms, theoretical frameworks (TOE and Technology Acceptance Model), the economic rationale for e-banking, and existing research on its benefits and challenges. It also covers various e-banking systems and their potential impact on profitability.
What is the significance of this research?
The study aims to contribute to the limited empirical research on e-banking's impact on bank performance in Ethiopia, providing valuable insights into this relationship for both academic and practical purposes.
What are the keywords associated with this research?
Keywords include: Electronic banking, Return on Assets (ROA), Return on Equity (ROE), Automated Teller Machine (ATM), Point of Sale (POS), Debit cards, Ethiopian Commercial Banks, Bank Performance, Profitability, Regression Analysis.
- Quote paper
- Besufkad Gebre (Author), 2017, The Effects of E-Banking on Bank Performance. The Case of Selected Ethiopian Commercial Banks, Munich, GRIN Verlag, https://www.grin.com/document/999910
