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Research Article
Effect of E-Banking Service on Financial Performance of Commercial Banks: A Case of Selected Private Commercial Banks in Ethiopia
Abebe Tilahun Kassaye*,
Anteneh Mengist Alamirew
Issue:
Volume 10, Issue 2, June 2025
Pages:
45-57
Received:
18 April 2025
Accepted:
4 May 2025
Published:
6 June 2025
Abstract: This study examines the impact of e-banking services on the financial performance of selected private commercial banks in Ethiopia. It focuses on the roles of ATM, POS, Internet Banking (IB), Debit Card (DC), and Mobile Banking (MB) services. Financial performance is evaluated using Return on Assets (ROA) and Return on Equity (ROE) as key indicators. A panel dataset was collected from six purposely selected private commercial banks: Awash Bank S.C., Bank of Abyssinia, Dashen Bank, Cooperative Bank of Oromia, United Bank, and Zemen Bank S.C., covering the period from 2018 to 2023. Utilizing a quantitative approach and employing both descriptive and explanatory research designs, the study applies fixed and random effects regression models estimated with E-Views 13. The findings indicate that POS terminals have a significant negative effect on both ROA and ROE, suggesting that investments in POS infrastructure may not be generating the expected financial returns. In contrast, ATMs, debit cards, and internet banking services exhibit a significant positive impact on both profitability measures, highlighting their effectiveness in enhancing bank performance. Interestingly, mobile banking shows a mixed effect; it positively influences ROA but negatively and significantly affects ROE, indicating potential inefficiencies or cost challenges in mobile banking deployment. This study contributes original insights to the existing literature by providing context-specific findings from Ethiopia, particularly regarding the differing effects of mobile and POS banking services compared to previous research. It enriches the discussion on the strategic role of digital banking technologies in shaping the financial outcomes of banks operating in emerging markets.
Abstract: This study examines the impact of e-banking services on the financial performance of selected private commercial banks in Ethiopia. It focuses on the roles of ATM, POS, Internet Banking (IB), Debit Card (DC), and Mobile Banking (MB) services. Financial performance is evaluated using Return on Assets (ROA) and Return on Equity (ROE) as key indicator...
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Research Article
Effect of Customer Retention Strategy on Performance of Micro and Small Enterprise of Three Wollega Zones: In Case of Selected Town (Nekemte, Gimbi and Shambu)
Hika Debela Biru*
,
Musefa Yasin,
Oliyad Ejeta Abdeta
Issue:
Volume 10, Issue 2, June 2025
Pages:
58-75
Received:
10 April 2025
Accepted:
30 April 2025
Published:
6 June 2025
Abstract: These days, a highly competitive corporate climate may increase the need to improve customer retention and fortify customer connections. The aim of this study is investigating how customer retention strategies affect small and microenterprise performance in three Wollega Zones. An explanatory and descriptive research design was employed. Additionally, a combination of qualitative and quantitative methodologies was used. The study's target population included all SMEs' owners and managers as well as their employees. To choose the study's sample size, the researchers employ both stratified and purposive selection strategies. Data was gathered from 346 participants. Both primary and secondary data were gathered for this investigation. The data was analyzed using the mean, frequency, percentages, and standard deviation. The association between SMEs' performance and customers’ retention strategy was measured and predicted using regression analysis. The study's conclusions demonstrated a relationship between SMEs' performance and their customer retention strategy status, with higher performance being related with better customer retention strategy status. Additionally, it was discovered that the businesses were not employing the right sales marketing tools for the right audiences to raise awareness of their goods and services. Additionally, it comes to the conclusion that the performance of small and micro enterprises was significantly correlated with customer retention strategies.
Abstract: These days, a highly competitive corporate climate may increase the need to improve customer retention and fortify customer connections. The aim of this study is investigating how customer retention strategies affect small and microenterprise performance in three Wollega Zones. An explanatory and descriptive research design was employed. Additional...
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Review Article
The Future Trend of Consumption Downgrade and Real Estate Bubble Economy in First-tier Cities
Kexin Zhou*
Issue:
Volume 10, Issue 2, June 2025
Pages:
76-80
Received:
17 April 2025
Accepted:
3 May 2025
Published:
6 June 2025
Abstract: This article explores the trend of consumption decline in first-tier cities and the economic bubble of real estate. The research is conducted against the backdrop of the slowdown in economic growth and the increase in uncertainty of household income. This prompts the residents in these cities to shift their consumption habits towards more affordable goods. The research methods include examining the definition, causes, and consequences of the economic bubble of real estate, as well as its impact on society. The observation focus of this research is also on analyzing policy responses and subsequent preventive measures. It also takes into account the definition and characteristics of the phenomenon of consumption decline and its impact on real estate demand and investment. Through the research, it can be concluded that the trend of consumption decline has complex and multi-faceted influences on the real estate investment landscape of first-tier cities. It not only changes the dynamic of market supply and demand but also affects the strategic investment decisions of developers and investors, bringing great impacts to the social economy and causing changes in the market.
Abstract: This article explores the trend of consumption decline in first-tier cities and the economic bubble of real estate. The research is conducted against the backdrop of the slowdown in economic growth and the increase in uncertainty of household income. This prompts the residents in these cities to shift their consumption habits towards more affordabl...
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Research Article
Determinants of Customers' Digital Banking Utilization a Pathway to Cash-Lite Economy: Evidence from Addis Ababa
Abebe Tilahun Kassaye*,
Tigist Belachew,
Kiros Haftu
Issue:
Volume 10, Issue 2, June 2025
Pages:
81-93
Received:
19 April 2025
Accepted:
7 May 2025
Published:
16 June 2025
Abstract: Ethiopia's digital economy is still developing, with only a limited number of private sector companies offering online services and a few government-sponsored initiatives aimed at digitalization. This study explores the factors influencing customers' utilization of digital banking as a pathway to a cash-lite economy, focusing on evidence from Addis Ababa. The research is framed within the Unified Theory of Acceptance and Use of Technology (UTAUT2) and employs a quantitative approach using a descriptive and explanatory research design. We collected primary data from customers of commercial banks in Addis Ababa. Accordingly, 428 questionnaires were distributed to customers of commercial banks in Addis Ababa using the convenience sampling method, and 405 responses were properly filled out with a response rate of 94.62%. The overall reliability, measured by Cronbach's alpha, was found to be 0.913. The findings indicate that performance expectancy, facilitating conditions, hedonic motivation, and habit significantly and positively influence digital banking utilization, supporting the hypothesis. In contrast, effort expectancy, social influence, and price value were found to be insignificant factors. The study concludes that increased digital banking utilization can facilitate progress toward a cash-lite economy. To encourage customers to adopt digital banking services, commercial banks should develop strategies to raise awareness and create incentive mechanisms. Additionally, the national bank should establish a legal framework to monitor and evaluate digital banking transactions within commercial banks, promoting the transition to a cash-lite economy.
Abstract: Ethiopia's digital economy is still developing, with only a limited number of private sector companies offering online services and a few government-sponsored initiatives aimed at digitalization. This study explores the factors influencing customers' utilization of digital banking as a pathway to a cash-lite economy, focusing on evidence from Addis...
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Research Article
Determinants of Youth Unemployment in the Case of Kellem Wollega Zone, Oromia Regional State, Ethiopia
Workneh Girma Gelalcha*,
Meseret Wakjira
Issue:
Volume 10, Issue 2, June 2025
Pages:
94-113
Received:
24 April 2025
Accepted:
13 May 2025
Published:
18 June 2025
Abstract: Unemployment is a macroeconomic problem that disturbs people most directly and strictly. The younger generation is exposed more by unemployment compared to adults due to different aspects. This study designed to identify the major determinants of youth unemployment in Kellem Wollega Zone. The research has employed descriptive and explanatory research design in this study, a combination of qualitative and quantitative approaches were employed. The data was collected by designating questionnaires to an overall number 366 youth by means of multi stage sampling technique in five selected kebeles. Descriptive and logistic regression model were used to analyze the collected data. The result from the study indicated that approximately one third of the respondents were employed, whereas the remaining two third was unemployed. The result of binary logistic regression analysis indicated that Sex, work experience, educational level of youth, Access to credit and attitude to words own Job had significant effect on youth unemployment in Kellem Wollega Zone. However, the variables Age, Marital status of youth and educational level of house hold head was found to be statistically insignificant. It is recommended that, motivating young people to improve their educational attainment, empower women, and participate more in social, economic and political aspects; encourage youth to increase their credit service and accessibility, and improve youth attitudes towards self-employment by providing them entrepreneur training were suggested as recommendations.
Abstract: Unemployment is a macroeconomic problem that disturbs people most directly and strictly. The younger generation is exposed more by unemployment compared to adults due to different aspects. This study designed to identify the major determinants of youth unemployment in Kellem Wollega Zone. The research has employed descriptive and explanatory resear...
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