Internet Banking: The Effect of Information Technology on

Customer Service Delivery and Banks Performance in Ethiopian

Banking Industry
By: Yonas Berhanu (MBA)
Tel: +251910471025
E-mail:- yonas.berhanu@mu.edu.et
Mekelle University
College of Business and Economics
Department of Marketing Management

Due to fierce competition in todays business environment, many companies are required to
build long- term profitable relationship with customers and staffs to achieve market
performance. Information Technology has become more and more important since last decade of
20th century, especially in the service industry like banks. As a result, this study is aimed to
empirically investigate the effect of IT (Computer, Electronic banking, Internet, Extranets, World
Wide Web, Computer security, and Automated Teller Machine) on customer service delivery and
banks performance with reference to Wegagen bank, Dashen Bank, Enat Bank, NIB
International Bank Ambesa, Oromia International Bank, Abyssinia bank, United Bank and
Commercial Bank of Ethiopia (CBE) in Mekelle city. A theoretical framework was used as a
guideline to test the effects of Information technology on customer satisfaction and banks
performance. A quantitative research approach was implemented. Besides, a descriptive
research design was used and a cross - sectional survey was chosen for this study. A
questionnaire derived from previous studies and the relevant literature is completed by 285
customers and employees of commercial banks within the area of Mekelle city. Data analysis
for the study employed statistical tools like correlation, regression models. Correlation analysis
assessed the strength of the association between Age of the bank, Automated Tell Machine,
Electronic Data Interchange, Electronic Fund Transfer, Electronic Banking, Electronic and
Mobile Payment System, Internet Banking, and Mobile Banking and customer delivery and bank
performance and regression analysis assessed how much the independent variables i.e. ICT that
explain the dependent variables which are customer delivery and banks performance. The
finding confirms all the independent variables have a positive and significant relationship with
customer satisfaction and bank performance in the commercial Banks under investigation in
Mekelle city. Furthermore, the study examines a positive and significant influence of ICT on
customer satisfaction and bank performance. Besides, it is found Automated Tell Machine
underpinning of ICT has the highest influence on customer satisfaction in all commercial banks
under investigation.
Key words: Commercial Banks, Information Communication, Technology, Customer Satisfaction, Bank
Performance, Mekelle city.