The Impact of Electronic Banking on Financial Performance in Ethiopian Banking Industry: With the Reference of Commercial Banks in Ethiopia

The study's main objectives are to investigate how Ethiopian commercial banks' financial performance is impacted by electronic Banking. Using a quantitative Approach, the researchers employed an explanatory and descriptive research design. The researchers purposefully chose fifteen commercial banks among a total of thirty in Ethiopia that have embraced e-banking services. Secondary sources, including the National Bank of Ethiopia's and commercial banks' annual reports for the years 2015 through 2022, provided the study's data. Statistical techniques like Pearson's Correlation, Pooled OLS Analysis, and descriptive statistics were used to analyze the data. In contrast to other previous researcher, this study examines the impact of e-banking on bank performance both before and during the COVID-19 outbreak. The research indicates that the utilization of electronic banking platforms by Ethiopia's private commercial banks has resulted in relatively high return on assets (ROA), hence enhancing their financial performance. A bank's profitability is determined by a variety of factors, as indicated by the study's findings regarding the variation in ROA over time and between banks. The study suggests that in order to increase productivity and cut expenses, banks should keep making investments in online banking systems.