The effect of digital platform on the performance of commercial bank in Ethiopia: in the case of Addis-Ababa

Digital banking is increasingly vital for banks' service marketing, particularly in Ethiopia, where customer demand for financial services is rising alongside digital device usage.This study investigates the impact of digital banking on customer experience in selected commercial banks in Addis Ababa, specifically focusing on three banks: Bank of Abyssinia, Commercial Bank of Ethiopia, and United Bank. Research MethodologyData were collected through a survey questionnaire distributed to 384 customers across twelve branches of the selected banks, employing a simple random sampling technique.The reliability of the survey instrument was assessed using the Cronbach alpha test.To analyze the data, Pearson correlation and multiple linear regression were utilized to explore causal relationships between digital banking practices and customer experience. FindingsThe results indicate that digital banking significantly enhances customer experience, with a positive correlation established (p < 0.05).This suggests that as customers engage more with digital banking services, their overall experience improves.The study emphasizes the necessity for banks to invest in digital banking enhancements to provide exceptional customer experiences. RecommendationsThe research recommends that commercial banks in Ethiopia should focus on improving their digital banking capabilities to meet customer expectations effectively.By doing so, they can better capture and retain customers in an increasingly competitive market.This study contributes to understanding how digital banking influences customer satisfaction and loyalty, highlighting its importance in modern banking strategies.