“

T
HE EFFECT OF ELECTRONIC PAYMENT SYSTEM ON
BANK SERVICE QUALITY IMPROVEMENT A CASE
OF DASHEN BANK wolkite BRANCH”
DEPARTMENT OF ACCOUNTING AND FINANCE
RESEARCH PAPER SUBMITED TO THE DEPARTEMENT OF
ACCOUNTING AND FINANCE IN THE PARTIAL FULFILMENT OF
THE REQUIRENMENT FOR BA DEGREE IN ACCOUNTING

PREPARED BY: ADDISALEM ABEBEW

ID. NO.: 0087/12

ADVISOR: BIRIHANU Y. (MS)

DECEMBER , 2022

WOLKITE ETHIOPIA.
Table of Contents
CHAPTER ON

E
1 INTRODUCTION..................................................................................................................................1
1.1 Background of the study....................................................................................................................1
1.2 Background of the organization.........................................................................................................3
1.3 Statement of the problem.................................................................................................................4
1.4 Objective of the study........................................................................................................................5
1.4.1 General objective........................................................................................................................5
1.4.2 Specific objectives.......................................................................................................................5
1.5 Significance of the study....................................................................................................................6
1.6 Scope of the study.............................................................................................................................6
1.7 Organization of the study..................................................................................................................6
CHAPTER TWO.......................................................................................................................................7
2 LITRATURE REVIEW...............................................................................................................................7
2.1 OVERVIEW OF ELECTRONIC BANKING...........................................................................................7
TYPE OF ELECTRONIC BANKING................................................................................................8
MOBILE BANKING.........................................................................................................................8
INTERNET BANKING....................................................................................................................8
TELEPHONE BANKING................................................................................................................8
ELECTRONIC CARD......................................................................................................................9
2.2 PAYMENT SYSTEMS IN ETHIOPIA.......................................................................................................9
2.2.1 TRADITIONAL PAYMENT INSTRUMENTS CURRENTLY APPLIED...................................................9
CASH....................................................................................................................................................9
2.2.2 ELECTRONIC PAYMENT INSTRUMENTS.....................................................................................10
SWIFT.................................................................................................................................................10
WESTERN UNION MONEY TRANSFER...................................................................................11
2.2.3 CARD BASED PAYMENTS...........................................................................................................11
TOTAL FUEL CARD..............................................................................................................................11

i
 MOBILE PREPAID CARD PAYMENT SYSTEM......................................................................11
CREDIT CARD...............................................................................................................................12
CREDIT CARD IN ETHIOPIAN AIRLINES..............................................................................12
AUTOMATIC TELLER MACHINE (ATM) IN ETHIOPIA......................................................12
2.3 Payment Card Services at Dashen bank...........................................................................................13
3 CHAPTER THREE..............................................................................................................................13
3.1 RESEARCH METHODOLOGY....................................................................................................13
3.2 Study area........................................................................................................................................13
3.3 Research design...............................................................................................................................14
3.4 Data Collection Technique and sources...........................................................................................14
3.5 Sampling Technique.........................................................................................................................14
3.6 Sample Size......................................................................................................................................14
3.7 Method of Data Analysis presentation method...............................................................................14
4 CHAPTER FOUR:...............................................................................................................................15
4.1 TIME AND COST BUDGET.................................................................................................................15
4.2. COST BUDGET.................................................................................................................................15
1. Questioners to employees of the bank...........................................................................................19

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 CHAPTER ONE

1 INTRODUCTION
1.1 Background of the study
Banks are financial institutions that provide financial services to their customers and
businesses. The basic services provided by banks are checking deposit, which can be
used like money to make payments; saving accounts and time deposits that can be used
for future use. In addition to deposit activities banks also provide loans to customers;
cash management services and foreign currency exchange (Microsoft Encarta premium,
2009).

There are different types of banks as a result of specialization and expansion of the
services they render such as commercial banks, industrial development banks,
agricultural development banks, cooperative saving banks and central banks. Except
commercial banks all other banks give special services for their customers and members.
(Microsoft Encarta premium, 2009).

In addition to accepting deposits and giving loans, banks have make their services
increasingly convenient through electronic banking. Electronic banking uses computers
to carry out banking transactions (N.Rajput, 2011).

Information technology is considered as the key driver for the changes taking place
around the world. Due to a pervasive and steadily growth of information and
communication technology, the world banking industry is entering into new phenomena
of unprecedented form of competition supported by modern information and
communication infrastructure (C.S.Murthy,2004)
Electronic banking had been widely used in developed countries and is rapidly expanding
in developing countries. E- Banking is defined as using electronic devices like internet,
wireless connection networks, phone, cell phone and Automatic Teller Machines (ATM)

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in banking services. ATM card is a kind of plastic card which allows a cardholder to
withdraw money from his bank account through automated teller machine.ATM
(automatic teller machine) enables bank customers to withdraw money from their
checking or saving accounts by inserting an ATM card and a private electronic code in an
ATM (Ahmed Bello,2005).
This card can be used also for other banking services like deposit and transfer to any
other account by using the ATM machine. Credit card is the modern electronic plastic
card that may be used repeatedly to borrow money or buy products and services on credit.
VISA, Master Card, American Express and Discover are commonly known and widely
used credit cards throughout the world. The decision with which card to go depends on
the comparison of the features of the specific card (not the brand). The most important
features, of course, are Interest rate and Annual fees (C.S.Murthy,2004).
. These services are parts of providing currency for and economic system for the country.
Now it is common to define E- Banking as phone and cell phone bank, internet bank and
also ATM. For example cell phone banking can be defined as giving banking services
through cell phone.
E- Banking gives the clients the rights and facility of doing banking affairs through
internet and under the permission of a specific bank. At first, E- Banking will just to
attract clients to a specific bank (Mishra and kiranamai,2009).With the use of internet in
banking industry, banks are starting to wide their range of using it, and today, check
exchange, accounting, currency exchange, clients’ reports, and account criteria are
conducted immediately through this system. It is beneficial to both clients and banks, and
it is because from the perspective of clients the costs of banking decreased- such as
willting time, long line- and from the perspective of banks the costs of banking services
with the help of E- Banking decrease- for there is no need to extra paper, extra employee
and investments (ijcrb.webs.com).
The evolution of e-banking started from the use of Automatic Teller Machines (ATMs)
and Finland is the first country in the world to have taken a lead in e-banking (Mishra and
kiranamai,2009).

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The rapidly growing information and communication technology is knocking the front-
door of every organization in the world, where Ethiopian banks would never be
exceptional. In Ethiopia, however, cash is still the most dominant medium of exchange,
and electronic payment systems are at an embryonic stage. In the face of rapid expansion
of electronic payment systems throughout the developed and the developing world,
Ethiopia’s financial sector cannot remain an exception in expanding the use of the
system. While Electronic banking has improved efficiency and convenience, it has also
posed several challenges to the regulators and supervisors (Uppal and Rimpi,2007).
In general, this study will focus on the effects of electronic payment system on bank
service quality improvement in the case of Dashen bank wolkite branch.

1.2 Background of the organization

Ethiopian banking institutions went through the ups and downs of Ethiopia turbulent
history. The Bank of Abyssinia will replaced by the bank of Ethiopia makes the second
unforgettable event in Ethiopia banking history. It is after Ethiopia independence that
Emperor Haile Selassie I established The State Bank of Ethiopia which performed both
control banking and commercial banking fraction until it will split in to two in 1964 to
form the national bank of Ethiopia to pursue commercial banking functions.
Dashen bank is one of the pioneer private banks after the resistance of private banking
system in Ethiopia. Dashen Bank will established in September 20, 1995 as a share
company by 11 shareholders with an authorized and subscribed capital of birr
50,000,000. It started its service by opening 11 area banks in the capital, Addis Ababa
and other major towns of the country.
Dashen Bank coined its name from the highest peak in the Country, mount Dashen, and
aspires to be unparalleled in banking. Headquartered in Addis Ababa, the Bank is the
biggest private Bank in Ethiopia. It operates through a network of 146 Area Banks, nine
dedicated Forex Bureaus, 170 ATMs and 834 plus Point-of-Sale (POS) terminals spread
across the length and breadth of the nation. It has established correspondent banking
relationship with 464 banks covering 71countries and 175 cities across the world.
Wherever business takes customers around the world, Dashen Bank is already there
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Dashen is the most reputable brand in the domestic banking market; a reputation earned
through consistent delivery of values and preeminence unmatched by its competitors. The
Bank also works in partnership with leading brands in the electronic payments industry
(American Express, VISA, MasterCard & UnionPay cards) and prominent money
transfer operators (Western Union, Money Gram, Express Money, Dahabshiil, TransFast,
EzRemit , FloCash & Dawit Money Transfer). According to the manager, the wolkite
barnch’s of Dasheb bank is started to use electronic banking since 2002 E.C. using only
one ATM machine and up to 2007 the branch have 2400 users of electronic payment
system.

1.3 Statement of the problem

Bank customers demand efficient, fast and convenient services. They want a bank that
would offer them services that will meet their particular needs and support their business
goals; for example businessmen want to travel without carrying cash for security reasons
(Namita Rajput, 2011).
Electronic payment system i.e. payment card (VISA) is one of the latest electronic
payment system. The major advantage (opportwolkite ) with visa card is that it allows the
customer to make everyday purchases without having carry cash. The system is safe and
competent alternative to cash when making payments. VISA cards can be used anytime,
anywhere (Microsoft Encarta premium, 2009).
Banks invest a lot of money so as to expand the electronic banking particularly for
electronic payment systems through information communication technology (ICT)
facilities. The problem to be addressed in this case is whether such systems have effect on
the banking system or not (C.S.V Murthy, 2004). Banks shall maintain efficiency and
effectiveness in their operations by introducing new technologies, such technological
changes shall be discussed on a reasonable basis whether they bring positive changes or
challenges to the bank under question.

Customers of banks use electronic payment system to pay money for their daily uses
through ATM cards. If the electronic payment system is efficient, it will increase the

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quality of the bank’s service and the satisfaction of customers. But if the electronic
payment system is not efficient and effective, it will have negative effect on the banks
quality and customers satisfaction.
Therefore it is advisable to investigate the impact of electronic payment system on
Dashen bank wolkite branch’s service quality by raising the following leading research
questions.
1. What seem the prospects of electronic payment system in Dashen bank s.co in
relation to creating efficiency and enhancing effectiveness in banking
transactions?
2. What are the benefits of electronic payment system to customers and the bank?
3. What are the problems associated with the use of electronic payment?
4. What are the impacts of electronic payment system on bank’s quality of Dashen
Bank wolkite branch?
5. What are the possible recommendations that shall be forwarded based on the
finding of the study?

1.4 Objective of the study

1.4.1 General objective
The general objective of the study is to assess and examine the effects of electronic
payment system in the bank’s service quality improvement of Dashen bank wolkite
branch.

1.4.2 Specific objectives

The study had the following specific objectives:
 To evaluate the prospects of electronic payment system in Dashen bank
s.co in relation to creating efficiency and enhancing effectiveness in
banking transactions.
 To evaluate the impact of electronic payment system in Dashen bank s.co.
Both positive as well as negative impacts.

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  To assess the benefit of electronic payment system to customer and the
bank.
 To check whether electronic payment system enhances customer
satisfaction or not.
 To give remedy solutions to specific problems.

1.5 Significance of the study

The following points are the major significances of the study.
 It can help the bank managers to recognize the changes that the electronic payment
system brings to the bank.
 It will help the bank to focus on electronic payment system so as to attract
customers and increase its market share as customers are sensitive to new
technologies.
 It indicate the limitations of electronic payment system, so that they can be
alleviated by the management through strategic as well as operational plans.
 It will help the society at large to increase their awareness regarding the
importance of electronic payment system.
 It can be used as secondary information for interested researchers who want to
conduct further study in this topic as well as in the organization.

1.6 Scope of the study

The study is bounded towards electronic payment system in Dashen Bank Share
Company wolkite branch. Among other electronic banking implementations in that bank
such as mobile banking, online banking and international money transfer, the study
focuses on the effect of electronic payment system on service quality improvement of
Dashen bank in the year 2007 E.C.

1.7 Organization of the study

The research paper is organized in the following form: chapter one discusses
introduction; chapter two discusses review of related literature ; chapter three discusses
Research methodology part; chapter four also discuss discussion, analysis and

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presentation of data; and chapter five discusses the results, conclusions and
recommendations.

CHAPTER TWO
2 LITRATURE REVIEW
2.1 OVERVIEW OF ELECTRONIC BANKING
Electronic banking has long been recognized to play an important role in economic development
on the basis of their ability to create liquidity in the economy through financial intermediation
between savers and borrowers. It also offers financial services and products that accelerate
settlement of transactions and in the process reduce cash intensity in the financial system,
encourage banking culture, and catalysis economic growth. (Olorunsegun Shittu, 2010).

E-banking is about using the infrastructure of the digital age to create opportunities both local
and global. E-banking enables the dramatic covering of transaction cost and the creation of new
types of banking opportunities that address the barriers of time and distance. Banking
opportunities are local global and immediate in E-banking.

E-banking is more than just internet banking in the still evolving e-climate in the economy, it
involves using the net to exploit new opportunities by transforming products and markets and
business processes.

E-banking also means developing new relationship with customers, regulatory authorities’,
suppliers and banking partners with digital age tools, for example, it requires all understanding.
Customer/bank relationships will be more personalized resulting in novel modes of transaction
processing and services delivery.

E-banking is essentially about banks using new age methods and tools to expand into new
banking markets and grow. Creating a corporate online presence for your bank should be more
than just buildings a website. It should be about building a web business for your bank, to do this
effectively the people in charge, i.e. the CEOs not just IT directors and managers must have a
deep knowledge of what E-banking culture demands. (Olorunsegun Shittu, 2010).

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IT today, E-business, E-commerce is not about routine information management or automation,
it is about being these unique tools to create opportunities, create new markets, new processes
and growth or increase the creation of e- wealth.

The E-banking must monitor the environment local and global with the aim of understanding and
mastering its environment. E-banking thus involves collaboration (local and international) on
payments systems, cashless transactions, digital cash and other electronic based projects.

It can be seen that other immense potentials can only be realized if bank management and staff,
not just the systems staff are sufficiently literate and aware, and presently the banking industry
still has a lot to do in terms of training staff. The speed of change together with the need for
proper orientation for the e-world makes training even more of a necessity (Anyanwaokoro M,
1999)

In conclusion to be a true E-bank each bank must identify its own unique targets, focus and style,
banks needs to realize that E-banking is more than simply banking on the internet, E-banking is
more than having a web-site, E-banking is about building a web business for your banks.

TYPE OF ELECTRONIC BANKING

Electronic banking consists of the following, mobile banking, internet banking, telephone
banking, electronic card etc. (Olorunsegun Shittu, 2010)

MOBILE BANKING
Mobile banking involves the use of mobile phone for settlement of financial transactions, it
support person to person transfers with immediate availability of funds for the beneficiary,
mobile payments use the card infrastructure for movement of payment instructions as well as
secure SMS messaging for confirmation of receipt to the beneficiary, mobile banking is meant
for low value transactions where speed of completing the transaction is key.

INTERNET BANKING
Internet banking involves conducting banking transactions such as account enquiry printing of
statement of account; funds transfer payments for goods and services, etc on the internet (World
Wide Web) using electronic tools such as the computer without visiting the banking hall.

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TELEPHONE BANKING
These are banking services which a customer of a financial institution can assess using a
telephone line as a link to the financial institution’s computer center. Services rendered through
telephone banking include account balance funds transfer, change of pin, and recharge phones
and bills payment.

ELECTRONIC CARD
An electronic card is a physical plastic card that uniquely identifies the holder and can be used
for financial transactions on the internet, automated teller machine (ATM) and point-of sales
(Pos) terminal, to authorize payment to the merchant (seller). The various types of electronic
cards includes debt, credit cards, releasable cards require visiting banks for replenishment, debit
cards are linked to local bank accounts and offer immediate confirmation of payment while
credit line and can be used for are linked to a credit line and can be used for accessing local and
international networks and were widely accepted in most countries, the underlying infrastructure
and operational rules are often provided by global trusted schemes (such as visa and master
card) in addition to local lines.

2.2 PAYMENT SYSTEMS IN ETHIOPIA

2.2.1 TRADITIONAL PAYMENT INSTRUMENTS CURRENTLY APPLIED

CASH
Cash is a legal tender defined by the national bank of Ethiopia (NBE) to represent values and
used as major instrument of payment. NBE has authorized Birr to be used as a legal tender
throughout the country. Like in the other African countries, in Ethiopia also cash is a dominant
means of payment.

Cash is so popular because of the following reasons:

 It can be immediately converted it to other forms of money without the intermediation of

any financial institution.
 It is portable and requires no authentication.
 It provides instant purchasing power for those who possess it.
 It supports micro payment.
 Payments carried out through cash have zero transactional cost for both the payer and the
payee.
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  It is not required to possess bank account or use special hardware devices for using cash.
 It is totally anonymous.
On the other hand cash can easily be stolen and is usually not convenient for large amount of
transactions (E.g. You cannot easily buy a house with cash). Cash also does not provide a float
(the period of time between a purchase and actual payment for the purchase). It also forces the
payer and the payee to physically present them. Those cash is not a convenient means of
payment. (Tsegai and Wondwossen, 2005)

CHECKING TRANSFER

Checking transfer is a fund transferred directly via a signed draft or check from a consumer’s
checking account to a merchant or other individual. Checking transfer is the second most
common form of payment in terms of number of transactions in Ethiopia. Through it is not
possible to find the exact magnitude of percentage share of check based and cash based
payments in the country. Cash based payment exceed check based payment.

Checks have the following property

 Checks are typically used for large transactions and usually not used for micro payment.
 Checks have usually some float.
 Checks are not anonymous and required third party institution to work.
 Checks can more easily be forged (copied) than cash.
The check clearing office in Addis Ababa which is run by NBE enables a payer from a given
bank to issue a check payable to a payee from different bank. This office named Addis Ababa
clearing office (AACO) is responsible for this task. ACCO carry out its duties morally
commercial bank must deposit a certain amount of money as reserve at NBE to be a member of
the AACO when checks are issued from a customer of a given payable to a member from
different bank money will be transferred from payer bank reserve at NBE to payees bank reserve
at NBE. The manual check clearing system run by CBE lags behind the automated countries
such as Tunisia and Egypt. (Tsegai and Wondossen, 2005)

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2.2.2 ELECTRONIC PAYMENT INSTRUMENTS

SWIFT
Swift (Society for Worldwide Interbank Financial Telecommunication) is closed network used
by bank and other financial institutions throughout the world. SWIFT provide a messaging
service that enable to settle majority of high value payment international banks in Ethiopia
currently settle their foreign transaction payment through swift. According to the information
obtained from NBE, most banks in Ethiopia use swift primarily for international payment. E.g.
commercial bank of Ethiopia.

WESTERN UNION MONEY TRANSFER

Western union is the world’s largest money transfer network. It has more than 212,000 agent
locations in over last countries. In Ethiopia there are four agent companies of western union.
These are the commercial bank of Ethiopia, construction and business bank, united bank and
Dashen bank.

In Ethiopia, money transfers is paid out in Ethiopian birr maximum principal payout is
60,000ETB per transaction in Ethiopia money transfer sent to Ethiopia must include test question
to be answer by the receiver. Western union identifies and disseminates consumer awareness for
its customers to prevent fraud, unlike swift which is used to transfer money from Ethiopia to
abroad and vice versa, western union is used to transfer money from abroad to Ethiopia only.

2.2.3 CARD BASED PAYMENTS

TOTAL FUEL CARD

In 2005, Total Ethiopia has introduced Abyssinia card. A smart card used for fuel payment. Out
of one hundred twenty total fuel stations found in Ethiopia the card can be accepted at any of the
forty five stations scattered throughout Ethiopia. The card has two options for payment: post
invoice and pre-paid.

At the fuel station users have to supply their fuel card together with the correct PIN (Personal
Identification Number) code. The card readers at the fuel station communicate with the card and
authenticate users based on their PIN. If the PIN is correct the reader provides information such
as the amount of money left on the card.Whether the user is allowed to purchase fuel on that
particular fuel station and other similar information. If the user buys fuel using his/her card the
right amount of money will be deducted from his/her card. Users must fill their fuel card account

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once the money on the card is used up. Fuel station that give card payment service communicate
to the main office through telephone line once a day to pass payment information card
recharging it then by paying card at main office. (Tsegai and Wondossen, 2005)

MOBILE PREPAID CARD PAYMENT SYSTEM

The mobile phone prepaid card payment system is successful instance of card payment system in
Ethiopia. Currently it is used by prepaid mobile phone users. Users have to charge their phone
account to get mobile phone services. Account filling is done by supplying a secret number to
the payment server through the mobile phone. The secret number id found on the pre-paid phone
card that the user buys from shops.

The payment system is used in Addis Ababa and other cities in Ethiopia where mobile phone
service are offered. The number of pre-paid mobile phone users is increasing from time to time;
in fact the number of pre-paid mobile users is greater than the number of postpaid mobile phone
users.

CREDIT CARD
Currently the usage of credit card in Ethiopia is very low. There is no issuer of local and
international credit cards but there are some business firms (for e.g. hotels, supermarkets, etc.)
that accept international credit card. Dashen bank currently gives encashment services to VISA
and master card users. This payment system is mainly used by foreigners and Ethiopians residing
abroad as they come to Ethiopia and want to get money using credit card. Dashen bank only acts
as merchant accepting credit card issued by banks outside Ethiopia. But now the bank starts
issuing its own payment cards. These cards are international payment cards like visa and master
card. This move will pave the way to introduce e-payment in Ethiopia. In addition to Dashen
bank, commercial bank of Ethiopia,Wegagen bank (Agar card) and Zemen bank are also start
giving the service. (www.2merkato.com)

CREDIT CARD IN ETHIOPIAN AIRLINES

The Ethiopian airline currently provides an option for its customers to buy fly tickets online
using their credit card. These credit cards are international credit cards such as master card and
visa customers who preferred to pay online using credit card are required to submit their credit
card upon online registration. After the customers have completed their flight, details online their

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credit card will be charged. Tickets can be delivered by mail collected at the airport or issued at
the city ticket office.

AUTOMATIC TELLER MACHINE (ATM) IN ETHIOPIA

ATM service in Ethiopia is offered by commercial bank of Ethiopia (CBE) and dashen bank of
Ethiopia. CBE give the service with 8 ATMs in Addis Ababa whereas dashen bank is giving the
service for over 70ATMs in all branches of the bank throughout the country. (Dashen Bank
annual report, 2011)

These ATMs enable customers to withdraw limited amount of money from their account at any
time. The ATMs also enable customer to check their account balance. But depositing money
through ATM is not currently possible. In order to get ATM service customers need ATM card
and secret PIN codes. The ATM card is a smart card used for security purpose only. The ATM
card coupled with a pin code provides state of the art authentication scheme called two factor
authentications.

Major challenge in the usage of ATM is the unreliable telecommunication networks which result
in temporary service interruption. (Tsegai and Wondossen, 2005)

2.3 Payment Card Services at Dashen bank

In 2011, the payment card services have witnessed significant strides. The card acceptance
network has expanded to 70 Automatic Teller Machines (ATMs) and 704 Point of Sale (POS)
terminals. As a manifestation of the growing acceptance of the value propositions bundled in our
Payment Card Service, 48,402 additional customers have subscribed to the VISA branded
Dashen debit card, raising the total number of cardholders to 151,452. As a result, the volume
and value of transactions entertained on our ATMs and POS terminals have grown substantially.
This business volume has remained pivotal in substantiating the investment on the payment card
system. In the reporting period, the Bank generated USD 75 million from international cards
(VISA, MasterCard and Maestro). (Dashen bank annual report, 2011)

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3 CHAPTER THREE

3.1 RESEARCH METHODOLOGY

3.2 Study area
The study are conducted on the impact of electronic payment system on service quality
of dashen bank’s wolkite branch in wolkite town, which is located in south Wollo zone
of Amhara national Regional State

3.3 Research design

A descriptive survey research design are used to assess the effect of electronic payment
on bank’s service quality Dashen of Bank wolkite branch.

3.4 Data Collection Technique and sources

The study had used both primary and secondary data sources. The primary data are
collected from employees and customers of the bank’s branch using questioner, which
contains both close-ended and open-ended questions . The data are collected by the
principal investigator. The questionnaire are completed by the participants under the
supervision of the researcher in order to improve clarity and limit response bias.

3.5 Sampling Technique

The sampling technique which are used in this study are both judgmental and convenient
sampling techniques for two different respondents. Judgmental sampling technique are
used to select employees of the bank and convenient sampling technique to select
customers of the bank.

3.6 Sample Size

From the total number of 35 employees of the bank’s branch 20 employees who have
direct relationship electronic payment system are selected using judgmental sampling but
from the total customers of the bank’s branch 30 customers are selected using convenient
sampling, as they come to the bank during the data collection period.

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3.7 Method of Data Analysis presentation method
The collected data are analyzed using descriptive statistics analysis methods like
Percentage, frequency etc. but the analyzed data are presented using table.

4 CHAPTER FOUR:

4.1 TIME AND COST BUDGET

The study will focus the following different types of expenditure that will incur when the course of
research will do.

The study will be done according to the following time table.

No. Activity. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
1 Title selection xxx
2 Literature xxx Xxx xxx xxx Xxx xxx
review
3 Proposal Xxx xxx
development
4 Data Xxx
collection
5 Data analysis xxx Xxx
and
presentation
6 Report xxx
writing
7 Report xxx
presentation

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4.2. COST BUDGET

Unit price Total

Item Quantity Birr Cent Birr Cent
Secretary 200 00 200 00
Duplicate papers 1 reams 150 00 150 00
Binder 1 30 00 30 00
Pen 4 7 piece 4 00 28 00
Pencil 2 piece 2 50 5 00
Transportation 500 00 500 00
Flash disk 1(8 GB ) 120 00 120 00
Sub total 1033 00
9 Contingences (10%) 103.3 00
10 Total 1136.3

QUESTIONNAIRE DESIGNED FOR CUSTOMERS OF DASHEN BANK

Dear sir/madam

I am a student in the above mentioned department and institution. Presently am conducting a

research on “Effect of electronic payment system on bank Service quality Improvement (In the
case of Dashen bank Share Company)” in partial fulfillment of the requirements for the Bachelor
of Arts Degree in Accounting and Finance. The findings are strictly to be used for academic
purpose only. The information you provide is highly valuable for the success of the research.

Please do not enter your name or contact details on the questionnaire.

N.B. please tick (√) in the appropriate box provided to indicate your answers.
Part one: Socio demography status of the customers
1. Gender
Male Female

2. Age
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 Below 18 Between 19 and 25

Between 26 and 30 Between 31 and 35

Between 36 and 40 Above 40

3. What is your educational level?

Below 12th grade First degree

Diploma Above first degree

Part two questions that related to electronic payment
4. Why do you prefer Dashen Bank?

Because it is nearby my residence For the purpose of using visa card

Because it provide quick service because it has many networked branches

5. Do you use Dashen visa card ?

Yes No
6. If your answer is yes for question number 5, why do you choose to use visa card payment?

To save time

Because it convenient to make payments

To be more secured

Because it enable me to receive cash from my account anytime

Any other
7. Does ATM machine perform effectively?

Yes No
8. If your response is yes for question number 7, how much time does it take to get the service?

Less than 1minute 1-2 minutes More than 2 minutes

9. Are you benefited from the electronic payment system of the bank?

Yes No

10. If your answer for the question number 9 is “Yes”, what are these benefits?
______________________________________________________________________________
______________________________________________________________________________

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______________________________________________________________________________
______________________________________________________________________________

11. How can you assess the overall performance of Dashen bank’s electronic payment system?

Excellent Very good good Fair

Poor Very Poor

12. Do you agree that the introduction of electronic banking has eased banking services of
Dashen Bank.

Strongly Agree Disagree

Agree Strongly Disagree

13. Does the electronic payment system has improved the quality of service in the bank?

Yes No
14. If your answer to question number 13 is “Yes”, How does the electronic payment system has
improved the quality of service in the bank? _____________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________
15. Do you believe that the electronic payment system have impact on performance of the bank?

Yes No
16. If your answer for question Number 15 is “Yes”, How will the electronic payment system
have impact on performance of the bank? ____________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
17. What are the major problems you face in using visa card payment system?
………………………………………………………………………………………………………
………………………………………………………………………………………………………

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………………………………………………………………………………………………………
……………………………………………………
18. Are you satisfied by the electronic payment system provided by Dashen Bank?

Satisfied Partially satisfied Unsatisfied

Thank you!

1. Questioners to employees of the bank

WOLKITE UNIVERSITY
QUESTIONNAIRE DESIGNED FOR EMPLOYEES OF DASHEN BANK

Dear sir/madam

I am a student in the above mentioned department and institution. Presently am

conducting a research on “Effect of electronic payment system on bank Service quality
Improvement (In the case of Dashen bank Share Company)” in partial fulfillment of the
requirements for the Bachelor of Arts Degree in Accounting and Finance. The findings
are strictly to be used for academic purpose only. The information you provide is highly
valuable for the success of the research.

Please do not enter your name or contact details on the questionnaire. Among the
electronic payment systems provided at your bank, the researcher would like to get
information on payment card system only.

N.B. please tick (√) in the appropriate box provided to indicate your answers.

Part one—demographic information of the participants

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1. Educational back ground

Below 12th grade First degree

Diploma Above first degree
2. How long have you been as an employee at Dashen bank?

Less than 2 years 6-8 years

3-5 years 9 years and above
3. What is your position at Dashen bank?

Clerk Payment card officer

Loan Officer Money transfer officer
Any other
4. To which department do you belong?

Cash management Foreign banking

Credit management Business development

Part two- questions that related to electronic payment
5. Do you agree that the introduction of electronic payment system have prospect to the
bank i.e. enhancement of effectiveness of banking transactions.

Strongly Agree Disagree

Agree Neutral Strongly Disagree

6. The Dashen Bank’s electronic payment system has positive impact on overall
performance of the bank?

Strongly Agree Disagree

Agree Neutral Strongly Disagree

7. What are the impacts of electronic payment system on the performance of the bank?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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8. The introduction of electronic payment system would enhance the fortune of the bank.

Strongly Agree Disagree

Agree Neutral Strongly Disagree

9. The electronic payment system at Dashen bank has positive effect on customers of the
bank.

Strongly Agree Disagree

Agree Neutral Strongly Disagree

10. Do you agree that there is a positive relationship between introduction of Electronic
payment system and customer satisfaction?

Strongly Agree Disagree

Agree Neutral Strongly Disagree

11. The introduction of electronic banking has eased banking transactions.

Strongly Agree Disagree

Agree Neutral Strongly Disagree

12. How can you assess the overall performance of Dashen bank’s electronic payment
system in the past 3 years?

Excellent Poor

Very good Fair Very poor

13. The bank can secure competitive advantage over its rivals by having electronic
payment system.

Yes No
14. If your answer for question number 13 is “Yes”, how the bank can secure competitive
advantage over its rivals by having electronic payment system? _

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