Challenges and Prospects of Core Banking System Implementation in Commercial Bank of Ethiopia

ABSTRACT:
This study was conducted with the objective of analyzing the challenges and prospects of core banking system implementation in case of Commercial Bank of Ethiopia. The study has employed both quantitative and qualitative research design. The data used for the study was primary and cross sectional type of data. The data was collected through structured questioner. The determinant challenges of core banking system implementation project was measured by using quantitative project measuring criteria (in terms of cost, time and performance). Accordingly, the project was meet challenges in terms of budget and cost. Descriptive statistics was used to identify critical challenging factors of core banking system implementation. As a result, seven challenging factors were found in core banking system implementation, where as five variables were prospects contributed to Commercial Bank of Ethiopia due to the implementation of core banking system. Task interdependence, inexperienced consultants, Fear of past implementation experiences, Lack of sufficient training and re-skilling, Data migration problem, Poor IT infrastructure and Customization problem were found the challenging factors in core banking system implementation in Commercial Bank of Ethiopia. On the other hand, faster process and real time data, improved business process, Goals and objectives consensus, Support strategic planning and Increase customer satisfaction were identified as prospects of core banking system implementation contributed to Commercial Bank of Ethiopia. The other challenges Commercial Bank of Ethiopia faced in the core banking system implementation project were identified by using open ended questions were emanated from implementing bank and vendor supporter and external factor.

Type: 
Management
Authors Name: 
Mr.Teshale Getu