Background of Bank of Abyssinia

Bank of Abyssinia, one of the private banks in our country was established on February 15, 1996
according to the Ethiopian commercial code of 1960 and the licensing and
supervision of banking business proclamation no. 84/1994.Bank of Abyssinia is a share
company of private individuals who amass experience and success in different areas including
business, entertainment and education. Such diverse ownership not only reflects the
company’s determination and willingness to succeed in the sector it operates in, but also signify
its ability to work together towards building a successful business venture. The bank started its
operation with an authorizedand paid-up capital of Birr 50 million, and Birr 17.8
million respectively with only 131shareholders and 32 staffs. In about 20 years, since its
establishment, the bank has registered asignificant growth in paid-up capital and total assets. It
also attracted many professional staff,valuable shareholders and larger number of customers.
The most critical challenge facing most organizations today is coping up with today’s game
ofbusiness, dynamism. For a past few decades, organizations have been facing severe
competitionin their external environment in which they operate. In order to operate in a
competitive environment organization needs strategic management. Astrategy is an integrated
and coordinated set of commitments and actions designed to exploit corecompetencies and
gain a competitive advantage. According to Michael Porter, “Strategy is thebig picture of how
the organization is going to win in its environment, whatever that is.Strategy is not competing
to be the best. Many managers and leaders and organizationsthink that they are trying to be
the best organization in their industry. The best bank, thebest coffee shop, etc. And to do so,
we must make the best products. But that’s a wrongapproach and a very dangerous way of
thinking about strategy. Indeed, there is no bestcompany in any industry…. Strategy is
competing to be unique.”Current Situation of the BankOver the last years the bank implement
three strategy but left behind from peer competitor in itsdeposit, market share, and overall
performance, even if the bank start its operation by offeringbest innovative product such as gift
saving account, safe deposit boxes and saving account linkedwith current account to enable
customers to transfer funds from one’s saving accountto one’s current account to write cheque
when there is no sufficient balance in current account.

Even if the bank is pioneer to provide such kind of service the last fifteen years performance
isweek when comparing with its peer competitor.Through it’s over 600 branches in the country,
BoA serves over 3 million customers with 6,910employees. This coupled with the 633 ATM
machines placed in different locations to affordcustomers to access their account from
anywhere at any time. This also allowed BoA to increaseits capital hundred-fold from ETB50
million to ETB 5.5 billion.Currently, employing the state-of-art banking technology, the
Bank provides excellencedomestic, international and special banking services to its esteemed
and valuable customers. Italso strives to serve all economic and services sectors via its ever
increasing branch networksthroughout the country.The bank also offer digital banking transfer
from one BoA customer to other type of bank usingmobile or internet banking. A customer can
transfer up to 500,000 ETB through internet bankingper day. BoA is the first bank to introduce
this system to Ethiopia which makes it the leadingbank of Ethiopia.The following are brief
statements on the Bank’s Vision, Mission and Values.VisionTo become the leading commercial
bank in East Africa by the year 2030MissionProvide excellent financial services through
competent, motivated employees and digitaltechnology in order to maximize value to all
stakeholders.ValuesBank of Abyssinia is guided by the following values:

Over the last years the bank implement three strategy but left behind from peer competitor in
its deposit, market share, and overall performance, even if the bank start its operation by
offering best innovative product such as gift saving account, safe deposit boxes and saving
account linked with current account to enable customers to transfer funds from one’s saving
account to one’s current account to write cheque when there is no sufficient balance in current
account.

Currently, employing the state-of-art banking technology, the Bank provides excellence
domestic, international and special banking services to its esteemed and valuable customers. It
also strives to serve all economic and services sectors via its ever increasing branch networks
throughout the country.

The bank also offer digital banking transfer from one BoA customer to other type of bank using
mobile or internet banking. A customer can transfer up to 500,000 ETB through internet
banking per day. BoA is the first bank to introduce this system to Ethiopia which makes it the
leading bank of Ethiopia.

Vision of the bank is to become the leading commercial bank in East Africa by the year 2030.
Mission Provide excellent financial services through competent, motivated employees and
digital technology in order to maximize value to all stakeholders.

In order to survive in the market and to take a competitive advantage over other competitive
banks implementing technological oriented products and services is inevitable and being late
adopter of electronic payment projects made the bank to learn from the existed experience of
banks who adopted these products earlier. Yet, being late adopter made the bank to lose the
potential market available at the first phase of entry.