COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
FINAL INTERNSHIP REPORT
Company Name: Commercial Bank of Ethiopia
Final Internship program on: ASSESSMENT OF CUSTOMER
SATISFACTION IN COMMERCIAL BANK OF Ethiopia (CBE) IN CASE OF

TEQWA BRANCH.

Prepare by: Eyob Teklu

Email: [email protected]
ID NO:UGR/7515/14
Section: 2
Period of internship: July 07 to sept 07 / 2024 GC.
Company supervisor: MR. Mifta Mohamed
Academic Supervisor:

Oct, 2024 GC
Addis Ababa, Ethiopia
 `

Acknowledgment

I would like to begin by expressing my heartfelt gratitude to God for granting me the
strength and courage to successfully complete my internship period and this
internship report. I am eternally grateful for His blessings throughout this journey. My
sincere gratitude goes out to the Commercial Bank of Ethiopia Teqwa interest free
Branch for providing me with the opportunity to complete my internship program. I
am deeply appreciative of the knowledge and experience I gained during my time
there, and for the unwavering support I received from the entire team. I am
particularly grateful to Mr. Mifta Mohamed, Branch Manager, for his patience,
guidance, and mentor ship throughout my internship. His insights and support were
invaluable to my learning and development. I also extend my heartfelt appreciation to
all the dedicated employees of the Teqwa Branch for their warm welcome and
willingness to share their expertise. Their collaboration and support made my
internship period both informative and enjoyable. Finally, I would like to
acknowledge the Addis Ababa University authority for organizing this internship
program for students. This program has played a crucial role in preparing me for the
professional world and equipping me with the skills and knowledge necessary to excel
in my future career.
Abstract

This report provides a comprehensive assessment of customer satisfaction at the

Teqwa interest free Branch of the Commercial Bank of Ethiopia (CBE), based on my
internship experience from July to September 2024. The primary objective was to
evaluate customer service effectiveness and identify operational challenges affecting
satisfaction. Utilizing a descriptive research design, the study employed qualitative
and quantitative methods, including direct observations, staff interviews, and
structured customer questionnaires. Key findings revealed significant operational
bottlenecks, notably the branch's over-reliance on the manager for fund transfer
transactions, leading to service delays and customer frustration. Inadequate file
management and insufficient resources further contributed to inefficiencies. The
analysis indicated that these issues adversely impacted both customer satisfaction and
overall operational efficiency. Insights gained emphasized the importance of
employee empowerment and resource allocation in enhancing service delivery.
Recommendations include granting employees greater authority for transaction
processing, implementing a digital document management system, and improving
staff training programs. By addressing these challenges and adopting a more
customer-centric approach, the Teqwa interest free Branch can enhance service
quality, strengthen customer relationships, and improve its competitive position in the
banking sector, underscoring the need for continuous improvement in banking
operations to meet customer expectations and ensure long-term success for CBE.

ABBREVIATIONS

CBE……………………………...Commercial Bank of Ethiopia

ATM…………………………….Automatic Teller Machine
CSM…………………………….Customer Service Manager
VPs…………………………….Vice Presidents
Pos…………………………….Point of Sale
IFB…………………………….Interest free branch

Table of content

Acknowledgment......................................................................................................................2

Abstract....................................................................................................................................3

Introduction..............................................................................................................................6

1.1. Background of the organization...........................................................................6

1.2. Statement of the Problem...........................................................................................8

1.3. Objectives of the Study..............................................................................................9

1.4 Scope of the Study.......................................................................................................9

1.5. Research Methodology.............................................................................................11

1.5.1 Type of the Study:..........................................................................................................11

I. Questionnaires:............................................................................................................12

II. Interviews:..................................................................................................................13

1.6. Data presentation, analysis, and discussion............................................................13

1.7. Summary, conclusion, and Recommendation...........................................................14

Reference........................................................................................................................15
Introduction

1.1. Background of the organization

The history of Commercial Bank of Ethiopia (CBE) dates back to the establishment of
the State Bank of Ethiopia in 1942. CBE was legally established as a share company
in 1963. Since then, it has been playing significant roles in the development of the
country. Currently CBE has more than 40+ million account holders in its more than
1940+ branches and the number of Mobile and Internet Banking users also reached
more than 6.6 million. Active ATM card holders reached more than 8.3 million and
17 million CBE Birr users.

The history of commercial bank of Ethiopia Teqwa interest free branch date back to
establishment of branch CBE in 2012 E.C since then it 24 talent employees and
around 6000 main customers, and 69 percent of the customer use e-payment system.
It has significance role automatic teller machine, mobile banking and CBE birr to
main customers. The primary function of commercial bank of Ethiopia teqwa interest
free branch is, accepting deposit, Cash withdrawal and transfer for the main customers
based on sharia rile . It was located Addis Ababa city around Betel. Commercial
bank of Ethiopia one hundred percent government owned. In generally, by adopting
or accepting different modern technically working, CBE Teqwa interest free branch
tries to achieve mission, Vision to bring desire economic development in our country.

1.1.1 VISION
To become a world-class commercial bank financially driving Ethiopia's future..

1.1.2 MISSION
“We are committed to realizing stakeholder’s value through enhanced financial inter
mediation globally, deploying highly motivated and skilled employees.”

1.1.3 CORE VALUES

Our core values detailed below are the operating principles that guide our internal
conduct as well as our relationship with our customers, partners, and shareholders.
 Integrity, Service Excellence, Professionalism, Empowerment, Innovative
Organization, Teamwork, Respect for Diversity, and Corporate Citizenship.

1.1.4 Logo of Commercial Bank of Ethiopia

1.1.5 organizational structure

 The Commercial Bank of Ethiopia (CBE) has a well-structured organizational

hierarchy to support its diverse banking operations. At the apex is the Board of
Directors, which provides strategic oversight and governance for the bank.
Reporting directly to the Board is the President, who serves as the Chief
Executive Officer and is responsible for the overall management and
implementation of the bank's objectives. The President is supported by a team of
 Vice Presidents (VPs) who lead various functional divisions, each with distinct
responsibilities. These include the VP of Risk Management and Compliance, who
oversees the identification and mitigation of risks; the VP of Internal Audit, who
conducts independent reviews to ensure compliance and effectiveness; the VPs of
Retail and Branch Banking, Wholesale Banking, Interest-Free Banking, Digital
Banking, and Customer Experience, who manage the bank's diverse product and
service offerings; the VPs of International Banking, Credit, Information Systems,
Human Resources, and Finance, who handle the bank's global operations, credit
policies, technology infrastructure, talent management, and financial planning; as
well as the VPs of Chief of Staff, Facilities Management, Legal Services, and
Strategic Planning and Transformation, who provide executive-level support,
manage the bank's physical assets, ensure legal compliance, and drive the
organization's long-term strategic initiatives. This comprehensive organizational
structure enables the Commercial Bank of Ethiopia to effectively meet the diverse
needs of its customers while maintaining its position as a leading financial
institution in the country.

1.1.6 product and service

 The Commercial Bank of Ethiopia (CBE), as the largest bank in the country,
provides a comprehensive array of financial products and services to cater to
diverse customer needs. Its deposit products include savings, demand deposit,
fixed time deposit, foreign currency, and diaspora accounts, accommodating both
local and international clients. CBE also offers a variety of credit products such
as overdrafts, short to long-term loans, and consumer loans, supporting personal
and business financial growth. For international trade, the bank facilitates import
and export activities with services like documentary credit and guarantees. Its
money transfer and forex services enable efficient local and international
transactions and foreign currency exchange. Additionally, the bank enhances
convenience through electronic payment services, including CBE Birr, ATM,
mobile, and internet banking. CBE also provides interest-free banking options
with Sharia-compliant products, which include deposits, financing, and trade
services, ensuring ethical financial solutions for all customers.

 During my internship at the Commercial Bank of Ethiopia (CBE) Tewa Interest

Free Branch(FBI), I focused on Sharia-compliant banking, which offers a range
 of interest-free products. The branch provides deposit and investment options like
Mudarabah, where profits are shared according to pre-agreed ratios, and
Wadiah, which offers safe custody deposits without interest. Financing options
include Murabaha, a cost-plus financing model, and Ijara, a leasing arrangement
with ownership transfer at the end of the lease. The branch also facilitates
guarantee and trade services through Kafalah, providing Sharia-compliant
guarantees, and Letters of Credit that support international trade. Money transfer
and forex services are available with Hawallah, a traditional system ensuring
compliant transactions, and foreign currency exchange services. Additionally, the
branch offers electronic payment services, including mobile and internet banking,
as well as ATM and POS services, all designed to meet the needs of customers
seeking ethical and religiously compliant banking solutions.

1.2. Statement of the Problem

During my internship at the Teqwa Interest-Free Branch(IFB) of the Commercial

Bank of Ethiopia, I observed two key operational challenges impacting customer
service and satisfaction.

The first challenge is the heavy reliance on the branch manager's availability for fund
transfer transactions. Employees lack the necessary access and authority to execute
these transfers independently, leading to delays as customers must wait for the
manager. This undermines the branch's efficiency and can result in lost business
opportunities and diminished customer trust.

The second challenge is the inefficient file management and documentation practices
among some employees. These inefficiencies hinder effective service delivery,
causing delays and errors that frustrate customers. The third challenge is Sometimes
there is a big connection problem that makes customers angry.

Additionally, the branch faces a shortage of adequate office resources, such as

computers and furniture, which exacerbates the service provision issues and further
diminishes the overall customer experience.
1.3. Objectives of the Study

1.3.1General Objective

The general objective of this Study is to assess the degree of customer satisfaction in
Teqwa interest free branch.

1.3.2 Specific Objectives

In related with the above general objective, the Study is going deal the following
specific objective:

1 To assess the satisfaction level of customers on general dimensions.

2 To assess the service quality delivered by CBE of the Teqwa(IFB) branch
3 To identify the level of satisfaction of customers on CBE of the Teqwa
(IFB) branch.

1.4 Scope of the Study

This study delves into my two-month internship experience at the Teqwa Interest-Free
Branch(IFB) of the Commercial Bank of Ethiopia. The scope encompasses a
comprehensive examination of various banking operations and customer service
dynamics, specifically within the framework of the branch's administrative and
operational functions.

Throughout my internship, I was entrusted with a diverse array of responsibilities

designed to immerse me in the bank's operations while allowing me to contribute
meaningfully to the team.

Brief Description of Management-Specific Aspect Covered:

During my two-month internship at the Teqwa Interest-Free Branch of the

Commercial Bank of Ethiopia, I focused on the administrative and operational
functions of banking operations and customer service dynamics. My responsibilities
allowed me to evaluate how effectively the branch manages these functions, including
How to work with new business environment, How to work under supervision, I get
the experience of filling documents’ and other necessary materials I get the
experience of what they need in order to develop the organization, I get the
experience of how to understand the business environment,communication skill,Time
management skill, Dealing with customers and problem solving skill, Tolerance and
skill of working in a team, Improved my work ethics etc.
This experience provided me with a deep understanding of the branch's coordination,
communication, and documentation processes, enabling me to contribute
meaningfully to the team.

Brief Description of the Internship Assignment:

During my two-month internship at the Teqwa Interest-Free Branch of the

Commercial Bank of Ethiopia, my primary assignment was to support and assess the
administrative and operational functions of the branch. I was involved in coordinating
daily banking activities, facilitating communication between teams and customers.
Additionally, I critically analyzed these practices to identify areas for improvement,
aiming to enhance operational efficiency and customer service quality.

Specific Unit of the Organization:

During my internship, I was primarily assigned to the Customer Service and

Administrative Support Unit of the bank. This unit played a vital role in ensuring
smooth operations and enhancing customer experiences.

 Administrative Support: I assisted the team with various administrative tasks,

including organizing files, data entry, printing, scanning, and copying documents.
This role was crucial in maintaining accurate records and ensuring that
information was readily accessible to staff, helping me develop effective time
management and prioritization skills.

 Customer Assistance: A significant part of my responsibilities involved

providing support to first-time customers visiting the branch. I guided them
through banking services by explaining procedures, answering their queries, and
assisting with necessary documentation, which enhanced my communication
skills and customer service approach.

 Account Opening Support: After one month, I transitioned into a specialized role
where I assisted in opening new accounts and facilitating mobile banking
registrations. This position required a deeper understanding of the bank's products
and regulatory compliance, allowing me to effectively communicate account
benefits to customers and help them choose options that best suited their needs.
 ATM Card Registration and Training: During my attachment period, I supported
employees by registering customers for ATM cards and notifying them when
their cards arrived at the bank. Additionally, I provided training to customers on
how to use the ATM machines, which reinforced my instructional skills and
customer engagement techniques.

 Documentation Verification: I also checked that the name, date, and signature
of customers were filled out correctly on forms. This responsibility ensured
compliance with bank policies and highlighted the importance of attention to
detail in maintaining accurate customer records.

1.5. Research Methodology

1.5.1 Type of the Study:

The study was a descriptive case study aimed at providing an in-depth understanding
of customer satisfaction at the Teqwa (IFB) Branch of the Commercial Bank of
Ethiopia. This type of study is suitable for identifying the current state of customer
satisfaction and highlighting specific areas for improvement.

1.5.2 Research Design

The research employed a mixed-methods approach, incorporating both qualitative and
quantitative data collection methods. This design included direct observations, staff
interviews, and structured customer questionnaires to evaluate management practices
and customer satisfaction comprehensively.

1.5.3. Research Method

The research employs both qualitative and quantitative methods to ensure a holistic
assessment of customer satisfaction at the Commercial Bank of Ethiopia (CBE) in the
case of Teqwa Branch.

 Qualitative Approach: Qualitative data is gathered through direct observations

made during the internship and through interviews conducted with branch
managers, team leaders, and employees. These interviews are designed to gather
insights into the challenges, experiences, and perspectives of those involved in
customer service at CBE. The qualitative approach helps to capture detailed
 information about the bank's service culture, team dynamics, and communication
methods, which are often difficult to quantify.

 Quantitative Approach: A structured questionnaire are distributed to customers

and staff within the Teqwa (IFB) Branch to collect quantitative data on customer
satisfaction levels. The questionnaire is include questions that assess various
aspects of customer service, including service quality, responsiveness, complaint
resolution, and overall customer experience. The quantitative data collected from
these surveys will be analyzed to identify patterns and trends that can be used to
evaluate the overall effectiveness of customer service practices at the Commercial
Bank of Ethiopia Teqwa (IFB).

1.5.4 Sampling

During my internship at the Tewa Interest Free Branch of the Commercial Bank of
Ethiopia, I conducted a study using a sample of 12 branch employees and 10
customers. Convenience sampling techniques were employed, a non-probability
method chosen to address time and budget constraints. This approach allowed the
study to be directed effectively, selecting respondents based on accessibility and ease
of reach.

1.5.5 Data Collection Instruments

The instrument for primary data collection in this research includes both
questionnaires and interview questions. The designed questionnaires were distributed
to employees. The data through interviews were collected from top management.

1.5.6 Data Collection Procedure

The data collection for this study was conducted using two primary instruments:
questionnaires and interview questions.

I. Questionnaires:

 Design: The questionnaires were carefully crafted to include a mix of closed and
open-ended questions, targeting key areas relevant to the research objectives.

 Distribution: The designed questionnaires were distributed with paper copies.

 Instructions: Each questionnaire was accompanied by clear instructions that
outlined the purpose of the study, the importance of participation, and guidance
on how to complete the survey.

II. Interviews:

 Participant Selection: Top management personnel were selected based on their

relevance to the research topic and their availability for interviews.

 Interview Format: Semi-structured interviews were conducted, allowing for

guided conversations while providing flexibility for deeper exploration of specific
topics.

 Scheduling: Interviews were scheduled at convenient times for participants,

conducted in person.

1.5.7 Data Analysis

After the data was collected from the target groups (people) by using questionnaire
and structured interview methods, the researcher analyzed the data by using
descriptive analysis. Based on the descriptive analysis, the results were made
appropriately to fulfill the objectives of the study. Data that was gathered from
primary and secondary sources has been analyzed. Data analysis was conducted in
detail by descriptive methods of data analysis. The reason why the researcher chose
this method was due to the fact that it allows describing and summarizing the
collected data in a detailed manner.

1.6. Data presentation, analysis, and discussion

The data involved qualitative techniques tailored to the specific objectives of the
internship. By applying appropriate analysis methods, I have identified patterns,
trends, and key insights related to customer behavior, operational processes, and
overall bank performance. I have also explored the implications of the findings for the
bank, considering areas such as customer satisfaction, operational efficiency, and
potential areas for improvement. The discussion has been grounded in relevant
industry literature and analysis practices, providing a broader context for the analysis.
I have critically reflected on the internship experience and the significance of the data
analysis for both personal growth and the Commercial Bank of Ethiopia. I have
shared insights gained during the internship, highlighted lessons learned. It
demonstrates my dedication to contributing to the success of the Commercial Bank of
Ethiopia through evidence-based insights and thoughtful reflection on the internship
experience.

1.7. Summary, conclusion, and Recommendation

1.7.1 Summary

This internship report investigates customer satisfaction at the Teqwa interest free
branch of the Commercial Bank of Ethiopia (CBE). The study employed a descriptive
case study design, using both qualitative (observations, interviews) and quantitative
(questionnaires) methods with convenience sampling. The report details the branch's
background, identifying key challenges such as over-reliance on the branch manager
for transfers, inadequate file management, and insufficient resources. The study
assessed service quality and customer satisfaction across various dimensions, focusing
on the overall satisfaction with the Teqwa branch. The scope included observational
learning, administrative support, customer assistance, and account opening support,
providing valuable experience in CRM, operational efficiency, and process
improvement.

1.7.2. conclusion
The internship at CBE Teqwa Branch provided valuable insights into the relationship
between operational efficiency and customer satisfaction. Key challenges identified
include reliance on the branch manager for transactions, inadequate file management,
and resource shortages. These negatively impact service quality and customer
experience. Through observational learning, administrative support, and customer
interaction, the study assessed the branch's strengths and weaknesses. Findings
emphasize the need for employee empowerment in transaction processing and
improved resource allocation. Addressing these inefficiencies can enhance service
delivery, reduce wait times, and improve customer satisfaction. Additionally,
adopting modern technologies and streamlining procedures can contribute to the
bank's competitive edge. This report highlights the importance of continuous
improvement in service quality and operational processes for fostering customer
satisfaction and ensuring long-term success.
 1.7.3. Recommendation

Based on my observations during my internship at the Teqwa Interest-Free Branch of

the Commercial Bank of Ethiopia, I recommend the following actions to improve
customer satisfaction and operational efficiency:

 Empowerment of Employees: Grant employees the necessary access and

authority to process transfers independently, reducing reliance on the branch
manager and expediting service delivery. Implement a system of tiered access
based on experience and skill level, allowing for gradual increase in
responsibility and autonomy.
 Improved File Management: Establish clear guidelines and protocols for file
organization and documentation practices. Implement a digital document
management system to streamline access, retrieval, and storage of customer
information. Conduct regular audits to ensure adherence to file management
standards and identify areas for improvement.
 Resource Allocation: Conduct a thorough assessment of resource needs based
on current customer demand and projected growth. Allocate sufficient
computers, furniture, and other equipment to meet the operational
requirements of the branch. Implement a system for regular maintenance and
upgrades of technology and infrastructure to ensure optimal performance.
 Communication Skills: Implement communication skills training programs
for employees to improve their ability to interact effectively with customers,
build rapport, and address their needs clearly and concisely.

By implementing these recommendations, the Teqwa Interest-Free Branch of the

Commercial Bank of Ethiopia can significantly improve customer satisfaction,
enhance operational efficiency, and strengthen its competitive position in the banking
sector. Addressing the identified challenges and adopting a customer-centric approach
will contribute to the long-term success and sustainability of the branch.

Reference

 The website of the organization: www.combank.et,

http://www.CBEservice/PROD/BrowserService/.
 The interview: information from the employers of the organization.
 Direct interview with the branch manager.
 The revised procedure of CBE.
 The daily and weekly activities.
 Feedback from customers.