The study evaluates the adoption and development of E-banking technology in the Ethiopianrnbanking industry. Population of the study consist all 19 commercial banks that have operatedrnin 2015. The study was conducted based on the data gathered from six private commercialrnbanks in Ethiopia. Purposive sampling method was employed to draw the sample from thernpopulation. A mixed research approach was employed to answer the research questions thatrnemerge through the review of existing literature and the experiences of the researcher inrnrespect of the E-banking technology in Ethiopia. The study statistically analyzed datarnobtained from the survey questionnaire. A research framework developed based onrntechnology-organization-environment framework to guide the study. The result of the studyrnindicated that, the major challenges Ethiopian banking industry faces in the adoption andrndevelopment of E-banking technology are, high cost of implementation of E-banking, lack ofrncustomer awareness, limitation in network infrastructure and internet related supportrnservices, low levels of computer literacy, low level of ICT infrastructure, lack of sufficientrngovernment support, legal and regulatory differences with cross-country security risk andrnlack of trust. The study identified operational and services benefits from adopting andrndeveloping of E-banking technology such as increase productivity, reduces paper work,rnreduce transaction cost, generate foreign currency, increase reliability and reducing errorsrnas operational benefits and facilitate development of new products, facilitates marketing andrnmarket access, improve customer service, reduce long queues in banking halls, increasernaccessibility of the bank services, create good relation among banks and clients andrnencourages price transparency as services benefits. Among the different driving forces thatrninitiate Ethiopian banks to adopt and extend E-banking technology: desire to improvernperformance, desire to improve the relationship with customers, rapidly changing customersâ€™rnneeds and preferences, desire to improve organizational performance, desire to cover widerngeographical area, desire to build organizational reputation and desire to reducerntransaction cost are among others. The study also indicated existing opportunities for E-rnbanking adoption and growth such as improvement in the banking habit of the society, laternadoption of E-banking, commitment of the government to facilitate the expansion of ICTrninfrastructure and commitment of the government to strengthen the banking industry. Thernstudy recommended banks to facilitate proper and continuous training for their employees,rnincreasing security for E-banking products, create deep awareness about E-bankingrntechnology to the community while the government should support banking sector byrnfacilitating sufficient ICT infrastructure development and issue clear and workable legalrnframeworks to ease the adoption and growth of E-banking Technology in Ethiopia.rnKeywords: - Banking industry, E-banking, Adoption and development of E-bankingrntechnology