This study was to examine the effect of banking innovation case study on customers ofrncommercial bank of Ethiopia in south Addis Ababa district. The study tests five dimensions ofrninnovation which is product, marketing, service, technological and process innovations whetherrnthere is a relationship on customer satisfaction in CBE. Five research hypotheses arernconstructed in the literature review. This study was intended to examine the effect of bankingrninnovation on customersâ€™ customer satisfaction in Commercial Bank of Ethiopia. Particularly, itrnwas focused on examining the effect of banking innovation in creating customersâ€™ satisfaction inrnterms of five dimensions: namely product, marketing, service, technological and processrninnovation. Both descriptive and explanatory designs with quantitative approach were employed.rnData were collected using five point scale self-administered questionnaire from 366 customersrnthat were sampled across 10 branches of CBE supervised under south Addis Ababa districts.rnAfter all appropriate statistical assumptions were checked and confirmed data were analyzedrnthrough descriptive and inferential statistical tools by the help of SPSS version 20. According tornthe data, about 66% of the variation in customersâ€™ satisfaction can be explained by therndimensions of banking innovation. Result also shows that three of proposed dimensions ofrnbanking innovation namely(product, marketing and technological innovation),has a positiverneffect on customer satisfaction and service innovation found to have negative effect on customerrnsatisfaction, however process innovation found to have statistically insignificant to analyze.rnFinally, it is recommended that as the management of CBE who desire to improve on customerrnsatisfaction should invest much of the companyâ€™s resources into product innovation, marketingrninnovation and technological innovation