Electronic banking and performance of commercial banks in Uganda: a case study of Centenary bank

Abstract

The general objective of the study was to assess the relationship between electronic banking and performance of commercial banks in Uganda with specific reference to Centenary Bank. The study was guided by the following objectives: to establish the relationship between Electronic funds transfer and the performance of Centenary Bank, to examine the relationship between telephone banking and the performance of Centenary Bank and to assess whether there is a relationship between internet banking and the performance of Centenary Bank. A case study research design was used. The study predominantly employed a quantitative approach but also used a qualitative approach. The study population consisted of 195 participants. A sample size of 161 respondents was selected using simple and purposive sampling techniques. Quantitative data analysis mainly consisted of descriptive statistics (percentages, mean and standard deviation) and inferential statistics (Pearson correlation coefficient and linear regression). Content analysis was used to analyze qualitative data. Findings revealed that there is a significant and positive relationship between E-funds transfer and performance of Centenary bank (r. value of .472**and significant value at 0.000). Secondly, there is a significant and positive relationship between telephone banking and performance of Centenary bank (r. value of .540**and significant value at 0.000). Lastly, the findings indicated that internet banking has a positive and significant relationship with performance of Centenary Bank (r. value of .539**and significant value at 0.000). It is concluded that there is a significant and positive relationship between electronic banking and performance of Centenary Bank. Thus, it is recommended that for purposes of promoting E-funds transfer towards performance, trust building among the customers should be a major concern for Centenary Bank while improving the usefulness of electronic banking. In order to achieve more with telephone banking on performance, it is imperative that Centenary Bank ensures that security and privacy are in place to monitor and evaluate the usage of the implemented technologies and on internet banking and performance of Centenary Bank, the bank needs to make sure that awareness about online banking is created in the public through massive advertisement on radios, televisions and newspapers.