Impacts of E-banking and Financial Performance of Financial Institutions in Uganda
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Date
2024-05-23
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Uganda Christian University
Abstract
The study was about the effects of E-banking and financial performance of centenary bank, Soroti
branch, Uganda. The study was based on the following objectives; to find out the methods of EBanking
of centenary bank Soroti branch, to establish the level of performance of centenary bank
Soroti branch, and to determine the relationship between the method of E-banking and the level of
performance of centenary bank Soroti branch. A sample of 80 respondents both female and male
employees and customer were selected for this study. The study employed a cross-sectional
research design and methodology used was both qualitative and quantative. Questionnaires and
documentary review were the major tools of data collection. In honor of the methods of E-banking
of centenary bank Soroti branch, the majority of respondents, strongly believed that there are
different methods of E-banking like the use of ATM cards, mobile banking, internet banking,
electronic funds transfer etc. In regards to level of performance of centenary bank, Soroti branch,
it was revealed that the bank has a big number of customers, big customer deposits. In repute to
relationship between e-banking and the level performance of centenary bank, Soroti branch, it was
revealed that e-banking enables the bank to raise money in larger amounts to get profits, the bank
developed and exploited new opportunities of electronic banking that provide more income for the
bank. It was recommended that the banks management should understand risks associated with ebanking
services and evaluate the resulting risk management costs against the potential return on
investments prior to offering e-banking services, bank should ensure its e-banking infrastructure
contain sufficient capacity to ensure reliable service availability, bank should carefully consider
the customer expectations and potential impact of service disruptions on customer satisfaction and
loyalty. Descriptive data analysis was used to analyze data obtained from the field. The researcher
found out that Majority of respondents saw the following as the major E-banking method. ATM
57.5(82.5%), Online internet 22.5(62.5%), mobile banking 25(75%), Tele-banking 52.5(75%),
Electronic funds 42.5(67.5%) the firms performance and the respondents also saw the following
as the level of financial performance. Liquidity ratio 50(75%), profitability ratio 40(52.5%),
solvency ratio 50(62.5%), efficiency ratio 50(60%), leverage ratio 42(57.5%). The study though
had some shortcomings like inadequate funds for collecting data from the field, inadequate
information from the respondents since managers were not willing to reveal their secrets out
however despite the shortcomings the research was a success.