Electronic Banking Systems and Financial Performance of Selected Commercial Banks in Uganda

ABSTRACT This study titled electronic banking system and financial performance in selected commercial banks in Uganda was guided by four research objectives that were oriented Lowards determining the respondents profile in terms of gender, age, level of education, iepartment, type of employment and length of service, the degree of effectiveness of electronic banking system in selected commercial banks in Uganda, the level of financial Derformance of selected commercial banks in Uganda and the relationship between electronic banking system and financial performance in selected commercial banks in Jganda. the study was guided by descriptive correlation research design, purposive and ;tratified sampling techniques were used to obtain 120 respondents from selected :ommercial banks and a closed ended questionnaire with rating score ranging from strongly agree (4), agree (3), Disagree (2) and strongly disagree (1) was used to gather Drimary data from the respondents. Data analysis on demographic characteristics of respondents computed in frequencies ~nd percentages revealed that 6O.8% were males and 39.2% were females. Regarding evel of education majority that is 56% were bachelor holders and30.3% were masters iolders. The degree of effectiveness of electronic banking systems in selected commercial )anks of Uganda is high with the total average mean of 3.45 which is equivalent to ;trongly agree on the answer scale indicating that they are highly electrified and this ~xpIains why they are performing well in this high competitive business environment in Jganda. The level of the bank’s financial performance was ranked high considering the :otal average mean of 3.27 rhe researcher therefore recommends that anti skimmer devices should be fitted into :he system to prevent hackers from tapping the confidential information of the bank rnd its clients. If done well, and implemented with vigilance high fraud rates experienced by commercial banks in Uganda will maximally reduce.

 TABLE OF CONTENTS

Chapter Page

ONE

THE PROBLEM AND ITS SCOPE 1

Background of the study 1

Problem statement 3

Purpose of the study 3

General objectives 4

Research questions 4

Hypothesis 4

Scope of the study 4

Significance of the study 5

Operational definitions of key terms 6

TWO

REVIEW OF RELATED LITERATURE 7

Concepts, opinions, ideas from authors/experts 7

Theoretical perspectives 10

Related studies 12

THREE

METHODOLOGY 16

Research Design 16

Research Population 16

Sample size 17

ix

Sampling procedure 17

Research Instrument 17

Validity and reliability of instrument 18

Data gathering procedures - 18

Data analysIs 19

Ethical consIderations 19

Umltatlons of the study 20

FOUR

PRESENTATION, ANALYSIS AND INTERPRITATION OF DATA 21

Profile of the Respondents 21

Description of the Extent of Electronic Banking Systems In Selected

Commercial Banks In Uganda 22

Description of the Level of Flnandal Performance in Selected Commerdal

Banks in Uganda 25

The RelatIonship between Electronic Banking Systems and Financial

Performance In Selected Commercial Banks In Uganda 27

FIVE

FINDINGS, CONCLUSIONS AND RECOMMENDATIoNS 30

Findings - 30

Condusions 31

Recommendations 32

References 34

Appendices

Appendix II Informed Consent 37

Appendix III : Research Instrument 38

Attachments

Introductory Letter

Confirmation Letters from Selected Commercial Banks.

Researcher’s Curriculum Vitae.