Abstract:
This study intended to find out the effect of Electronic banking on financial performance of
commercial banks in Uganda, particularly Centenary bank Tororo branch. Electronic
Banking was viewed in three dimensional constructs consisting of Mobile Banking, Agency
Banking and ATM Banking. Financial Performance on the other hand was viewed in terms
of Capital adequacy, Asset quality, Management quality, and Earning performance. The
study used cross sectional research design and quantitative approach. Data was collected
from 25 as a target population comprising of senior management, marketing officers and
clients. Data was collected using a closed end questionnaire and statistical package of social
science was used for analyzing data from which frequency tables, descriptive statistics,
reliability, validity, correlation and regression results were obtained. The findings of the
study revealed that there is a positive and significant effect between Mobile bankin; Agency
banking and ATM banking on financial performance. Therefore, the study, recommends that
in order for the commercial banks to improve on financial performance, the owner’s
particular Centenary bank Tororo branch should depend on appropriate reducition of capital
adequacy, and also awareness creation about electronic banking services to clients.
