Electronic banking and financial performance of commercial banks in Uganda :

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.