Electronic Banking Service Quality,E-Banking Usageand Performance Of Financial Institutions In Uganda. A Case Study Of UBA

Abstract

The purpose of the study was to investigate the effects of e-banking service quality, e-banking usage on performance of financial institutions in Uganda, a case study of UBA. The study objectives were to determine the effects of e-banking service quality on Performance of financial institutions in Uganda, a case study of UBA. Secondly to determine the effects of e-banking usage on performance of financial institutions in Uganda, a case study of UBA Thirdly to study the factor structure of e-banking service quality, e-banking usage and Performance of financial institutions, a case study of UBA, the data was quantitatively attained from 332 quantitative respondents and 10 respondents for interviews. The findings on the first objective show that electronic banking service quality had statistically significant moderate significant moderate relationship with performance of financial institutions of 32.3% of the variation performance of UBA bank with 57.774, p < 0.01. Secondly the study findings indicate that e-banking usage accounted for extra 38.042 % of the variation in performance of the bank with F change of 38.042 p < 0.01 a significant increase. Thirdly the study concludes that e-banking service quality in UBA was fully structured based on security, privacy, responsiveness, efficient and Fulfillment and reliability. This was because the factors structure analysis retained all the factors. E-banking usage was fully structured by usage of electronic cards, use of internet banking, e-Payments and electronic funds transfer while use of mobile banking didn’t fully structure e-banking usage. The study further concludes that UBA bank can enhance its performance through improving its electronic banking service quality of their banking system. The general layout of the situation in the banking sector performance is generative of their performance excellence which is resonating to the performance of the bank. Secondly it’s concluded that should e-banking usage in UBA be increased in usage, the financial institutions in Uganda are deemed to perform well to moderate terms. The e banking usages need to be a point of emphasis and concentration by the financial institutions in order to generate coherence in the banking sector performance and Excellency. Thirdly findings indicate that performance of financial institutions performance was structured on profitability, sales revenue and return on assets while return on equity didn’t fully structure the financial institutions performance. The study recommends that its advisable for commercial banks to ensure that their systems are up to the required standards as well as being competitive enough to seamlessly support internet banking. Advocacy amongst the bank customers on the essence of internet banking should be conducted with the view of increasing its adoption. Secondly financial institutions should promote e-banking workshops and training to their customers to make them user-friendly. This will encourage many clients to buy e-banking products. Some e- banking services like Internet banking, EFTs, e-payments are not user- friendly for ICT beginners. Thirdly electronic banking should be employed by banks through proper management policies since it has shown that it cuts down the operational and labour costs that are unnecessary to the banks. Paper works are also minimized and the efficiency and profit levels are improved.