ABSTRACT

The main purpose of the study is to establish the effect of mobile banking on the financial performance of commercial banks in Uganda and the Specific objectives of the study were to determine the effect of fund transfer on the financial performance of Equity bank Hoima branch ,to examine effect of bill payment on the financial performance of Equity bank Hoima branch and to establish the effect of account inquiry on the performance of Equity bank Hoima branch. The findings of the study revealed that fund transfer improves financial performance by 93% basing from the average index of 4.65. and it was revealed that the charges on fund transfer are not favourable,The findings of the study also showed that bill payment improves financial performance of financial institutions by 67% basing from the average index of 3.34. Furhermore, the findings show that inquiry improves the financial performance of by 78% basing from the average index of 3.89 except that 90.4% revealed that inquiry charges are high. Financial institutions should reduce on the transfer charges in order to encourage customers to increase on the rate of transferring funds since 80% of the respondents revealed that fund transfer charges are not favorable and cheap, customers should be encouraged to pay their bills using mobile services as it is cheap and convenient as 80 % revealed that it is convenient for customers and the bank and that financial institutions should reduce the inquiry charges as it was revealed inquiry charges are high since 90% of the respondents revealed inquiry charges are high.