ABSIRACT

This study was set to establish the effect of bank automation on the financial performance of commercial banks in Uganda. A case study of Stanbic bank Nakivubo branch, Kampala. The purpose of the study was to examine the various bank automation tools used by commercial banks, to examine the financial performance of commercial banks and to assess the relationship between hank automation and the financial performance of commercial banks in Uganda. The study covered the period 0/five months between February to June. The study was carried using descriptive research method. From the estimated sample size of 30 respondents, 25 were selected using a simple random sampling method. The study used qualitative and quantitative techniques to analyze the data collected, data analysis was done through transforming information got to a more representative way, simple frequency tables, percentages and graphs were employed to facilitate analysis. To establish the relationship between the variables, the researcher employed Pearson ‘s correlation coefficient to determine the strength of the relationship between the variables and make a Judgment about the research hypotheses. The computations were made using SPSS software. The findings show that bank automation has greatly improved the financial performance qf the SBU The study recommended More AIMs should be established in all sub towns throughout the country so as to increase accessibility of bank services and attract more customers to the bank. More money should be dispensed through the ATM so as to enable more daily transactions, training sessions should he arranged to enable ignorant customers learn the application of automated banking tools, as on many occasions the system break down comes as a result of wrong entries made by customers while using automated machines.