ABSTRACT

The research repo1i is about e-banking and financial performance of commercial banks in Uganda, with a case study of bank of Africa Kabalagala branch. Its objectives were to examine the different types of e-banking used by Bank of Africa Kabalagala branch; to examine the effect of internet banking on the financial performance of commercial banks with a case study of Bank of Africa, Kabalagala branch; and to establish the relationship between internet-banking and financial performance of commercial banks with a case study of Bank of Africa, Kabalagala branch. The researcher used a cross sectional survey design basing on the use of qualitative and quantitative approaches that were adopted to establish the effect of e-banking and financial performance of commercial banks in Uganda. The sample size that was selected was a total of 67 respondents. The findings of the study showed the difference between adopters and non-adopters of Ebanking with respect to demographic factors such as age, income, education, marital status, occupation status, and gender; and with respect to their perceptions towards E-banking such as relative advantage, complexity, perceived risk, and perceived cost of E-banking, and determining the factors influencing the probability of adopting E-banking. It is concluded that there is a significant difference between adopters and non-adopters of Ebanking with respect to four demographic factors including age, income, education, and occupation; while there is no significant difference between adopters and non-adopters of Ebanking with respect to the demographic factors of marital status and gender. After a review of the findings and conclusion, it is recommended that the bank should endeavor to minimize the costs associated with E-banking. It should not charge fees for similar banking services that are free-of-charge in the physical world. It was also recommended that the bank should therefore install security features such as encryption devices, which safeguard sensitive customer infonnation. Finally, the bank should therefore aim to make its E-banking services as simple and easy to use as possible so that customers do not perceive them as being complicated or difficult to use.