Information communication technology in inception; an aid to banking industry development in Uganda

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Date
2009-10
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Publisher
Kampala International University, School of Computing and Information Technology
Abstract
This project is a comprehensive evaluation of the response of Uganda banks to the adoption of Information Communication Technology (ICT). It’s focuses on how the banking industry in Uganda has applied ICT to improve on their oparations; and the future application of ICT to meet new technology innovations in the banking industry.Three categories of variables relating to the adoption and implementation of information communication technology devices were used for this study. These include the nature and degree of adoption of innovative technologies; benefits and barriers for ICT adoption; and the impact of the ICT development on banks operation. The study covered 15 Banks out of 20 registerd banks in Uganda as at the end of 2008. A total of 30 questionnaires returned out of 34 which were administered to the selected bank employees, including Head of IT and Marketing departments of the 15 responding banks. Out of these, 86% were respectively retrieved. In addition to questionnaires the researchers personal previous and current observation was used for primary data collection .Data collected through questionnaire where analyzed quantitavely using SPSS. From the researchers observation and the results of the study, it was discoverd that Uganda Banking Industry has a high uptake of computers use, and a high application rate of the internet, LAN and Intranet and many banks apply security measures like firewalls and encryption systems to secure data. It was further discovered that ICT represents great potential for business process reengineering of Uganda Banks as it has improved banking services, facilitated accurate records, provides for home and office Banking services, ensures convenient business hour, prompt and fair attention, and enhances faster services. However, lack of IT specialist, innexpirienced customers and huge investment was found to be the biggest obstacle to ICT development in Uganda Banking Industry. The adoption of ICT improves the banks’ image and leads to a wider, faster and more efficient market. With the development of technology, alternative delivery mechanism such as ATM and others becomes available. Indeed, ICT is an enabler, but without sufficient capabilities of the human workforce to use it efficiently, the costly investments become ineffective, It therefore recommended that Banking Industry should support training and skills development among bank staff and customers by arranging training courses or facilitate networks for exchange of best practice so as to implement new ICT innovation in Uganda Banking Industry.
Description
A thesis submitted to the school of Post Graduate Studies in partial fulfillment of the requirement for the Award of a Degree of Masters in Science of Information Systems of Kampala International University
Keywords
Banks, ICT, Uganda
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