The effect of mobile banking on financial performance of banking institutions: a case study of Equity Bank (u) Limited Jinja Branch

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Kampala International University, College of Economics & management.
This study focused on establishing the effect of mobile banking on financial performance of banking institutions in reference to Equity Bank (U) Limited, Jinja branch. This study specifically seeks to establish the mobile banking systems adopted by Equity Bank, to examine the extent to which mobile banking influence the financial performance of Equity Bank and to analyze the relationship between mobile banking and financial performance of Equity Bank, Jinja branch. This study used a descriptive research design. The target population for this study comprised of 40 employees in the finance, loans, Administration and Operations department. A sample size of 36 respondents was selected by purposive sampling based on Krejcie and Morgan’s sample table. Questionnaires were the main data collection instrument used. The collected data were processed manually. The processing stage involved editing, classification, coding, transcription and tabulation. These results were presented in frequency tables, bar graphs and charts. The findings indicated that the bank the following mobile banking services; Funds transfer from bank account to Mobile Money Accounts, payment of bills using mobile phone, Cash deposits and withdrawals, Bank statement request, checking cheque deposit status, ordering cheque book and balance enquiry as evidenced by the majority of the respondents. The finding also revealed that mobile banking services provide crucial banking services to bank clients thus increasing the bank’s sales revenue, the bank has been able to increase on its profitability because of adaptation of mobile banking services, mobile banking service help the bank management to reduce unnecessary cost associated with paper work. The study also revealed that mobile banking has a positively relationship with the bank’s Returns on Equity and Returns on Assets. The study concluded that mobile banking services have a significant effect on financial performance of Equity Bank Jinja branch. The study recommends that the policy makers take mobile banking awareness creation into consideration when drafting policies on the operations of banks in Uganda. The study also recommends that policy makers keep a keen eye on the developments of mobile banking as it is a new platform for competition among commercial banks as the world moves into a digital age to ensure it does not lose its regulatory role.
A dissertation submitted to the School of Business and Management Studies in partial fulfillment for the requirements for the Award of a Bachelor’s Degree in Business Administration of Kampala International University
Mobile Banking, Financial Performance