The impact of electronic banking on financial performance of commercial banks in Masaka municipality:
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Date
2018-08
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
Electronic banking has brought about a revolution in the functioning of banks as it offers major opportunities to banks and their customers. This has made the transition to electronic banking a necessity for banks in order to be viable. Despite its benefits, developing countries still lag behind in the adoption of electronic banking. This study was carried out to assess the effect of electronic banking on financial performance of commercial banks in Masaka Municipality a case study of DFCU Bank Masaka Branch.
The objectives of the study were to determine the extent of e-banking adoption by commercial banks in Masaka Municipality, to establish the effect of e-banking on financial performance of commercial banks in Masaka Municipality and to establish relationship between e-banking and financial performance of commercial banks in Masaka Municipality.
Data was collected using questionnaires, and interview guide and it was later analyzed to be presented as a report. In the findings it was established that Electronic banking systems like ATM, mobile telephone banking and internet banking have a great impact on bank performance because they increase profitability, reduce bank cost of operations, and increase earnings of the bank, increase asset quality and capital adequacy of the bank.
In conclusion, it was recommended that the bank should establish ATM in different locations and constantly service them, keep on upgrading the system, work with internet service providers to ensure reliable connections and services provided and ensure constant power back up to solve the problem of power interruptions and service delivery.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelors Degree of Science in Statistics of Kampala International University
Keywords
Electronic banking, Financial performance, Commercial banks, Masaka municipality, DFCU bank Masaka branch