Assessing the factors influencing the adoption of digital banking services in Uganda’s banking industry. A case study of Ecobank Uganda limited.

Abstract

Commercial banks play a primary role in the economic development of a country and this role can only be achieved if the banks are unwavering. The adoption of digital banking has therefore emerged as a way through which commercial banks can be able to improve their efficiency in operations which improves financial performance in the long run. Through digital banking, banks have improved their networks in areas of deposits, withdrawals, transfers, inquiries and other banking activities. This study attempted to assess the factors influencing the adoption of digital banking services at Ecobank in Uganda. The objectives of the study were; to examine the factors influencing the adoption of digital banking services, to assess the challenges being experienced in adopting digital banking services, to provide strategies that can be used to improve the adoption of digital banking services at Ecobank Uganda Limited.

The factors influencing the adoption of digital banking that were relevant to the study include customer awareness, trust, perceived usefulness and perceived ease of use. A cross sectional survey design was adopted and quantitative data was collected with the aid of the structured self-administered questionnaires from a sample of 434 customers from four branches of Ecobank using purposive sampling. Of these, 357 questionnaires were usable, giving an 82.3% response rate. Thereafter, data collected was captured and analyzed for descriptive statistics using SPSS.

The findings revealed that the above factors positively influence the adoption of digital banking service. However, the study revealed the challenges experienced in adopting digital banking services and strategies to overcome these challenges were provided.