An Examination of the Relevance of the Digitization of Banking for SMEs in Uganda
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The purpose of this study is to examine the relevance of the digitization of banking for SMEs in Uganda. The study was guided was guided by the following objectives; • Determine the significance of digital banking to the SMEs. • Establish the challenges SMEs face in using of digital banking services. • Establish how banks can attract SMEs to use digital banking. The research followed descriptive and cross sectional research designs that were quantitative in nature. The survey methods that were used allowed collection of primary data byuse of a questionnaire over a period of days in order to answer some research questions. A study population of 200 SMEs was used for this research was drawn from different banks. Basing on Krejcie and Morgan (1970), a sample of 132 respondents was from the population of SMEs. Simple random sampling method was used for the study. This method gave respondents equal chance to participate in the study. Findings revealed that more than 75% of the respondents use some form of digital banking. This is proof that digital banking is of significant importance to SMEs. Findings regarding the challenges of adoption of digital banking revealed that the technology is expensive which limits its use. Due to the challenges faced, SMEs continue to use the digital banking services alongside the ordinary banking practice of transacting inside bank premises. In order to increase adoption of digital banking, the respondents proposed increased sensitization of the public and provision of greater control over their accounts.