Evaluating service delivery technologies and strategies for strengthening the business of commercial banks in Kampala

Abstract

This study was based on evaluating service delivery technologies and strategies for strengthening the business of commercial banks and based on three objectives which were; to conduct a situational analysis of service delivery technologies used by commercial banks in Kampala, to establish the challenges of service delivery technologies faced by commercial banks in Kampala and to recommend strategies that can strengthen the service delivery technologies of commercial banks in Kampala.

The study adopted descriptive research design as the best design for evaluation of service delivery technologies. The reasons for choosing descriptive are that, the study is intended to describe the causes of increased customer complaints that are a result of delayed service delivery. The population study of 24 commercial banks was considered which gave the sample size of 19 commercial banks where 6 respondents were considered from each bank. The study was addressed on 114 respondents (57 males and 47 females). The questionnaires were distributed amongst employees at all headquarters of commercial banks in Kampala. They provided various opinions on the issue of service delivery technologies of commercial banks.

The study found out that service delivery technologies in the commercial banks are important for improving efficiency and effectiveness through the use of ATM, mobile banking, internet banking, electronic commerce and electronic banking. The challenge affecting service delivery technologies were greater risk , banks are susceptible to internal and external attacks, lack of knowledge of ICT solutions, inadequate ICT management knowledge, off-the shelf ICT systems are purchased without prior specification of the requirements of the specific banks where they will be used and the costs of establishing e-banking services are high. Varies strategies of improving the effective use of service delivery strategies were found to be effective hence leading to increased level of customer satisfaction. The study recommended that the financial institutions should continue offering low transaction rates within their Mobile networks and ensure deposits of the various customers are protected at all times. This would lure customers to adopt this as a culture thus ensuring the future sustainability of M-Banking.