Analysing the effectiveness of internet banking in Uganda. A case study of Bank of India

Abstract

The aim of this study was to analyze the effectiveness of internet banking in Ugandan commercial banks with reference to Bank of India Uganda Limited. The study sought to examine the application of internet banking to commercial banks in Uganda, identify the challenges of internet banking in commercial banks and suggests ways through commercial banks can improve internet banking. The research adopted a a cross-sectional survey and descriptive research design which is best suited for a single point of data collection for each participant, it was cheap to undertake and the results were inferred to the larger population and thus met the objectives of the study. The study used a sample size of 136 respondents from a target population of 180 customers and staff of Bank of India Uganda Limited through simple random and convenience sampling. Data was collected from the primary sources which comprised of the questionnaires administered to the respondents. The data was analysed using descriptive analysis using means and standard deviations to test the effectiveness of internet banking in commercial banks The study established that bank customers use internet banking to pay utility bills, make deposits, enables customers to withdraw without coming to the bank. Internet is also used to transfer funds from one account to another and also enables customers to check their account balances and obtain bank statements. However, customers do not know how to use or the benefits of internet banking, Customers fear using the internet banking due to fear of fraud. Above all Inadequate training of bank staff on the use of internet banking, poor Internet connection slows and resistance to change by customers and not forgetting Internet banking is susceptible to hacking causing financial loss to the bank. It is also recommended that commercial banks should educate customers on benefits of internet banking to increase customer confidence, provide training for bank employees on internet banking to improve service delivery, provide learning systems and provide Internet training for the customers. The study also recommended that Commercial bank should enhance security of their systems to in still confidence in customers.