Assessment of the Effectiveness of Mobile Banking Adoption within Commercial Banks in Uganda: A Case Study of Bank of Africa

Abstract

Mobile banking involves extension of banking services using handheld devices such as mobile phones and others. It is a relatively new technology which is being adopted at an increasingly high rate. With the advancement of mobile technology, banking users can conduct banking services at any place at any time. Understanding the various factors that contribute to a user's intention to use mobile banking is vital. The objective of this study was to determine the effectiveness of the use of mobile banking services in Uganda, the encountered challenges in its use and strategies that can be adopted to overcome these challenges. Primary Data was obtained from 115 respondents. This sample was obtained from a population of 400 employees at Bank of Africa. The researcher employed the Questionnaire method as it was cost effective and respondents felt that their privacy was assured as they didn’t write their names on the Questionnaires. Findings obtained from the study revealed that mobile banking adoption within Commercial banks in Uganda is still ineffective. Whereas most respondents agree that mobile banking has offered more convenient means of banking for the un-banked and customers who reside in areas that are far from bank branches, its spread in Uganda has not been as it would have been hoped. Majority of respondents do feel that banks offer services that are compatible with their lifestyles, requirements and beliefs though there is a significant number of respondents who disagreed with this notion.