Factors affecting the adoption of online banking among customers in Kampala, Uganda.
Amaal, Sharon Hilda
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Abstract The advancement of technology has greatly impacted the nature of businesses pushing most from the traditional brick and wall to a virtual market. The Covid 19 strains in the past year have also immensely cut of human physical contact and spanned the conventional monetary exchange to a cashless platform. However, surveys still register that several Ugandans access bank services at the banking hall instead of using the internet that has been termed as more convenient, easy to use and widely accessible. This study therefore aims at providing a deeper understanding of factors that contribute to the adoption of online banking in Kampala, Uganda. More specifically, the study explores perceived risk, perceived ease of use, perceived usefulness mediated by customer satisfaction as the contributing factors and delves into The study adopted technology adoption models such as the Technology diffusion model (TDM), Technology adoption model (TAM), and the Unified Technology Acceptance and Use of Technology (UTAUT) to produce results. A cross sectional research design was employed to achieve the study aims and objectives together with a quantitative approach that used a survey questionnaire to collect data from 300 respondents. The target population actively banked with either Standard chartered, Centenary or Stanbic banks. Descriptive and inferential statistics were analysed through the SPSS V. 23 software and interpreted through tables. The results revealed that perceived ease of use and perceived usefulness positively affected adoption of mobile banking. However, the increase in perceived risks was found to not necessarily lead to a decline in the levels of adoption. Customers are therefore willing to commence and continue use of mobile banking if they perceive it to be useful and/or easy to use. However, they become skeptical if the perceived risks surpass any advantages. Financial institutions should therefore design online applications that are user friendly, offer more services and extend a form of privacy and security to the bankers if they are to increase the number of bankers using their online platforms. Key words: Mobile banking, Adoption, Kampala, Uganda, Perceived risks, Perceived ease of use, Perceived usefulness, Customer satisfaction, TAM, UTAUT, TDM, Standard chartered bank, Stanbic bank, Centenary Rural Development Bank.