Analysis of the adoption of digital banking services: a case study of Stanbic Bank Uganda

Abstract

The purpose of the study was to analyze the adoption of digital banking services, focusing on a case study of Stanbic Bank Uganda. The study was guided by objectives: To investigate the factors influencing the usage of digital banking services among customers of Stanbic Bank Uganda, To assess the level of customer satisfaction with the digital banking services provided by Stanbic Bank Uganda, To identify the challenges and barriers faced by customers in adopting digital banking services offered by Stanbic Bank Uganda, To provide recommendations for improving the adoption and usage of digital banking services by customers of Stanbic Bank Uganda. The theory that guided the study was the theory of acceptance model (TAM). A total of 481 questionnaires were availed to the respondent. 263 (55%) questionnaires were returned by respondents while 218 (55%) questionnaires were not returned. The study used a descriptive research design. Descriptive survey design was preferred because it allowed researchers to gather information, summarize, present, and interpret for the purpose of clarification. The study found out that the factors influencing the usage of digital banking services among customers of Stanbic Bank Uganda included security, regulatory clarity, ease of use, convenience, affordability, network stability, and speed of transactions. Furthermore, the study also highlighted the importance of perceived usefulness, ease of use, credibility, and customer attitude in internet banking adoption. The study revealed that factors such as transactional convenience, effectiveness, trust in online transaction security, and perceived usefulness, ease of use, credibility, and customer attitude contributed to customer satisfaction. The study identified several challenges and barriers faced by customers in adopting digital banking services at Stanbic Bank Uganda, such as network disruptions, lack of knowledge about electronic banking services, reliance on smartphones or computers for e-payment channels, cyber-security attacks, increased transaction costs, extended complaint resolution times, and physical security risks. The study also highlighted the importance of addressing technological, security, financial, and awareness-related dimensions to facilitate the seamless adoption of digital banking services. The study recommended that Stanbic Bank Uganda should provide constant awareness campaigns, ensure channel security, offer incentives like discounted pricing, maintain stable payment systems, and promote regular digital marketing campaigns.