Adoption of online banking in commercial banks in Uganda; case of Centenary Bank.

Abstract

This study aimed at examining online banking adoption in commercial banks reference to centenary bank Uganda. The study was premised on three objectives: to examine the factors that influence online banking in Uganda, to analyze the challenges that affect online adoption in the banking industry of Uganda and to assess the strategies that can be used to increase online banking uptake in Uganda. The study employed a cross-sectional and descriptive research with a quantitative study approach which involved collecting numerical data from 174 respondents out of a sample of 201 centenary bank customers, using a survey questionnaire. Data were analyzed using the statistical package for social science (SSPS Version 23). On the factors influencing online banking adoption, the study identified improving customers' job performance, online banking being ease to, online banking providing helpful guidance in performing a task or transaction, being easier to become skillful at using online banking as indicated, being convenient, faster and time saving in making transaction and that online banking helping in accessing e-government services, which makes it easier for customers to do their job. Among the challenges, affecting online banking adoption at Centenary Bank Uganda, study identified through a questionnaire survey, poor network connection, fear by the bank customers that they might tap the wrong information while using online banking for example e-payments, fear of electronic fraud while using online banking and that the new technology is too complicated making some customers to ignore online banking. Therefore, the study recommends that commercial banks to improve on security through regulatory technology to control online fraud, that commercial banks increasing privacy when customers are using online baking platforms and that commercial banks sensitize their customers regularly about the advantages of online banking. Furthermore, the study recommends that commercial banks extend their internet infrastructure to other parts of the country in order increase online banking adoption and that commercial banks motivate their customers with incentives so that they can adopt online banking.