Effect of Digital Services on the Financial Performance of Commercial Banks in Uganda a Case of Barclays Bank

Abstract

The study set out to establish the effect of digital services on the financial performance of commercial banks in Uganda, a case of Barclays Bank. The specific objectives of the study were, to establish the effect of internet banking on financial performance of Barclays bank in Uganda, Investigate the effect of mobile banking on financial performance of Barclays bank in Uganda and to establish the effect of Automated Teller Machine services on financial performance of Barclays bank in Uganda. The study took a case study design with a focus on Barclays Bank as the case study. A quantitative approach was adopted for this research. The study adopted correlation and cross-sectional surveys using a sample of 108 respondents. Quantitative data was collected and analyzed using descriptive statistics and correlation.

The results revealed that Internet banking, Mobile banking and Automated Teller Machines combined have a significant positive relationship with financial performance. This implies that commercial banks would massively benefit from use of these digital services. In view of these findings, it was concluded that there was significant statistical (positive) relationship between the low transaction costs of digital services like Internet banking, Mobile banking and Automated Teller Machines and financial performance. This implied that decrease on the transactional costs these services leads to improved financial performance among commercial banks in Uganda. Finally the researcher made recommendations that commercial banks need to re-visit the Automated Teller Machines to increase functionality like payment of bills, buy airtime among others. More to this, the bank needs to improve the internet banking platform to make it more robust to serve customers better and also encourage staff to sale the mobile banking platform more aggressively to increase the benefits.

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