The analysis on the effect of automation of bank services on the volume of over the counter transactions (2009-2018): a case study of Centenary Bank Uganda Limited
Abstract
The study was to analyse the effect of automation of bank services on the volume of over the
counter transactions the period 2009 to 2018. The study employed the graphical approach (scatter
plots and line graphs), correlation analysis and simple linear regression models. The line graphs
showed increasing trends of all the E-banking channels transaction rates (online transaction rate,
mobile banking and ATM service transaction rate). Mobile banking and use of automated teller
machines was established to be the widely used computerized channels. Mobile banking that was
introduced to the banking environment of Centenary Bank in 2013 also exhibited increasing usage
from 13.7% of the all transactions in 2013 to 24%. ATM service increased to 34% in 2018 from
19.7% in 2009 and also Online banking increased to 4% in 2018 from 0.9% in 2009. However, the
line graph showed decreasing trends of over the counter transaction rate from 79.4% in 2009 to
30% in 2018.
The correlation analysis proved a negative association (-0.9918) between the total amount of
transactions made via the automated channels and the volume of over the counter transactions. All
the scatter plots established a significant linear negative effect between over the counter
transactions rate and the automated banking channels (online banking transaction rate, mobile
banking transaction rate, ATM service transaction service rate) i.e. as automated/E-banking
transactions increases, over the counter reduces. Mobile banking, ATM service and Online
banking were significant predictors (P<0.05) of over the counter transaction rate. Mobile banking,
ATM service and Online banking had a significant linear negative effect on over the counter
transactions with negative slopes of -2.0365, -3.9896 and -17.5447 respectively.