Factors affecting the use of e-banking in Uganda’s financial sector: a case study of Stanbic Bank (Nateete Branch)

Abstract

The main objective of the study was to investigate the factors affecting internet banking usage in Uganda’s financial sector with the specific objective as establishing relationship between internet banking adoption and individual characteristics the impact of internet banking usage determining factors such as cost, awareness, easiness, security and convenience on the internet banking usage and to explore the main factors that lead to adoption to internet banking and the associated challenges in Uganda’s financial sector. The study employed across sectional descriptive survey research design in order to determine the status of the customers and their feel on the internet banking services offered by Stanbic bank. The study utilized simple random sampling to select bank customers into the sample. The sampling frame taken for current research, are the customers who hold specific accounts with Stanbic bank. The finding revealed that the majority of the respondents (59.38%) were males whereas (40.63%) of them were females which is an indication that both males and females were nearly equally represented in the sample size of this research of which their mean age is 30.76042 and the standard deviation is 8.915681. 30.21% of the respondent attended secondary and below while 69.79% attended above secondary education. Most of the respondents live in urban areas (93.75%) while 6.25% live in rural areas. And basing on occupation, those who work were 73.96 and those who don’t work were 26.04%. The most channel of electronic banking being used was ATM (40.28%), followed by mobile (33.33%) and the least use internet (26.39%). The logistic regression results revealed that while the challenge for banks is to lower costs and to increase efficiency, lower costs are associated with higher usage rates of internet banking and thus there is need to now turn attention improving the quality of internet banking to make it not only accessible but also affordable to allow both town and village contemporaries to access the internet services for diversification. Also the longer the years spent in the bank, the higher the use of electronic banking while those who work are more likely to use electronic banking.