Digital transformation and financial outcomes: an empirical analysis of electronic banking systems' impact on the profitability, operational efficiency, and market competitiveness of commercial banks in Uganda, a case study of United Bank of Africa

Abstract

This study investigates the influence of electronic banking (e-banking) on the performance of United Bank of Africa (UBA) in Uganda. Using a mixed-methods approach with survey data from 150 participants and secondary sources, the research measured banking performance through metrics like efficiency, profitability, and customer acquisition against the use of specific e-banking services (ATMs, mobile, internet, PC banking, and electronic cards). Findings indicate widespread customer adoption of e-banking, with ATMs being the most prevalent (16.4%). Regression analysis revealed a significant positive relationship between internet banking and profitability (F=0.921, p<0.01). While a weak negative correlation was found between e-banking and customer satisfaction (-0.274), this relationship was statistically significant (p=0.003). The study concludes by recommending that financial institutions enhance network reliability, introduce innovative e-banking products, and improve user experience to bolster customer satisfaction and performance.